Shares of Karooooo Ltd. (KARO) surged 5.35% in after-hours trading on Wednesday, following the release of the company's impressive fourth-quarter and full-year fiscal 2025 financial results. The mobility technology company, which owns 100% of Cartrack and 74.8% of Karooooo Logistics, reported earnings that significantly exceeded analyst expectations.
For the fourth quarter, Karooooo posted adjusted earnings per share of $0.51, surpassing the analyst consensus estimate of $0.37 by 37.84%. This represents a substantial 41.67% increase from the same period last year. The company's quarterly revenue also impressed, coming in at $65.56 million, beating the estimated $62.90 million by 4.23% and marking a 13.21% year-over-year growth.
Karooooo's CEO and Founder, Zak Calisto, expressed optimism about the company's performance, stating, "FY2025 was a year of strong execution, impactful innovation and significant progress." The company reported accelerating Cartrack subscription revenue growth, which increased 16% year-over-year to ZAR 1,084 million in Q4 2025. Additionally, Karooooo'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.
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