Karooooo reports record Q2 2027 operating profit and strong subscription growth
+1 new source since this summary was written
Karooooo Ltd. released its fiscal Q2 2027 results on 20 Oct 2026. Reported revenue reached ZAR 1.640 billion, a 22% increase year‑over‑year, while earnings per share rose 18% to ZAR 9.28, missing analyst forecasts. Operating profit hit a record ZAR 422 million, up 19% YoY, and subscription revenue grew 20% to ZAR 1.480 billion. The company highlighted constant‑currency subscription revenue growth of 23% and ARR growth of 22% in constant currency (30% in USD). The earnings release triggered a 6.09% drop in the stock price to $58.32.
Why it matters
The stock fell 6.09% after the release, reflecting investor concern over the EPS miss despite strong profit and revenue growth. The record operating profit and accelerating subscription revenue suggest continued cash‑flow generation, though free‑cash‑flow remained low at ZAR 41 million.
Key facts
- 1Reported revenue was ZAR 1.640 billion, up 22% year‑over‑year. finance.yahoo.com
- 2Constant‑currency ARR grew 22% year‑over‑year, while reported ARR grew 19%. tradingview.com
- 3ARR in U.S. dollars increased 30% year‑over‑year. tradingview.com
- 4Operating profit was ZAR 422 million, a 19% year‑over‑year increase. finance.yahoo.com
- 5Reported EPS rose 18% to ZAR 9.28, missing forecasts by 2.9%. investing.com
- 6Adjusted EPS rose 12% to ZAR 9.28. finance.yahoo.com
Summary written by AlphAI AI Desk from 8 of 8 sources. Not investment advice. Figures are as stated by the linked sources.