Copart, Inc.

What they do

Copart provides online auctions and vehicle remarketing services primarily for insurance companies, which supplied 81% of vehicles processed in fiscal 2025. The company operates in the U.S., U.K., Germany, Brazil, Canada, U.A.E., Spain, Finland, Oman, Ireland, and Bahrain, using its VB3 auction technology. It sells vehicles to dismantlers, rebuilders, dealers, exporters, and the general public.

Revenue drivers

• Insurance company vehicle supply — Insurance companies provided 81% of total vehicles processed in fiscal 2025; these vehicles generate service revenues and vehicle sales.
• Service revenues — Service revenues were $3.00 billion for the nine months ended April 30, 2026, representing about 85% of total revenues.
• Vehicle sales — Vehicle sales were $513.8 million for the nine months ended April 30, 2026, about 15% of total revenues.
• Geographic expansion — Operations in 11 countries, including newer markets in Middle East and Europe, contribute to revenue diversification.

Recent performance

For the quarter ended April 30, 2026, Copart reported revenue of $1.2 billion, up 2.1% year-over-year; gross profit of $572.6 million, up 3.7%; and net income attributable to Copart of $402.4 million, down 1.0% from the prior year. Fully diluted EPS was $0.43, up 2.4% year-over-year. For the nine months ended April 30, 2026, revenue was $3.5 billion, down 0.2%, and net income attributable to Copart was $1.2 billion, up 0.1%.

Strategy

Copart focuses on generating sustainable profits while emphasizing environmental benefits from vehicle reuse and recycling. The company invests in infrastructure and equipment to support disaster recovery and has expanded its global footprint. It also leverages technology like VB3 to enhance auction efficiency and member reach.

Risks

• Customer concentration — A limited number of major vehicle sellers could account for a substantial portion of revenue; losing one could materially affect results.
• International expansion risks — Operations in the U.K., Canada, Europe, Brazil, and the Middle East expose Copart to risks of integrating acquired businesses and local market conditions.
• Supply dependence — Inability to increase vehicle supply sources could adversely affect earnings and revenue growth.
• Disaster-related volatility — Business can be affected by catastrophic weather events, which may increase volume unpredictably and strain resources.

Outlook

Management did not provide specific forward guidance in the provided excerpts. The company notes growth opportunities in international markets and continued investments in technology and disaster recovery infrastructure. They caution that forward-looking statements involve risks and uncertainties.