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Short-form Announcement: Unaudited Second Quarter and Half-Year 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 Second Quarter and Half-Year 2027 Results
Karooooo, that owns 100% of Cartrack and 91.5% of Karooooo Logistics (collectively, “the group”), issued
a press release announcing its second quarter (“Q2 2027”) and Half-Year (“HY 2027”) unaudited results
ended August 31, 2026 and included such press release as an exhibit to its form 6-K (the “Report on
Form 6-K”) dated October 19, 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.
Second Quarter 2027 Highlights:
(Comparisons are relative to Q2 2026, unless otherwise stated.)
SCALE
• Cartrack subscriber growth increased 18% reaching 2,899,210 (Q2 2026: 2,456,989).
• Net Cartrack subscriber additions of 94,516, a record for the second quarter (Q2 2026:
70,740).
GROWTH
• Karooooo’s subscription revenue increased 20% to ZAR1,418 million (Q2 2026: ZAR1,182
million).
• Cartrack’s subscription revenue increased 20% to ZAR1,415 million (Q2 2026: ZAR1,180
million).
• Cartrack’s annualized recurring revenue (“ARR”) increased 19% to ZAR5,708 million (Q2
2026: ZAR4,806 million).
• Karooooo Logistics’s B2B delivery-as-a-service (“DaaS”) revenue increased 36% to
ZAR189 million (Q2 2026: ZAR139 million).
Presented in the U.S. Dollar Equivalent¹
• Karooooo’s subscription revenue increased 31% to USD88 million.
• Cartrack’s subscription revenue increased 31% to USD88 million.
• Cartrack’s ARR increased 30% to USD354 million.
• Karooooo Logistics’s DaaS revenue increased 49% to USD12 million.
PROFITABILITY
• Karooooo’s operating profit increased 19% to ZAR422 million (Q2 2026: ZAR356 million).
• Cartrack’s operating profit increased 19% to ZAR411 million (Q2 2026: ZAR344 million).
• Cartrack’s operating profit margin was 28% (Q2 2026: 29%).
• Karooooo’s earnings per share increased 18% to ZAR9.28 (Q2 2026: ZAR7.88).
• Karooooo’s adjusted earnings per share increased 12% to ZAR9.28 (Q2 2026: ZAR8.28).
1 For convenience purposes only, amounts in South African rand as of August 31, 2026 have been translated to U.S.
dollars using an exchange rate of ZAR 16.1159 to U.S.$1.00 (August 31, 2025: ZAR 17.6519), 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 19% to ZAR422 million (Q2 2026: ZAR356 million). Earnings per
share increased 18% to ZAR9.28 (Q2 2026: ZAR7.88). After adjustment for the costs of the secondary
offering in the previous reported period, adjusted earnings per share, a non-IFRS measure, increased
12% to ZAR9.28 (Q2 2026: ZAR8.28).
Despite the foreign exchange headwinds, Cartrack’s operating profit increased 19% to ZAR411 million
(Q2 2026: ZAR344 million), and Cartrack’s operating profit margin was 28% (Q2 2026: 29%).
As a result of the costs associated with ensuring driver availability and network expansion, Karooooo
Logistics’s operating profit decreased 4% to ZAR11 million (Q2 2026: ZAR12 million). Karooooo
Logistics’s operating profit margin was 6% (Q2 2026: 8%).
Half-Year 2027 Highlights:
(Comparisons are relative to HY 2026, unless otherwise stated.)
SCALE
• Cartrack subscribers increased 18% to 2,899,210 (HY 2026: 2,456,989).
• Net Cartrack subscriber additions accelerated to 53% reaching a record of 236,988 (HY 2026:
154,753).
GROWTH
• Karooooo’s subscription revenue increased 19% to ZAR2,772 million (HY 2026: ZAR2,323
million).
• Cartrack’s subscription revenue increased 19% to ZAR2,765 million (HY 2026: ZAR2,317
million).
• Cartrack’s annualized recurring revenue (“ARR”) increased 19% to ZAR5,708 million (HY
2026: ZAR4,806 million).
• Karooooo Logistics’s B2B delivery-as-a-service (“DaaS”) revenue increased 41% to ZAR366
million (HY 2026: ZAR261 million).
Presented in the U.S. Dollar Equivalent¹
• Karooooo’s subscription revenue increased 31% to USD172 million.
• Cartrack’s subscription revenue increased 31% to USD172 million.
• Cartrack’s ARR increased 30% to USD354 million.
• Karooooo Logistics’s DaaS revenue increased 54% to USD23 million.
PROFITABILITY
• Karooooo’s operating profit increased 18% to ZAR832 million (HY 2026: ZAR708 million).
• Cartrack’s operating profit increased 17% to ZAR806 million (HY 2026: ZAR686 million).
• Cartrack’s operating profit margin was 28% (HY 2026: 29%).
• Karooooo’s adjusted earnings per share increased 12% to ZAR18.81 (HY 2026: ZAR16.83).
1For convenience purposes only, amounts in South African rand as of August 31, 2026 have been translated to U.S.
dollars using an exchange rate of ZAR 16.1159 to U.S.$1.00 (August 31, 2025: ZAR 17.6519), 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 18% to ZAR832 million (HY 2026: ZAR708 million) and earnings
per share increased 14% to ZAR18.81 (HY 2026: ZAR16.43). After taking into account the costs of the
secondary offering in the previous reported period, adjusted earnings per share increased 12% to
ZAR18.81 (HY 2026: ZAR16.83).
Despite the foreign exchange headwinds, Cartrack’s operating profit increased by 17% to ZAR806 million
(HY 2026: ZAR686 million), and Cartrack’s operating profit margin was 28% (HY 2026: 29%).
Karooooo Logistics’s operating profit increased 20% to ZAR26 million (HY 2026: ZAR21 million), and as a
result of the costs associated with ensuring driver availability and network expansion, Karooooo
Logistics’s operating profit margin was 7% (HY 2026: 8%).
Commentary from Zak Calisto, CEO and Founder:
“We are pleased to report another quarter of acceleration. Cartrack’s constant currency subscription
revenue growth increased to 23% in Q2, compared to 21% in Q1, with constant currency growth
acceleration across all regions. During the quarter, we continued to balance new customer acquisition
while building our cross-sell capabilities. Cartrack’s constant currency subscription revenue growth of
23% in Q2 is in the upper band of the FY 2027 outlook of 18% to 24%.
Despite the strengthening ZAR, which continues to impact contributions from most of the countries in
which we operate when reporting in ZAR, Cartrack’s subscription revenue and ARR increased 20% and
19%, respectively. In constant currency, ARR increased 22% and presented in USD, ARR increased 30%,
reaching USD354 million.
Karooooo’s Q2 operating profit increased 19% to a record ZAR422 million despite the currency
headwinds.
We continue to generate strong operating cash flow and remain committed to accelerating subscription
revenue growth. In Q2, free cash flow was temporarily impacted by investment in capital expenditures to
support accelerated subscription revenue growth and provide a buffer against ongoing significant
increases in RAM and memory prices.
As we enter the second half of FY 2027, we remain focused on building on the strong momentum
established in the first half of the year and on driving the adoption of AI throughout the organization.”
Outlook
We operate in an expanding and largely underpenetrated physical AI market, where strong and sustained
customer demand is driven by digital transformation, the ongoing need to improve operational efficiency
and reduce costs and increasing attention to safety and compliance 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.
Year to date, we have delivered record net subscriber additions and healthy retention driving 22% Cartrack
constant currency subscription revenue growth. We believe we are on track to accelerate Cartrack
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” in the 6-K filed with the U.S. Securities and Exchange
Commission on October 19, 2026 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 constant foreign exchange rates.
We model our outlook on constant exchange rates based on the prior financial year, and we are maintaining
our outlook for FY 2027.
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.
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 October 19, 2026, being the press release incorporating the unaudited
condensed consolidated and combined financial statements of Karooooo for the second quarter and half-
year ended August 31, 2026.
The full announcement has been released on SENS today, October 20, 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/HY2027.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 Tuesday,
October 20, 2026 to Tuesday, October 27, 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 Tuesday, October 20, 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/88565158011
Webinar ID: 885 6515 8011
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 2.9 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
Tuesday, 20 October 2026
Sponsor
Merrill Lynch South Africa Proprietary Limited t/a
BofA Securities
Date: 20/10/2026 07:05:00
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