Shares of Karooooo Ltd. (KARO) surged 5.71% in Friday's intraday trading, continuing the upward momentum following the release of the company's impressive fourth quarter and full year 2025 financial results. The significant stock price increase reflects investors' positive reaction to the company's strong performance and growth prospects.

Karooooo reported robust financial metrics for the fourth quarter of 2025, with Annual Recurring Revenue (ARR) reaching ZAR 4,384 million, indicating strong and consistent revenue streams. The company also posted earnings per share (EPS) of ZAR 8.11 for the quarter, surpassing market expectations and demonstrating solid profitability. For the full year, Karooooo's adjusted earnings per share came in at $0.51, exceeding analyst consensus estimates by 37.84% and representing a substantial 41.67% increase from the previous year.

The company's CEO and Founder, Zak Calisto, expressed optimism about Karooooo's performance, stating, "FY2025 was a year of strong execution, impactful innovation and significant progress." Notably, Karooooo reported accelerating Cartrack subscription revenue growth, which increased 16% year-over-year to ZAR 1,084 million in Q4 2025. Additionally, the company's subscriber base grew by 17% year-over-year to 2.3 million, demonstrating strong customer acquisition. With a robust balance sheet and healthy cash position, Karooooo appears well-positioned to capitalize on growth opportunities in the coming fiscal year, further fueling investor confidence and driving the stock's upward movement.