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Key Points
- Payout of $1.25 per share underscores the company’s commitment to rewarding investors amid rising subscription and logistics revenue.
- Subscription revenue rose 18.55% to R1.14 billion ($64.8 million), driven by Cartrack’s expanding global subscriber base across 23 active markets.
- Karooooo’s total assets rose 17.26%, reflecting global expansion and strong profit reserves behind its dividend strategy.
Karooooo Limited, the Singapore-based mobility platform led by South African billionaire Zak Calisto, has approved an interim dividend of $38.6 million, extending its shareholder reward strategy as subscription and logistics revenues soar in early FY 2026.
Karooooo declares $38.6 million dividend
The $38.62 million dividend, set at R22.38 ($1.25) per share, highlights the Nasdaq- and JSE-listed firm’s drive as it pivots toward scaling global mobility insights through its Cartrack platform and expanding Southeast Asian footprint.
The dividend, which amounts to R691.51 million ($38.6 million) based on an exchange rate of R17.91 to the dollar, will be paid out from the company’s profit reserves. It will be treated as a “foreign dividend” for South African shareholders. Investors on the JSE will receive their payout on August 18, while those on the Nasdaq will be paid on August 22. The record date is August 15.
Cartrack revenue surges on subscriber growth
The dividend announcement follows a strong start to Karooooo’s 2026 financial year. In the first quarter, total revenue rose 18.02 percent from a year earlier to R1.28 billion ($72.7 million), led by solid growth in its core Cartrack business and expanding logistics operations.
Cartrack, the company’s main source of income, grew subscription revenue by 18.55 percent to R1.14 billion ($64.8 million), supported by a 17 percent jump in its subscriber base, which now exceeds 2.38 million users.
Meanwhile, Karooooo Logistics, its last-mile delivery unit for business clients, recorded a 19.8 percent revenue increase to R121 million ($6.89 million), underscoring rising demand for tech-enabled fleet services in emerging markets.
Looking ahead, the company maintained its full-year forecast through February 2026. It expects Cartrack subscription revenue to come in between R4.7 billion ($267.8 million) and R4.9 billion ($279.2 million), with projected earnings per share ranging from R32.50 ($1.85) to R35.50 ($2.02).
Karooooo’s assets climb to $305 million
Karooooo was founded in 2001 by South African billionaire Zak Calisto to provide a simple vehicle recovery solution. Since then, it has grown into a global player, now operating in 23 countries across five continents and serving more than 2.6 million active users.
With a strong balance sheet, Karooooo’s strong performance drove a 17.26 percent increase in total assets to R5.35 billion ($305.1 million), while retained earnings jumped 17.34 percent to R2.38 billion ($135.5 million) as of May 31, 2025.
The recently announced $38.6 million dividend highlights both the company’s consistent performance and the trust shareholders have in its long-term plan to improve transportation management through data and technology.
