Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
SINGAPORE--(BUSINESS WIRE)--
Karooooo Limited (NASDAQ: KARO) (“Karooooo”) reported strong results for the second quarter (“Q2 2027”) ended August 31, 2026. Karooooo owns 100% of Cartrack and 91.5% of Karooooo Logistics, (collectively, “the group”).
Financial highlights include:
Q2 Karooooo Revenue increased 25% in constant currency
Q2 Cartrack Subscription Revenue increased 20% Y/Y to ZAR1,415 million and 23% growth in constant currency
Q2 ARR increased 19% Y/Y to ZAR5,708 million and 30% Y/Y in USD equivalent to USD354 million
Karooooo delivered record quarterly operating profit of ZAR422 million with 19% growth Y/Y despite the FX headwinds
Karooooo EPS increased 18% Y/Y to ZAR9.28
Karooooo Adjusted EPS increased 12% Y/Y to ZAR9.28
“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.
“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,” said Zak Calisto, Group CEO.
Cartrack subscribers increased 18% to 2,899,210 (HY 2026: 2,456,989). Cartrack delivered 94,516 net subscriber additions during the quarter, a record for the second quarter.
Cartrack’s annualized recurring revenue (“ARR”) increased 19% to ZAR5,708 million (Q2 2026: ZAR4,806 million).
Karooooo Logistics’s revenue increased 36% to ZAR189 million (Q2 2026: ZAR139 million) driven by the demand for Q-commerce or “Quick-commerce” orders, a type of e-Commerce focused on ultra-fast delivery.
ARR, or Annual Recurring Revenue, is the predictable income a business expects to earn each year from ongoing customer subscriptions or contracts. It’s like a steady paycheck that shows the company's ability to generate consistent revenue over time, helping investors assess its stability and growth potential. ARR provides a clear picture of how well a company is performing in building long-term customer relationships.
constant currencyfinancial
Constant currency is a way of measuring financial results that removes the effects of changes in currency exchange rates. It allows for a clearer comparison of a company's performance over time by showing what the numbers would look like if exchange rates had stayed the same. This helps investors understand whether growth comes from actual business improvements or just currency fluctuations.
q-commercetechnical
q-commerce (quick commerce) is a form of online retail focused on delivering small consumer goods—commonly groceries, personal-care items and convenience products—to customers within very short time windows (typically minutes up to about an hour). It works by holding inventory in a network of local micro-fulfillment centers or “dark stores,” accepting orders through an app or website, and dispatching on-demand couriers or riders for rapid last-mile delivery; because it emphasizes speed, operations are organized around dense local inventory, tight delivery radii, and smaller order sizes.
