Revenue grew 18.8% year-over-year to $1.4 billion in 2026Q4, though gross margins compressed to 66.3% due to the scaling of lower-margin transactional business lines.
| Sales/Revenue | 5.48B | 4.57B | 4.21B | 3.51B | 2.75B | 2.29B | 1.94B | 1.69B |
| Revenue Growth % | 19.96% | 8.61% | 19.92% | 27.71% | 19.89% | 17.95% | 14.72% | - |
| Cost of Goods Sold | 1.75B | 1.36B | 1.51B | 1.23B | 922.56M | 670.52M | 574.77M | 484.7M |
| COGS % of Revenue | 32.03% | 29.87% | 36.02% | 35.21% | 33.59% | 29.27% | 29.6% | 28.63% |
| Gross Profit | 3.72B | 3.2B | 2.69B | 2.27B | 1.82B | 1.62B | 1.37B | 1.21B |
| Gross Margin % | 67.97% | 70.13% | 63.98% | 64.79% | 66.41% | 70.73% | 70.4% | 71.37% |
| Gross Profit Growth % | 16.27% | 19.04% | 18.41% | 24.61% | 12.57% | 18.5% | 13.17% | - |
| Operating Expenses | 2.31B | 1.89B | 1.65B | 1.39B | 1.12B | 893.46M | 736.2M | 708.09M |
| OpEx % of Revenue | 42.15% | 41.4% | 39.19% | 39.65% | 40.95% | 39.01% | 37.91% | 41.83% |
| Selling, General & Admin | 1.94B | 1.56B | 1.34B | 1.14B | 888.59M | 714.64M | 638.27M | 620.91M |
| SG&A % of Revenue | 35.38% | 34.15% | 31.83% | 32.38% | 32.36% | 31.2% | 32.87% | 36.68% |
| Research & Development | 261.47M | 226.94M | 212.24M | 177.02M | 149.24M | 100.14M | 44.92M | 48.28M |
| R&D % of Revenue | 4.77% | 4.97% | 5.05% | 5.05% | 5.43% | 4.37% | 2.31% | 2.85% |
| Other Operating Expenses | 109.56M | 104.19M | 97.59M | 77.71M | 86.64M | 78.68M | 53.01M | 38.89M |
| Operating Income | 1.41B | 1.31B | 1.04B | 881.91M | 699.13M | 726.56M | 630.92M | 499.92M |
| Operating Margin % | 25.82% | 28.73% | 24.79% | 25.15% | 25.46% | 31.72% | 32.49% | 29.53% |
| Operating Income Growth % | 7.8% | 25.88% | 18.21% | 26.15% | -3.78% | 15.16% | 26.2% | - |
| EBITDA | 1.44B | 2.08B | 1.77B | 1.49B | 1.26B | 1.17B | 957.95M | 761.43M |
| EBITDA Margin % | 26.24% | 45.43% | 42.18% | 42.53% | 45.92% | 51.18% | 49.33% | 44.98% |
| EBITDA Growth % | -30.73% | 16.99% | 18.92% | 18.28% | 7.57% | 22.38% | 25.81% | - |
| D&A (Non-Cash Add-back) | 0 | 762.78M | 731.3M | 609.64M | 561.92M | 445.75M | 327.02M | 261.51M |
| EBIT | 1.44B | 1.3B | 1.08B | 903.39M | 693.44M | 705.22M | 633.51M | 502.67M |
| Net Interest Income | -39.85M | -6.83M | 24.03M | 13.16M | -6.25M | -4.94M | -14.24M | -28.69M |
| Interest Income | 31.66M | 45.04M | 40.15M | 23.25M | 6.08M | 4.36M | 2.59M | 2.75M |
| Interest Expense | 71.51M | 51.87M | 16.12M | 10.1M | 12.33M | 9.3M | 16.83M | 31.44M |
| Other Income/Expense | -55.06M | -65.41M | 23.21M | 12.19M | -17.04M | -30.51M | -14.24M | -28.69M |
| Pretax Income | 1.36B | 1.25B | 1.07B | 894.1M | 682.08M | 696.05M | 616.68M | 471.23M |
| Pretax Margin % | 24.82% | 27.3% | 25.34% | 25.49% | 24.84% | 30.39% | 31.76% | 27.84% |
| Income Tax | 348.54M | 309.81M | 311.55M | 285.3M | 205.48M | 198.63M | 173.16M | 110.18M |
| Effective Tax Rate % | 25.63% | 24.85% | 29.23% | 31.91% | 30.12% | 28.54% | 28.08% | 23.38% |
| Net Income | 993.92M | 921.03M | 738.19M | 597.15M | 449.95M | 318.18M | 289.88M | 236.93M |
| Net Margin % | 18.14% | 20.17% | 17.55% | 17.03% | 16.38% | 13.89% | 14.93% | 14% |
| Net Income Growth % | 7.91% | 24.77% | 23.62% | 32.71% | 41.41% | 9.76% | 22.35% | - |
| Net Income (Continuing) | 1.01B | 937.11M | 754.16M | 608.81M | 476.61M | 497.42M | 443.53M | 361.05M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 45.43M | 43.25M | 40.62M | 30.64M | 22.51M | 418.58M | 339.77M | 219.2M |
| EPS (Diluted) | 29.55 | 29.81 | 24.30 | 19.29 | 14.86 | 13.28 | 14.21 | 9.50 |
| EPS Growth % | -0.87% | 22.67% | 25.97% | 29.81% | 11.9% | -6.54% | 49.58% | - |
| EPS (Basic) | 29.55 | 29.81 | 24.30 | 19.29 | 14.86 | 13.28 | 14.21 | 9.50 |
| Diluted Shares Outstanding | 30.89M | 30.89M | 30.95M | 30.95M | 30.95M | 21.54M | 21.54M | 20.33M |
| Basic Shares Outstanding | 30.89M | 30.89M | 30.95M | 30.95M | 30.95M | 21.54M | 21.54M | 20.33M |
| Dividend Payout Ratio | - | 67.8% | 68.92% | 60.38% | - | 76.9% | 19.12% | 65.05% |
Geographic concentration and currency
According to recent financial disclosures, Karooooo has maintained a consistent revenue growth trajectory, with quarterly figures reaching $1.4 billion in 2026Q4, representing an 18.8% year-over-year increase, as the company successfully balances its core SaaS subscription expansion with the transactional volume of its newer Carzuka marketplace segment.
The revenue growth appears durable, supported by the recurring nature of the Cartrack platform which provides a stable foundation for top-line expansion. However, investors should monitor whether the increasing contribution from the transactional Carzuka segment introduces greater cyclicality into the overall growth profile compared to historical SaaS-only performance.
Based on reported income statements, Karooooo’s gross margin has experienced a noticeable compression, declining from a peak of 71.3% in 2025Q4 to 66.3% by 2026Q4, which suggests that the scaling of lower-margin transactional business lines is beginning to weigh on the company's overall profitability profile.
The shift in margin structure warrants further investigation into whether this is a temporary byproduct of aggressive market entry or a permanent feature of the evolving business model. While the SaaS segment remains highly profitable, the dilution from non-subscription revenue streams may necessitate a more disciplined approach to cost management to maintain historical operating margin levels.
As reported in recent filings, Karooooo has demonstrated effective control over its operating expenses, with SG&A costs rising to $510.2 million in 2026Q4, yet the company continues to generate significant operating income, suggesting that management is successfully scaling the business without incurring disproportionate overhead growth.
The ability to maintain an operating margin of 23.3% despite increased investment in new segments indicates a high degree of operational discipline. This suggests that the company's proprietary infrastructure and vertical integration provide a scalable platform that does not require linear increases in administrative spending to support growth.
Based on the provided financial data, Karooooo’s heavy reliance on the South African market, which accounts for the vast majority of its revenue, exposes the firm to significant sovereign risk and ZAR volatility that may obscure the underlying operational performance of its global SaaS expansion efforts.
Short-term fluctuations in reported net income appear heavily influenced by foreign exchange translation, which may mask the true economic value generated by the core telematics business. Investors should be cautious of the potential for these external macro factors to create volatility that is unrelated to the company's actual competitive positioning or subscriber growth.
Quick answers to the most common questions about buying KARO stock.
For fiscal year 2026, Karooooo Ltd. (KARO) reported total revenue of $5.48B. This represents a 223.7% increase compared to $1.69B in 2019.
Karooooo Ltd. (KARO) is profitable, generating $993.9M in net income for the fiscal year ending 2026 with a net profit margin of 18.1%.
Karooooo Ltd. (KARO) reported an operating income of $1.41B, resulting in an operating profit margin of 25.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Karooooo Ltd. (KARO) generated $3.72B in gross profit for the year, representing a gross profit margin of 68.0%. This demonstrates the company's core pricing power and production efficiency.