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KARO

Karooooo Ltd.

KARO

Karooooo Ltd. • NASDAQ
$45.03 ▼ -0.18% (-0.08)
Market Cap $1.39 B
52w High $63.36
52w Low $35.88
Dividend Yield 1.25%
P/E 23.95
Volume 11.86K
Outstanding Shares 30.89M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q2-2026 $1.344B ▲ $562.657M ▲ $243.576M ▼ 18.125% ▼ $7.88 ▼ $569.742M ▲
Q1-2026 $1.277B ▲ $521.509M ▲ $264.095M ▲ 20.681% ▲ $8.55 ▲ $549.121M ▲
Q4-2025 $1.23B ▲ $489.038M ▼ $252.87M ▲ 20.552% ▲ $8.19 ▲ $515.724M ▼
Q3-2025 $1.182B ▲ $495.666M ▲ $241.851M ▲ 20.465% ▲ $7.83 ▲ $520.349M ▲
Q2-2025 $1.082B $470M $206.811M 19.114% $6.69 $450.435M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q2-2026 $420.819M ▼ $4.929B ▼ $1.882B ▲ $2.995B ▼
Q1-2026 $1.097B ▲ $5.325B ▲ $1.842B ▲ $3.435B ▲
Q4-2025 $1.047B ▲ $5.097B ▲ $1.84B ▲ $3.214B ▲
Q3-2025 $921.05M ▲ $4.783B ▲ $1.819B ▲ $2.918B ▲
Q2-2025 $709.47M $4.374B $1.651B $2.679B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2026 $241.734M ▼ $282.953M ▼ $-268.678M ▲ $-697.825M ▼ $-657.58M ▼ $0
Q1-2026 $257.401M ▲ $625.687M ▲ $-309.08M ▼ $-34.4M ▼ $88.237M ▼ $0
Q4-2025 $252.87M ▲ $219.686M ▼ $-270.476M ▲ $-18.447M ▼ $95.525M ▼ $0
Q3-2025 $241.851M ▲ $468.192M ▲ $-279.676M ▼ $3.844M ▲ $202.479M ▲ $0
Q2-2025 $206.811M $396.174M $-238.458M $-377.49M $-233.373M $0

Five-Year Company Overview

Income Statement

Income Statement Karooooo shows a clear pattern of healthy, steady growth. Revenue has increased each year, and profits have grown alongside it, not just in absolute terms but also with solid profitability at every level (gross, operating, and net). This is unusual for many software companies, which often sacrifice profits for growth. The business appears to be scaling efficiently: as sales rise, operating income and EBITDA rise as well, suggesting good cost control and a disciplined approach to expansion.

Balance Sheet

Balance Sheet The balance sheet looks relatively robust and getting stronger over time. Total assets and shareholders’ equity have steadily increased, indicating that the company is building up its underlying business rather than just growing through debt. Debt levels have risen recently but remain modest against the size of the business, and equity has grown faster than borrowings. The cash position has moved around year to year but is currently strong, which provides financial flexibility and a cushion against shocks.

Cash Flow

Cash Flow Cash generation from the core business is a strong point. Operating cash flow has grown meaningfully over time, broadly tracking the rise in profits. Free cash flow has been positive most years but somewhat volatile, mainly because the company continues to invest heavily in its platform, infrastructure, and growth. Capital spending is significant, but it appears to be funded largely out of internally generated cash rather than heavy borrowing, which is a constructive sign of self-funded growth.

Competitive Edge

Competitive Edge Karooooo operates in a competitive global fleet and mobility software market but has carved out a distinct space. Its vertically integrated model – designing both hardware and software in-house and managing installation and support – creates tight control over quality, costs, and product evolution. A sticky subscription model, high customer retention, and a large, diversified subscriber base give it recurring revenue and data advantages. Its strong profitability, especially relative to many growth-focused software peers, suggests it competes not just on technology but also on execution and efficiency, with a particularly strong foothold in emerging markets.

Innovation and R&D

Innovation and R&D Innovation is central to the company’s strategy. Karooooo develops its own devices and software, integrating advanced GPS, IoT, AI-powered video, and predictive analytics into a single platform. New offerings like AI video telematics and Cartrack-Tag strengthen safety and asset recovery, while analytics tools support fleet cost optimization and sustainability goals. The planned new platform release, ongoing enhancement of AI features, heavier use of its large data pool, and geographic expansion (notably in Southeast Asia) all indicate that R&D is focused on deepening the product moat and opening up new growth avenues, including potential positioning for future autonomous fleet management.

Summary

Overall, Karooooo combines consistent growth, solid profitability, and a strengthening balance sheet with a clear technological edge. The business appears to scale efficiently, generate healthy cash from operations, and reinvest meaningfully in its platform while keeping leverage in check. Its competitive strengths lie in vertical integration, sticky SaaS subscriptions, data-driven products, and strong execution in both developed and emerging markets. Key things to watch over time include: how effectively it converts expansion (especially in new regions) into sustained profits, whether heavy ongoing investment continues to yield tangible product and customer gains, and how it responds to intensifying competition and rapid technological change in telematics and mobility software.

NEWS

November 25, 2025 · 9:03 AM UTC

Karooooo to Participate in Upcoming Investor Conferences

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November 18, 2025 · 7:11 AM UTC

Cartrack and Volkswagen Group Info Services AG Form Partnership for Fleet Data Integration

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October 14, 2025 · 4:23 PM UTC

Karooooo Accelerates Subscription Revenue Growth from 15% to 20%

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October 6, 2025 · 8:12 AM UTC

Karooooo to Announce Second Quarter 2026 Results on October 14, 2025

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