What is the market's earnings forecast for Karooooo next quarter?

Did Karooooo beat or miss consensus estimates last quarter?

What guidance did Karooooo's management provide for the next earnings period?

What were the key takeaways from Karooooo's earnings call?

What is the revenue and EPS growth rate for Karooooo year over year?

What is Karooooo's latest dividend and current dividend yield?

What does Karooooo do and what are its main business segments?

What were the key takeaways from Karooooo’s earnings call?

- **ARR Growth Accelerates**: Q3 ARR up 22% to ZAR 5.1 billion / USD 298 million, with South Africa driving 21% subscription growth.
- **Record Subscriber Growth**: 111,000 net additions vs. 30% year-to-date increase in Southeast Asia, pushing total subscribers to 2.6 million.
- **Strong Unit Economics**: LTV:CAC >9x, 95% ARR retention, and 28% operating margin despite 47% sales expense increase.
- **South Africa Leadership**: ARPU +7%, video/Tag adoption early-stage but accelerating, with FY 2027 subscriber growth expectations raised.
- **Free Cash Flow Surge**: +37% YoY to ZAR 597 million, supporting disciplined capital allocation and dividend payout.

**【CEO & Management Opening Remarks】**
- Karooooo delivered Q3 FY 2026 results with ARR growth accelerating to 22% (ZAR 5.1 billion / USD 298 million), up from 20% in Q2 and 14% in Q3 FY 2025.
- Subscription revenue increased 20% to ZAR 1.2 billion, driven by 16% subscriber growth to 2.6 million and record net additions of 111,000.
- South Africa subscription revenue growth accelerated to 21%, up from 18% in Q2 and 14% in Q3 FY 2025, with ARPU increasing 7% year-over-year.
- Karooooo Logistics revenue grew 24% to ZAR 135 million, contributing to the company's Rule of 60 (subscription growth + EBITDA margin).

**【CFO Financial Commentary】**
- Total revenue grew 22% to ZAR 1.4 billion, with operating profit up 14% to ZAR 369 million.
- Free cash flow increased 37% year-to-date to ZAR 597 million, reflecting strong cash generation despite 47% increase in sales & marketing expenses.
- FY 2026 outlook revised: Cartrack subscription revenue now expected at ZAR 4.785-4.9 billion (18-21% growth vs. prior 16-21%), with operating margin 27-30%.
- Dividend of ZAR 38.6 million ($1.25/share) paid in August, with capital allocation prioritizing growth and unit economics (LTV:CAC >9x).

**【Q&A Highlights】**
- **Sales Expansion**: 70% of targeted headcount additions in Asia completed, with hiring concentrated in Q4 due to regional hiring patterns.
- **South Africa Momentum**: ARPU growth driven by video and Cartrack Tag adoption, with early-stage cross-selling in South Africa.
- **Market Demand**: Record net additions across all regions, with Europe (+24%) and Southeast Asia (+14%) outperforming expectations.
- **AI Video Penetration**: Strong adoption in South Africa, with plans to expand to other markets; competitive differentiation through data-driven insights.
- **Logistics Expansion**: Karooooo Logistics to leverage existing customer relationships for e-commerce enablement, with no immediate plans for driver network expansion outside South Africa.
- **Currency Impact**: ZAR strength creating translation headwinds, but underlying operational momentum remains strong.
- **Margin Management**: Short-term margin compression due to sales investments expected to reverse as recurring revenue scales.


Karooooo Ltd. (KARO) Q3 2026 Earnings Call Transcript

- **ARR Growth Acceleration**: 20% YoY to ZAR 4.8 billion, led by 27% Europe and 26% Southeast Asia expansion.
- **Profitability Strength**: 46% Cartrack EBITDA margin, 72% subscription gross margin, and 95% ARR retention.
- **AI & Sales Strategy**: Cautious AI adoption due to customer preference for human interaction; scaling sales teams to meet 10% video sales penetration target.
- **Cash Flow Resilience**: +44% YoY free cash flow to ZAR 358 million, supporting dividend payments and growth investments.

**【CEO Summary Section】**
- ARR grew 20% YoY to ZAR 4.8 billion (USD 272 million), driven by 27% Europe and 26% Southeast Asia growth.
- Subscription revenue reached ZAR 1.18 billion (98% of Cartrack revenue), with 15% subscriber growth to 2.5 million.
- LTV:CAC >9x, 95% ARR retention, and 72% subscription gross margin.
- South Africa ARPU target: +10% YoY, group-wide +6%.

**【CFO Financial Commentary】**
- Q2 operating profit rose 18% to ZAR 356 million, with Cartrack EBITDA margin 46%.
- Free cash flow increased 44% YoY to ZAR 358 million, supported by 31-day DSO.
- Net cash position ZAR 393 million, with $38.6 million dividend paid in August.

**【Q&A Key Highlights】**
- ARPU growth constrained by team capacity, with video sales at 10% of total.
- Gross margin stable at 72%, despite higher COGS for new hardware.
- AI adoption cautious due to customer preference for human interaction.
- FY26 focus: expanding sales teams, cross-selling video, and scaling Karooooo Logistics.

Karooooo Ltd. (KARO) Q2 2026 Earnings Call Transcript

- **ARR Growth Acceleration**: 18% YoY ARR (24% USD), with Cartrack subscription up 19% and Logistics revenue +20%.
- **Regional Momentum**: Southeast Asia subscriber growth 30%, Europe 22%, driven by 70% sales headcount expansion target.
- **ARPU Progress**: 2% Q1 ARPU increase, with potential for 10%+ growth as cross-selling scales.
- **Financial Strength**: 30% Cartrack margin, ZAR 338M free cash flow, and 9x LTV/CAC sustainability.

**【CEO Summary Section】**
- Karooooo's Q1 FY 2026 ARR grew 18% YoY (24% USD), driven by 19% subscription revenue growth in Cartrack and 20% expansion in Karooooo Logistics. South Africa contributed 70% of subscription revenue with 16% growth, while Southeast Asia and Europe saw 30% and 22% growth, respectively.
- Key metrics include 95% commercial ARR retention, 9x LTV/CAC, and 74% subscription gross margin. ARPU increased 2% (6% USD) due to video and tag cross-selling, though full 10% ARPU target may take longer.
- Southeast Asia is prioritized for expansion, with sales headcount set to rise 70% by Q1 2026, targeting 28% subscriber growth in the region.

**【CFO Financial Commentary】**
- Total subscription revenue reached ZAR 1.141 billion (18% YoY, 24% USD), with Cartrack contributing 98% and 30% operating profit margin. Free cash flow was ZAR 338 million, supported by 27-day debtor collection days.
- FY 2026 outlook reaffirms growth acceleration, with potential for 38% operating profit margin in a non-growth scenario, reflecting disciplined expense management.

**【Q&A Highlights】**
- **Subscriber Growth**: South Africa shows consistent commercial and consumer growth, while Southeast Asia expansion is driven by increased sales capacity.
- **ARPU & Cross-Selling**: Q1 ARPU uplift of 2% from video and tag sales; expects momentum to build, though 10% ARPU target may slip slightly.
- **Market Strategy**: Southeast Asia prioritized over Africa due to larger TAM; Cartrack tag adoption seen as a game-changer in South Africa.
- **Financial Flexibility**: Net cash of ZAR 1.103 billion supports disciplined capital allocation, with growth investments balanced against dividend returns.

Karooooo Ltd. (KARO) Q1 2026 Earnings Call Transcript

- **Revenue Acceleration**: Q4 subscription revenue +16%, FY '25 +15% driven by Cartrack's 17% subscriber growth and Logistics' 33% expansion.
- **Profitability Strength**: Q4 adjusted EPS +39%, operating margin 34%, free cash flow ZAR425M with net cash ZAR838M.
- **Innovation Impact**: Cartrack Tag launch boosts ARPU 10%, positioning for long-term growth in underserved markets.
- **FY '26 Growth Plan**: +16-21% Cartrack revenue target, 70% sales headcount expansion in Southeast Asia, disciplined capital allocation for durable growth.

**【Carmen Calisto: Business Overview】**
- **Cartrack Growth**: FY '25 subscription revenue grew 15% (19% USD), operating margin 31%. Q4 subscriber growth 17%, ARR acceleration 300bps to 17%.
- **Karooooo Logistics Expansion**: FY '25 revenue ZAR420M (+33%), targeting long-term growth through DaaS model. Europe Q4 growth 20%, Southeast Asia 31% (constant currency).
- **Product Innovation**: Launch of Cartrack Tag in South Africa, driving ARPU expansion and TAM extension.

**【Hoeshin Goy: Financial Highlights】**
- **Subscription Performance**: Q4 revenue ZAR1.86B (+16% YoY), FY '25 ZAR4.68B (+15% YoY). Cartrack EBITDA margin 48%, Rule of 60 maintained.
- **Profitability**: Q4 adjusted EPS ZAR9.48 (+39%), FY '25 ZAR31.67 (+33%). Free cash flow ZAR425M, net cash ZAR838M.
- **FY '26 Outlook**: Cartrack revenue ZAR4.7-4.9B (+16-21%), EPS ZAR32.5-35.5. Investment in sales (+70% in Southeast Asia) to drive growth.

**【Zak Calisto: Q&A Key Takeaways】**
- **ARPU Growth**: Target 10% ARPU expansion via camera and tag adoption, initial uptake in South Africa.
- **Hiring Strategy**: +1,500 hires in FY '26, focusing on sales in high-growth regions. Productivity lag expected in first 6 months.
- **Capital Allocation**: Prioritize organic growth, dividend potential if excess cash, cautious on buybacks due to low liquidity.
- **Regional Momentum**: South Africa 75% of subscribers, Southeast Asia 12%, Europe 9%. Tag rollout next to Asia post-Southern Africa success.


Karooooo Ltd. (KARO) Q4 2025 Earnings Call Transcript

- **Cartrack Dominance**: 15% YoY subscription growth, 30% operating margin, 95% retention. AI cameras reduce fatigue incidents by 32%.
- **Logistics Surge**: 38% YoY DaaS growth, 8% profit margin. Southeast Asia subscribers up 20% YoY.
- **Financial Strength**: Q3 adj. EPS +21% to ZAR 7.67, cash ZAR 856M. Rule of 60 with LTV:CAC >9.
- **Growth Engines**: 70% sales expansion in SEA, 50% in SA & Europe. New SA office supports 2.3M+ subscriber target.
- **Risk Mitigation**: 27-day DSO, unlevered balance sheet. Self-driving tech 2+ years away.

**【CEO & Carmen Calisto Opening Remarks】**
- **Cartrack Performance**: FY25 YTD subscription revenue grew 15% YoY (20% USD), operating profit margin 30%. Q3 ended with 2.2M subscribers (+17% YoY), 95% retention rate. AI camera adoption drove 32% reduction in fatigue-related incidents.
- **Logistics Growth**: FY25 YTD DaaS revenue ZAR 310M (+38% YoY, 45% USD). Q3 revenue ZAR 109M (+2% YoY), 8% operating profit margin. Southeast Asia expansion with 12% of total subscribers.
- **Financial Highlights**: Q3 adj. EPS ZAR 7.67 (+21% YoY), cash ZAR 856M. Reaffirmed FY25 outlook. Rule of 60 financial profile with LTV:CAC >9.

**【CFO Hoeshin Goy Financial Review】**
- **Subscription Growth**: Q3 Cartrack revenue ZAR 1,029M (+14% YoY, 19% USD). Adj. EBITDA margin 47%. FY25 YTD Cartrack revenue ZAR 3B (+15% YoY). 
- **Geographic Breakdown**: South Africa 5% of subscribers, Southeast Asia 12%, Europe 9% (+19% YoY). New SA office supports organic growth.
- **Cash Flow**: Q3 free cash flow ZAR 188M. Dividend ZAR 33.4M (+27% YoY). Unlevered balance sheet with 27-day DSO.

**【Q&A Key Takeaways】**
- **Talent Strategy**: 70% sales headcount growth in Southeast Asia, 50% in SA & Europe. Referrals & digital platforms for recruitment.
- **Tech Impact**: Self-driving vehicles 2+ years away. Focus on ecosystem beyond vehicles.
- **Africa Trade Agreement**: Logistics benefits regardless of trade agreement status.
- **Currency Impact**: Q3 rand strength affected non-SA entities, but rand weakness post-Q3 may mitigate FY25 impact.

Actual	0.1928	0.2843	0.2662	0.2964	0.235	0.3155	0.2859	0.2726	0.2543	0.256	0.2951	0.3335	0.3548	0.3793	0.4094	0.4239	0.5062	0.472	0.4653	0.5
Forecast	0.26	0.2752	0.276	0.281	0.2981	0.2748	0.2748	0.3013	0.2535	0.2736	0.2942	0.3082	0.3275	0.338	0.3813	0.3712	0.3682	0.4179	0.4417	0.463
Surprise	-25.85%	+3.31%	-3.55%	+5.48%	-21.17%	+14.81%	+4.04%	-9.53%	+0.32%	-6.43%	+0.31%	+8.21%	+8.34%	+12.22%	+7.37%	+14.20%	+37.48%	+12.95%	+5.34%	+7.99%

KARO

KARO fundamentals

KARO Q3 2026 Earnings

Earnings Call

You can ask Aime

KARO

KARO fundamentals

KARO Q3 2026 Earnings

Earnings Call

KARO Earnings Call Summary for Q3/20268:00 AM on Jan 21, 2026

KARO Earnings Call Summary for Q2/20268:00 AM on Oct 15, 2025

KARO Earnings Call Summary for Q1/20268:00 AM on Jul 23, 2025

KARO Earnings Call Summary for Q4/20258:00 AM on May 15, 2025

KARO Earnings Call Summary for Q3/20258:00 AM on Jan 15, 2025

You can ask Aime