Karooooo's Cartrack subscription revenue surges as interim dividend rises

Karooooo reported another set of strong results for the first quarter to May 31 with the number of Cartrack subscribers increasing by 17% while the interim dividend was up by more than 15%.

On the JSE Wednesday morning, Karooooo’s share price shot up by 5.73% to R920, following the announcement of the results. The share price is up by over 57% over 12 months.

The interim dividend of $1.25 per ordinary share was declared versus $1.08 at the same time last year, which was paid due to the strong cash position and good earnings growth, CEO Zak Calisto said in an interview.

“We are pleased to report a strong start to the 2026 financial year highlighted by accelerating Cartrack subscription revenue growth across all regions,” he said.

In June, Calisto sold 8% of his shares, but he remains in control with a 58% shareholding and has no intention to change control, he said. “Every investor presentation I attend, they ask me about liquidity of the shares,” he said.

“We are realizing the benefits of our extensive footprint, and we believe that we remain well positioned to build our customer base,” he added.

He said they remained optimistic about further healthy organic growth in all geographies. Southeast Asia presented the largest growth opportunity over the medium-to-long term and was their fastest growing region. Cartrack subscription revenue growth in Southeast Asia accelerated to 30% in the first quarter.

Their second fastest growing region was Europe and third fastest South Africa. In South Africa, “things have picked up, there is good momentum,” and the new head office in Johannesburg was enabling the group to attract good staff. Calisto added the consumer environment had improved and he was optimistic about economic prospects in the country.

Karooooo’s operating expenses increased 16% to R523m. Cartrack accounted for R497m (Q1 2025: R428m) in operating expenses, including investments in infrastructure and headcount to support territorial expansion and distribution growth. Karooooo Logistics accounted for R26m (R22m) of total operating expenses as investment to scale Karooooo Logistics continued.

“In the 2026 financial year, we aim to accelerate Cartrack subscription revenue growth by further expanding our distribution footprint in existing markets, driving broader platform adoption, and capitalizing on growing demand for video solutions,” said Calisto.

Net Cartrack subscriber additions increased 11% to 84 013. Karooooo's subscription revenue increased 18.4% to R1.14bn.

Cartrack's subscription revenue increased 18.5% to R1.14bn. Cartrack's SaaS (software-as-a- service) annualized recurring revenue (ARR) increased 18.3% to R4.57bn.

Karooooo Logistics's B2B delivery-as-a-service (DaaS) revenue increased 19.8% to R121m.

Karooooo's operating profit increased 17% to R352m. Cartrack's operating profit increased 19% to R342m. Karooooo's adjusted earnings per share increased 19% to R8.55.

Calisto said that their proven track record of disciplined execution, sustained growth at scale, and highly profitable business model is supported by a solid balance sheet and a healthy cash position.

“We believe our investments in AI, platform innovation and customer experience will drive durable growth and robust results,” he said. Their guidance for the 2026 financial year of earning per share between R32.50 and R35.50, and on other financial metrics, remained unchanged.

Karooooo reported cash and its equivalents at R1.1bn at May 31, 2025, up from R838m at February 28, 2025. There were also overdraft facilities of R300m available.

BUSINESS REPORT