Karooooo Limited reported record results for the fourth quarter and full fiscal year 2025, which ended on February 28, 2025. For Q4 2025, Karooooo's subscription revenue increased 16% to ZAR1,086 million, and operating profit grew 30% to ZAR385 million. Adjusted earnings per share (EPS) for the quarter rose 39% to ZAR9.48, while full-year FY25 adjusted EPS increased 33% to ZAR31.67.
Cartrack's subscription revenue accelerated 200 basis points to 16% in Q4 2025, contributing to a 17% year-over-year increase in total subscribers to 2.3 million. The company also highlighted strong regional growth, with Southeast Asia's constant currency subscription revenue growing 31% in Q4 and Europe's subscriber growth accelerating to 20%. Karooooo Logistics revenue increased 19% to ZAR110 million in Q4.
Despite strong performance, Karooooo recognized a goodwill impairment of ZAR43.6 million related to its Mozambique operations due to political riots and property damage. For fiscal year 2026, the company provided guidance for Cartrack subscription revenue between ZAR4,700 million and ZAR4,900 million, implying 16% to 21% growth. Cartrack operating profit margin is expected to be between 26% and 31%, and Karooooo EPS is forecasted between ZAR32.5 and ZAR35.5.
Management anticipates lower EPS growth in FY26 due to planned upfront investments in sales and marketing, including a 70% increase in sales headcount in Southeast Asia and approximately 50% in South Africa and Europe. A temporary dip in sales productivity from new hires is expected in their initial six months. The company aims for an approximate 10% increase in ARPU by year-end FY26, primarily from cross-selling camera solutions and Cartrack Tag, but acknowledges that achieving this target in South Africa may take longer than initially expected due to the nuanced dynamics of stand-alone Cartrack tags.
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