Cartrack crushing it

Karooooo has released its annual results for the financial year ended 28 February 2025, revealing strong growth in Cartrack’s subscribers, subscription revenue, and operating profit.

Karooooo Group CEO Zak Calisto said the 2025 financial year was one of strong execution, meaningful innovation, and significant progress.

“We accelerated customer acquisition, enhanced our platform with more advanced AI Video capabilities and other features, and successfully launched the Cartrack-Tag,” said Calisto.

Cartrack’s subscriber numbers grew 17% from 1,971,532 as of the end of February 2024, to 2,302,236 subscribers as of 28 February 2025.

At the same time, net Cartrack subscriber additions increased by 30% to 330,704 in the 2025 financial year, up from 254,455 in 2024.

Cartrack’s revenue increased by 15% to R4.15 billion in 2025, up from R3.6 billion in 2024, while subscription revenue grew from R3.5 billion in 2024 to R4 billion as of 28 February 2025.

However, it noted that subscription revenue, while driven by strong subscriber growth, was partially offset by a modest decline in average revenue per user.

“Subscription revenue represented 98% of total revenue (FY 2024: 97%). Cartrack continues to build on its strong track record of growth at scale,” Karooooo said.

Cartrack’s operating profit reached R1.27 billion, up 19% from R1.07 billion for the 2024 financial year, while its profit margin increased to 31%.

Karooooo’s full year results were accompanied by its fourth quarter results for the 2025 financial year, during which net subscriber additions increased by 25% to 79,009, up from 63,340 in Q4 2024.

Cartrack’s subscription revenue increased by 16% to R1.08 billion in Q4 2025, up from R930 million for the same quarter in 2024.

Its operating profit for Q4 2025 was R377 million, up from R289 million in the same period in 2024.

Karooooo successfully accelerated Cartrack’s subscriber growth in the 2025 financial year.

“In FY 2026, we aim to accelerate Cartrack subscription revenue growth by expanding our distribution footprint in existing markets, driving broader platform adoption, and capitalising on growing demand for video solutions,” it said.

“We believe our ongoing investments in AI, platform innovation and customer experience will continue to drive durable growth and robust results.”

The company aims to increase Cartrack’s subscription revenue to between R4.7 billion and R4.9 billion in the 2026 financial year.

“This implies Cartrack subscription revenue growth between 16% and 21% compared to 2025,” it noted.

Karooooo also hopes to achieve a Cartrack profit margin between 26% and 31% in the 2026 financial year.