Copart, Inc. (DE)
CPRT · Nasdaq
CPRT · Nasdaq
Reports Sep 3, 2026.
Consensus is $0.39 EPS for Jul 2026 across 4 estimates, ranging $0.37 to $0.40.
Copart’s fiscal third quarter was a modest revenue-growth quarter with better-than-expected per-share earnings and continued international strength. Revenue of $1.237 billion increased 2.1% from the year-ago period and was 10.5% above the prior quarter’s $1.12 billion, while diluted EPS of $0.43 exceeded the $0.41 consensus by 4.88%. Operating income rose 2.8% year over year to $464.3 million and was up from $388.7 million in the second quarter; net income attributable to Copart was $402.4 million, down 1.0% year over year but up from $350.7 million sequentially.
The key feature was mix: international revenue grew 14.1% to $234.2 million and international operating income increased 25.0% to $73.8 million, offsetting slightly lower U.S. revenue and operating income. Gross profit grew faster than revenue, up 3.7% to $572.6 million, as vehicle-sales costs declined 5.6%, although facility and general-and-administrative expenses increased. Net income was held back by a 26.2% decline in other income, mainly lower Treasury-bill interest and currency gains, along with higher taxes. Capital allocation was unusually prominent, with $1.633 billion spent on repurchases in the first nine months and 925.8 million shares outstanding at April 30.
Gross profit rose 3.7% year over year to $572.6 million, ahead of the 2.1% revenue increase. The gross margin was approximately 46.3%, versus 45.6% in the year-ago quarter, helped by a 5.6% reduction in vehicle-sales costs to $160.3 million. Facility operations expense increased 3.0% to $504.2 million, reflecting higher U.S. subhaul, labor and insurance costs and higher international processing costs. General and administrative expense rose 7.5% to $108.3 million, including higher labor, outside-services, advertising and insurance costs. Operating income therefore increased 2.8% to $464.3 million, while net income attributable to Copart declined 1.0% because total other income fell to $37.8 million from $51.3 million and tax expense increased to $100.7 million.
Operating cash flow for the first nine months declined 8.4% to $1.247 billion, primarily reflecting increased cash tied up in accounts receivable, vehicle pooling costs and lower accounts payable. Capital expenditures and acquisitions were $263.3 million, down from $482.6 million a year earlier, with spending focused on facilities, land, facility improvements, equipment and internal software. Cash increased despite the $1.633 billion repurchase program because of operating cash generation and $2.035 billion of proceeds from maturing held-to-maturity Treasury securities. Management said available cash and operating cash flow should fund operating needs and foreseeable expansion, while new or expanded facilities are expected to add depreciation and amortization over time.
Copart disclosed that the DOJ’s ongoing investigation into potential violations of money-laundering laws related to practices for preventing and detecting member activity remains unresolved. The company received a DOJ letter in October 2023 indicating potential exposure, is cooperating with the investigation, and said it cannot predict the duration, scope or result of any resulting governmental, criminal or civil proceeding. It also cannot estimate potential fines, penalties, remedies or a range of possible loss.
