Eos Energy stock falls after Fuzzy Panda issues short report
SINGAPORE - Karooooo Ltd. (NASDAQ:KARO) reported second-quarter adjusted earnings per share of ZAR8.28, exceeding analyst expectations of ZAR7.98, while revenue fell short of forecasts.
The company’s stock dropped 2% following the announcement as investors reacted to the revenue miss.
For the quarter ended August 31, 2025, Karooooo posted total revenue of ZAR1.18 billion, below the consensus estimate of ZAR1.3 billion. Despite the revenue shortfall, the company reported a 20% YoY increase in subscription revenue to ZAR1.18 billion, up from ZAR986 million in the same quarter last year.
Cartrack, Karooooo’s wholly-owned subsidiary, saw its subscriber base grow 15% YoY to 2.46 million subscribers, though net subscriber additions slowed to 70,740 compared to 89,168 in Q2 2025. The company’s SaaS annualized recurring revenue accelerated to 20% YoY growth, reaching ZAR4.81 billion.
"Our subscription revenue growth increased from 15% in FY25 Q2, to 20% in this quarter. We continue to demonstrate our ability to accelerate our subscription revenue growth at scale, deliver strong earnings, drive innovation, and increase our distribution capabilities," said Zak Calisto, Group CEO of Karooooo.
Operating profit increased 18% YoY to ZAR356 million, with Cartrack maintaining a steady operating profit margin of 29%. The company’s Karooooo Logistics segment showed strong growth with a 38% increase in delivery-as-a-service revenue to ZAR139 million.
Sales and marketing expenses rose 34% to ZAR210 million as the company invested in customer acquisition and sales headcount, while R&D expenses increased 10% to ZAR56 million, reflecting ongoing commitment to product innovation.
Karooooo reaffirmed its fiscal year 2026 outlook, stating it remains on track to deliver accelerated growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.