South Africa's Karooooo Q3 SaaS ARR rises 28%

Karooooo

20/01/2026 21:44

Overview

South African telematics firm's Q3 SaaS ARR in USD grew 28% Y/Y to $298 mln

Cartrack subscription revenue increased 20% Y/Y to ZAR 1,236 mln

Company saw record net Cartrack subscriber additions, up 29% Y/Y

Outlook

Company expects ongoing investment in distribution capacity to create durable advantages

Karooooo remains committed to disciplined capital allocation and strong unit economics

Result Drivers

CUSTOMER EXPANSION - Significant customer expansion and increased adoption of Video and Cartrack Tag solutions drove ARR and subscriber growth

SUBSCRIBER GROWTH - Record net Cartrack subscriber additions, up 29% Y/Y, supported by accelerated growth strategy

GROWTH STRATEGY - Accelerated growth strategy involves upfront growth-related expenses with future revenue realization, supported by strong unit economics

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 SaaS ARR
ZAR 5.11 bln
Q3 Subscription Revenue
ZAR 1.24 bln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "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 28.2% above its January 16 closing price of $46.80

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release: ID:nBw4lG5C7a

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(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.)