Karooooo Ltd (JSE:KRO)

Q2 2026 Karooooo Ltd Earnings Call Transcript

Oct 15, 2025 / 12:00 PM GMT

Release Date Price: R870 (-9.84%)

Transcript

Key Points

Positve

Karooooo Ltd (KARO) reported a 20% increase in annual recurring revenue (ARR) to ZAR 4,806 million, with a 21% increase in US dollar terms to $272 million.
The company achieved a high commercial customer retention rate of 95% and subscription revenue accounted for 98% of Cartrack revenue.
Karooooo Ltd (KARO) demonstrated strong growth in its Cartrack segment, with subscription revenue increasing by 20% and an operating profit margin of 29%.
Karoo Logistics, a rapidly growing segment, saw a 38% increase in delivery as a service revenue, driven by an increase in e-commerce orders.
The company maintained a strong balance sheet with net cash and cash equivalents of ZAR 393 million, and a healthy subscription gross margin of 72%.

Negative

Karooooo Ltd (KARO) faced challenges with withholding tax from dividend payments impacting earnings.
The company is experiencing a bottleneck in scaling due to insufficient teams to handle onboarding and cross-selling of new products.
Operating expenses related to geographic expansion and increased headcount are expected to persist, impacting short-term profitability.
The company reported a decrease in gross margin from 74% to 72% due to increased cost of sales.
Karooooo Ltd (KARO) is facing challenges in fully utilizing AI tools due to potential customer dissatisfaction and market resistance to non-human interactions.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

KARO.OQ - Karooooo Ltd
Q2 2026 Karooooo Ltd Earnings Call
Oct 15, 2025 / 12:00PM GMT

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Presentation
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Unidentified_1 [1]
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Hello and welcome to Crew Q2 FY 2026 earnings call. On behalf of CORU, we would like to thank you for joining us today.

I'm Paul Bieber, VP of Investor Relations and strategic finance. We are joined today by Zach Calia, founder and group CEO, Hoshi Goi, Chief Financial Officer, and Carmen Calisa, Chief strategy and marketing officer.

I would like to remind everyone that some of the statements that we make today regarding our business operations and financial performance may be considered forward-looking.

Such statements are based on current expectations and assumptions. They are subject to several risks and uncertainties.

Our actual results could differ materially. Please refer to the safe harbor statement in

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