Shares of Karooooo Ltd. (KARO) surged 9.13% in pre-market trading on Thursday, following the release of impressive fourth quarter and full year 2025 financial results. The significant uptick in stock price reflects investors' positive reaction to the company's strong performance.

Karooooo reported a robust Annualized Recurring Revenue (ARR) of ZAR 4,384 million for the fourth quarter, indicating a solid and growing revenue base. Additionally, the company announced an earnings per share (EPS) of ZAR 8.11 for the same period, surpassing market expectations and demonstrating strong profitability.

The pre-market rally suggests that investors are optimistic about Karooooo's financial health and growth prospects. The company's ability to maintain a high ARR and deliver strong EPS figures in a challenging economic environment has likely bolstered confidence in its business model and future potential. As the market digests these results, traders will be watching closely to see if the stock can maintain its momentum during regular trading hours.