Hello and welcome to Karooooo's Q3 FY 2026 Earnings Call. On behalf of Karooooo, we would like to thank you for joining us today. I am Paul Bieber, VP of Investor Relations and Strategic Finance. We are joined today by Zak Calisto, Founder and Group CEO; Hoeshin Goy, Chief Financial Officer; and Carmen Calisto, Chief Strategy and Marketing Officer. I would like to remind everyone that some of the statements that we make today regarding our business, operations and financial performance may be considered forward-looking. Such statements are based on current expectations and assumptions that are subject to several risks and uncertainties. Our actual results could differ materially. Please refer to the safe harbor statement in our Form 20-F, including the Risk Factors in the 6-K that we filed yesterday. We undertake no obligation to update any forward-looking statements. During this call, we will present both IFRS and non-IFRS financial measures. A reconciliation of non-IFRS to IFRS measures is included in the 6-K that we filed with the SEC yesterday. Our comments will refer to year-over-year comparison unless we state otherwise. I will now pass the call over to Carmen.
Thanks, Paul. Welcome to Karooooo's Q3 FY 2026 Financial Results Presentation. Karooooo delivered outstanding results this quarter, highlighted by accelerating ARR growth, strong subscriber momentum with record net additions, and continued robust profitability. We also made progress towards an important milestone and ended the quarter on the verge of USD 300 million in ARR. We achieved these results even as we made significant planned upfront investments in sales and marketing to drive future recurring revenue and earnings. These achievements underscore our ability to scale efficiently while delivering meaningful value to our customers and shareholders. Before diving into the details, we would like to provide a quick introduction to Karooooo. We operate a SaaS platform for connected vehicles and mobile assets that enables businesses to enhance operational efficiency, reduce costs, improve safety and customer service, and ensure compliance. We help businesses simplify decision-making to optimize their physical operations. We serve a large underpenetrated market with strong sustained demand driven by digital transformation, a constant need to improve operational efficiency, and an increasing focus on safety and compliance. We are a founder-led business with a strong financial profile, a two-decade proven track record of execution excellence, and a cultural focus on disciplined capital allocation and operational efficiency. Our platform supports approximately 2.6 million subscribers across more than 125,000 businesses spanning a diverse set of industries. Importantly, our financial model is anchored by accelerating ARR growth, high-margin subscription revenue, exceptional commercial ARR retention, and powerful unit economics. In Q3, our ARR increased 22% to ZAR 5,106 million, and on a U.S. dollar basis, increased 28% to USD 298 million. Our commercial customer ARR retention rate remained at 95%, and subscription revenue accounted for 97% of Cortrak revenue. We continue to scale our proprietary data assets now generating more than 275 billion data points monthly, which we leverage to deliver impactful insights and value to our customers. Finally, our LTV to CAC remains above 9x and is underpinned by strong retention, disciplined capital allocation, and efficient distribution, which are embedded in our vertically integrated business model and company culture. During today's presentation, we will review both of Karooooo's operating segments, Cortrak and Career Logistics. Katra is our SaaS operations management platform. Cortrak operates at scale and has a very attractive financial profile. Cortrak's operating momentum is the primary driver of Karooooo's growth and strong financial performance. In Q3, Cortrak delivered exceptional results highlighted by accelerating subscription revenue growth in South Africa. These results reflect the early returns from the strategic investments we have made in expanding our sales capacity in recent quarters and selling video and tracking tags to our existing customers in South Africa. The results also underscore the continued growth potential in South Africa. In Q3, Cortrak generated approximately ZAR 1.2 billion in subscription revenue, an increase of 20% or 27% on a U.S. dollar basis. A strengthening ZAR negatively impacted reported Q3 Cortrak subscription revenue growth. Year-to-date, Cortrak subscription revenue has increased by 20% in FY 2025, a material acceleration. Cortrak's operating profit margin was a healthy 28% in Q3. Karooooo Logistics is our rapidly growing delivery-as-a-service offering that empowers large enterprise customers to scale their e-commerce and logistics operations. Karooooo Logistics continues to demonstrate strong growth and operating momentum while delivering real value to our enterprise customers. We report Karooooo Logistics separately as its delivery-as-a-service financial profile differs from Cortrak's SaaS financial profile. Karooooo Logistics is strategically important to us as it empowers our customers to scale their e-commerce and logistics operations through a capital-light model while driving high customer retention. We continue to profitably scale the Karooooo Logistics business. In Q3, Karooooo Logistics' delivery-as-a-service revenue reached ZAR 135 million, an increase of 24% or 31% on a U.S. dollar basis. Given Karooooo Logistics' robust revenue growth, we are very excited about the long-term growth opportunity. In Q3, Karooooo delivered strong consolidated financial results. Total revenue increased 22% to ZAR 1,410 million. Subscription revenue increased 20% to ZAR 1,239 million. Operating profit increased 14% to ZAR 369 million, and total subscribers increased 16% to approximately 2.6 million. The 20% subscription revenue growth and 28% operating profit margin were the primary drivers of our strong financial performance in Q3. Q3 continued our track record of delivering profitable growth at scale. In Q3, we were a Rule of 60 company when adding our Cortrak subscription revenue growth of 20% and our adjusted EBITDA margin of 45%. We note that our EBITDA margin does not include any stock-based compensation add-back. Before detailing our Q3 performance, it is important to underscore just how differentiated our financial model is in the context of the broader SaaS universe. We believe we are among the select few SaaS companies operating at a rule of 50 plus based on calendar year 2026 GAAP Street estimates. Within a SaaS universe of approximately 140 companies, there are less than 10 companies operating at this level, and Karooooo is the only small cap company. Our financial profile is incredibly rare in public markets, especially among small-cap companies, being part of this elite group reflects our unwavering commitment to disciplined and profitable growth. In addition, with an essentially unchanged share count over the last several years and no stock-based compensation growth in free cash flow directly translates into higher per share value given the absence of dilution. This is a key point of differentiation relative to many SaaS peers that fund growth with significant equity issuance. Now let's discuss our Q3 financial and operational highlights. In Q3, SaaS ARR accelerated to 22% compared to Q2 FY 2026 growth of 20%, and ARR growth in U.S. dollars accelerated to 28%, reaching $298 million. Cartrack's subscription revenue growth increased 20%, underpinned by 21% growth in South Africa. The 21% growth rate in South Africa represents a significant acceleration compared to FY 2026 Q2 growth of 18% and 14% in Q3 of the prior fiscal year. Contracts' total subscribers increased 16% to approximately 2.6 million, driven by healthy growth across all regions. Notably, Cartrack delivered record subscriber net additions of 111,000 in Q3. Also, year-to-date net subscriber additions increased 30% in Asia. Cartrack's operating profit margin remained healthy at 28% despite a 47% increase in sales and marketing expenses in Q3. We were a rule of 60 company in Q3, and our balance sheet remains strong and unleveraged. We ended the quarter with net cash and cash equivalents of ZAR 531 million. Our healthy subscription growth margin, efficient customer acquisition, and attractive commercial customer ARR retention rate continue to drive our healthy unit economics. In Q3, our subscription gross margin was 73%, our LTV to CAC ratio remained above 9x, and our commercial customer ARR retention rate was 95%. Our unit economics remain healthy despite the significant increase in sales and marketing expenses during Q3. It is also noteworthy that we accelerated our subscription revenue growth from 14% in Q3 last year to 20% this quarter while maintaining our strong unit economics. We remain committed to profitable growth and strong unit economics as we pursue the expansive growth opportunity ahead of us. We ended Q3 with approximately 1.9 million subscribers in South Africa, an increase of 16%, and Q3 subscription revenue growth was 21%, a significant acceleration compared to Q2 FY 2026 growth of 18% and 14% in Q3 of the prior fiscal year. South Africa represented 72% of total subscription revenue. The pace of growth reflects our strategy to drive subscription revenue growth through a balanced combination of subscriber additions and selling video and tracking tags to our existing customers. South African subscriber and subscription revenue growth is a clear signal that our strategy is driving results. This accelerated growth reflects our deliberate strategy to cement our leadership position in South Africa by simultaneously growing our customer base and selling video and tracking tags to customers in South Africa. Average revenue per user or ARPU in South Africa increased 7% to ZAR 162 in November 2025 compared to November 2024. We are committed to continue building our distribution capabilities to service the demand for our products from both new and existing customers, and we are confident that our investment in sales capacity this year will have a positive impact on Cartrack subscriber growth in FY 2027. We are optimistic about the market opportunity in South Africa and believe there is a long runway to drive strong subscription growth. We ended Q3 with approximately 318,000 subscribers in Southeast Asia and the Middle East, an increase of 20%, with most of the subscribers in Southeast Asia. Year-to-date, net subscriber additions in the region increased 30%. Southeast Asia and the Middle East comprised 15% of total subscription revenue, and Southeast Asia and the Middle East subscription revenue growth increased 14%. The pace of subscription revenue growth in the region reflects an increase in subscribers from lower ARPU countries combined with the translation impact of the strengthening ZAR. As the second largest contributor to group revenue, Southeast Asia continues to present the most compelling growth opportunity for our group in the medium to long term. Southeast Asia is a vast underpenetrated market for sophisticated fleet management and video-based solutions, and we are well positioned to capitalize on the opportunity. We ended Q3 with approximately 223,000 subscribers in Europe, an increase of 16%. European subscription revenue increased 24% and Europe comprised 10% of our total subscription revenue. We continue to expand our customer base and drive our distribution capabilities in the region. We have partnered with leading OEMs to provide easy access to our platform, seamlessly integrating their connected vehicle data to our platform through APIs. We expect these partnerships to contribute to our results in the medium to long term. In addition, we are experiencing encouraging demand for our proprietary compliance technology in the region as customers seek to simplify compliance with evolving legislation and enforcement. In Q3, Karooooo Logistics continued to build scale and delivered revenue of ZAR 135 million, an increase of 24% and a 7% operating profit margin. Growth in e-commerce orders drove Karooooo Logistics' revenue growth. Karooooo supports our strong financial performance by immersing our platform into large customers' operations, contributing to strong customer retention. Karooooo Logistics also enables us to learn about the operational and logistics challenges confronting our large customers. We see a large opportunity for Karooooo Logistics going forward as large businesses seek to increase their e-commerce offerings and optimize their logistics capabilities through a capital-light model. In Q3, we continue to make progress with our FY 2026 priorities. First, we continue to strengthen our leadership position in South Africa by driving the adoption of video solutions and tracking tags within our existing customer base. The early results are promising with South African ARPU increasing 7% as of November 2025 compared to November 2024, highlighting growing customer engagement and product uptake. In addition, we expect our ongoing investment in distribution capacity to create durable growth benefits that extend beyond the current financial year. Second, we continue to expand our distribution footprint in Asia and Europe, and we are seeing success in expanding our teams in the regions. Finally, we continue to work with our customers globally to drive broader engagement with our platform and to capture the growing demand for video capabilities, including AI video. We are very excited about the momentum we are experiencing with our video solutions in the market, including AI video. Capital allocation is a fundamental part of our disciplined culture rooted in a 20-year culture of profitable growth at scale and prudent financial management, key drivers of long-term shareholder value. Our capital allocation framework is unchanged and prioritizes organic growth and innovation. Our paramount priority is investing in organic growth and product innovation given our strong unit economics, sustained profitability, and large market opportunity. Returning capital to shareholders. At current growth rates, our business generates significant excess cash. With our strong balance sheet and net cash position, we aim to return surplus capital to shareholders when we cannot efficiently invest it for growth, primarily through an annual dividend. To avoid doubt, management prioritizes growth over dividends. Strategic M&A. We take a prudent and strategic approach to M&A. We view M&A as a tool to accelerate time to market in key geographies, expand our product portfolio, or strengthen our competitive position. However, given our compelling organic growth, customer-centric culture, and attractive unit economics, we set a high bar for any potential acquisitions. Ultimately, we see it as our responsibility to allocate capital thoughtfully, always with the goal of maximizing long-term shareholder returns. I will now hand it over to Hoeshin, who will discuss our Q3 financial performance.
Thank you, Carmen. I will now discuss Karooooo's financial performance for quarter 3 FY 2026. Please note, my comments will refer to year-over-year comparisons unless we state otherwise. Our proven and profitable SaaS business model continued to deliver strong results in quarter 3. Karooooo's total subscription revenue increased 20% to ZAR 1,239 million. Operating profit increased 14% to ZAR 369 million and earnings per share increased 11% to ZAR 8.55. Earnings growth remained robust despite significant and planned upfront investment in sales and marketing to drive future revenue and earnings. In other words, these investments are fully expensed as incurred while the associated recurring revenue benefits are expected to realize over time. We will now focus on Cartrack's financial performance, which is fueled by SaaS revenue momentum. In quarter 3, Cartrack revenue increased 21% to ZAR 1,275 million, and Cartrack subscription revenue increased 20% to ZAR 1,236 million. Subscription revenue comprised 97% of Cartrack's total revenue. Quarter 3 ARR growth accelerated to 22%, reaching ZAR 5,106 million. In U.S. dollars, ARR growth accelerated to 28%, reaching $298 million. As you can see from the trend of the charts, Cartrack has a proven track record of scaling in varying macroeconomic conditions, given our consistent execution, resilient subscription revenue model, and attractive historic retention rates. In quarter 3, subscribers increased 16% to approximately 2.6 million. Subscription revenue increased by 20% to ZAR 1,236 million, and operating profit increased 14% to ZAR 359 million. Cartrack experienced record customer acquisition in quarter 3 with net subscriber additions of 111,478 subscribers. The record net subscriber additions reflect our strategic investment in sales capacity and success in selling video and tracking technology. Total subscriber growth increased 16% in quarter 3, underpinned by record subscriber net additions. Importantly, South Africa's subscriber growth also increased 16%, underscoring the growth potential in the region. Quarter 3 SaaS ARR accelerated to 22% compared to quarter 2 growth of 20% and quarter 3 FY 2025 growth of 14%. In U.S. dollars, Quarter 3 SaaS ARR increased 28%, reaching $298 million. This marked the fourth consecutive quarter of ARR growth acceleration. We believe the acceleration in ARR growth reflects the underlying momentum in the business and signals that our strategic initiatives are gaining momentum. Cartrack continued to grow its subscription revenue across geographies, highlighted by an acceleration in South Africa. South Africa's subscription revenue growth accelerated to 21% compared to quarter 2 growth of 18% and quarter 3 FY 2025 growth of 14%. The acceleration indicates that our efforts to cement our leadership position are driving measurable results. Europe's subscription revenue growth increased 24% and 19% on a constant currency basis. Asia and the Middle East subscription revenue growth increased 14% and 18% on a constant currency basis. Asia and the Middle East reported subscription revenue growth reflects an increase in subscribers from lower ARPU countries in the region, combined with the translation impact of a strengthening South African rand. Healthy growth across regions reflects our strong execution and provides a solid foundation for continued growth. Adjusted earnings per share increased 11% to ZAR 8.54. Cartrack's earnings per share contribution increased 11% to ZAR 8.35. Karooooo Logistics' earnings per share contribution increased 25% to ZAR 0.20. Adjusted earnings per share growth reflects significant planned investment in sales capacity and customer acquisition, evidenced by the 47% increase in sales and marketing expense by Karooooo in quarter 3. Our upfront sales and marketing costs are not aligned with the lifetime value of customer recurring revenue and related earnings in our financial statements. Importantly, our powerful unit economics remain intact and our balance sheet remains strong as we invest in sales capacity. On a year-to-date basis, our adjusted free cash flow increased 37% to ZAR 597 million, underscoring the strength of our operating model. Quarter 3 adjusted free cash flow increased 28% to ZAR 239 million. As we pursue accelerated growth, we expect free cash flow to reflect our investment to drive growth. While quarterly fluctuations may occur due to working capital dynamics and growth-oriented investment, we remain confident in our ability to consistently generate meaningful free cash flow. Karooooo's consistent free cash flow generation powers our disciplined capital allocation strategy and positions us well for future growth. Our balance sheet reflects our track record of durable growth at scale, profitability, and cash generation. Our net cash on hand plus cash in bank fixed deposit was ZAR 531 million. Debtors' collection days remain healthy at 31 days and are within our historical norm. In August, we paid a total cash dividend of approximately $38.6 million to our shareholders, which equates to a dividend of $1.35 per share. We believe that our ability to generate healthy cash flow is sustainable given our resilient business model, coupled with our track record of consistent execution. We believe Karooooo remains strongly positioned for growth as we operate in an expanding and largely underpenetrated market, fueled by robust and sustained customer demand. This demand is driven by heightened focus on digitalization, leading to improved operational efficiencies and reduced costs, and an increasing attention to safety in physical operations. Year-to-date in FY 2026, we have accelerated Cartrack subscription revenue growth by expanding our distribution footprint in existing markets, driving broader platform adoptions, and capitalizing on growing demand for video solutions, including AI video. We are encouraged by our positive performance evidenced by Cartrack Q3 subscription revenue growth of 20% and ARR growth of 22%. Cartrack delivered a 29% operating profit margin, reflecting strong execution while investing in sales and marketing capacity to support future growth. While we have delivered strong year-to-date results, the appreciation of the South African rand has created a currency translation headwind on our reported revenue, constraining the flow-through of our strong performance to our FY 2026 outlook. We do not hedge our foreign currency exposure. So fluctuations in exchange rates may create some variability in our reported results despite our underlying operating momentum. Given our momentum year-to-date, we are increasing our FY 2026 Cartrack subscription revenue outlook to between ZAR 4,785 million and ZAR 4,900 million, implying growth between 18% and 21%. As compared to our previous outlook of ZAR 4,700 million and ZAR 4,900 million, implying growth between 16% and 21%. We are also revising our FY 2026 Cartrack operating profit margin outlook to between 27% and 30%, as compared with our previous outlook of 26% and 31%. Our FY 2026 Karooooo adjusted earnings per share outlook remains unchanged at 32.5 to 35.5. As we work towards closing the financial year, we are executing on two fronts: expanding our sales capacity to drive new customer acquisition and strengthening our relationship with current customers through increased adoption of video and tracking tags. While the business is accelerating, we remain people constrained and will continue to build the sales capability to meet these goals. At this stage, we believe the right strategy for the long-term health of the business is to lean into driving the adoption of video and tracking tags with our existing customer base to further cement our leadership position in South Africa. With that said, we are also confident that our investment in sales capacity this year will have a positive impact on subscriber growth in FY 2027. In closing, Karooooo delivered an outstanding result this quarter highlighted by accelerating ARR growth, strong subscriber momentum with record net additions, and continued robust profitability. We also made progress towards an important milestone and ended the quarter approaching USD 300 million in ARR. We achieved this result even as we made significant and planned upfront investment in sales and marketing to drive future recurring revenues and earnings. These achievements underscore our ability to scale efficiently while delivering meaningful value to our customers and shareholders. The underlying acceleration in the business reflects the strength of our operating model and early traction from strategic investment in sales capacity and customer acquisition. As we continue to enhance our distribution footprint, we expect our ongoing investment in distribution capacity to create durable advantages that extend beyond the current financial year. With continued execution, disciplined investment, and growing regional momentum, we believe that we are well positioned to deliver profitable and durable long-term growth. Finally, we remain firmly committed to thoughtful capital allocation, strong unit economics, and our vertically integrated and open operating culture. With that, I will turn the presentation over to Zak Calisto for Q&A.
Good evening or good morning to everybody. Thank you very much. I'll start off by reading the questions. I've got the first question is from an investor. I'm not quite sure who that is. How are we doing with the 70% increase in headcount in Asia? Currently, at the end of Q3, we were at around 40%, but a lot of the hires are coming in January and February. Do you believe we will end up with that 70% that we initially targeted for the year? A lot of it is really happening this Q4 simply because in these countries, a lot of the people are willing only to change in January. So it's all going according to plan. When will our investment in sales and marketing stabilize? I think to answer that, it's really about how efficient our sales and marketing are. As we keep our strong unit economics, and our sales and marketing strategy is working and stable, we will continue to increase that given the large addressable market. So hopefully, I've answered you in a different way. Who owns study is the 35% owner of New Zealand? When I initially started the business in 2004, our first employee was actually under bid, and Joan de Bet owns 30% of the business in New Zealand. She immigrated from South Africa to New Zealand approximately 9 years ago. I might be wrong with the number of years, but approximately. We now go over to Joshua Reilly from Nidar. ARPU was up nicely again in the quarter and even more so for the business in South Africa, up 7% year-on-year. How far along in the cross-selling cycle would you say we are in South Africa? I would say that we're in the early stages, and we are hoping that in the next financial year we will get even stronger momentum. The next question, net new subscribers were record in the quarter with strength across all geographies. Now I do see half of the market and you win today relative to your sales execution in key markets. We've increased our sales and marketing substantially this year, as we had set out in the beginning of the year. And are we getting huge productivity? Our unit economics remain very strong. We believe that we're really performing in the key markets. In some markets, we outperform in budgets. Others we are a bit lagging, but overall, it's going according to plan. The next question from William Blair: drivers of acceleration, how do you think about the uplift from pure capacity versus scale in productivity from recent hires? I believe that we have good momentum and it will continue with the momentum. And in our outlook that we gave at the beginning of the year, we expect to house and we basically have the outlook that our subscription revenue would be around these ranges. Next question from Scott Ross. Can you address adoption trends for AI camera penetration rates per region and the competitive landscape impact of the 7% ARPU increase in the current quarter? We've really focused a lot of this in our South African operation. We've moved into new offices approximately 18 months ago. We've got the space to hire and to build out the infrastructure. We're busy building out the infrastructure in most other countries to be able to build out the call centers required to really execute on this. The adoption of AI is strong at this point in time, but we certainly believe it's early days in adoption and will only get stronger over time. The competitive landscape, we feel very comfortable competing with our peers, and I believe we'll continue to get stronger in this space. A question from Cornils Maari. Is there any way to roll out to logistics in Europe or Southeast Asia, or are those markets saturated? I think it's very early days when we're talking long term of the e-commerce space and what our large enterprise customers require. I don't believe the market is saturated. I believe the market is only going to grow bigger, and we are developing our technology in order to be able to go into Europe and Southeast Asia and to compete efficiently. It must be said that we don't necessarily need to roll out the driver network in every geography. We've done that in South Africa, but it's more for us to learn. What our platform allows us to do is we can integrate with various e-commerce service providers that have rolled out fleets, and all we do is become the aggregator to be able to provide our customers with options from any service providers that can service them. The model when we go outside of Africa might be slightly different. And as we develop the South African market, we might also change our current model despite it's working very well, but we are learning every day. And the market is changing every day. A question from Alex Cole from Raymond James. What drove the strong pickup in South Africa's subscriber growth versus plan? I think the subscriber growth is going according to plan, and the cross-selling is going according to plan. I think it's really just about increasing our footprint and our ability to execute. Where do you stand on sales in terms of your specific geo plan in Southeast Asia and Europe? I think we are on track with all the mining across all regions. Given the magnitude of sales plans in Southeast Asia, do you expect subscriber growth to pick up from 20%, 21% level? Our ambition is certainly to exceed that 20%, 21% and to grow on top of that, but it's really about execution. We feel positive that we're going to have a very strong FY '27 in the region. A question from an indiscernible participant. It seems there has been an increase in subscriptions in South Africa quarter on quarter. How has the shift from used vehicle sales to new vehicle impacted subscriptions? That does not impact our business. Our customer acquisition is based on customers that have vehicles. Now the only time when a new vehicle comes into play is when our customers basically trade in or sell their vehicles and buy new ones. So the impact of new vehicle sales has got an impact on our business, but it's an insignificant impact at this point in time. The used vehicle market in states is still under pressure given the affordable new vehicles entering the market? We don't really specialize in that, so whether the market is under pressure or not, we don't really look at that. We focus on the services we provide. Does a stronger new vehicle market have a more positive impact on the subscriptions? Not necessarily. Another question from Scott from Roth. Can you provide an update on asset tracking sales connections in South Africa and the ongoing rollout employment and plans for additional markets? At the moment, we don't plan any additional markets. The rollout is going according to plan, but we are looking at expanding into Europe cautiously. We are having annual discussions now in February where we're going to approve the rollout plan or not approve the rollout plan. Fundamentally, there's a huge opportunity to go outside our key markets in Europe that we're currently in. But at the same time, there's also a huge opportunity to grow within the markets and to cement our leadership in the markets we are already operating. Another question from Belle from Regal. How are you thinking about growth versus margin trade-off? The bottom line is that you will see a bit of a compression in operating profit margins because of the increase in sales and marketing, but I think that's really a temporary thing, and the minute you stop allocating money to sales and marketing, you'll get this huge margin expansion. The reality is that all these upfront costs of getting customers, these customers stay with us for a very long time. So there's a huge alignment of these expenses against future revenue. So we're more focused on the long-term of the business as opposed to one quarter or one financial year; we're looking from the perspective of what value we are bringing to our shareholders over five years. So we look at it a little bit differently. Impressive ability to accelerate growth to extend or with minimal margin impact has got to do a lot with the way we run the business and economies of scale. How does this validate both completion and overall opportunity, opportunity for healthy leverage as the impact from upfront investments continues to discount? I think I've probably answered that latter part of your question. Another question from Dannecker. Here is the double down on strategy clearly working. Any areas you feel confident you could step up investment further? Fundamentally, our unit economics continue to be very, very strong. While we are busy approving our budget for FY '27, we probably are going to push to continue with the current trend we've got and to continue investing in our footprint in the markets we're in and to continue to grow and accelerate the top line. But we've got to conclude our budgets, and we just need to get more of the approval before that happens. A question from an indiscernible participant. How does the Volkswagen AM integration tangibly accelerate your European growth compared to your traditional sales-led expansion? In a simple way, it allows us to get vehicles onto the platform rather quickly. The real challenge we have is that the OEM telemetry devices on most occasions do not talk to what our customers require. So you get a lot of data, but it doesn't help our customers because the data that they require and the data points that are needed to be collected typically cannot be obtained from the OEM devices. We're getting close to the OEMs in making sure this relationship works and only the practicalities of using these devices. And I believe over time, this will be sorted out. More questions. A question coming from Colin Smith from Africa Partners. In November, you announced a partnership with Volkswagen, is our case. I think we've answered that question. Colin, there is another question from Colin Smith from Africa Partners. Does the materially strong South African rand over the last year have any positive or negative impact on the underlying operations? The positive impact is probably in the production of our equipment, but fundamentally, that becomes a very small part of the business. The biggest positive impact is if you report in dollars, then obviously, that's a very strong impact. However, reported in other currencies, then it's a negative impact in terms of subscription. So our operations outside South Africa are negatively impacted towards our revenue. Our revenue in rands, as we report in U.S. dollars, would have been up because we report in rands, the lower has negatively impacted our results. Next question from Colin Smith. In existing subscriber chooses to add video tracking, does the initial 6-month contract reset? The answer to that is complex, but I think the best way to look at that is that the 36-month contract we signed is nearly not material to us. What's more material to us is how long will that customer stay with us as opposed to the 36-month contract. And what we find with customers is that they don't really concern themselves with the contract we sign; it sorts of goes into the bottom drawer. It’s more about can we keep the customer and can we keep the vehicle on the platform while the customer still owns it. And that's what we measure. We are more reliant on customer service and customer retention than actually trying to enforce a 36-month contract. And that's been our policy since the day we started the business. We take a more pragmatic view of the business as opposed to trying to get our customers to stick to their agreement when we know they intend to stay with us for a long time. Next question from Colin. Is the current share price at a level that management may consider share buyback? The reality of doing a share buyback in the marketplace as a listed entity is very complex. And at this point in time, we are just not trying to second-guess the market. We will continue to focus on the growth of the business and the quality of the asset. We'll try to do that about 2 years ago, and it's really difficult with all the SEC rules around that making it very complex to execute. And if we do that, we might as well just delist. I have another question from an indiscernible participant. Once the ARPU is driven only by products or are there general price hikes? What's our ARPU in Southeast Asia this quarter? We’ve always said over time, Southeast Asia will manage the ARPU of South Africa. As countries like the Philippines, Indonesia, and Thailand start to become a bigger portion of the business, these are typically lower ARPU countries compared to New Zealand or the UAE or Singapore. Over time, we believe that the Southeast Asia ARPU will equate to that of South Africa. We've consistently communicated that to the market. A question from Matthew at the conference. What portion of sales are coming from existing customers versus new customers? Can you describe use cases for the tracking tags? The proportion of sales coming from existing customers typically reflects renewals or upsells in their fleet. The net additions we present is usually new customers. In future sales to existing customers, when fleet owners change or downsize their vehicle counts, it doesn’t show up in net additions. So overall, net additions lean more towards new customer acquisition. Are there any regulatory or other technical issues with rolling out tracking tags to other markets beyond South Africa, Southeast Asia, and Europe? I'm not completely familiar with every market, but generally speaking, we've not encountered major issues, but all countries have their own regulations. Let me just see if there are any more questions. Regarding how much you expect the improved South African macro conditions to accelerate fundamental performance going forward. We've performed well in difficult times and in good times. I think us staying well now is really due to our ability to scale, add more people, and build the infrastructure. The economic environment looking good gives us a tailwind, but I think our success is primarily due to our ability to execute in assembling teams. Matthew from the conference, looking at the South Africa subscribers over the next 5 years, what portion do you think could be interested in analytics? To be honest with you, I cannot answer that because whatever I say I might be wrong, so I prefer not to answer that. Next question from Max Sure. Is the subscriber growth in South Africa diluting ARPU growth? On a group level, it remains rather flat compared to the target of 6%. The target of 6% would be at February 2026 as to be at year-end. I think we might be lagging slightly from what we expected, but we're largely on track. A question from an indiscernible participant: What would you do differently if you were a private company and not a public company? What would be the difference in your strategies? There would actually be no difference in our strategy. We are focused on building the business and not building it to be sold. Our family is the majority shareholder, and we intend to stay that way. We're fundamentally looking at the business on a long-term basis. So we're running the business with the same mindset whether it's private or public. Another question from Prashant. Can you share a little more color on your bullishness for subscriber and ARPU growth in South Africa? To clarify, our subscriber and ARPU growth persists due to our continuous improvements in technology, platform, and training personnel. We've got a 20-year track record of continuously improving year over year. Another question from GB. Typically, what is the cost of your subscription as a percentage of the annual revenue for your customers? Typically, I don't really understand the question, and I apologize for that. That would wrap things up. I want to thank everybody for attending, and I look forward to speaking with everyone again in 3 months' time. Thank you. Bye-bye.