Copart (CPRT) Q3 2025 earnings summary

Executive summary

• Revenue for Q3 FY2025 reached $1.2 billion, up 7.5% year-over-year, with net income rising 6.4% to $406.6 million and diluted EPS at $0.42.

• Global insurance unit sales were flat year-over-year, with a nominal decline of 0.3% globally and 0.9% in the U.S.; adjusting for leap year, global and U.S. insurance units sold grew 1.3% and 0.6%, respectively.

• The company expanded operations with new facilities in the U.S., U.K., Spain, and Canada, and completed acquisitions including Hall Ranch in Florida and an 80% stake in Purple Wave, Inc.

• Copart remains focused on environmental stewardship, vehicle remarketing, and disaster recovery efforts.

• Total loss frequency in the U.S. rose to 22.8% in Q1 2025, up 100 basis points from last year, driven by rising repair costs and vehicle complexity.

Financial highlights

• Global revenue increased to $1.2 billion for Q3, with global service revenue up nearly $88 million (over 9%) year-over-year, and net income at $406.6 million.

• U.S. service revenue grew 8% (7% excluding CAT units); international service revenue grew about 18%.

• Global gross profit was approximately $552 million (up $27 million, or 5%), with a gross margin of 45.6%.

• GAAP operating income rose over 3% to $451.5 million; GAAP net income increased over 6% to $407 million ($0.42 per diluted share).

• Cash, cash equivalents, and restricted cash increased to $2.37 billion as of April 30, 2025, up 56.3% from July 31, 2024.

Outlook and guidance

• Management expects continued growth through facility expansion, acquisitions, and increased service offerings, with sufficient liquidity to fund operations and expansion.

• Anticipation of an active 2025 storm season, with operational investments made to handle increased volume.

• The company anticipates ongoing investments in technology and infrastructure to support global operations and disaster recovery capabilities.

• No explicit forward guidance provided, but management remains confident in long-term growth drivers.