Copart (CPRT) investor relations material

Executive summary

• Consolidated revenue for Q3 FY26 grew 2.1% year-over-year to $1.24 billion, driven by higher average selling prices and international growth, while U.S. revenue saw a slight decline.

• Net income for the quarter was $402.4 million, with diluted EPS of $0.43, up 2.4% year-over-year, despite a modest decline in net income compared to the prior year.

• Operating income increased 2.8% to $464.3 million, and gross profit rose 3.7% to $572.6 million.

• International buyer participation remains robust, now representing over one-third of U.S. auction volume and nearly half of auction proceeds.

• Cash and equivalents at quarter-end totaled $3.35 billion, up from $2.78 billion at July 31, 2025.

Financial highlights

• Global gross profit rose 3.7% to $572.6 million, with gross margin up to 46.3%.

• Operating income for Q3 was $464.3 million, up 2.8% year-over-year.

• EPS grew 2.4% to $0.43, aided by ongoing share repurchases.

• International revenue grew 14.1% (7.9% ex-FX) to $234.2 million, with insurance ASPs up 8.4% and non-insurance ASPs up 16.7%.

• Cash provided by operating activities for the nine months was $1.25 billion.

Outlook and guidance

• Management expects long-term growth in insurance business to continue, driven by rising total loss frequency and expanding non-insurance seller base.

• International expansion and increasing auction liquidity are seen as key growth levers for the next five years.

• The company believes current cash and cash equivalents, along with operating cash flow, are sufficient for foreseeable requirements.