South African Billionaire Zak Calisto's Karooooo Posts 20.5 Million Profit In Q2 As Subscriptions Jump 20

Karooooos founder and chief executive Zak Calisto has never been shy about betting on steady subscription growth. This quarter, that bet paid off again. The company reported a 20 jump in subscription revenue for the second quarter of fiscal 2026, climbing to ZAR 1.18 billion USD 68 million from a year earlier. Total revenue rose to ZAR 1.34 billion USD 77 million as Cartrack its core fleet management unit continued to drive results while its delivery business gained momentum. Our subscription revenue growth increased from 15 in FY25 Q2 to 20 in this quarter, Calisto said. We continue to demonstrate our ability to accelerate our subscription revenue growth at scale, deliver strong earnings, drive innovation, and increase our distribution capabilities while maintaining a strong, financially disciplined, agile, innovative and owner-orientated culture. We believe that our strong unit economics coupled with a clean balance sheet positions us favourably to continue to scale. The companys annualized recurring revenue climbed to ZAR 4.81 billion USD 277 million, also up 20. Logistics revenue surged 38 to ZAR 139 million USD 8 million, a sign the newer delivery segment is finding traction. Karooooo ended the quarter with 2.46 million subscribers, adding roughly 70,700 net new users. Thats slower than the pace a year earlier, but still enough to keep the growth line steady. Operating profit increased 18 to ZAR 356 million USD 20.5 million, while adjusted earnings per share climbed 13 to ZAR 8.28. For the first half of the fiscal year, subscription revenue rose 19 to ZAR 2.32 billion USD 134 million. The company closed the quarter with net cash of ZAR 393 million USD 22.6 million, underscoring Calistos emphasis on running a lean balance sheet. Margins stayed firm gross profit at 68 for the group, and around 72 for Cartrack. Logistics remains a smaller piece of the pie but is expanding at the fastest clip.