South African billionaire’s company shooting the lights out

Billionaire Zak Calisto’s Karooooo has reported another set of strong results for the third quarter of its 2026 financial year.

Karooooo, which owns 100% of Cartrack and 81% of Karooooo Logistics, achieved double-digit revenue growth and record net subscriber additions.

The company released these results for the three months ended 30 November 2025 on Wednesday, 21 January 2026.

These quarterly results revealed that Karooooo’s subscription revenue increased by 20% to R1.24 billion, with Cartrack contributing the bulk at over R1.23 billion.

Cartrack’s subscribers reached 2.57 million, representing net additions of 111,478 subscribers over the three-month period.

This impressive subscriber growth saw Cartrack’s SaaS annualised recurring revenue (ARR) increase by 22% to R5.11 billion.

While contributing a significantly smaller share of total revenue, Karooooo Logistics also performed well, with the business’s B2B delivery-as-a-service revenue having increased by 24% to R135 million.

Alongside this strong revenue growth, Karooooo reported an operating profit of R369 million, representing a 14% increase compared to the third quarter of its 2025 financial year.

Cartrack also contributed the lion’s share of this total, with its operating profit up 14% to R359 million. Cartrack’s operating profit margin was 28%, which is slightly down from 30% in 2025.

Karooooo’s adjusted earnings per share increased by 11% to R8.54 per share.

The company also reported a notable increase in its cost of sales. Karooooo’s cost of sales increased 23% to R431 million, while Cartrack’s cost of sales grew by 21% to R336 million. 

“As we strive to accelerate our growth, Cartrack’s cost of sales reflects incremental depreciation as the percentage of subscribers contributing to depreciation expense increases as a percentage of total subscribers,” the company explained. 

Regardless, the company pointed out that Cartrack’s gross profit margin remained strong at 74%, unchanged from the prior year, and Cartrack’s subscription gross profit margin was 73%.