Copart — Financial Results
Service Revenue Grew 11.4% to Nearly $4 Billion, Driven by Both Volume and Pricing
| Segment | FY2025 | FY2024 | Change |
|---|---|---|---|
| U.S. Service Revenue | $3.45B | $3.13B | +10.4% |
| International Service Revenue | $517M | $435M | +18.9% |
| Total Service Revenue | $3.97B | $3.56B | +11.4% |
Service revenues — the fees Copart collects for processing and auctioning vehicles on behalf of sellers — grew consistently for the third year running. Growth came from both more cars processed and higher revenue per car, with international markets outpacing the U.S. on a percentage basis.
Operating Margins Compressed Slightly as Costs Rose Faster Than Revenue
| Expense | FY2025 (% of Revenue) | FY2024 (% of Revenue) |
|---|---|---|
| Facility Operations | 42% | 40% |
| General & Administrative | 9% | 8% |
| Operating Income | 36% | 37% |
Facility operations expenses rose 13.7% — faster than the 11.4% revenue growth — and general and administrative (G&A) expenses jumped 20.2%, driven by legal costs, compliance, technology projects, and a larger sales force. The result was a modest one-point squeeze in operating margin.
Hurricanes Helene and Milton Added $56 Million in One-Time Costs
When major storms hit South Florida in late 2024, Copart mobilized to recover and process tens of thousands of flood-damaged vehicles. That response cost $56 million in extra labor, transportation (subhaul), security, and travel — all sitting inside the facility operations expense line. Stripping those out, underlying cost growth looks more in line with revenue growth.
Cash Position Nearly Doubled to $2.8 Billion, With No Debt
| Metric | FY2025 | FY2024 | Change |
|---|---|---|---|
| Cash & Equivalents | $2.78B | $1.51B | +83.6% |
| Operating Cash Flow | $1.80B | $1.47B | +22.2% |
| Outstanding Debt | $0 | $0 | — |
The company generated $1.8 billion in cash from operations and carries zero borrowings against its $1.25 billion revolving credit facility. The cash pile grew sharply, partly from maturing Treasury Bill investments. Management noted it is evaluating potential uses for the accumulating cash, including a share repurchase program.
International Operations Shifting Away From "Principal" Model
International vehicle sales (where Copart buys and resells cars for its own account, taking on price risk) fell 18.5% to $275 million, as sellers in markets like the U.K. switched to a consignment model (where Copart acts only as an agent, earning fees without owning the car). This reduces revenue reported on a gross basis but also removes the corresponding cost of buying those vehicles — and is arguably a lower-risk revenue profile.
Aggressive Facility Expansion Continues Across 27 New Locations Since 2022
Copart opened 15 new U.S. locations and 12 international locations between August 2022 and July 2025, spanning markets from Anchorage to Barcelona. Capital expenditures rose to $570 million in FY2025 from $493 million the prior year. This steady build-out supports future volume capacity but also drives the rising depreciation costs visible in both facility and G&A expense lines.