Karooooo CEO and founder Zak Calisto.
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Karooooo, the JSE and Nasdaq-listed mobility and logistics solutions data group, delivered record subscription revenue in the fourth quarter of its 2026 financial year and has invested for further growth into the new financial year, the group founder and CEO Zak Calisto said.
He noted that slower operating income and adjusted earnings per share (EPS) growth for the group that owns Cartrack in South Africa was in line with the outlook provided by the group management for the full financial year.
Moderate growth in quarterly EPS reflected the accelerated Cartrack subscription revenue growth in the 2026 financial year.
“The timing mismatch between the upfront expensed sales and marketing costs to build future and accelerated subscription revenue negatively impacted 2026 full-year earnings growth and margins,” he said.
“Although these growth-oriented investments weigh on short-term operating profitability, we believe that pursuing accelerated growth—when executed efficiently and supported by strong unit economics—is the appropriate strategy to drive long-term shareholder value,” said Calisto.
For the full financial year, Cartrack’s subscribers increased by 16% to 2,66 million, with net subscriber additions increasing by 9% or by 396,986.
Cartrack South Africa’s subscription revenue accelerated by 22%. Cartrack's fourth-quarter SaaS (software as a service) ARR (annual recurring revenue) increased by 18% year-on-year, reaching R5.18 billion, and it increased by 38% in US dollar equivalent.
Cartrack’s operating profit fell by 14% to R324 million. Karooooo’s fourth-quarter adjusted EPS declined by 24% to R7.18. Full-year adjusted EPS increased by 3% to R32.55 and by 20% to $2.05 in US dollar equivalent.
Full-year adjusted free cash flow increased by a very strong 90% to R809m. Karooooo Logistics' B2B (business-to-business) delivery-as-a-service revenue increased by 32% to R145m.
On the outlook for the 2027 financial year, he said Cartrack subscription revenue growth was expected to accelerate, with EPS growth of 21% at the midpoint anticipated.
A $1.50 dividend per share was declared, which was 20% higher than the same time last year.
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