Copart (CPRT) Q2 2026 earnings summary

Executive summary

• Global insurance units declined 9% year-over-year, or 4% excluding catastrophic (CAT) units, with U.S. insurance units down 10.7% (4.8% ex-CAT).

• Total loss frequency in the U.S. rose to 24.2% in Q4 2025, continuing a long-term upward trend.

• Service revenues for the quarter ended January 31, 2026, decreased 4.0% year-over-year, mainly due to the absence of one-time hurricane-related revenues, partially offset by international growth.

• Net income for the quarter was $350.7 million, down 9.5% year-over-year.

• Cash, cash equivalents, and restricted cash increased to $5.1 billion as of January 31, 2026, reflecting strong operating cash flow and maturing securities.

Financial highlights

• Consolidated revenue declined 3.6% year-over-year to $1.12 billion; up 1.3% ex-CAT.

• Global gross profit decreased 6.2% to $492.8 million; adjusting for CAT and a $6.8M one-time VAT expense, gross profit rose 0.4% and gross margin increased 178 bps to 45%.

• Operating income fell 8.8% to $388.7 million; net income was $350.7 million, down 9.5%; EPS decreased 9.2% to $0.36.

• Operating cash flow for the six months ended January 31, 2026, was $662.8 million, nearly flat year-over-year.

• Over $500 million was returned via share repurchases fiscal year-to-date, including 5.48 million shares for $218.2 million during the six months and an additional 24.26 million shares for $898.7 million post-quarter.

Outlook and guidance

• Management expects cyclical trends in insurance coverage and policy growth to eventually reverse, supporting future volume growth.

• Sufficient liquidity is expected for ongoing operations and expansion, with $1.25 billion in unused credit facility capacity.

• Ongoing investments in technology, land, and operational efficiency are expected to sustain competitive advantages.