Karooooo stock falls 2.81 percent as cash flow drops

Published on 09/23/2026 at 15:32 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Karooooo stock closed at USD 63.59 on September 22, 2026, after a 2.81 percent decline. Latest quarterly EPS was USD 0.59, above consensus by USD 0.08.

KARO, US48539P1057, Illustration mit AI erstellt.

Karooooo Ltd. (ISIN US48539P1057) closed at USD 63.59 on Nasdaq on September 22, 2026, down 2.81 percent from the prior close. The move came as the latest quarterly cash-flow figure showed a sharp year-over-year decline, putting operating investment ahead of near-term cash generation.

Cash flow falls while customers grow

According to The Motley Fool on September 23, 2026, Karooooo's free cash flow fell about 82 percent year over year in its latest quarter. The same report said Cartrack subscribers passed 2.8 million, up about 18 percent year over year, while revenue increased 23 percent.

The combination creates a clear trade-off: customer expansion and revenue growth continued, but cash conversion weakened as management spent on tracking devices to accelerate new customer additions. For investors, the key question is whether that spending produces recurring subscription growth fast enough to restore free cash flow.

Quarterly earnings beat estimates

MarketBeat reported on September 22, 2026, that Karooooo generated quarterly revenue of USD 96.26 million and earnings per share of USD 0.59. EPS exceeded the consensus estimate of USD 0.51 by USD 0.08, while the reported net margin was 17.74 percent.

The earnings comparison is positive, but the cash-flow gap is the stronger counter-factor in the current setup. MarketBeat also listed annual sales of USD 314.11 million and a trailing twelve-month return on equity of 32.03 percent, figures that place the latest quarter within a profitable growth model while highlighting the cost of expansion.

Stock stays below analyst consensus

MarketBeat listed an average price target of USD 73.50 on September 22, 2026, with a high target of USD 75.00 and a low target of USD 70.00. Its consensus rating was Moderate Buy, based on five buy ratings and two hold ratings. The average target stood USD 9.91 above the September 22 closing price of USD 63.59.

MarketBeat reported a market capitalization of USD 1.96 billion as of September 22, 2026. The next earnings date was listed as an estimate for October 13, 2026, so the stock's next major checkpoint is the company's ability to pair subscriber growth with improving cash generation.