JSE-listed tech company going from strength to strength

Karooooo has released another set of strong results for the first half of its 2026 financial year, with solid revenue and profit growth.

Karooooo owns 100% of Cartrack and just under 75% of Karooooo Logistics. It is headquartered in Singapore but listed on the Nasdaq and JSE.

Founded by Zak Calisto as Cartrack in 2001 as a joint venture with Netstar, Karooooo has grown rapidly in recent years. 

The company now boasts over 2.4 million active subscribers, and works with 125,000 businesses across more than 20 countries.

On Wednesday, 15 October, Karooooo released its results for the first six months of its 2026 financial year.

These results revealed a strong performance, with subscription revenue up 19% to R2.32 billion.

This was driven by solid contributions from Cartrack and Karooooo Logistics, which saw their revenue increase by 19% and 29%, respectively.

Cartrack was by far the largest contributor, recording revenue of just under R2.32 billion.

The company said this was primarily driven by its subscription-based business model, with subscription revenue representing 98% of Cartrack’s total revenue.

These revenue jumps also translated into strong profit growth, with Karooooo’s operating profit up 18% to R708 million. Adjusted earnings per share increased by 16% to R16.83 per share.

The company also saw a significant 17% rise in operating expenses to R1.09 billion, of which Cartrack accounted for the lion’s share at R1.03 billion.

In particular, Karooooo invested heavily in Cartrack’s sales and marketing, which saw these expenses rise by 32% to R390 million in the half-year.

“We are optimistic that our strategic investment in customer acquisition, including sales headcount, is already yielding the desired results and positions us well for continued growth,” the company said. 

“As we begin to realise the benefits of this investment, we continue working to produce further gains in new sales headcount efficiency in the coming periods.” 

Looking forward, Karooooo said it remains strongly positioned for growth, with the operating environment presenting good opportunities.

“We operate in an expanding and largely underpenetrated market, fueled by robust and sustained customer demand,” it said. 

“This demand is driven by a heightened focus on digitalisation, the need to improve operational efficiency and reduce costs, and increasing attention to safety in physical operations.”

“Our proven and profitable business model, underpinned by a strong balance sheet and healthy cash position, gives us multiple levers for expansion.” 

“We believe our continuous investment in AI products, platform and customer experience will generate robust results in the future.”