Karooooo (KARO) Q3 2025 earnings summary

Executive summary

• Achieved Q3 revenue of ZAR 1,159 million, up 15% year-on-year, and subscription revenue of ZAR 1,032 million, up 14% year-on-year.

• Adjusted earnings per share rose 21% year-on-year to ZAR 7.67, reaching a record high.

• Subscriber base grew 17% year-on-year to 2.22 million, with commercial customer retention at 95%.

• Cartrack segment delivered 19% year-on-year subscription revenue growth in USD, surpassing ZAR 1 billion in quarterly subscription revenue.

• Reaffirmed FY25 outlook, targeting 2.3–2.4 million subscribers and ZAR 3,950–4,150 million Cartrack subscription revenue.

Financial highlights

• Operating profit increased 18% to ZAR 325 million in Q3; adjusted EBITDA up 17% to ZAR 501 million.

• Free cash flow for Q3 was ZAR 188 million, up from ZAR 162 million year-on-year.

• Net cash and cash equivalents stood at ZAR 856 million at quarter-end.

• Paid a cash dividend of USD 33.4 million or USD 1.08 per share, up 27%.

• Gross profit rose 18% to ZAR 808 million, with gross margin improving to 70%.

Outlook and guidance

• FY25 guidance reaffirmed: Cartrack subscribers expected between 2.3–2.4 million; subscription revenue ZAR 3,950–4,150 million.

• Cartrack operating profit margin expected between 27%–31%; adjusted EPS projected at ZAR 27.50–31.00.

• Continued focus on organic growth, product innovation, and expansion in Southeast Asia.

• Management expects continued robust results from ongoing investment in AI, platform, and customer experience.