01—Abstract
Summary
Summary of the 10-K filed September 26, 2025. Cited figures are marked; the original filing is the authoritative source.
Copart (CPRT) closed fiscal 2025 (year ended July 31, 2025) with total service revenues and vehicle sales of $4.65 billiona, up about 9.7% from $4.24 billion in fiscal 2024, and operating income of $1.70 billion, up 7.9%.
Net income attributable to Copart rose to $1.55 billionb from $1.36 billion, and diluted EPS increased to $1.59 from $1.40. Growth was broad-based: service revenues grew 11.4%, with the U.S. up 10.4% and International up 18.9%, driven mainly by higher revenue per car and volume. Operating margin edged down to 36% from 37% as facility operations costs rose 13.7%, partly due to roughly $56 million in one-time costs tied to Hurricanes Helene and Milton.
Effective tax rate fell to 18.3% from 20.5%, helped by a $55.0 millionc FDII benefit and $36.7 million in excess stock option tax benefits. Balance sheet strength stands out. Cash, cash equivalents and restricted cash more than doubled to $2.78 billion, and held-to-maturity Treasury investments reached $2.01 billion.
Operating cash flow rose 22% to $1.80 billiond, against capital expenditures and acquisitions of $570 million. The company has no outstanding borrowings under its $1.25 billion revolver, and it repurchased no shares in fiscal 2025, 2024 or 2023, leaving $325.8 million of authorization available. It has never paid a cash dividend.
Investors should weigh the strong cash generation and growth against concentration in insurance-company sellers (81% of vehicles), exposure to hurricane and weather volatility, and an ongoing U.S. Department of Justice investigation into anti-money-laundering practices. The company has not quantified any potential loss from that inquiry. Growth drivers include continued facility expansion (six U.S. and International openings in fiscal 2025), rising total-loss frequency and an aging vehicle fleet (average age 12.8 years in 2025 vs. 11.1 in 2012), and higher average selling prices.
Management also flagged a new financial system rollout that will continue in stages and that will become a significant component of internal controls. Internal controls were assessed as effective by management and by Ernst & Young LLP.
02—Key points
Key Highlights
- Revenue grew 9.7% to $4.65B and operating income rose 7.9% to $1.70B; service revenues up 11.4%, led by International (+18.9%) and U.S. (+10.4%).
- Net income attributable to Copart increased to $1.55B (diluted EPS $1.59 vs. $1.40), helped by a lower effective tax rate of 18.3% (vs. 20.5%).
- Operating cash flow rose 22% to $1.80B, funding $570M of capex and acquisitions while cash and equivalents more than doubled to $2.78B.
- Operating margin compressed slightly to 36% from 37% as facility operations costs grew 13.7%, including about $56M in one-time hurricane-related costs (Helene and Milton).
- Insurance companies supplied 81% of vehicles processed, and the U.S. generated 83% of revenue, indicating seller and geographic concentration.
- A U.S. DOJ investigation into anti-money-laundering practices remains ongoing; the company cannot predict the outcome or potential loss.
- No share repurchases in fiscal 2025 despite $2.8B in cash; $325.8M remains authorized, and the company has never paid a cash dividend.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed September 26, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $4.65B$4.24B | +9.7% |
| Operating Expenses | $2.95B$2.66B | +10.7% |
| Operating Income | $1.70B$1.57B | +7.9% |
| Net Income | $1.55B$1.36B | +13.9% |
| EPS (Basic) | $1.61$1.42 | +13.4% |
| EPS (Diluted) | $1.59$1.40 | +13.6% |
| Shares Outstanding (Basic) | 965.31M960.74M | +0.5% |
| Shares Outstanding (Diluted) | 977.56M974.80M | +0.3% |
05—Questions
Frequently Asked Questions
Is Copart's growth coming mainly from volume or from pricing?
Both contributed. In the U.S., service revenue growth was attributed to higher revenue per car and higher volume. International growth also reflected higher revenue per car and volume, with favorable currency effects of about $2.7M. Vehicle sales were roughly flat overall, up 0.4%, as U.S. growth offset a decline in International sales linked to lower prices and a shift to consignment.
What is the main risk to Copart's earnings outlook?
Key risks include reliance on a limited number of large insurance-company sellers, weather and hurricane-related volatility (which both boosts supply and creates facility capacity constraints and costs), changes in used-car values and total-loss frequency, and the pending DOJ money-laundering investigation. Growing international operations also add currency and regulatory exposure.
Does Copart return capital to shareholders?
Not through dividends or buybacks in the latest fiscal year. Copart has never paid a cash dividend and repurchased no shares in fiscal 2025, 2024 or 2023. It has $325.8M of repurchase authorization left and a credit agreement that permits dividends subject to leverage tests. Management has said it is considering alternative uses for its cash balance.
How strong is Copart's balance sheet?
Very strong. The company had $2.78B in cash, cash equivalents and restricted cash and $2.01B in held-to-maturity Treasury bills at July 31, 2025. It had no borrowings under its $1.25B revolving facility and a consolidated net leverage ratio of (2.35):1, meaning net cash. Total stockholders' equity reached $9.19B.
06—Continue