Copart Reports Second Quarter Fiscal 2026 Financial Results
DALLAS--( BUSINESS WIRE)--Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter ended January 31, 2026.
For the three months ended January 31, 2026, revenue, gross profit, and net income attributable to Copart, Inc. were $1.1 billion, $492.8 million, and $350.7 million, respectively. These represent a decrease in revenue of $(41.6) million, or (3.6)%; a decrease in gross profit of $(32.7) million, or (6.2)%; and a decrease in net income attributable to Copart, Inc. of $(36.7) million, or (9.5)%, respectively, from the same period last year. Fully diluted earnings per share for three months ended January 31, 2026 was $0.36 compared to $0.40 last year, a decrease of (10.0)%.
For the six months ended January 31, 2026, revenue, gross profit, and net income attributable to Copart, Inc. were $2.3 billion, $1 billion, and $754.4 million, respectively. These represent a decrease in revenue of $(33.4) million, or (1.4)%; a decrease in gross profit of $(7.8) million, or (0.8)%; and an increase in net income attributable to Copart, Inc. of $5.0 million, or 0.7 %, respectively, from the same period last year. Fully diluted earnings per share for six months ended January 31, 2026 was $0.77 compared to $0.77 last year.
On Thursday, February 19, 2026, at 5:30 p.m. Eastern Time (4:30 p.m. Central Time), Copart will conduct a conference call to discuss the results for the quarter. The call will be webcast live and can be accessed via hyperlink at www.copart.com/investorrelations. A replay of the call will be available through May 2026 by visiting www.copart.com/investorrelations.
About Copart
Copart, Inc., founded in 1982, is a global leader in online vehicle auctions. Copart’s innovative technology and online auction platforms connect vehicle consignors to approximately 1 million members in over 185 countries. Copart offers a comprehensive suite of vehicle remarketing services to insurance companies, financial institutions, dealers, rental car companies, charities, fleet operators, and individuals, and offers vehicles via auction to dealers, dismantlers, rebuilders, exporters, and the general public. With operations at over 250 locations in 11 countries, Copart sold more than 4 million units in the last year. Copart currently operates in the United States (Copart.com), Canada (Copart.ca), the United Kingdom (Copart.co.uk), Brazil (Copart.com.br), the Republic of Ireland (Copart.ie), Germany (Copart.de), Finland (Copart.fi), the United Arab Emirates, Oman and Bahrain (Copartmea.com), and Spain (Copart.es). For more information, or to become a Member, visit Copart.com/register.
Cautionary Note About Forward-Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws. These forward-looking statements are subject to substantial risks and uncertainties. These forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected or implied by our statements and comments. For a more complete discussion of the risks that could affect our business, please review the “Management’s Discussion and Analysis” and the other risks identified in Copart’s latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, as filed with the Securities and Exchange Commission. We encourage investors to review these disclosures carefully. We do not undertake to update any forward-looking statement that may be made from time to time on our behalf.
Copart, Inc.
Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
January 31,
Six Months Ended
January 31,
2026
2025
% Change
2026
2025
% Change
Service revenues and vehicle sales:
Service revenues
$
952,051
$
991,281
(4.0
)%
$
1,943,896
$
1,977,617
(1.7
)%
Vehicle sales
169,623
172,035
(1.4
)%
332,808
332,528
0.1
%
Total service revenues and vehicle sales
1,121,674
1,163,316
(3.6
)%
2,276,704
2,310,145
(1.4
)%
Operating expenses:
Facility operations
427,521
439,274
(2.7
)%
854,685
886,519
(3.6
)%
Cost of vehicle sales
150,432
147,707
1.8
%
291,975
285,885
2.1
%
Facility depreciation and amortization
48,527
48,963
(0.9
)%
95,917
96,440
(0.5
)%
Facility stock-based compensation
2,382
1,819
31.0
%
4,317
3,643
18.5
%
Gross profit
492,812
525,553
(6.2
)%
1,029,810
1,037,658
(0.8
)%
General and administrative
89,393
86,608
3.2
%
181,661
177,605
2.3
%
General and administrative depreciation and amortization
6,860
5,236
31.0
%
13,512
11,386
18.7
%
General and administrative stock-based compensation
7,849
7,498
4.7
%
15,233
16,089
(5.3
)%
Total operating expenses
732,964
737,105
(0.6
)%
1,457,300
1,477,567
(1.4
)%
Operating income
388,710
426,211
(8.8
)%
819,404
832,578
(1.6
)%
Other income:
Interest income, net
49,987
40,747
22.7
%
103,492
86,294
19.9
%
Other income (expense), net
2,352
(3,907
)
(160.2
)%
5,276
(4,503
)
(217.2
)%
Total other income
52,339
36,840
42.1
%
108,768
81,791
33.0
%
Income before income taxes
441,049
463,051
(4.8
)%
928,172
914,369
1.5
%
Income tax expense
91,082
76,510
19.0
%
175,995
166,652
5.6
%
Net income
349,967
386,541
(9.5
)%
752,177
747,717
0.6
%
Less: Net loss attributable to noncontrolling interest
(765
)
(859
)
(10.9
)%
(2,269
)
(1,769
)
28.3
%
Net income attributable to Copart, Inc.
$
350,732
$
387,400
(9.5
)%
$
754,446
$
749,486
0.7
%
Basic net income per common share
$
0.36
$
0.40
(10.0
)%
$
0.78
$
0.78
—
%
Weighted average common shares outstanding
967,212
964,746
0.3
%
967,431
963,961
0.4
%
Diluted net income per common share
$
0.36
$
0.40
(10.0
)%
$
0.77
$
0.77
—
%
Diluted weighted average common shares outstanding
975,089
977,910
(0.3
)%
976,095
977,208
(0.1
)%
Copart, Inc.
Consolidated Balance Sheets
(In thousands)
(Unaudited)
January 31, 2026
July 31, 2025
ASSETS
Current assets:
Cash, cash equivalents, and restricted cash
$
5,101,821
$
2,780,531
Investment in held to maturity securities
-
2,008,539
Accounts receivable, net of allowance for credit losses of $14,916 and $12,945, respectively
861,630
762,811
Vehicle pooling costs
129,763
116,145
Inventories
41,870
39,661
Income taxes receivable
817
580
Prepaid expenses and other assets
40,279
46,361
Total current assets
6,176,180
5,754,628
Property and equipment, net
3,693,890
3,598,093
Operating lease right-of-use assets
91,454
99,708
Intangibles, net
57,292
62,832
Goodwill
523,473
517,779
Other assets
52,673
57,862
Total assets
10,594,962
10,090,902
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities
$
549,171
$
591,831
Deferred revenue
31,383
30,440
Income taxes payable
16,627
41,141
Current portion of operating and finance lease liabilities
16,692
19,869
Total current liabilities
613,873
683,281
Deferred income taxes
87,625
80,625
Income taxes payable
6,786
35,635
Operating and finance lease liabilities, net of current portion
79,444
83,870
Total liabilities
787,728
883,411
Commitments and contingencies
Redeemable non-controlling interest
18,189
20,458
Stockholders’ equity:
Preferred stock
-
-
Common stock
96
97
Additional paid-in capital
1,242,164
1,214,150
Accumulated other comprehensive loss
(87,291
)
(120,283
)
Retained earnings
8,634,076
8,093,069
Total stockholders’ equity
9,789,045
9,187,033
Total liabilities, redeemable noncontrolling interests and stockholders’ equity
10,594,962
10,090,902
Copart, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Six Months Ended
January 31,
(In thousands)
2026
2025
Cash flows from operating activities:
Net income
$
752,177
$
747,717
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization, including debt cost
109,713
109,122
Allowance for credit losses
2,103
1,056
Equity in (earnings) losses of unconsolidated affiliates
(368
)
(61
)
Stock-based compensation
19,550
19,732
Gain on sale of property and equipment
(214
)
(194
)
Deferred income taxes
6,002
47
Changes in operating assets and liabilities:
Accounts receivable
(124,815
)
(133,024
)
Vehicle pooling costs
(13,086
)
(10,675
)
Inventories
(1,583
)
(16,175
)
Prepaid expenses, other current and non-current assets
4,862
4,976
Operating lease right-of-use assets and lease liabilities
533
614
Accounts payable and accrued liabilities
(38,672
)
44,765
Deferred revenue
700
(1,066
)
Income taxes receivable
(227
)
(48,239
)
Income taxes payable
(53,922
)
(58,194
)
Net cash provided by operating activities
662,753
660,401
Cash flows from investing activities:
Purchases of property and equipment
(177,660
)
(353,399
)
Assets and liabilities acquired in connection with acquisition
(4,694
)
(1,213
)
Proceeds from sale of property and equipment
9,712
662
Purchases of held to maturity securities
-
(458,542
)
Proceeds from held to maturity securities
2,035,000
1,940,000
Investment in unconsolidated affiliate
(3,737
)
-
Net cash provided by investing activities
1,858,621
1,127,508
Cash flows from financing activities:
Proceeds from the exercise of stock options
9,078
32,833
Proceeds from the issuance of Employee Stock Purchase Plan shares
7,460
7,404
Repurchases of common stock
(218,184
)
-
Payments for employee stock-based tax withholdings
(2,190
)
(2,484
)
Debt issuance costs
(1,534
)
-
Payments of finance lease obligations
(6
)
(40
)
Net cash (used) provided by financing activities
(205,376
)
37,713
Effect of foreign currency translation
5,291
(824
)
Net increase in cash, cash equivalents, and restricted cash
2,321,289
1,824,798
Cash, cash equivalents, and restricted cash at beginning of period
2,780,531
1,514,111
Cash, cash equivalents, and restricted cash at end of period
$
5,101,820
$
3,338,909
Supplemental disclosure of cash flow information:
Interest paid
$
1,405
$
1,371
Income taxes paid, net of refunds
$
227,470
$
277,051
Purchase of property and equipment through settlement of deposit
$
2,411
$
57,453
Copart, Inc.
Segments Information
(In thousands)
(Unaudited)
Three Months Ended
January 31, 2026
Three Months Ended
January 31, 2025
United States
International
Total
United States
International
Total
Service revenues
$
819,467
$
132,584
$
952,051
$
868,130
$
123,151
$
991,281
Vehicle sales
102,153
67,470
169,623
106,715
65,320
172,035
Total service revenues and vehicle sales
921,620
200,054
1,121,674
974,845
188,471
1,163,316
Facility operations
395,351
83,080
478,431
418,824
71,232
490,056
Cost of vehicle sales
96,375
54,057
150,432
92,807
54,900
147,707
General and administrative
88,422
15,679
104,101
87,321
12,021
99,342
Operating income
$
341,472
$
47,238
$
388,710
$
375,893
$
50,318
$
426,211
Six Months Ended
January 31, 2026
Six Months Ended
January 31, 2025
United States
International
Total
United States
International
Total
Service revenues
$
1,675,001
$
268,895
$
1,943,896
$
1,728,120
$
249,497
$
1,977,617
Vehicle sales
199,233
133,575
332,808
194,265
138,263
332,528
Total service revenues and vehicle sales
1,874,234
402,470
2,276,704
1,922,385
387,760
2,310,145
Facility operations
793,834
161,084
954,918
842,441
144,161
986,602
Cost of vehicle sales
186,334
105,641
291,975
169,093
116,792
285,885
General and administrative
177,621
32,785
210,406
179,898
25,182
205,080
Operating income
$
716,445
$
102,960
$
819,405
$
730,953
$
101,625
$
832,578