Inside Karooooo’s record year: CEO on subscription growth and 2027 outlook

Key Terms

subscription revenue financial

Payments a company receives on a regular schedule from customers who pay to access a product or service over time, like a magazine or gym membership fee. Investors care because these recurring payments create more predictable sales and cash flow, make future revenue easier to forecast, and indicate customer loyalty; changes in subscription growth or churn can quickly affect a company’s valuation and financial health.

arr financial

ARR, or Annual Recurring Revenue, is the predictable income a business expects to earn each year from ongoing customer subscriptions or contracts. It’s like a steady paycheck that shows the company’s ability to generate consistent revenue over time, helping investors assess its stability and growth potential. ARR provides a clear picture of how well a company is performing in building long-term customer relationships.

free cash flow financial

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

eps financial

Earnings per share (EPS) measures how much profit a company makes for each outstanding share of its stock by dividing the company’s profit after expenses by the number of shares. It matters to investors because it shows how much of the company’s “pie” each share represents—higher EPS usually signals greater profitability per share, helps compare companies of different sizes, and influences stock valuations and investor decisions.

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06/01/2026 – 10:49 AM

SINGAPORE–(BUSINESS WIRE)– Karooooo Ltd. (NASDAQ: KARO), a global provider of mobility and operational intelligence solutions, today announced that Zak Calisto, Founder, Chairman, and Chief Executive Officer, was featured on Water Tower Research’s Small-Cap Spotlight. The episode was hosted by Tim Gerdeman, Host at Water Tower Research, alongside WTR analyst Eric Goldstein.

The conversation provides investors with a detailed overview of Karooooo’s record FY 2026 financial results that were highlighted by accelerating subscription revenue and ARR growth, robust free cash flow generation and an FY 2027 outlook that implies accelerating Cartrack subscription revenue growth and healthy EPS expansion at the midpoint¹. The conversation also explores Karooooo’s global scale, resilient subscription revenue model, drivers of FY 2026 acceleration, and the durability of free cash flow generation.

Investors can access the podcast here: https://www.watertowerresearch.com/media-detail/3680/Media

About Karooooo

Karooooo (KARO) digitally transforms physical operations by simplifying decision making. Through its cloud platform, Karooooo empowers businesses to conquer operations including fleet maintenance, fuel management and asset utilization, workforce management, logistics, safety, compliance, risk and environmental impact. Karooooo’s differentiated insights and analytics simplify day-to-day operations and enable businesses to decrease costs, increase efficiency, improve safety and strengthen workforce and customer satisfaction. Karooooo is headquartered in Singapore and services more than 125,000 commercial customers and more than 2,700,000 active subscribers in more than 20 countries.

For more information, visit www.karooooo.com or by visiting the Karooooo Curation Investment Showcase at: Curation Connect – Karooooo Showcase, which includes Curation AI that answers questions about Karooooo.

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¹ Refer to our 6K filed on May 13, 2026, for our FY 2027 Outlook.