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SEC filingKarooooo Ltd. reported record FY 2026 subscription revenue, operating income, and adjusted EPS in line with outlook, with Q4 South Africa growth accelerating to 22% Y/Y and FY 2027 EPS growth outlook of 21% at midpoint.
Karooooo delivered record FY 2026 results with subscription revenue up 19% to ZAR4,844 million despite a stronger ZAR, driven by Cartrack's 16% subscriber growth to 2.66 million and record net additions of 359,986. Q4 highlighted acceleration in South Africa subscription revenue growth to 22% Y/Y, with overall Cartrack subscription revenue at 18% Y/Y to ZAR1,278 million (98% of total revenue). ARR expanded 18% to ZAR5,179 million (USD325 million), underscoring recurring revenue strength. Profitability showed mixed results: FY operating profit rose 8% to ZAR1,415 million with Cartrack margin at 28%, but Q4 operating profit fell 12% to ZAR338 million due to growth investments in sales/marketing (up 37% to ZAR220 million), G&A, and R&D, plus ZAR strengthening headwinds estimated at ZAR27 million revenue impact and higher IoT device provisions up 45%. Adjusted EBITDA grew 7% in Q4 to ZAR583 million. Karooooo Logistics contributed with 32% Q4 DaaS revenue growth to ZAR145 million and margin expansion to 33%. Management emphasized strong unit economics (LTV/CAC >9x), AI/video innovations, and Cartrack-Tag launch supporting acceleration. FY 2027 outlook targets faster subscription growth, 21% EPS growth at midpoint (excluding prior secondary costs), with contracting gross margins, sales efficiency gains, and moderated hiring. A 20% increased USD1.50/share dividend signals confidence, alongside 90% adjusted FCF surge to ZAR809 million.