Karooooo Ltd (JSE:KRO)

Q3 2026 Karooooo Ltd Earnings Call Transcript

Jan 21, 2026 / 01:00 PM GMT

Release Date Price: R772.11 (-1.99%)

Transcript

Key Points

Positve

Karooooo Ltd (KARO) reported a 22% increase in ARR, reaching ZAR5,106 million, and a 28% increase in US dollar terms, reaching USD298 million.
The company achieved record net subscriber additions of 111,000 in Q3, with total subscribers increasing by 16% to approximately 2.6 million.
Karooooo Ltd (KARO) maintained a high commercial customer ARR retention rate of 95% and a subscription revenue accounting for 97% of Cartrack revenue.
The company reported a healthy subscription gross margin of 73% and an LTV to CAC ratio above 9 times, indicating strong unit economics.
Karooooo Ltd (KARO) ended the quarter with a strong balance sheet, holding net cash and cash equivalents of ZAR531 million.

Negative

The strengthening South African rand negatively impacted reported Q3 Cartrack subscription revenue growth.
Karooooo Ltd (KARO) experienced a 47% increase in sales and marketing expenses in Q3, which impacted operating profit margins.
The company faces currency translation headwinds due to the appreciation of the South African rand, affecting reported revenue.
Karooooo Ltd (KARO) remains people constrained, needing to build sales capability to meet growth goals.
The company does not hedge its foreign currency exposure, leading to potential variability in reported results due to exchange rate fluctuations.

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

KARO.OQ - Karooooo Ltd
Q3 2026 Karooooo Ltd Earnings Call
Jan 21, 2026 / 01:00PM GMT

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Conference Call Participants
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* Paul Bieber
Karooooo Ltd - Vice President - Investor Relations and Strategic Finance
* Carmen Calisto
Karooooo Ltd - Chief Strategy and Marketing Officer
* Hoeshin Goy
Karooooo Ltd - Chief Financial Officer
* Isaias Calisto
Karooooo Ltd - Executive Chairman of the Board, Chief Executive Officer

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Presentation
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Paul Bieber, Karooooo Ltd - Vice President - Investor Relations and Strategic Finance [1]
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Hello and welcome to Karooooo's Q3 FY 2026 earnings call. On behalf of Karooooo, we would like to thank you for joining us today. I am Paul Bieber, VP of Investor Relations and Strategic Finance. We are joined today by Zak

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