Overview

* Karooooo Q2 2026 subscription revenue grows 20% yr/yr, driven by Cartrack's ARR increase

* Adjusted EPS for Q2 2026 rises 13% yr/yr, reflecting strong earnings

* Company maintains strong cash position with ZAR393 mln net cash after dividend payout

Outlook

* Karooooo ( KARO ) expects investment in AI products to generate robust future results

* Company emphasizes strong unit economics and clean balance sheet for scaling

Result Drivers

* SUBSCRIPTION REVENUE GROWTH - Cartrack's SaaS ARR growth drove a 20% increase in subscription revenue

* LOGISTICS REVENUE - Karooooo Logistics's revenue rose 38% due to increased e-commerce orders

* AI INVESTMENT - Continuous investment in AI products and platform expected to generate robust future results

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 ZAR 1.18

Subscrip bln

tion

Revenue

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the it services & consulting peer group is "buy"

* Wall Street's median 12-month price target for Karooooo Ltd ( KARO ) is $60.00, about 12.5% above its October 13 closing price of $52.51

* The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 25 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)