Copart — Financial Results

U.S. Revenue Dipped While International Growth Picked Up the Slack

Total service revenue was essentially flat year-over-year, but the story underneath matters. The U.S. decline was largely a one-time effect — fiscal 2025 included a spike in revenue from Hurricanes Helene and Milton that did not repeat in 2026. International growth of 12.4% (about 8.7% excluding favorable currency moves) was driven by more cars processed and higher revenue per car.

Operating Profit Margins Held Steady Despite Rising Costs

Operating income remained at 36% of total revenue — unchanged from fiscal 2025. General and administrative expenses rose 7.0% to $431M, driven by hiring, an expanded sales force, and higher international consulting and legal costs. Facility operations costs crept up 1.1% to $1.97B. The company managed to absorb these increases without margin erosion, which speaks to stable underlying pricing power.

Copart Announced a $1.9 Billion Acquisition of ACV

On September 10, 2026, Copart agreed to acquire ACV — an online automotive marketplace — for $10.50 per share in cash, implying an equity value of approximately $1.9 billion. The deal is expected to close by end of calendar year 2026, pending regulatory approval (specifically, clearance under antitrust review). This is a significant capital deployment that would expand Copart's reach beyond salvage vehicles into the broader used-car ecosystem.

$1.6 Billion Returned to Shareholders Through Stock Buybacks

In fiscal 2026, Copart repurchased 43.4 million shares at an average price of $37.63, spending $1.6 billion in total. This is the primary reason cash on hand fell by $872.6 million to $1.91 billion. With the ACV acquisition still pending, investors should note that the company is simultaneously spending heavily on buybacks and preparing a near $2 billion cash outlay for an acquisition.

Operating Cash Flow Declined But Remains Strong

Cash generated from day-to-day operations fell $195M year-over-year, driven by higher expenses and an increase in accounts receivable and other working capital items. On the positive side, capital spending (on land, facilities, and technology) dropped sharply, suggesting the heavy infrastructure buildout phase of recent years is moderating.

Continued Facility Expansion Across the U.S. and Internationally

Copart opened 14 new U.S. locations and 11 international locations between August 2023 and July 2026, including sites in Brazil, Spain, Canada, and the U.K. This physical footprint expansion supports long-term volume growth, though it also contributes to rising depreciation and operating costs in the near term. New facilities added to depreciation costs, which rose 4.5% in the U.S. and 8.8% internationally.