Karooooo (NASDAQ:KARO) reported accelerated subscription revenue growth and sharply higher adjusted free cash flow for fiscal 2026, while management said it expects further growth in fiscal 2027 despite near-term pressure on gross margins from foreign exchange and higher device-related costs.
During the company’s fourth-quarter and full-year fiscal 2026 results presentation, Carmen Calisto, Karooooo’s Chief Strategy and Marketing Officer, said Cartrack subscription revenue growth accelerated to 19% from 15% in the prior year, despite headwinds from the appreciation of the South African rand. Annual recurring revenue increased 18% to ZAR 5.18 billion and rose 38% in U.S. dollar terms to $325 million.
