Karooooo (KARO) Reports Record Operating Profit and Strong Subscription Growth in Q2 2027
Karooooo Ltd. reported record quarterly operating profit of ZAR 422 million for the second quarter of fiscal year 2027, driven by strong performance across its subscription services and logistics division. Total revenue reached ZAR 1,640 million, a 22% increase from the prior period, with subscription revenue accounting for nearly all of it at ZAR 1,418 million (up 20%). The company added a record number of subscribers—94,516—and now has over 2.89 million total subscribers globally. Annualized Recurring Revenue grew by 19% to ZAR 5,708 million and reached $354 million in U.S. dollars due to the strengthening South African rand. The company maintained a strong operating margin of 28% for its Cartrack division but faced challenges with logistics margins at just 6%, attributed to costs related to driver availability and network expansion. Despite these, Karooooo reaffirmed its full-year guidance for subscription revenue between ZAR 5,700 million and ZAR 6,000 million.
Tickers: $KARO
Topics: ARR operating_profit revenue subscriber_growth
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Part of the story Karooooo Reports Accelerated Subscription Revenue Growth in Q2 FY2027 (2 articles)