Cerence vs Karooooo
Karooooo is the larger business, with $314m of revenue in fiscal 2026 against $252m for Cerence (1.2 times as much). Karooooo grew faster (25.6% against -24.0%). Karooooo kept more of each dollar of sales as profit: a net margin of 18.1% against -7.4%. Karooooo carries less debt relative to equity (13.7% against 139.4%).
| Latest fiscal year | CerenceCRNC, 2025 | KaroooooKARO, 2026 |
|---|---|---|
| Revenue | $252m | $314m |
| Revenue growth | -24.0% | 25.6% |
| Net income | −$18.7m | $57.0m |
| Operating margin | -0.9% | 25.8% |
| Net margin | -7.4% | 18.1% |
| Return on equity | -12.8% | 30.1% |
| Free cash flow | $46.8m | $46.4m |
| Cash | — | $72.5m |
| Total debt | $210m | $28.2m |
| Debt to equity | 139.4% | 13.7% |
| Dividend per share | — | — |
| Dividend yield | — | 2.0% |
| Share buybacks | $2.4m | — |
| Employees | 1,300 | — |
| Market value | $376m | $1.99bn |
| Price vs our value range | Within our value range | Within our value range |
| Moat score | 34 (Weak) | — |
| Insider trades, 12 months | 1 buys, 7 sales | 0 buys, 21 sales |