Karooooo Q4 Earnings Call Highlights

Karooooo (NASDAQ:KARO) reported accelerated subscription gross maturation and sharply higher adjusted escaped currency travel for fiscal 2026, portion absorption said it expects further maturation successful fiscal 2027 contempt near-term unit connected gross margins from overseas speech and higher device-related costs.

During the company’s fourth-quarter and full-year fiscal 2026 results presentation, Carmen Calisto, Karooooo’s Chief Strategy and Marketing Officer, said Cartrack subscription gross maturation accelerated to 19% from 15% successful the anterior year, contempt headwinds from the appreciation of the South African rand. Annual recurring gross accrued 18% to ZAR 5.18 cardinal and roseate 38% successful U.S. dollar presumption to $325 million.

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“FY 2026 marked different twelvemonth of disciplined execution,” Calisto said, adding that momentum successful South Africa, the company’s astir mature market, strengthened during the year. South Africa ARR maturation exited February astatine 23%, which absorption said reinforced Karooooo’s marketplace enactment there.

Subscription Revenue and Cash Flow Rise

Karooooo’s full gross accrued 20% to ZAR 5.48 cardinal for fiscal 2026, portion subscription gross accrued 19% to ZAR 4.84 billion. Chief Financial Officer Hoe Shin Goy said adjusted net per stock for the twelvemonth were ZAR 32.55, portion adjusted EPS successful U.S. dollar presumption accrued 20% to $2.05.

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The institution besides reported a important summation successful currency generation. Adjusted escaped currency travel roseate 90% to ZAR 809 million. Goy attributed the show to respective factors, including stronger collections successful February 2026, improved supplier terms, timing of taxation payments, disciplined absorption of uninstalled IoT devices and little payments tied to the operation of the company’s South African caput office.

Karooooo ended the 4th with nett currency and currency equivalents of ZAR 746 million. The institution declared a dividend of $1.50 per share, up 20%, payable successful July 2026.

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Calisto said the institution continued to put successful its organisation network, AI-powered video capabilities and Cartrack-Tag, describing those investments arsenic portion of a strategy to thrust aboriginal recurring revenue, net and escaped currency flow.

Cartrack Remains Core Growth Driver

Cartrack, Karooooo’s operational quality SaaS level for connected vehicles and mobile assets, remained the superior operator of the company’s results. Goy said Cartrack gross accrued 19% to ZAR 4.94 cardinal for fiscal 2026, portion Cartrack subscription gross accrued 19% to ZAR 4.83 billion.