Karooooo Ltd. ( (KARO) ) has released its Q4 earnings. Here is a breakdown of the information Karooooo Ltd. presented to its investors.
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Karooooo Ltd., headquartered in Singapore, is a company that specializes in transforming physical operations through its cloud platform, focusing on fleet management, logistics, and operational efficiency across various sectors. In its latest earnings report, Karooooo Ltd. announced record financial results for the fourth quarter and full fiscal year 2025, showcasing significant growth in revenue, operating income, and earnings per share. The company reported a 25% year-over-year increase in earnings per share to ZAR29.81 and a 33% rise in adjusted earnings per share to ZAR31.67, alongside a 17% growth in subscribers to 2.3 million.
Key financial highlights include a 16% increase in subscription revenue for both the fourth quarter and the full year, driven by strong subscriber growth and strategic investments in infrastructure and marketing. Cartrack, a subsidiary of Karooooo, saw its operating profit rise by 30% with an operating profit margin reaching 34%. Karooooo Logistics also contributed positively with a 19% increase in its delivery-as-a-service revenue.
The company’s strategic focus on innovation and expansion is evident in its investments in AI and platform enhancements, particularly in Southeast Asia, which remains a significant growth opportunity. Despite challenges in Mozambique due to political unrest, the region continued to generate positive cash flows. Looking ahead, Karooooo aims to accelerate its subscription revenue growth in FY 2026 by expanding its distribution footprint and enhancing its platform offerings.
Karooooo’s management remains optimistic about the future, supported by a strong balance sheet and a commitment to disciplined execution. The company plans to continue its investments in AI and customer experience to sustain its growth trajectory and profitability.