01—Abstract
Summary
Summary of the 10-Q filed May 29, 2026. Cited figures are marked; the original filing is the authoritative source.
Copart's 10-Q for the third quarter of fiscal 2026 (ended April 30, 2026) shows a business that is still generating strong profits, but with flat top-line results and a sharp shift in how cash is being deployed.
Total service revenues and vehicle sales were $1,237.1 milliona in the quarter, up 2.1% year over year, while nine-month revenue slipped 0.2% to $3,513.8 million. Net income attributable to Copart was $402.4 million for the quarter ($0.43 diluted EPS, versus $0.42 a year ago) and $1,156.8 million for nine months ($1.20 diluted EPS, versus $1.18). Operating margin held near 37-38%.
The U.S. segment's service revenue fell 2.1% over nine months, largely because of one-time hurricane Helene and Milton revenue in fiscal 2025, while International grew 11.4% for the period, helped partly by currency tailwinds. The most notable development is capital allocation. Copart repurchased 43.4 million shares for $1,632.5 millionb during the nine months, versus no buybacks a year earlier.
Shares outstanding fell from 967.5 million at July 31, 2025 to 925.8 million at April 30, 2026, and 282 million shares remain under the authorization. Cash, cash equivalents and restricted cash rose to $3.35 billionc, but held-to-maturity Treasury investments fell to $0.85 billion from $2.01 billion, and working capital declined 10.6%. Operating cash flow was $1.25 billion, down 8.4%, mainly due to working capital changes.
Capital expenditures fell to about $259 milliond from $481 million, reflecting a slowdown in facility spending after the prior year's heavy investment. The company also replaced its secured credit facility with a new unsecured $1.25 billion revolver maturing in 2031, with $1.228 billion currently available. The filing discloses an ongoing U.S. Department of Justice investigation into anti-money-laundering practices, for which Copart cannot estimate a possible loss, which remains the most significant open legal risk for investors.
02—Key points
Key Highlights
- Nine-month service revenues and vehicle sales were flat at $3.51 billion (-0.2%). U.S. service revenue fell 2.1% on lapping hurricane-related one-time revenue, while International service revenue grew 11.4%.
- Net income attributable to Copart rose to $402.4 million for Q3 (+/-1%) and $1.157 billion for nine months; diluted EPS was $0.43 for the quarter and $1.20 for the nine months, up from $1.18.
- Copart bought back $1.63 billion of stock (43.4 million shares at an average of $37.63) in the first nine months of fiscal 2026, after no repurchases in the prior-year period, cutting shares outstanding by about 4% since July 2025.
- Cash and restricted cash rose to $3.35 billion, while held-to-maturity Treasury bills dropped to $0.85 billion; working capital fell 10.6% to $4.53 billion.
- Operating cash flow declined 8.4% to $1.25 billion on working capital outflows, including a $57 million increase in receivables and a $61 million drop in accounts payable; capital expenditures fell roughly 46% to $259 million.
- A new unsecured $1.25 billion revolving credit facility maturing in January 2031 replaced the prior facility, with $1.228 billion available and the company in covenant compliance.
- The DOJ anti-money-laundering investigation continues, with Copart stating it cannot predict the range of possible loss or penalties.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed May 29, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $1.24B$1.21B | +2.1% |
| Operating Expenses | $772.78M$760.17M | +1.7% |
| Operating Income | $464.28M$451.55M | +2.8% |
| Net Income | $402.40M$406.61M | −1.0% |
| EPS (Basic) | $0.43$0.42 | +2.4% |
| EPS (Diluted) | $0.43$0.42 | +2.4% |
| Shares Outstanding (Basic) | 936.29M966.23M | −3.1% |
| Shares Outstanding (Diluted) | 942.77M978.09M | −3.6% |
05—Questions
Frequently Asked Questions
Is Copart's revenue growing?
Only marginally. Third-quarter revenue rose 2.1% to $1.24 billion, but nine-month revenue was essentially flat, down 0.2%. The U.S. was weaker because fiscal 2025 included one-time hurricane Helene and Milton revenue, while International grew about 11% and benefited partly from favorable currency movements.
How much stock did Copart buy back, and what does it leave?
Copart repurchased 43.4 million shares for $1.63 billion during the first nine months of fiscal 2026. Roughly 282 million shares remain available under the 784 million-share program authorization, and the company has not specified a repurchase pace going forward.
Why did operating cash flow decline, and is cash still strong?
Operating cash flow fell 8.4% to $1.25 billion, mainly because of working capital changes: receivables increased $57 million and accounts payable decreased $61 million. Cash and restricted cash still rose to $3.35 billion, helped by maturing Treasury bills, though the company has fewer short-term investments than a year ago.
What is the main legal risk disclosed?
The U.S. Department of Justice is investigating whether Copart's controls for preventing money laundering by auction platform members violated federal law. Copart is cooperating but says it cannot predict the duration, outcome, or potential penalties, so the financial exposure is currently unquantifiable.
06—Continue