10-QPeriod: Q3 FY2026

COPART INC Quarterly Report for Q3 Ended Apr 30, 2026

Filed May 29, 2026For Securities:CPRT

Summary

Copart Inc.'s (CPRT) third-quarter report for the fiscal year ending July 31, 2026, shows a modest increase in total service revenues, up 2.1% year-over-year to $1.06 billion, primarily driven by strong performance in its international markets. While U.S. service revenues saw a slight decrease of 0.4%, international service revenues surged by 17.9%, boosted by both increased volume and higher revenue per car. Vehicle sales also experienced a slight uptick of 2.3% to $181 million, with international sales contributing positively. However, operating expenses, particularly facility operations, increased by 3.0%, impacting overall profitability margins. The company's liquidity remains strong, with cash, cash equivalents, and restricted cash increasing by 20.6% to $3.35 billion. This increase was supported by strong cash flow from operations and strategic reinvestment in U.S. Treasury Bills. Despite a decrease in working capital, primarily due to share repurchases and timing of payments, Copart has ample resources to fund its ongoing operations and future expansion plans. The company also highlighted its robust stock repurchase program, having bought back approximately $1.63 billion worth of shares in the first nine months of the fiscal year, demonstrating a commitment to returning value to shareholders.

Financial Statements
Beta
Revenue$1.24B
Operating Expenses$772.78M
Operating Income$464.28M
Net Income$402.40M
EPS (Basic)$0.43
EPS (Diluted)$0.43
Shares Outstanding (Basic)936.29M
Shares Outstanding (Diluted)942.77M

Key Highlights

  • 1Total service revenues increased by 2.1% to $1.056 billion for the three months ended April 30, 2026.
  • 2International service revenues showed significant growth, increasing by 17.9% to $160.6 million, driven by volume and revenue per car.
  • 3Total vehicle sales increased by 2.3% to $180.9 million for the three months ended April 30, 2026.
  • 4Facility operations expenses increased by 3.0% to $504.2 million, reflecting increased costs in both U.S. and international operations.
  • 5General and administrative expenses rose by 7.5% to $108.3 million, largely due to increased labor costs in both the U.S. and internationally.
  • 6Cash, cash equivalents, and restricted cash significantly increased by 20.6% to $3.35 billion as of April 30, 2026.
  • 7The company repurchased $1.63 billion of its common stock during the nine months ended April 30, 2026, as part of its ongoing stock repurchase program.

Frequently Asked Questions

Revenue growth was primarily driven by a significant increase in international service revenues, which grew by 17.9%, and a more modest 2.3% increase in total vehicle sales. The international segment benefited from both higher vehicle volume and increased revenue per car, while U.S. service revenues saw a slight decrease.

Copart's liquidity remains strong, with cash, cash equivalents, and restricted cash increasing by 20.6% to $3.35 billion as of April 30, 2026. This growth was fueled by cash generated from operations and strategic investments in U.S. Treasury Bills.

Copart is actively returning capital to shareholders through its stock repurchase program, having bought back $1.63 billion in the nine months ended April 30, 2026. The company also indicated consideration of additional stock repurchases, acquisitions, and dividend payments as potential uses for its cash.

Yes, facility operations expenses increased by 3.0% and general and administrative expenses rose by 7.5%. These increases are attributed to factors such as higher subhaul, labor, and insurance costs in facility operations, and increased labor and stock-based compensation in G&A expenses.