Karooooo Beats Q1 Estimates as FX Hits Shares

Karooooo Ltd reported a strong start to FY2027, with Q1 results beating analyst expectations driven by Cartrack’s subscriber growth and accelerating subscription revenue. Net subscriber additions surged 70% to a record 142,472, lifting the total to over 2.8 million, while Cartrack subscription revenue rose 19% year over year (21% in constant currency). Revenue reached about ZAR1.575 billion, and non-GAAP EPS came in at ZAR9.63, topping estimates by a comfortable margin, as the company reaffirmed its full-year outlook on continued momentum. Despite the positive results, the company noted foreign exchange headwinds from a stronger rand that weighed on contributions in several markets, and some markets still faced FX pressure. In contrast, one report flagged a potential downgrade to FY2027 GAAP EPS guidance, highlighting mixed market reactions as shares traded modestly lower in after-hours trading in response to the results and outlook, while several analyses also noted favorable valuation metrics and ongoing optimism about subscriber growth and ARR expansion across its platforms.