COPART, INC.
| Revenue | $4.6B |
|---|---|
| Operating income | $1.7B |
| Net income | $1.6B |
| Free cash flow | $1.4B |
| Operating margin | 36.5% |
| Net margin | 33.8% |
| Return on equity | 15.9% |
| Period | TTM 2026-01-31 |
OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Promising strategic expansion is offset by weak domestic volumes, worsening unit costs, and delayed acquisition benefits.
Hold: fourth-quarter revenue rose 2.4% to $1.2 billion, but global units fell 2.9%, operating income fell 10.6%, and EPS fell 14.6% to $0.35.
International growth, higher ASPs, and the ACV acquisition offer upside, but domestic insurance volumes fell 7.5%, OpEx per car rose 12.7%, and ACV is only expected to be accretive in FY28.
- Acv Acquisition
- Domestic Insurance Volume
- International Growth
- Buyer Liquidity
- Operating Costs
- Wholesale Marketplace
Near term
Domestic insurance assignments and units remain the clearest earnings pressure, with one customer loss masking the underlying trend.
Operating costs may rise further as long-haul delivery, TitleExpress, wholesale facilities, and ACV integration investments scale.
ACV closing, regulatory review, and initial integration execution are near-term catalysts and risks; management expects breakeven before FY28 accretion.
Longer term
International units grew 10% and revenue grew 11.7%, while international buyers represented 45.7% of U.S. sales dollars, supporting a meaningful global liquidity advantage.
Higher collision severity, repair costs, vehicle complexity, and total-loss frequency support salvage demand, but lower claim frequency can reduce assignment volumes.
ACV could broaden Copart into dealer wholesale and improve buyer liquidity, logistics utilization, and non-insurance growth if the two platforms integrate without diluting returns.
Red flags
Global units declined 2.9%, U.S. units declined 5.7%, and U.S. insurance volumes declined 7.5%; management provided no earnings or margin guidance.
Gross profit fell 5.5% and operating income fell 10.6% in the quarter as facility and per-car costs increased, with management offering only a general commitment to reduce costs.
The all-cash ACV transaction adds integration and execution risk while expected accretion is pushed to FY28; the call did not quantify purchase price, synergies, or return thresholds.
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
From latest 10-K · 2026-09-29
- Insurer Supply Concentration
- Online Auction Moat
- Acv Acquisition
- Doj Money Laundering
- Receivables Credit Risk
- International Expansion
Red flags
- Insurance companies supplied 79% of vehicles processed in fiscal 2026. Although no single customer exceeded 10% of revenue, collective seller dependence remains high and some agreements are non-exclusive or terminable on limited notice.
- The DOJ Consumer Protection Branch is investigating potential money-laundering-law violations tied to auction-member controls; Copart cannot estimate the duration, outcome, potential penalties or loss range.
- The ACV transaction adds execution and capital-allocation risk: it is a $10.50-per-share cash deal expected by year-end 2026 and subject to a majority tender, while the excerpt does not quantify total consideration or synergies.
- Gross receivables increased to $827.8 million from $775.8 million and the allowance for credit losses rose to $18.6 million from $12.9 million, a working-capital and collectability signal to watch.
- Seller billing is still in development within a new financial system that management calls a significant component of internal control over financial reporting.