Wrap Text
Unaudited First Quarter 2027 Results
Karooooo Ltd.
(a public company incorporated and registered in the Republic of Singapore)
(Unique Entity Number: 201817157Z)
JSE share code: KRO NASDAQ share code: KARO
ISIN: SGXZ19450089 ("Karooooo")
Short-form Announcement: Unaudited First Quarter 2027 Results
Karooooo, that owns 100% of Cartrack and 81% of Karooooo Logistics (collectively, "the group"), issued a
press release announcing its unaudited first quarter ("Q1 2027") results for the three months ended May,
31 2026 and included such press release as an exhibit to its form 6-K (the "Report on Form 6-K") dated
15 July 2026 furnished to the United States Securities and Exchange Commission ("SEC"). Investors are
referred to the full press release as published and available on the Karooooo website at
www.karooooo.com.
First Quarter 2027 Highlights:
(Comparisons are relative to Q1 2026, unless otherwise stated.)
SCALE
- Cartrack subscribers accelerated to 18% reaching 2,804,694 (Q1 2026: 2,386,249).
- Net Cartrack subscriber additions accelerated to 70% reaching a record of 142,472 (Q1 2026:
84,013).
GROWTH
- Karooooo's subscription revenue accelerated to 19% reaching ZAR1,354 million
(Q1 2026: ZAR1,141 million).
- Cartrack's subscription revenue accelerated to 19% reaching ZAR1,351 million
(Q1 2026: ZAR1,138 million).
- Cartrack's annualized recurring revenue ("ARR") accelerated to 19% reaching
ZAR5,432 million (Q1 2026: ZAR4,574 million).
- Karooooo Logistics's B2B delivery-as-a-service ("DaaS") revenue accelerated
to 46% reaching ZAR177 million (Q1 2026: ZAR121 million).
Presented in the U.S. Dollar Equivalent1
- Karooooo's subscription revenue increased 32% to USD84 million.
- Cartrack's subscription revenue increased 32% to USD83 million.
- Cartrack's ARR increased 32% to USD335 million.
- Karooooo Logistics's DaaS revenue increased 63% to USD11 million.
PROFITABILITY
- Karooooo's operating profit increased 16% to a record ZAR410 million (Q1 2026:
ZAR352 million).
- Cartrack's operating profit increased 16% to a record ZAR395 million (Q1 2026: ZAR342
million).
- Cartrack's operating profit margin was 28% (Q1 2026: 30%).
- Karooooo's adjusted earnings per share increased 11% to ZAR9.53 (Q1 2026:
ZAR8.55).
1
For convenience purposes only, amounts in South African rand as of May 31, 2026 have been translated to U.S.
dollars using an exchange rate of ZAR 16.2088 to U.S.$1.00 (May 31, 2025: ZAR 18.0319), as set forth in the
H.10 statistical release of the Board of Governors of the Federal Reserve System. These translations should not
be considered representations that any such amounts have been, could have been or could be converted at that
or any other exchange rate.
Operating Profit and Earnings Per Share
Karooooo's operating profit increased 16% to ZAR410 million (Q1 2026: ZAR352 million), and earnings per
share increased 11% to ZAR9.53 (Q1 2026: ZAR8.55).
Cartrack's operating profit increased 16% to ZAR395 million (Q1 2026: ZAR342 million), and Cartrack's
operating profit margin was 28% (Q1 2026: 30%).
Karooooo Logistics's operating profit increased 50% to ZAR15 million (Q1 2026: ZAR10 million), and
Karooooo Logistics's operating profit margin was 8% (Q1 2026: 8%).
Commentary from Zak Calisto, CEO and Founder:
"FY2027 has commenced with strong, accelerated growth, underpinned by Cartrack constant currency
subscription revenue growth of 21% and a record 142,472 net subscriber additions in the quarter.
Despite the strengthening ZAR, which negatively impacts contributions from most of the countries in which
we operate, subscription revenue and ARR each accelerated to 19%. In constant currency, ARR increased
22% and presented in USD, ARR increased 32%, reaching USD335 million.
Our product innovation continues to deliver the intended outcomes. This year, our focus remains to
accelerate growth by growing sales and marketing at a moderate pace while optimizing the strong
investment we made in sales capacity during FY2026.
We remain optimistic about the opportunities across our regions and believe we are well positioned to build
on the momentum established in the first quarter."
Outlook
We operate in an expanding and largely underpenetrated market, fueled by robust and sustained customer
demand. This demand is driven by a heightened focus on digitalization, the need to improve operational
efficiency and reduce costs, and increasing attention to safety in physical operations. Our easy-to-use,
operational intelligence platform empowers our customers to improve operational efficiencies, reduce risk
and enhance the safety of their physical operations.
FY 2027 is off to a strong start with record net subscriber additions and healthy retention driving 21%
Cartrack constant currency subscription revenue growth. We believe we are on track to accelerate total
subscription revenue growth in FY 2027 as we realize the benefits of our recent investments in sales
capacity. We aim to drive our growth by balancing subscriber growth with the increased adoption of Video
and Cartrack-Tag. We also believe increased sales efficiency, coupled with realizing other efficiencies in
the business due to scale and leveraging AI, will support strong EPS growth.
We believe our ongoing investments in AI innovation, platform capabilities and customer experience
position us to drive durable long-term growth. We remain confident that our track record of success,
specifically our ability to generate healthy cash flows, is sustainable.
Actual results may differ materially from Karooooo's outlook due to various factors, including those
described under "Forward-Looking Statements" below and described under "Risk Factors" in our latest
Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission.
With Cartrack's revenue making up the majority of group revenue, the guidance below relates primarily to
Cartrack and assumes current foreign exchange rates.
Despite providing a contracting gross profit margin outlook for FY 2027, assuming current exchange rates
and the planned accelerated growth, the midpoint of our EPS outlook implies growth of 21% in FY 2027
compared to FY 2026 Adjusted EPS excluding secondary offering costs. We envisage a slow-down in hiring
in FY 2027 while we drive sales force efficiency.
Our guidance for FY 2027 remains unchanged:
- Cartrack's subscription revenue between ZAR5,700 million and ZAR6,000 million, which
implies subscription revenue growth between 18% and 24%;
- Cartrack's gross profit margin between 70% and 72%;
- Cartrack's operating profit margin between 27% and 30%; and
- Karooooo's Earnings Per Share between ZAR38.50 and ZAR40.00, which implies EPS growth
between 18% and 23% compared to FY 2026 Adjusted EPS, which excludes secondary offering
costs.
Balance Sheet, Liquidity and Cash Flow
As we re-invest our earnings for customer acquisition, as of May 31, 2026, our investment in in-vehicle IoT
devices increased by ZAR115 million to ZAR2,061 million (February 28, 2026: ZAR1,946 million), IoT
devices held for future use increased by ZAR163 million to ZAR524 million (February 28, 2026: ZAR362
million) and Capitalized commission assets increased by ZAR42 million to ZAR513 million (February 28,
2026: ZAR470 million).
Trade and other receivables increased by ZAR202 million to ZAR788 million (February 28, 2026: ZAR586
million), primarily driven by an acceleration in subscription sales and a ZAR53 million increase in
prepayments for IoT components.
Debtor collection days remain within our range of historical norms at a healthy 31 days (February 28, 2026:
27 days).
Cash and Cash Equivalents
Karooooo reported a net cash and cash equivalents balance of ZAR755 million at May 31, 2026 (February
28, 2026: ZAR746 million). Because we hold our cash reserves in USD, movements in the USD/ZAR
exchange rate may impact our reported ZAR balance.
At May 31, 2026, the group had overdraft facilities for growth initiatives and other general corporate
purposes of ZAR750 million, between Capitec Bank and Standard Bank. Our liquidity position remains
strong, underpinned by prudent financial management, sustained operational cash generation and
disciplined capital allocation.
In line with the group's cash management policy, overseen by our capital allocation committee, Karooooo's
excess cash reserves are held in US Dollars.
Free Cash Flow (a non-IFRS measure)
Karooooo reported a healthy increase of 21% in cash generated from operations before working capital
changes of ZAR690 million (Q1 2026: ZAR572 million), driven by strong subscription revenue growth and
operating profit. Net cash generated from operating activities, the most directly comparable IFRS measure,
decreased 16% to ZAR537 million (Q1 2026: ZAR642 million), reflecting increased working capital
investment to support accelerated subscriber growth.
Three Months Ended
May 31,
2026 2025
(Rand Thousands)
Free Cash Flow (a non-IFRS measure) 59,662 338,125
As Cartrack accelerated customer acquisition, we made an increased investment of ZAR462 million (Q1
2026: ZAR284 million) in both in-vehicle IoT devices and IoT devices for future use.
Free cash flow (a non-IFRS measure) for the three months ended May 31, 2026, was ZAR60 million (Q1
2026: ZAR338 million).
Free Cash Flow reflected our increased investment in both in-vehicle IoT devices and IoT devices for future
use of 62%, or ZAR178 million, together with higher prepayments for IoT devices and an increase in trade
and other receivables driven by increased subscription revenue.
The Free Cash Flow (a non-IFRS measure) generated is in line with Karooooo's disciplined capital
allocation strategy and supports the group's growth objectives.
See "Reconciliation of Free Cash Flow (a non-IFRS measure) for a reconciliation of free cash flow to net
cash generated from operating activities, their most directly comparable IFRS financial measure.
Share Capital and Reserves
As of May 31, 2026, Karooooo had 30,893,300 ordinary shares issued and outstanding, and paid-up share
capital of USD505,956,659 plus SGD1,000.
The negative common control reserve of ZAR2.7 billion on the balance sheet relates to a common control
transaction on November 18, 2020, in which the loan of USD194 million from Isaias Jose Calisto was
converted into Karooooo share capital. Consequently, Karooooo acquired control of Cartrack. On that date,
20,331,894 shares were issued to Isaias Jose Calisto and Karooooo registered ZAR2.7 billion in paid-up
capital, resulting in the common control reserve.
The ZAR3.6 billion other reserve on the balance sheet relates to the buyout of 95,350,657 Cartrack shares
at ZAR42.00 per share from minorities when Cartrack delisted from the JSE, totaling ZAR4.0 billion. This
was offset by the ZAR0.4 billion previously reported in the non-controlling interest. The ZAR0.4 billion
relates to the net asset value of 95,350,657 Cartrack minority shares acquired by Karooooo.
ZAR27.3 million of capital reserve on the balance sheet relates to the cancellation of Karooooo's treasury
shares and ZAR11.4 million of capital reserve relates to the repurchase and cancellation of 279 ordinary
shares of Karooooo Logistics, which represented 6.29% of Karooooo Logistics's issued ordinary shares as
of April 30, 2024. A further ZAR18.6 million of capital reserves relates to the repurchase and cancellation
of 316 ordinary shares of Karooooo Logistics, which represented 7.60% of Karooooo Logistics's issued
ordinary shares. ZAR5.2 million relates to the repurchase and cancellation of 150 ordinary shares of
Cartrack New Zealand, which represented 15% of Cartrack New Zealand's issued ordinary shares.
Dividend Policy
The Board recognizes the importance of investment in achieving growth at scale, and endeavors to avoid
swings in its dividend profile.
However, the payment and timing of dividends in cash or other distributions (such as a return of capital to
shareholders through share buy-backs, for example) are determined by the Board after considering factors
that include: earnings and free cash flow; current and anticipated capital requirements; economic
conditions; contractual, legal, tax and regulatory restrictions (including covenants contained in any financing
agreements); the ability of group subsidiaries to distribute funds to Karooooo; and such other factors the
Board may deem relevant.
Karooooo aims to reinvest retained earnings to the extent that it aligns with the group's required return on
incrementally reinvested capital, return on equity, and short- to medium-term growth strategy.
Subject to Karooooo's constitution and in accordance with the Singapore Companies Act, the Board may,
without the approval of shareholders, declare and pay interim dividends. Any final dividends must be
approved by an ordinary resolution at a general meeting of shareholders.
The Board may review and amend the dividend policy from time to time.
Dividend Declaration
As previously reported, considering the consistent strong earnings, healthy balance sheet and free cash
flow of the Company and in accordance with the dividend policy set out above, an interim dividend of
USD1.50 per ordinary share, pertaining to the first quarter of Karooooo's 2027 financial year, will be paid
on July 20, 2026 to JSE shareholders on record as at the close of business on Friday, July 17, 2026 (South
African time) and on July 27, 2026 to Nasdaq shareholders on record as at the close of business on July
17, 2026 (New York time). Although Karooooo's reporting currency is ZAR, its statutory filings in Singapore
are reported in USD, as a result of which dividends are declared in USD. The details with respect to the
dividends declared for holders of our ordinary shares are as follows:
NASDAQ JSE
Declaration date Wednesday, May Thursday, May 14,
13, 2026 2026
Finalization announcement, date of currency conversion and Thursday, July 9, Thursday, July 9,
confirmation of record date 2026 2026
Last date to trade cum dividend Thursday, July 16, Tuesday, July 14,
2026 2026
Shares commence trading Ex-dividend Friday, July 17, Wednesday, July
2026 15, 2026
Record date Friday, July 17, Friday, July 17,
2026 2026
Dividend payment date Monday, July 27, Monday, July 20,
2026 2026
Shareholders registered on the South African section of the share register will not be allowed to
dematerialize or rematerialize their shareholdings between Wednesday, July 15, 2026 and Friday, July 17,
2026, both dates inclusive, and transfers between the Nasdaq and South African register will not be
permitted between Thursday, July 9, 2026 and Friday July 17, 2026, both days inclusive.
A summary of the tax considerations applicable to South African shareholders was included in the currency
conversion and confirmation of record date announcement which has been published on Thursday, July 9,
2026.
Short-form Announcement
This short-form announcement is the responsibility of the directors of Karooooo. This short-form
announcement is only a summary of the information in the full announcement (defined below) and does not
contain full or complete details. Any investment decision by investors and/or shareholders should be based
on consideration of, inter alia, the full announcement.
The full announcement ("full announcement") includes the contents of the Report on Form 6-K as furnished
to the SEC dated 15 July 2026, being the press release incorporating the unaudited condensed
consolidated and combined financial statements of Karooooo for the first quarter ended 31 May 2026.
The full announcement has been released on SENS today, 16 July 2026 and is available for viewing on the
Company's website (www.karooooo.com) and at the following address:
https://senspdf.jse.co.za/documents/2026/jse/isse/KROE/Q12027.pdf
The full announcement is available for inspection at the offices of the Company (17 Kallang Junction
#0605/06 Singapore 339274) at no charge during normal office hours on business days from Thursday, 16
July 2026 to Thursday, 23 July 2026. Copies of the full announcement may also be requested from the
sponsor by emailing dg.mlsa_corporate_broking@bankofamerica.com.
Webinar Information
Karooooo management will host a Zoom webinar on Thursday, July 16, 2026 at 08:00 a.m. Eastern Time
(02:00 p.m. South African time; 08:00 p.m. Singaporean time).
Investors are invited to join the Zoom at: https://us02web.zoom.us/j/86950143303
Webinar ID: 869 5014 3303
Telephone:
- US (New York) Toll-free: +1 646 558 8656
- South Africa Toll-free: +27 87 551 7702
A replay will be available at www.karooooo.com approximately three hours after the conclusion of the live
event.
About Karooooo
Karooooo digitally transforms physical operations by simplifying decision making. Its Operational
Intelligence Platform serves as the central nervous system for connected operations, integrating vehicles,
assets, field workforces and operational workflows into a single intelligent ecosystem. Through proprietary
hardware technology and software, the platform captures, processes and analyzes real-world operational
data, transforming billions of data points into actionable intelligence that helps customers make faster, better
decisions across safety, productivity, compliance, cost control and service execution. Delivered through
intuitive cloud-based applications, the platform combines operational visibility, workflow automation, AI-
powered video intelligence and decision-support capabilities to help businesses improve performance,
reduce risk and operate more efficiently.
Karooooo is headquartered in Singapore and services more than 125,000 commercial customers and more
than 2.8 million active subscribers in more than 20 countries.
For more information, visit www.karooooo.com.
Investor Relations Contact IR@karooooo.com
Media Contact media@karooooo.com
Johannesburg
Thursday, 16 July 2026
Sponsor
Merrill Lynch South Africa Proprietary Limited t/a
BofA Securities
Date: 16-07-2026 07:05:00
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