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Karooooo’s founder and chief executive Zak Calisto has never been shy about betting on steady subscription growth. This quarter, that bet paid off again.
The company reported a 20% jump in subscription revenue for the second quarter of fiscal 2026, climbing to ZAR 1.18 billion (USD 68 million) from a year earlier. Total revenue rose to ZAR 1.34 billion (USD 77 million) as Cartrack — its core fleet management unit — continued to drive results while its delivery business gained momentum.
“Our subscription revenue growth increased from 15% in FY25 Q2 to 20% in this quarter,” Calisto said. “We continue to demonstrate our ability to accelerate our subscription revenue growth at scale, deliver strong earnings, drive innovation, and increase our distribution capabilities while maintaining a strong, financially disciplined, agile, innovative and owner-orientated culture. We believe that our strong unit economics coupled with a clean balance sheet positions us favourably to continue to scale.”
The company’s annualized recurring revenue climbed to ZAR 4.81 billion (USD 277 million), also up 20%. Logistics revenue surged 38% to ZAR 139 million (USD 8 million), a sign the newer delivery segment is finding traction.
Karooooo ended the quarter with 2.46 million subscribers, adding roughly 70,700 net new users. That’s slower than the pace a year earlier, but still enough to keep the growth line steady. Operating profit increased 18% to ZAR 356 million (USD 20.5 million), while adjusted earnings per share climbed 13% to ZAR 8.28.
For the first half of the fiscal year, subscription revenue rose 19% to ZAR 2.32 billion (USD 134 million). The company closed the quarter with net cash of ZAR 393 million (USD 22.6 million), underscoring Calisto’s emphasis on running a lean balance sheet.
Margins stayed firm — gross profit at 68% for the group, and around 72% for Cartrack. Logistics remains a smaller piece of the pie but is expanding at the fastest clip.
