Copart, Inc. (DE) (CPRT) Earnings

Copart, Inc. (DE)

CPRT · NASDAQ-GS

Symbol: CPRT
Type: Stock
Sector: Consumer Discretionary
Industry: Retail-Auto Dealers and Gas Stations
Country: North America
Exchange: NASDAQ-GS

Copart, Inc. (NASDAQ:CPRT) Founded in 1982, Copart is a global leader in online vehicle auctions. Copart's innovative technology and online auction platforms connect vehicle consigners to approximately 1 million members in over 185 countries. Copart offers a comprehensive suite of vehicle remarketing services to insurance companies, financial institutions, dealers, rental car companies, charities, fleet operators, and individuals, and offers vehicles via auction to dealers, dismantlers, rebuilders, exporters, and the general public. With operations and locations in 11 countries, Copart sold more than 4 million units in the last year. Copart currently operates in the United States ( Copart.com ), Canada ( Copart.ca ), the United Kingdom ( Copart.co.uk ), Brazil ( Copart.com.br ), the Republic of Ireland ( Copart.ie ), Germany ( Copart.de ), Finland ( Copart.fi ), the United Arab Emirates, Oman, and Bahrain ( Copartmea.com ), and Spain ( Copart.es ).

Key Issues

Bullish view

Ongoing international momentum could support revenue growth and sustain Copart’s earnings trajectory, as reflected in the refreshed assumptions cited by Simply Wall St.

Bearish view

Updated assumptions also address profit margins, indicating that margin performance remains a constraint and could limit the benefit of international expansion.

Analyst Consensus

See all

Buy

10 analysts

$27

Current

—

Low

$39

Average

—

High

Average target implies +43.17% versus the current price.

Earnings History

BeatMissNo estimate

Oct 2026upcoming

Next quarter

Reports Nov 19, 2026.

Consensus is $0.41 EPS for Oct 2026 across 4 estimates, ranging $0.38 to $0.43.

CPRT Jul 2026

Reported Sep 10, 2026 · after the close

: 10.26%
: -2.60%

: $0.39
: $0.35
: —
: —

Highlights

ACV acquisition: Copart agreed to buy ACV for $10.50 per share in cash, valuing the digital wholesale marketplace at approximately $1.9 billion; closing is expected by calendar year-end 2026.
Quarterly earnings: Revenue rose 2.4% year over year to approximately $1.2 billion, but diluted EPS fell 14.6% to $0.35, missing the $0.39 consensus estimate by 10.26%.
Profit pressure: Operating income declined 10.6% year over year to $368.9 million, while net income fell 17.4% to $327.4 million; gross profit decreased 5.5% to $481 million.
Volume and pricing: Global units sold declined 2.9%, including a 5.7% decline domestically, while global ASPs increased 3.5% and revenue per unit rose 5.4%.
International momentum: International revenue increased 11.7% to $222.1 million, units sold grew 10%, and operating income reached $56.8 million at a 25.6% margin.
Domestic mix: U.S. dealer units grew 5.8% and BluCar volume expanded nearly 20%, helping U.S. non-insurance units return to 0.2% growth, while insurance units fell 7.5%.
Investment burden: Global operating expense per car increased 12.7%, with facility-related spending reflecting investments in long-haul delivery, TitleExpress, wholesale facilities and new capacity.
Financial capacity: Copart ended July with $4.5 billion of cash, cash equivalents and held-to-maturity securities, $2.05 billion of undrawn revolver capacity and no debt outstanding.

Analysis

Copart's fiscal fourth quarter was a revenue-growth quarter with materially weaker earnings, capped by a transformational ACV acquisition announcement. Revenue rose 2.4% year over year to approximately $1.2 billion, supported by higher service revenue and purchased vehicle sales, but operating income fell 10.6% to $368.9 million and net income declined 17.4% to $327.4 million. Diluted EPS was $0.35, below the $0.39 consensus and down from $0.42 a year earlier and $0.43 in the prior quarter. Gross profit fell 5.5% to $481 million as Copart continued investing in growth products and facilities.

The operating picture remained split. Global units sold declined 2.9%, driven by a 5.7% domestic decline and a 7.5% drop in U.S. insurance volumes, although higher ASPs partly offset the volume pressure. International operations were the clear growth engine, with revenue up 11.7%, units up 10% and operating income up to $56.8 million. Domestically, dealer and commercial initiatives showed traction, but operating costs per vehicle rose 12.7%. The $1.9 billion ACV deal adds more than 800,000 annual wholesale vehicles, approximately $10 billion of 2025 GMV and over 22,000 active buyers. Management expects the transaction to be breakeven initially and accretive in fiscal 2028.

ACV acquisition

Transaction: Copart will acquire all outstanding ACV shares for $10.50 in cash, representing an approximately $1.9 billion equity value and premiums of 45% to ACV's unaffected August 10 price and 41% to its 30-day VWAP.
Strategic fit: ACV adds dealer-to-dealer wholesale remarketing, inspection and valuation technology, while Copart contributes more than 275 locations, global buyer demand, physical staging and logistics capabilities.
Scale opportunity: ACV transacted approximately $10 billion of gross merchandise value in 2025, sells more than 800,000 vehicles annually and has more than 22,000 active buyers. Copart has more than 4 million annual vehicle sales and approximately 1 million members across more than 185 countries.
Integration model: ACV will operate as an independent subsidiary with its existing leadership and brand. The companies intend to integrate buyer liquidity, logistics and selected technology while keeping the two marketplaces and websites distinct.
Earnings impact: Copart expects the deal to be breakeven in the current period and accretive in the first full year, identified as fiscal 2028. It will fund the transaction with cash on hand and retain significant capacity for further investments.

Quarterly financial performance

Revenue: Consolidated revenue increased 2.4% year over year to approximately $1.2 billion, with global service revenue up 1.4% and purchased vehicle sales up 8.3% on the quarter's reported comparison.
Profitability: Gross profit decreased 5.5% to $481 million, operating income fell 10.6% to $368.9 million and net income attributable to Copart declined 17.4% to $327.4 million.
Per-share result: Diluted EPS was $0.35, 10.26% below the $0.39 consensus estimate, compared with $0.42 in the year-ago quarter and $0.43 in the prior quarter.
Drivers: The year-over-year net income decline also reflected the absence of a $13 million asset-disposal gain recorded in the prior-year quarter and lower interest income after Copart deployed $1.63 billion for share repurchases earlier in fiscal 2026.
Fiscal-year context: Fiscal 2026 revenue reached $4.7 billion, up 0.4%, while operating income declined 2.6% to $1.7 billion and net income fell 4.4% to $1.48 billion, or $1.55 per diluted share.

Volume and pricing

Global volumes: Total units sold declined 2.9% in the quarter, with assignments down 2.2% and year-end global inventory down 1% from a year earlier.
Pricing offset: Global ASPs increased 3.5% and revenue per unit rose 5.4%, helping revenue grow despite lower units. U.S. ASPs increased 4.2%, while U.S. non-insurance ASPs rose 5.9%.
Insurance backdrop: Domestic insurance units fell 7.5%, primarily reflecting lower collision claim frequency and the loss of one customer. Collision claim frequency declined 3.4% year over year, while total-loss frequency reached a record second-quarter level of 23.3% and average collision severity rose 8.8% to more than $6,300.
Buyer liquidity: Buyers that had been with Copart less than one year represented 8.9% of fiscal 2026 vehicles sold, up from 8.3% in fiscal 2025. International buyers purchased 38.2% of U.S.-sold units but represented 45.7% of dollar volume.

International growth

Revenue and profit: International revenue grew 11.7% to $222.1 million, gross profit increased 11.8% to $77.6 million and operating income reached $56.8 million, producing a 25.6% operating margin.
Unit growth: International units sold increased 10%, with insurance units up 11.2%, non-insurance units up 6% and fee units up 11.5%. International assignments also grew 10%, while inventory ended 10.4% above the year-ago level.
Platform expansion: Management said all international markets are now profitable and intends to deepen its presence in existing markets while expanding into additional countries, particularly as it applies its German operating model elsewhere in Europe.

Costs and capital allocation

Cost pressure: Global operating expense per car increased 12.7%. U.S. facility-related costs rose 7.7% in total and 14.2% per unit, while international facility-related costs increased 11.4% in total but only 1.2% per unit.
Growth investments: Spending was concentrated in long-haul delivery, TitleExpress, new capacity and 25 dedicated wholesale facilities colocated at Copart sites in major U.S. markets. Management said approximately $17 million of the facility-operations increase came from long-haul delivery.
Efficiency goal: Management plans to reduce cost per car through cost controls and higher volumes, while continuing to invest in technology, automation and products that increase revenue per unit.
Balance sheet: At fiscal year-end, Copart had approximately $5.7 billion of liquidity, including $4.5 billion of cash, cash equivalents and held-to-maturity securities plus $2.05 billion of revolver capacity, with no debt outstanding.