Karooooo Reports Q3 2026: Subscription Revenue Grows 20% to ZAR 1.236 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 20 2026
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Source: Newsfilter
- Accelerated Revenue Growth: Karooooo's Q3 2026 SaaS annualized recurring revenue (ARR) grew 22% year-over-year to ZAR 5.106 billion, demonstrating the company's strong performance and sustained growth potential in the market.
- Subscriber Increase: Cartrack's subscribers rose 16% year-over-year to 2.6 million, with net additions of 111,478 marking a record high, indicating the company's success in customer expansion and market penetration.
- Dollar Revenue Boost: SaaS ARR in USD accelerated 28% year-over-year to USD 298 million, reflecting the company's competitiveness in international markets and the effectiveness of its revenue diversification strategy.
- Strategic Investment Commitment: CEO Zak Calisto emphasized the company's ongoing investment in distribution capacity to create durable advantages, while committing to disciplined capital allocation and strong unit economics aimed at delivering long-term shareholder value.
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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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