Karooooo Q1 profit rises on record Cartrack subscriber additions; keeps FY outlook

Karooooo

16/07/2026 06:30

Overview
The US- and South Africa-listed firm's fiscal Q1 subscription revenue rose 19% in ZAR terms and 32% in USD terms
Operational intelligence platform's Q1 adjusted EPS increased 11% yr/yr in ZAR terms
Singapore-headquartered company keeps FY 2027 outlook unchanged

Outlook
Karooooo sees FY 2027 EPS between ZAR 38.50 and ZAR 40.00, up 18%-23% from FY 2026
Company expects Cartrack FY 2027 subscription revenue of ZAR 5,700 mln to ZAR 6,000 mln, up 18%-24%
Karooooo expects Cartrack FY 2027 gross profit margin of 70%-72% and operating profit margin of 27%-30%

Result Drivers
SUBSCRIBER GROWTH - Record net Cartrack subscriber additions and 18% increase in total subscribers drove higher subscription revenue (Cartrack's revenue makes up the majority of group revenue)
LOGISTICS REVENUE - Karooooo Logistics delivery-as-a-service revenue rose 46% yr/yr, contributing to group growth
INVESTMENT IN GROWTH - Increased investment in IoT devices and working capital to support subscriber growth reduced free cash flow

Company press release: ID:nJseP0002a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Subscription Revenue
 
ZAR 1,354 mln ($84 mln)
 
Q1 Adjusted EPS
 
ZAR 9.53
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for Karooooo Ltd is $60.00, about 2.4% above its July 15 closing price of $58.58
The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 22 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)