10-QPeriod: Q1 FY2026

COPART INC Quarterly Report for Q1 Ended Oct 31, 2025

Filed November 24, 2025For Securities:CPRT

Summary

Copart, Inc. (CPRT) reported a modest increase in total service revenues and vehicle sales for the three months ended October 31, 2025, compared to the prior year. While U.S. service revenues saw a slight dip, this was offset by strong growth in international service revenues, driven primarily by higher revenue per car. Total vehicle sales also increased, largely due to a significant rise in the U.S. market. The company demonstrated improved operational efficiency with a decrease in total facility operations expenses, primarily in the U.S., although international facility costs increased due to processing more cars and facility investments. Net income experienced a healthy increase, benefiting from higher operating income and a substantial boost in other income, largely attributable to increased interest income from U.S. Treasury Bills and currency gains. Liquidity remains robust, with cash, cash equivalents, and restricted cash significantly increasing, bolstered by strong operating cash flows and strategic investments in U.S. Treasury Bills. The company continues to focus on expanding its global footprint and evaluating various uses for its substantial cash reserves, including potential stock repurchases, acquisitions, and dividends.

Financial Statements
Beta
Revenue$1.16B
Operating Expenses$724.34M
Operating Income$430.69M
Net Income$403.71M
EPS (Basic)$0.42
EPS (Diluted)$0.41
Shares Outstanding (Basic)967.65M
Shares Outstanding (Diluted)977.10M

Key Highlights

  • 1Total service revenues grew by 0.6% to $991.8 million, with international service revenues up 7.9% driven by higher revenue per car, while U.S. service revenues slightly decreased by 0.5%.
  • 2Total vehicle sales increased by 1.7% to $163.2 million, primarily due to a 10.9% rise in U.S. vehicle sales driven by increased revenue per car.
  • 3Total facility operations expenses decreased by 4.0% to $476.5 million, with a notable 5.9% decrease in the U.S. driven by the absence of hurricane-related costs from the prior year.
  • 4Operating income improved to 38% of service revenues and vehicle sales, up from 36% in the prior year.
  • 5Net income increased to 35% of service revenues and vehicle sales, compared to 31% in the prior year, reflecting improved operational leverage and other income.
  • 6Other income surged by 25.5% to $56.4 million, primarily due to higher interest income from U.S. Treasury Bills and currency gains.
  • 7Cash, cash equivalents, and restricted cash significantly increased by 88.2% to $5.2 billion, indicating strong liquidity and efficient cash management.

Frequently Asked Questions

Service revenues increased by 0.6%, or $5.5 million. This was driven by a $10.0 million increase in international service revenues, which more than offset a $4.5 million decrease in U.S. service revenues. The U.S. decrease was attributed to the absence of one-time revenue from hurricanes in the prior year, while the international growth was primarily due to an increase in revenue per car.

Total facility operations expenses decreased by 4.0%, or $20.1 million. This decrease was mainly due to a $25.1 million reduction in the U.S., influenced by the absence of one-time hurricane-related costs from the prior year. An increase in international facility operations expenses was noted, driven by higher costs to process cars and investments in new and expanded international facilities.

Copart's liquidity is very strong, with cash, cash equivalents, and restricted cash increasing by 88.2% to $5.2 billion as of October 31, 2025. This increase was funded by cash generated from operations, the maturity of held-to-maturity securities (specifically U.S. Treasury Bills), and proceeds from stock option exercises. The company expects its current cash and cash flow from operations to be sufficient for its needs and is considering uses for its cash such as stock repurchases, acquisitions, and dividends.

Key risks highlighted include dependence on a limited number of major vehicle sellers, the complexities and risks of international expansion, cybersecurity threats, potential failure to maintain sufficient facility capacity, competition within the vehicle sales industry, and the impact of macroeconomic factors such as fuel prices, commodity prices, and economic downturns on vehicle supply and demand.