10-Q · May 28, 2026
Copart, Inc. reported strong Q3 fiscal 2026 results with revenues of $1.24 billion, exceeding estimates by $47 million, and EPS of $0.43, beating expectations of $0.41. Notably, the international segment performed well,…
Earnings analysis · 10-K
CPRT earnings analysis
Filed September 29, 2026 · Our reading of the company's report
The latest report
Copart remains a highly profitable global online vehicle-auction platform, with 286 facilities, a proprietary VB3 system, and strong international growth that offset a decline in U.S. service revenue. However, fiscal…
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Copart remains a highly profitable global online vehicle-auction platform, with 286 facilities, a proprietary VB3 system, and strong international growth that offset a decline in U.S. service revenue. However, fiscal 2026 showed weaker momentum: revenue was nearly flat, operating income fell to $1.653 billion, diluted EPS declined to $1.55, and operating cash flow dropped to $1.604 billion. The $1.9 billion ACV acquisition offers a material strategic growth opportunity but adds closing, integration, regulatory, and liquidity risk, while the ongoing DOJ investigation is an additional significant uncertainty.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.55
- Operating margin
- 35.4%
What stood out
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Global VB3 platform and facility expansion
Copart describes a global online-auction strategy centered on its proprietary VB3 platform, with 286 operating facilities globally. It obtained 79% of vehicles processed in fiscal 2026 from insurance-company sellers and intends to expand through facilities, seller agreements, service offerings, and VB3 deployment in new markets.
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International growth offset U.S. softness
Fiscal 2026 revenue increased 0.4% to $4.666 billion from $4.647 billion, while operating income was $1.653 billion and operating margin was approximately 35.4%. International growth offset weaker U.S. service revenue: international total revenue rose to $858.8 million from $791.9 million, while U.S. revenue declined to $3.807 billion from $3.855 billion.
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Earnings and cash flow softened
Profitability and cash generation weakened year over year: net income attributable to Copart fell to $1.484 billion from $1.552 billion, diluted EPS declined to $1.55 from $1.59, and operating cash flow declined 10.8% to $1.604 billion from $1.800 billion.
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Capacity investment continued at lower pace
The company opened six new U.S. operational facilities in fiscal 2026 and two new facilities in Brazil, supporting its long-term capacity and geographic expansion strategy. Capital expenditures, including acquisitions, were $342.4 million in fiscal 2026, down from $570.2 million in fiscal 2025.
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Large share repurchase program resumed
Copart restarted significant capital returns, repurchasing 43,433,164 shares for $1.6 billion at a weighted-average price of $37.63 in fiscal 2026; no shares were repurchased in fiscal 2025 or 2024. The company has 282 million shares remaining under its 784 million-share authorization and has never paid a cash dividend.
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ACV acquisition broadens auction footprint
The company entered into an agreement to acquire ACV for approximately $1.9 billion in cash at $10.50 per share, broadening its vehicle-auction exposure. Copart expects to complete the transaction by the end of calendar year 2026, subject to majority tender, antitrust clearance, and other customary conditions.
What to watch
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ACV closing and funding risk
The ACV acquisition remains subject to the tender of a majority of ACV shares, expiration or termination of the Hart-Scott-Rodino waiting period, and other customary conditions. Copart expects to fund the approximately $1.9 billion cash purchase price from cash flow and available liquidity, increasing execution and liquidity risk after cash, cash equivalents, and restricted cash fell $872.6 million to $1.908 billion during fiscal 2026.
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Ongoing DOJ money-laundering investigation
The DOJ is conducting an ongoing investigation into potential violations of money-laundering laws related to Copart’s procedures for preventing and detecting money-laundering activity by auction-platform members. The company received a DOJ letter in October 2023 indicating potential exposure, but states it cannot predict the duration, scope, result, fines, penalties, remedies, or range of possible loss.
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New debt and variable-rate exposure
Copart entered a new unsecured revolving credit facility with capacity of $1.250 billion, maturing January 23, 2031; $1.228 billion was unused and $22.5 million of letters of credit were outstanding at July 31, 2026. Borrowings may bear interest at a daily rate plus 0.0% to 0.125% or a fixed rate plus 0.75% to 1.125%, and increased leverage or rates could constrain flexibility and raise acquisition-related financing costs.
Management's outlook
The 10-K provides no quantitative annual revenue or EPS guidance. Management states it expects to use operating cash flow to fund growth and the expected $1.9 billion ACV cash purchase price; the transaction is expected to close by the end of calendar year 2026 and be EPS-neutral in the first full year and accretive in fiscal 2028 and beyond, according to the prior earnings disclosure.
Earlier filings 4
10-Q · March 3, 2026
Copart reported a softer quarter: total revenue for the three months ended January 31, 2026 was $1,121,674 (in thousands), down versus $1,163,316 in the prior-year quarter, and diluted EPS fell to $0.36 from $0.40 a…
10-K · September 26, 2025
Copart describes a growth strategy built on its proprietary VB3 online auction platform, geographic expansion and targeted facility openings; for fiscal 2025 the company reported revenues of $4.6 billion and operating…
10-Q · February 26, 2025
Copart reported a strong quarter: total revenue of $1,163,316,000 and diluted EPS of $0.40 for the three months ended January 31, 2025, both above the prior-year quarter. Operating income rose to $426,211,000 (operating…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.