South African billionaire’s company hits a new record
Karooooo has seen a significant increase in subscriber numbers, and the group is now exploring new technologies to drive growth.
Karooooo was founded by Zak Calisto, who currently serves as its CEO, and is primarily known for Cartrack. Calisto owns over 50% of the company, which is currently worth over R24 billion.
In its latest update, Karooooo said that its Catrack’s subscriber numbers increased 16% in three months ending 30 November 2025 (Q3 2026) to 2,568,467 (Q3 2025: 2,223,227)
It saw record net Cartrack subscriber additions of 111,478 (Q3 2025: 86,617).
Karooooo’s subscription revenue increased 20% to R1,239 million (Q3 2025: R1,032 million).
The group’s operating profit increased 14% to R369 million (Q3 2025: R325 million), while earnings per share increased 11% to R8.55 (Q3 2025: R7.68).
Cartack’s operating profit increased by 14% to R359 million, while Karooooo Logistics’s operating profit increased 7% to R10 million.
“Our Q3 performance reflects our consistent and disciplined track record of growing our business at scale,” said Calisto.
“We continued to accelerate our subscription revenue while experiencing record net subscriber additions.”
Calisto said that massive customer expansion and increased adoption of its Video and Cartrack Tag products drove the acceleration.
He acknowledged that there are timing differences between growth-related expenses and the realisation of future revenue.
However, the company believes that accelerating growth is the appropriate strategy to drive long-term shareholder value when it is supported by strong unit economics and a healthy balance sheet.
“We expect our ongoing investment in distribution capacity to create durable advantages that extend
beyond the current financial year,” the CEO added.
“We remain firmly committed to disciplined capital allocation, strong unit economics and our vertically integrated and open operating culture.’
Outlook
Looking ahead, Karooooo believes it is well-positioned for growth, as it operates in an expanding, largely underpenetrated market driven by robust, sustained customer demand.
The demand is driven by heightened digitalisation, the need to improve operational efficiency and reduce costs, and increased safety in physical operations.
“Our proven and profitable business model, underpinned by a strong balance sheet and healthy cash position, provides us with multiple levers for expansion.”
“We believe our ongoing investments in AI innovation, platform capabilities and customer experience position us to drive durable long-term growth.”
“We remain confident that our track record of success, specifically our ability to generate healthy cash flows, is sustainable.”
The group said that it is focused on expanding its sales teams to drive new subscriber growth while increasing the adoption of Video and Cartrack Tag products within its existing customer base.
Although the business growth has accelerated, Karooooo admitted to being people-constrained. The group has recently been in the media for its alleged harsh working conditions, which it denies.
The group said that it will continue to build its sales capability to support further acceleration in subscriber growth and cross-sell Video and Cartrack Tag.
Given the current momentum in the first three quarters of its 2026 financial year, Karooooo gave the following guidance:
- Cartrack’s subscription revenue is between R4,785 million and R4,900 million, which implies Cartrack subscription revenue growth between 18% and 21%. This compares with its previous outlook for Cartrack subscription revenue of between R4,700 million and R4,900 million.
- Cartrack’s operating profit margin is between 27% and 30%. This compares with its previous outlook for Cartrack’s operating profit margin of 26% to 31%.
- Karooooo’s adjusted earnings per share (a non-IFRS measure) are between R32.50 and R35.50.
At current levels, Karooooo said that the appropriate strategy for the long-term health of the business is to lean into selling Video and Cartrack Tag to its existing customers, reinforcing its leadership position in South Africa.
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