Karooooo Ltd. (NASDAQ:KARO) reported first‑quarter results for the period ended 31 May 2026 that exceeded analyst expectations. The company delivered adjusted earnings per share of ZAR9.53, beating the consensus estimate of ZAR8.77 by ZAR0.76. Revenue for the quarter was ZAR1.56 billion, surpassing the ZAR1.48 billion forecast. Cartrack subscription revenue, the core segment, grew 19% year‑on‑year to ZAR1,351 million, representing a 21% increase in constant‑currency terms.
The subscriber base expanded to over 2.8 million, an 18% rise, while net subscriber additions surged 70% to a record 142,472 during the quarter; South African net additions rose 92%. Annualised recurring revenue accelerated 19% YoY to ZAR5,432 million, or 32% when measured in U.S. dollars. Group CEO Zak Calisto said the company entered FY2027 with strong, accelerated growth, underpinned by the 21% constant‑currency subscription revenue growth and record subscriber additions.
Operating profit amounted to ZAR410 million despite foreign‑exchange headwinds stemming from a strengthening South African rand, which negatively affected contributions from most operating countries. Karooooo Logistics revenue increased 46% to ZAR177 million, driven by heightened demand for quick‑commerce services.
Management reaffirmed its FY2027 outlook, projecting accelerated Cartrack subscription revenue growth and EPS growth of 21% YoY at the midpoint. The quarter’s performance was attributed to strong demand for Cartrack‑Tag and Video products, with plans to optimise sales‑capacity investments made in FY2026. Shares slipped 0.8% on the day of the announcement as investors weighed the FX headwinds against the robust operational results.