Karooooo Ltd's 2025Q4 Earnings Call: Navigating Contradictions in Sales Hiring, ARPU Growth, and Share Buybacks

Sales hiring and execution plans, regional ARPU and customer expansion, sales hiring plans and execution, share buybacks and liquidity focus, and sales hiring and execution are the key contradictions discussed in Karooooo Ltd's latest 2025Q4 earnings call.



Revenue Growth and SaaS Platform Expansion:
- Karooooo Ltd. reported subscription revenue of ZAR1.86 billion for Q4 FY '25, up 16% year-on-year.
- This growth was driven by strong demand for Cartrack's operations management and Karooooo Logistics' delivery-as-a-service capabilities.

Cartrack's Financial Performance:
- Cartrack, Karooooo's operations management SaaS platform, generated ZAR4.1 billion in subscription revenue for FY '25, up 15% (19% on a US dollar basis).
- The financial performance was fueled by strong subscriber growth and healthy customer retention.

Regional Growth and Expansion:
- Southeast Asia contributed significantly to Group revenue with constant currency subscription revenue growth of 31% in Q4.
- This growth was attributed to increased sales and marketing efforts and the expansion of the distribution footprint in the region.

Innovation and Product Launches:
- Karooooo successfully launched Cartrack Tag, a next-generation wireless asset tag, extending the platform's capabilities in South Africa.
- The launch was well-received, indicating potential for further expansion and asset protection solutions.

Growth and Market Strategy for FY '26:
- Karooooo's guidance for FY '26 includes Cartrack subscription revenue growth of 16% to 21% and Karooooo's earnings per share of ZAR32.5 to ZAR35.5.
- The strategy focuses on expanding distribution, increasing platform adoption, and capitalizing on growing demand for video capabilities.