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

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

Did Karooooo beat or miss consensus estimates last quarter?

What factors drove the changes in Karooooo's revenue and profit?

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

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

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

What is Karooooo's gross profit margin?

- **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

Cartrack

Carzuka

Karooooo Logistics

KARO

KARO fundamentals

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