10-QPeriod: Q2 FY2026

COPART INC Quarterly Report for Q2 Ended Jan 31, 2026

Filed March 3, 2026For Securities:CPRT

Summary

Copart, Inc. reported a slight decrease in overall service revenues for the six months ended January 31, 2026, down 1.7% to $1.94 billion, primarily driven by a 3.1% decline in the United States. This U.S. decrease was attributed to the absence of one-time revenue recognized in the prior fiscal year related to hurricanes Helene and Milton. However, international service revenues grew by 7.8%, largely due to an increase in revenue per car, partially offset by lower volumes. Total vehicle sales remained relatively flat for the six-month period, up a marginal 0.1% to $332.8 million. While U.S. vehicle sales saw a 2.6% increase driven by higher revenue per car, international sales declined by 3.4%, also due to lower volumes as sellers shifted to a consignment model. Operating expenses decreased slightly by 3.2% overall, with a notable 5.8% reduction in U.S. facility operations expenses, partly due to the prior year's hurricane-related costs. The company ended the period with a significantly stronger liquidity position, with cash, cash equivalents, and restricted cash soaring by 83.5% to $5.1 billion.

Financial Statements
Beta
Revenue$1.12B
Operating Expenses$732.96M
Operating Income$388.71M
Net Income$350.73M
EPS (Basic)$0.36
EPS (Diluted)$0.36
Shares Outstanding (Basic)967.21M
Shares Outstanding (Diluted)975.09M

Key Highlights

  • 1Service revenues declined 4.0% year-over-year for the three months ended January 31, 2026, and 1.7% for the six-month period, mainly due to a decrease in U.S. revenue that was partially offset by international growth.
  • 2U.S. service revenue decrease was attributed to the absence of one-time revenue from hurricanes Helene and Milton recognized in the prior fiscal year.
  • 3International service revenue growth of 7.8% for the three months and 7.8% for the six months was driven by higher revenue per car, despite a decrease in volume.
  • 4Total vehicle sales were down 1.4% for the quarter but increased 0.1% for the six months, with U.S. sales up 2.6% for the six-month period.
  • 5Facility operations expenses decreased by 2.4% for the quarter and 3.2% for the six months, primarily driven by a 5.6% reduction in U.S. expenses.
  • 6Total other income increased significantly by 42.1% for the quarter and 33.0% for the six months, attributed to higher interest income and currency gains.
  • 7Cash, cash equivalents, and restricted cash more than doubled, increasing by 83.5% to $5.1 billion as of January 31, 2026, driven by cash generated from operations and maturing securities.

Frequently Asked Questions

The decrease in U.S. service revenues for the three and six months ended January 31, 2026, was primarily due to the absence of one-time revenue recognized in the prior fiscal year associated with hurricanes Helene and Milton.

International operations showed growth, with service revenues increasing by 7.7% for the three months and 7.8% for the six months. This growth was driven by an increase in revenue per car, although volumes decreased.

The substantial increase in cash, cash equivalents, and restricted cash (up 83.5% to $5.1 billion) was due to cash generated from operations, proceeds from maturing held-to-maturity securities (like U.S. Treasury Bills), and was not fully offset by capital expenditures and stock repurchases.

Yes, the company repurchased 5,480,191 shares of common stock for $218.2 million during the six months ended January 31, 2026, at an average price of $39.82 per share.