Karooooo (KARO) Reports Q3 Earnings with ZAR 1.41B Revenue and Upgraded Buy Rating
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 20 2026
0mins
Source: seekingalpha
- Earnings Highlights: Karooooo reported a Q3 GAAP EPS of ZAR 8.55, indicating sustained profitability growth that boosts investor confidence in its future performance.
- Revenue Performance: The company achieved revenue of ZAR 1.41 billion in Q3, reflecting strong competitiveness and robust customer demand compared to the previous year.
- Upgraded Rating: Analysts have upgraded Karooooo to a 'Buy' rating, signaling market recognition of its profit growth potential, which may attract more investor interest.
- Strategic Partnerships: At the UBS Global Technology and AI Conference, Karooooo showcased its collaboration with Cartrack and Volkswagen, aiming to enhance service quality and market share through fleet data integration.
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Analyst Views on KARO
Wall Street analysts forecast KARO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KARO is 58.33 USD with a low forecast of 55.00 USD and a high forecast of 60.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
4 Buy
0 Hold
0 Sell
Strong Buy
Current: 49.390
Low
55.00
Averages
58.33
High
60.00
Current: 49.390
Low
55.00
Averages
58.33
High
60.00
About KARO
Karooooo Ltd. is a Singapore-based company. The principal activities include the provision of real-time mobility data analytics solutions for smart transportation through its software-as-a-service (SaaS) platform, physical and electronic commerce vehicle buying and selling, and providing a technology platform focused on last-mile delivery. The Company’s segments include Cartrack, Carzuka, and Karooooo Logistics. Cartrack offers an on-the-ground operational Internet of Things (IoT) SaaS cloud that optimizes transportation, operations, and workflow data. Carzuka is a physical and electronic commerce marketplace for vehicle buying and selling, allowing customers to source, buy, and sell vehicles. Karooooo Logistics provides a software application for managing last-mile delivery and general operational logistics. The Company’s subsidiaries include Cartrack Holdings Proprietary Limited, Carzuka.com Pte Ltd, Karooooo Management Company Pte. Ltd., Karooooo Cartrack Limited, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Karooooo Q3 2026 Earnings: 28% ARR Growth Approaching $300 Million
- Significant ARR Growth: Karooooo's annual recurring revenue (ARR) surged by 28% in Q3 FY 2026, reaching $298 million, demonstrating the company's ability to effectively expand its revenue base while making substantial investments in sales and marketing.
- Strong Subscription Revenue: Subscription revenue increased by 20% year-over-year to ZAR 1.239 billion in Q3, reflecting robust performance in the South African market, particularly with subscriber numbers rising to 2.6 million, further solidifying its market leadership.
- High Customer Retention: The commercial customer ARR retention rate remained at 95%, indicating that the company's ongoing investments in customer service and product value are effectively enhancing customer loyalty and driving long-term growth.
- Healthy Profit Margins: Despite a 47% increase in sales and marketing expenses, Karooooo maintained an operating profit margin of 28%, showcasing the company's ability to sustain strong profitability and financial health while expanding its business.
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