Karooooo Accelerates ARR Growth by 28% to USD298 Million

Core Insights - Karooooo Limited reported strong financial results for Q3 2026, highlighting a positive outlook and consistent growth in subscription revenue and net subscriber additions [1][2] Financial Performance - Cartrack's quarterly subscription revenue increased by 20% year-over-year to ZAR1,236 million, while annualized recurring revenue (ARR) grew by 22% to ZAR5,106 million, marking an acceleration from the previous year's growth rates of 14% for both metrics [3][6] - The ARR in USD also saw significant growth, increasing by 28% year-over-year to USD298 million [3][6] - The number of Cartrack subscribers rose by 16% year-over-year to 2.6 million, with net subscriber additions reaching a record of 111,478, up 29% year-over-year [6] Growth Strategy - The acceleration in growth was driven by significant customer expansion and increased adoption of Video and Cartrack Tag solutions [4] - The company emphasizes the importance of efficient execution of growth strategies supported by strong unit economics and a healthy balance sheet to enhance long-term shareholder value [4][5] Future Outlook - Ongoing investments in distribution capacity are expected to create sustainable advantages beyond the current financial year [5] - The company remains committed to disciplined capital allocation and maintaining a vertically integrated and open operating culture [5]