Cartrack Soars: Owner Reports Impressive Profit Surge

Karooooo, the parent company of Cartrack, has unveiled its financial performance for the quarter ending on 31 August 2026, showing significant growth in both subscription revenue and subscriber numbers, culminating in a record level of operating profit.

In its South African market, the number of Cartrack subscribers surged by 18% compared to the previous year, totaling 2,185,798, while subscription revenue saw an increase of 25%.

“The pace of growth reflects our deliberate strategy to cement our leadership position in South Africa through a balanced combination of subscriber additions and selling Video and Cartrack-tag,” the company stated.

“Despite some macro-economic stress in the South African economy, we continue to see a compelling market opportunity in South Africa and are excited about the potential ahead.”

For the overall business, Cartrack reported a 20% year-on-year growth in subscription revenue, amounting to R1.4 billion.

Subscriber numbers experienced a rise of 18% year-on-year, increasing from 2.5 million for the quarter ended 31 August 2025 to 2.9 million in the same quarter of 2026.

“We are pleased to report another quarter of acceleration. Cartrack’s constant currency subscription revenue growth increased to 23% in Q2, compared to 21% in Q1,” said Karooooo CEO Zak Calisto.

“During the quarter, we continued to balance new customer acquisition while building our cross-sell capabilities.”

Despite the strengthening of the rand, which affected contributions from various countries where Karooooo operates when reported in rand, the company’s annual recurring revenue still climbed by 20%.

“In constant currency, annual recurring revenue (ARR) increased 22% and, presented in USD, ARR increased 30%, reaching $354 million,” Calisto added.

“Karooooo’s Q2 operating profit increased 19% to a record R422 million despite the currency headwinds.”

Calisto mentioned that the company maintained robust operating cash flow and was dedicated to enhancing subscription revenue growth.

“As we enter the second half of FY2027, we remain focused on building on the strong momentum established in the first half of the year and on driving AI adoption throughout the organisation,” he concluded.