SOUTH AFRICA · MARKETS
Key Facts
- —The country South Africa is Africa’s most industrialised economy, and its currency is the rand. Karooooo is registered in Singapore, but about three quarters of its tracking subscribers live in South Africa.
- —What happened On Monday 19 October, Karooooo said operating profit for the six months to 31 August rose 18% to ZAR832 million (about US$51 million).
- —The numbers Revenue rose 22% to ZAR3,204 million (about US$195 million), and earnings per share rose 14% to ZAR18.81 (about US$1.15).
- —The subscribers Cartrack, its vehicle-tracking service, ended August with 2,899,210 subscribers, up 18%, after a record 236,988 net additions in six months.
- —The outlook The company kept its full-year earnings-per-share target of ZAR38.50 (about US$2.34) to ZAR40.00 (about US$2.44) for the year ending 28 February 2027.
- —What it means for you The shares trade on the Nasdaq under the symbol KARO, so US investors can own a South African subscription business in dollars.
- —Still open Whether a stronger rand and rising memory chip prices squeeze margins and cash flow in the second half of the financial year.
Karooooo profit rose 18% in the six months to 31 August, as its Cartrack service for tracking vehicles added a record 236,988 subscribers. The Nasdaq-listed company said on Monday 19 October that operating profit reached ZAR832 million (about US$51 million).
For US investors, the Karooooo profit report shows a dollar-listed South African business growing while the rand strengthens and chip costs climb. The company kept its full-year targets, and it said a stronger rand trimmed its reported growth.
What Karooooo Reported
Karooooo Ltd owns Cartrack, a vehicle-tracking service for fleets and drivers, and Karooooo Logistics, a delivery business. It published results for the six months to 31 August, with revenue up 22% to ZAR3,204 million (about US$195 million).
Earnings per share rose 14% to ZAR18.81 (about US$1.15), and adjusted earnings per share, which strip out last year’s share-sale costs, rose 12%. The Karooooo profit gain was led by the second quarter, when operating profit hit a record ZAR422 million (about US$26 million), up 19%.
The company is registered in Singapore and listed on the Nasdaq in New York. Chief executive Zak Calisto said Cartrack’s growth at constant exchange rates rose to 23% in the second quarter from 21% in the first.
Subscribers and Recurring Revenue
Cartrack ended August with 2,899,210 subscribers, up 18% from 2,456,989 a year earlier. It added 236,988 net subscribers in the half, a record and 53% more than the 154,753 added a year before.
Annualised recurring revenue, the yearly value of subscriptions already in force, reached ZAR5,708 million (about US$347 million), up 19% in rand. The company puts the figure at US$354 million at its end-August rate of 16.12 rand to the dollar, up 30% in dollars.
In South Africa, Cartrack had 2,185,798 subscribers, up 18%, and subscription revenue growth there reached 25% in the second quarter. The company said it aims to cement its leadership position in the country with new video and tag products.
Memory Chip Costs and Cash Flow
Karooooo said memory chip prices are rising sharply, and it bought tracking devices early to secure supply. Devices held for future use rose 92% to ZAR694 million (about US$42 million), from ZAR362 million (about US$22 million) at the end of February.
Free cash flow, the cash left after equipment spending, fell to ZAR100 million (about US$6 million) from ZAR358 million (about US$22 million). The company said equipment spending hit cash flow only temporarily and that its equipment levels now match its faster growth.
Cash fell to ZAR649 million (about US$40 million) from ZAR1,154 million (about US$70 million) after July dividends of ZAR752 million (about US$46 million). Karooooo also holds ZAR900 million (about US$55 million) in credit facilities with Capitec Bank and Standard Bank.
Delivery Arm and Rivals
Karooooo Logistics connects retailers with independent drivers for quick-commerce orders, meaning ultra-fast online deliveries. Its revenue rose 41% to ZAR366 million (about US$22 million), and operating profit rose 20% to ZAR26 million (about US$1.6 million).
BusinessDay named Tracker, MiX Telematics and Altron’s Netstar as Cartrack’s competitors, and MiX is now part of PowerFleet, a US-listed company. The Rio Times has looked at how Netstar is using AI to win back ground.
What the Outlook Says
Karooooo kept its guidance for the financial year ending 28 February 2027, which assumes steady exchange rates. It expects Cartrack subscription revenue of ZAR5,700 million (about US$347 million) to ZAR6,000 million (about US$365 million), or 18% to 24% growth.
It also expects earnings per share of ZAR38.50 (about US$2.34) to ZAR40.00 (about US$2.44) and a Cartrack operating margin of 27% to 30%. The margin was 28% in the first half, inside that range.
What It Means for US Readers
Karooooo’s shares trade on the Nasdaq under the symbol KARO, so US investors can buy a South African growth business without using the Johannesburg market. The company reported subscription revenue of US$172 million for the half, up 31% in dollars because the rand strengthened.
A stronger rand lifts the company’s dollar figures but cuts reported growth, to 20% in the second quarter against 23% at constant exchange rates. More background on Karooooo profit and strategy is in the Rio Times company profile.
What Is Not Known
Karooooo has not said how much memory chip prices will add to device costs in the second half. It has also not said when free cash flow will return to last year’s level.
The company has not announced an interim dividend in this report, and it has not said how far the Karooooo profit gain can go. It is open whether the stronger rand will keep trimming Karooooo profit growth as the financial year closes.
More: South Africa news in English, every day from The Rio Times.
Frequently Asked Questions
What is Karooooo?
Karooooo is a Singapore-registered company listed on the Nasdaq under the symbol KARO. It owns Cartrack, a vehicle-tracking service, and Karooooo Logistics, a delivery business, and most of its subscribers are in South Africa.
How much did Karooooo profit rise?
Karooooo profit, measured as operating profit, rose 18% to ZAR832 million (about US$51 million) in the six months to 31 August. Earnings per share rose 14% to ZAR18.81 (about US$1.15).
How many subscribers does Cartrack have?
Cartrack had 2,899,210 subscribers at 31 August, up 18% from a year earlier. It added a record 236,988 net subscribers in the half.
Did Karooooo change its full-year targets?
No, it kept them. It expects Cartrack subscription revenue of ZAR5,700 million (about US$347 million) to ZAR6,000 million (about US$365 million). It also expects earnings per share of ZAR38.50 (about US$2.34) to ZAR40.00 (about US$2.44).
Why does the rand matter for Karooooo profit?
The company reports in rand but earns money in several currencies, so a stronger rand shrinks its reported Karooooo profit and revenue growth. Cartrack’s second-quarter subscription revenue grew 20% in rand and 23% in constant currency.
Sources: Karooooo Ltd, Form 6-K with results release, 19 October 2026; BusinessDay, 20 October 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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