How did Karooooo's revenue and expenses trend in Q3 2025 compared to previous quarters?

Karooooo's revenue and expenses in Q3 2025 showed strong growth and financial discipline, highlighting the company's robust operational performance and strategic focus.

1. **Revenue Trend**:
- **Q3 2025 Performance**: Karooooo delivered another strong quarter with total revenue of ZAR 1,159 million, marking a 15% increase year-on-year. Subscription revenue specifically increased by 14% to ZAR 1,032 million in Q3 2025 compared to the same period in the previous year.
- **Growth Drivers**: The growth was driven by solid customer acquisition, with net subscriber additions of 86,617, a 15% year-on-year increase. Cartrack, the operations management SaaS platform, contributed significantly to this growth, with South African subscribers increasing by 16% year-on-year, and substantial growth in Southeast Asia and Europe.
- **Regional Insights**: Southeast Asia's subscription revenue grew by 26% on a constant currency basis, and Europe experienced a 19% increase in subscribers. The company's investment in distribution and sales in Europe over the last few quarters is starting to yield exciting results.
2. **Expense Trend**:
- **Q3 2025 Performance**: Specific expense data for Q3 2025 is not available. However, the company's financial statements and earnings call transcripts indicate a disciplined approach to capital allocation and a strong balance sheet.
- **Financial Discipline**: Karooooo maintained a strong unit economics and robust operating margins, with a clean balance sheet and healthy cash generation. The company's focus on financial discipline is evident in its ability to generate healthy cash flow and maintain a rule of 60 financial profile.
3. **Comparative Analysis**: Without detailed quarter-over-quarter comparisons, it's challenging to assess the exact trend of expenses. However, the overall financial performance and strategic initiatives suggest that Karooooo has effectively managed its expenses to support growth while maintaining financial health.

In conclusion, Karooooo's revenue in Q3 2025 demonstrated robust growth, driven by strategic expansions and strong operational performance. The company's focus on financial discipline and strong balance sheet management indicates effective expense management, supporting its sustained growth and profitability.