CPRT

Valued at a market cap of $25.9 billion, Copart, Inc. (CPRT) is a global leader in online vehicle auctions, connecting vehicle consignors with nearly 1 million registered members across more than 185 countries. Through its advanced online auction platform and operations spanning over 250 locations in 11 countries, Copart provides comprehensive vehicle remarketing services and sells more than 4 million vehicles annually. The Dallas, Texas-based company is expected to release its fiscal Q4 2026 results soon. Ahead of this event, analysts project CPRT to report an EPS of $0.39, down 4.9% from $0.41 in the year-ago quarter. The company has exceeded Wall Street's bottom-line estimates in three of the last four quarters while missing on another occasion. Dear SpaceX Stock Fans, Mark Your Calendars for August 6 Amazon Stock Just Hit a Major Hurdle Ahead of Earnings Elon Musk Just Revealed a Quiet Win for Tesla’s AI Ambitions Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. For fiscal 2026, analysts forecast Copart to post EPS of $1.58, a marginal decline from $1.59 in fiscal 2025. However, EPS is anticipated to rise 5.1% year-over-year to $1.66 in fiscal 2027. CPRT stock has fallen 38.5% over the past 52 weeks, underperforming the broader S&P 500 Index's ($SPX) 16.8% return and the State Street Industrial Select Sector SPDR ETF's (XLI) 18.7% gain over the same period. Copart shares fell 1.8% following its Q3 2026 results on May 21 as investors focused on weaker insurance auction volumes, with global insurance units down 2.7% and U.S. insurance units down 4.2%, reflecting softer claims activity as consumers reduced insurance coverage amid higher premiums. Although revenue rose 2.1% year-over-year to $1.24 billion, and management did not provide formal revenue or EPS guidance, tempering expectations. Investors also remained cautious about softer claims trends, declining participation from certain Middle Eastern buyers due to regional conflicts, and higher logistics costs, including a $15 million year-over-year increase in facility operating expenses related to Copart's long-haul delivery product, even as international units grew 5.9% and the company highlighted a 15 million+ U.S. noninsurance auction total addressable market. Analysts' consensus view on CPRT stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 13 analysts covering the stock, six suggest a "Strong Buy," six give a "Hold," and one provides a "Strong Sell" rating. The average analyst price target is $42.73, suggesting a potential upside of nearly 48% from current levels. On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

Copart’s first quarter performance was shaped by higher average selling prices and ongoing strength in its international markets, even as U.S. insurance volumes softened. Management attributed the quarter’s results to a combination of rising total loss frequency and continued investments in technology and logistics, which supported auction returns. CEO Jeffrey Liaw emphasized that “international buyers, financed buyers, new buyers and particularly crossover buyers are critical enablers of the higher auction returns,” highlighting the impact of Copart’s global buyer network and expanded service offerings. Is now the time to buy CPRT? Find out in our full research report (it’s free). Revenue: $1.24 billion vs analyst estimates of $1.19 billion (2.1% year-on-year growth, 4.2% beat) Adjusted EPS: $0.43 vs analyst estimates of $0.41 (5.7% beat) Adjusted EBITDA: $523.3 million vs analyst estimates of $505.6 million (42.3% margin, 3.5% beat) Operating Margin: 37.5%, in line with the same quarter last year Market Capitalization: $31.64 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Bob Labick (CJS Securities) asked about the impact of rising fuel and transportation costs on Copart’s logistics. CEO Jeffrey Liaw explained the company uses a hybrid towing model and adjusts rates with partners to account for fuel price changes, describing it as “a microeconomic decision market by market.” Craig Kennison (Baird) questioned how insurance partners view claims frequency for 2026 and 2027. Liaw noted that insurers see a cyclical, not permanent, reduction in claims, driven by consumers pulling back on coverage, but expect eventual normalization as economic conditions change. Jash Patwa (JPMorgan) sought clarity on the scale and growth of the noninsurance business and the “crossover buyer” profile. Liaw detailed how buyers often start with noninsurance vehicles and expand into insurance inventory, increasing their engagement and spend over time. John Healy (Northcoast Research) asked about the progress and strategy for Copart’s whole car business, including the role of BluCar and Dealer Services. Liaw described a spectrum approach, where Copart earns the right to sell higher-quality vehicles as relationships deepen, and emphasized ongoing brand and platform development. Jeffrey Lick (Stephens) inquired about the adoption and impact of Copart’s long-haul delivery product. CFO Leah Stearns reported strong uptake, noting it reduces transaction friction for buyers and is generating incremental margin for the company. In upcoming quarters, the StockStory team will be watching (1) whether U.S. insurance volumes recover alongside stabilization in consumer insurance purchasing, (2) continued growth in international markets, especially Germany and the U.K., and (3) further traction in noninsurance channels such as fleet and dealer consignment. Execution in technology-driven service expansion and logistics innovation will also serve as key indicators of Copart’s ability to sustain growth. Copart currently trades at $32.96, down from $34.40 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

Image source: The Motley Fool. Thursday, May 21, 2026 at 5:30 p.m. ET Co-CEO — Jeffrey Liaw Chief Financial Officer — Leah Stearns Need a quote from a Motley Fool analyst? Email [email protected] Jeffrey Liaw: Welcome and thank you for joining us for our call today. We're pleased to report the results of our third quarter fiscal year 2026. I'll begin with some brief remarks on our insurance business before passing the call to Leah to provide a summary of our financial results. We'll then take your questions. On our insurance business. First, for the third quarter 2026, our global insurance unit sales declined 2.7% or 1.9%, excluding the effect of catastrophic volume from a year ago. Our U.S. insurance unit volume for the same period declined 4.2% or just over 3%, excluding the effect of those same catastrophic units. We believe the long-term growth algorithm for our insurance business remains very much intact, that over many years, we've observed modest gradual declines in accident frequency, which are then more than offset by increases in total loss frequency. Total loss frequency is, in turn, a function of ever-rising repair costs, but more importantly, the differentiated returns that Copart generates by finding the highest and best use for a car globally, which is often full restoration back to roadworthiness. Nevertheless, the underlying drivers of near-term volume trends remain consistent with those we've discussed with you in prior quarters. A portion of this volume variance reflects shifts in policy in force mix among insurance carriers. And as we indicated previously, these trends tend to -- have been cyclical historically. And we have observed a moderation in some of these trends among U.S. insurance carriers in recent quarters. Claims activity also remains somewhat softer as consumers continue adjusting their insurance purchasing behavior in response to rising premiums. As one indicator of this trend from a macro level, earned car years according to ISS Fast Track have declined 4% year-over-year in the fourth calendar quarter of 2025, while vehicles in operation grew 1.4%. We believe this divergence, declining insurance coverage against a growing vehicle fleet, is clear evidence of the consumer pullback on insurance coverage. As one other strong indication of consumers absorbing ever more of the financial burdens of their claims, CCC has published data indicating that 25% of repairs are now self-pay and that in response, they've actually created a Buy Now, Pay Later product to support those consumers. Long-term historical data, though, indicates that this consumer retrenchment phenomenon regarding insurance coverage is cyclical and likely counter inflationary. When consumers feel pocketbook pressure especially on a lagged basis regarding their auto insurance rates, they dial back their coverage. The same has been true in reverse. This softness in claims activity has been partially offset by continued increases in total loss frequency, consistent with the very long-term industry trend. The underlying forces here have been remarkably consistent, rising repair costs on the one hand and on the other, increasing auction returns at Copart. Total loss frequency for the first calendar quarter 2026 reached 23.6%, an increase of almost 5 full percentage points over the past 4 years. Although we always report this metric, it sounds like we described it as an industry metric, we are very much not passive beneficiaries of an increase in total loss frequency. We have helped to drive it upwards, and we view it as our ongoing responsibility to drive ever better auction returns, which then increases the attractiveness of the total loss pathway to insurance carriers who are considering various possibilities for resolving their claims. We are focused, as always, on delivering superior outcomes for our clients, first and foremost, through auction returns, but also, of course, through our differentiated service offerings from vehicle retrieval to title processing. We continue to invest heavily in our technology platforms, our physical infrastructure and our global buyer network to enable those outcomes, representing absolute investment levels that substantially exceed the balance of the industry collectively. We do so proudly as stewards of the industry. On returns, specifically, despite the logistical and economic disruptions of global conflict, U.S. insurance ASPs increased 4.1% year-over-year for the quarter, reaching a seasonally adjusted all-time record high for Copart insurance ASPs in the third quarter. Consistent with our prior discussions, international buyers are a critical driver of these auction returns and today represent more than 1/3 of the volumes sold at U.S. Copart auctions and nearly half of our auction proceeds. In any given month or quarter, the precise mix of participating countries can surely vary. For example, given recent conflicts, direct participation in U.S. auctions from certain Middle Eastern markets has declined year-over-year. What has sustained overall demand has been the breadth and diversification of this buyer base. As certain corridors moderated, others expanded to fill the gap, including parts of Central Europe, West Africa, Central America and the Caribbean. The virtue of robust auction liquidity is that no single seller or buyer and, in fact, no single region, country or currency unduly influences the auction outcomes we deliver to our sellers. The resilience of our marketplace comes from the depth and diversity of a buyer network we have spent decades cultivating, now spanning more than 160 countries worldwide. That network breadth is a meaningful driver of returns for our insurance clients. Our analysis also shows that international buyers, financed buyers, new buyers and particularly crossover buyers, which I'll describe in greater detail, are critical enablers of the higher auction returns that we generate for our sellers. We call crossover buyers those members who first discover Copart and engage with us, in search of a vehicle sold by rental car companies, financial institutions, dealers and the like, who then discover the wealth of product available from insurance sellers and then engage as buyers there as well. Looking back over the past 3 years of the more than 30,000 buyers who first entered the Copart ecosystem by virtue of those noninsurance vehicles, a strong majority would bid on an insurance vehicle within the first 90 days of their engagement. Whatever we or anyone else asserts about their auction liquidity, the best testimony for auction liquidity is your seller participation. Our sellers vote with their feet by entrusting ever more of their volume to us on a pure sale basis. They know that by virtue of Copart's buyer recruitment, product discovery and auction management practices that we will yield the highest and best value the first time through our auction. And in fact, today, for U.S. insurance sellers at Copart, the mix of pure sale units is at all-time highs. We estimate that our pure sale insurance volume is literally an order of magnitude higher than what is available at other similar platforms. We recently completed our 2026 Insurance Advisory Board meeting, a gathering of our largest U.S. insurance clients together to discuss current and future catalysts of change in our industry, including, of course, very notably artificial intelligence deployment. It marks, though, just one visible moment in our ongoing day-to-day engagement with our clients to extend and expand our commercial relationships as we handle ever more of the claims processes for them, including providing them the AI-enabled tools to make front-end total loss decisions more quickly and more accurately through to title procurement, loan settlement and ultimately, auction as well. With that, I'll turn the call over to Leah Stearns. Leah Stearns: Thank you, Jeff, and good afternoon to everyone on the call. I'll begin by walking through our financial results for the quarter, beginning with our consolidated performance, followed by a review of our U.S. and international segments. For the third quarter, consolidated revenue grew to $1.24 billion, up 2.1% year-over-year, driven by strength in both service and purchased vehicle sales. During the quarter, we continued to see expansion in average selling prices, which rose 4.6% and more than offset a modest decline in unit volumes of 2.4%. On the insurance side, global units were down 2.7%, consistent with the industry dynamics Jeff outlined, while global noninsurance units decreased 1.4%. Notably, while global inventory was down 2% from the prior year, global assignment volumes grew at a low single-digit pace. From a profitability standpoint, the quarter was strong. Global gross profit increased 3.7% to $572.6 million, with global gross margins increasing 71 basis points to 46.3%. During the quarter, we continued to invest across our platform to enhance the products and services we offer to participants across our global marketplace. This includes the recent launch of our domestic long-haul delivery services in the U.S. Operating income grew 2.8% to $464.3 million, net income was $402.4 million, and earnings per diluted share increased 2.4% to $0.43, benefiting in part from our ongoing share repurchase activity. Turning to our U.S. segment. Total units declined 4.2% or 3.3% excluding Copart direct units. Insurance volumes decreased 4.2%, which are consistent with the claims frequency trends Jeff described a few moments ago. Beyond insurance, we are seeing encouraging momentum across our diversified seller base. Our Dealer Services and powersports businesses grew unit by 1%. And our BluCar commercial consignment channel expanded by over 4% over the prior year. Combined fleet and finance seller volume grew at a healthy double-digit pace, which was partially offset by the continued impact of higher repair activity we've seen among our rental customers. Our Copart direct unit volume declined 26.3% as we continue to strategically shift lower-value units to our direct buy channel. On the inventory side, U.S. inventory is down 4.7% year-over-year, and U.S. assignments declined at a low single-digit pace during the quarter. Shifting to Purple Wave. Our focus on organic territory sales expansion continues to yield strong gross transaction value growth, which was more than 25% for the last 12 months. The momentum we are experiencing is being fueled by strong traction in our expansion markets and deepening relationships with select enterprise accounts, which is a real testament to the progress our team is making to scale their platform. On revenue, the U.S. segment was essentially flat, down 0.4% as higher revenue per unit largely was offset by volume headwinds. Insurance ASPs increased 4.1%, noninsurance ASPs increased 3.7% and purchased unit ASPs increased 23%. U.S. gross profit grew to $484.1 million, up 0.9%, and gross profit margin was 48.3%. Operating income was $390.4 million, reflecting a 38.1% operating margin. Internationally, the story is one of continued momentum. Total units sold increased 5.9% with insurance units up 4.6% and noninsurance units growing at an impressive 11.2% in the quarter. Inventory in our international segment increased over 10% from a year ago period and international assignments increased at a low teens pace. These trends reflect the broad-based growth that we are seeing across our diversified international footprint, with particularly strong contributions from the U.K., Germany and Canada. For the quarter, international revenue grew 14.1% or 7.9%, excluding the positive impact of foreign currency fluctuations, to $234.2 million. The primary source of growth internationally came from service revenues, which were up 17.9%, which was driven by a 10.5% increase in fee revenue per unit and strong volume growth. Revenue per unit was positively impacted by strong ASP growth with insurance ASPs increasing 8.4% and noninsurance ASPs growing 16.7%. The profit picture was equally compelling, with gross profit increasing 21.9% and operating income reaching $73.8 million, representing a 31.5% operating margin. Finally, turning to our capital structure and liquidity. Copart remains in an exceptionally strong financial position. We ended the quarter with liquidity of approximately $5.5 billion, which includes $4.2 billion in cash and equivalents and held to maturity securities and no debt. Our balance sheet gives us tremendous flexibility to be opportunistic investors throughout business and credit cycles. We continue to generate robust free cash flow, which has increased 12% year-to-date, supported by disciplined capital allocation into land, facilities and technology, which positions us to efficiently serve both insurance and noninsurance clients while delivering strong operating efficiency. On the capital return front, we continue to repurchase shares during the third quarter through a combination of 10b5-1 and open market transactions. Fiscal year-to-date, we have repurchased over 43.4 million shares for an aggregate amount of over $1.6 billion, underscoring our confidence in the future growth prospects for Copart and the long-term value of our business. Thank you. And with that, we'll open up the call for questions. Operator: [Operator Instructions] And the first question comes from the line of Bob Labick with CJS Securities. Bob Labick: So I want to start on fuel. Fuel prices, transportation costs are up across the economy and talked about a lot in general and was wondering if you could talk -- remind us how it flows through for Copart now. I think years ago, it was all company fleet, then you outsourced your fleet. I think you kind of have a hybrid towing fleet now. So if you could give us color on the impact and do you charge surcharges, pricing to your customers? Or how do you mitigate fuel as well? Jeffrey Liaw: Great. Thanks for your question, Bob. The fuel -- we are, as you noted, a hybrid. We do manage our own in-house truck fleet. We do have a substantial program that we call Truck In a Box in which we help contractors and help support their businesses with a structured lease program and a structured tow program with us as well. So we have cultivated liquidity on the towing side with some mix of our owned assets as well as the supported third parties as well. And then as you know, for many years, we have leveraged the -- a large third-party subcontractor network as well. So all three of the above. And not surprisingly, fuel is very relevant to all of them. And so we have been thoughtfully responsive with them as necessary to adjust rates, to ensure ongoing service and to ensure that they also can long term prosperously support us, our business as well as the business of our clients. So it's a microeconomic decision market by market, but we do have to account, of course, for that input cost in our business. Bob Labick: Okay. Understood. Great. And then I guess, one bigger picture question in terms of the decline in new car sales and SAAR kind of started in 2020 from COVID. And how do you see that as -- is there an impact on expected salvage volumes in 2027 and beyond as those cohorts start hitting the sweet spot for total loss frequency? I know there's lots of other variables you talked about insurance affordability claims earned car years, et cetera, which can be offsetting. But I guess I drive it down to one thing. Can you talk about the kind of the macro drivers and that one in particular, the decline in SAAR? And then more so just the biggest Copart specific growth drivers over the next 5 years, noting that macro is a little bit tough. Jeffrey Liaw: Yes. A very good question. And Bob, if I just conjecture on my part. But I think in your mind, you may be thinking there are some auction houses, for example, who sell vehicles on behalf of OEMs at the end of a lease. And so if in 1 year, there are very few lease originations, then 3, 5, 7 years, hence, perhaps there are fewer vehicles to sell them. For us, the catalyst is much less when the cars enter the ecosystem in the first place. So whether the car was sold originally in '18, '19, '20 or '21, is not especially of consequence to us. What really matters to us is that the vehicles are on the road period, right? There are cars being driven miles being traversed in the cars themselves and then, of course, collision rates, total loss rates as well. So at least in theory, even at the extremes, if you completely eliminated all new cars sold in 2021 altogether, which is not that far from the truth, given what we now know of the semiconductor crisis at the time, that doesn't have any real pronounced effects given the way our supply is a layer cake of more than a decade's worth of new car shipments, right? So any given 1 or 2 or 3 years of disruption, so long as it doesn't coincide with a dramatic decline in miles driven, which, in turn, would really be the independent variable of consequence, not the new cars to begin with. Bob Labick: Got it. Understood. And then just like the primary drivers, I guess, is my last one, I'll get back in queue, for your growth over the next 5 years. Jeffrey Liaw: Sure. I think you heard me walk through principally the insurance side of the house, which is to say that the insurance industry has been a strong growth lever for us for decades even on a same client basis, so to speak, as accident frequency has historically been very much more than offset by rising total loss frequency. The catalysts for that phenomenon, we think largely remain true. So that's the insurance business part 1 in all the markets in which we already do business today. Lever #2, you heard Leah and I both talk about some which is the liquidity that we are pursuing and succeeding in obtaining in noninsurance-insurance markets. These are the rental car companies, dealers, corporate fleets and financial institutions who are increasingly entrusting us with their vehicles as well. As you know from our prior discussions, Bob, the nature of rising total loss frequency means that we are ever more selling actual cars and not selling basket parts or not selling baskets of raw materials. And to the extent that we're selling vehicles that are drivable that are worth $5,000, $10,000, $15,000, $20,000 plus, we become, with each passing day and year, the more appropriate forum for a growing variety of vehicles, including those vehicles from the aforementioned institutions. So that's a big -- that has been a meaningful growth lever for the past 5 years. And with the confluence of total loss frequency and the natural flywheel effect of earning more of those cars, we expect more liquidity to come from those sources as well. We have expanded globally, as you know, perhaps most notably in 2007. So almost 20 years ago. We're approaching the anniversary soon of our entry into the United Kingdom. We now also operate and operate profitably in Spain, in Germany, Finland, the Middle East, Canada, Brazil, et cetera. So international expansion has historically been part of our playbook as well. There are some countries that still share many of the characteristics that make total losses so compelling in the markets I just mentioned. There are other markets that will no doubt emerge over the course of the next 20 years, 10 or 20 years as well. So international expansion also relevant. The one thing I skipped over, I glossed over briefly, is the total loss frequency. When I mentioned at the outset that we view it as our responsibility to help drive total loss frequency upwards, right? And so far, as we play an affirmative role in enhancing the economics of total loss, we can help insurance carriers literally save money every time they choose to total a car instead of repairing it because we could generate a better return by selling the car to Poland or to Central America. We are helping them. We're helping preserve their P&Ls. We're helping them keep their rates lower to their policyholders as well. So that sounds esoteric, but it's a very real what we do day-to-day is to build the tools to enable them to make that decision, partner with them to incorporate it more and more upstream, the earlier, the better. But as you know, in the United States, at the scene of the accident, those tows typically are directed not by the insurance carriers or even by the policyholders. Those typically happen on police rotation. So that's a difficult moment at which to intercept the vehicle, but we are moving upstream. The closer to that moment, the better in terms of arresting depreciation or arresting fee accumulation of advanced charges and equipping the insurance carriers to make a better and faster total loss decision. So those are the big levers. You've heard also talk about the ecosystem that we serve. You heard Leah talk today some about logistics and long-haul towing. We are pursuing those initiatives both because they can be profit streams for us but also because they reduce friction, right? The better that logistics and financing and warranty and so forth can be for our buyers, the more -- the greater the breadth of buyers who can reasonably participate on any given car that is sold at a Copart auction. Operator: The next question comes from the line of Craig Kennison with Baird. Craig Kennison: Jeff, it sounds like you hosted a forum for your insurance partners. I'm just curious, first, what are those insurance partners saying about the outlook for claims in 2026, 2027? And then you had also mentioned some catalysts for change in the industry. And I wondered if you would elaborate on some of those catalysts. Jeffrey Liaw: Sure. Appreciate the question, Craig. This is an annual gathering we have of our major insurance clients here in the U.S. In some respects, it's a big deal because we're gathered face-to-face for several days in a row and talking about some really meaty matters together. And then on the other hand, it's also overstating it a bit because we talk to these clients all the time, day-to-day, week-to-week. But it does become a forum to tackle issues that beyond the day-to-day, beyond resolving individual claims, beyond figuring out how to succeed in X geography or Y geography. In this case, when it comes to claims frequency, I think we'll hear a variety of perspectives on it. I think everyone recognizes that, yes, many consumers, we've seen some research that indicates as many as 1 in every 6 policyholders in the auto space has pulled back on their insurance coverage in one way or the other, meaning they've moved from collision to liability only or they have increased their deductibles, et cetera, et cetera, right? That's a survey done in the middle of 2025 or so. And we do hear insurance carriers echoing those statements. So they see claims frequency down. They know the consumers are swallowing hard, in some cases, and eating minor repairs on their own, either because economically, they wouldn't clear the deductible. Or even if they did, they fear the rate increase that might come with an actual economic claim as well. So that's what we're hearing from the insurance industry. I think they also recognize these trends tend to be cyclical, not secular that eventually folks are rational about the coverage they need and want to pay for and folks who ultimately pay for the insurance they need. And that has proven true over a multiple decade-long horizon. When it comes to catalysts for change in the future, definitely some discussion of near-term trends like the conflict that we and the world find ourselves in. We do talk about artificial intelligence and what it means for claims, what it means for insurance companies. As you might imagine, they are both excited and terrified of it, right? An insurance company by its nature have to be very thoughtful and rigorous about new tools that are deployed. In many cases, decisions they make or their service providers may have to be thoughtful and auditable and trackable and accountable right? They can't be black box decision-making either. So we talked a great length about artificial intelligence, how we're deploying to Copart in support of their outcomes and how we can support them in deploying it as well. I think the insurance industry, broadly speaking, I would say, is exploring AI certainly across the multiple dimension of its industry. But if anything, we understand it on the claims side as well as anyone, right? They will consider it for marketing. Certainly, underwriting. Certainly, repricing and the like and CRM and so forth. On the claims end, if anything, that's a language we may speak more fluently than they do as institutions. Craig Kennison: And then either Jeff or Leah, I'm just looking at that international service revenue line up, I think, 18%. Maybe could you get some light on what exactly is driving that? To what extent is the market performing, the underlying markets in which you participate? Is that performing well? And to what extent is that a representation of traction you're getting, especially I'm curious about in Germany, as I know you're flipping that market towards the Copart-style remarketing service. Leah Stearns: Yes. Yes, Craig. So the growth internationally that we saw on the revenue side was, as I mentioned in my prepared remarks, there is contribution across many markets. The U.K. was particularly strong in the quarter. Germany followed it up as well as Canada. And so we've seen really strong demand across all 3 markets, both on the insurance side as well as the noninsurance business. Germany continues to perform incredibly well on a relative basis to where it was several years ago. We continue to see carriers be open-minded about how they're approaching the total loss process, and that's a market where we've seen some meaningful progress from a unit volume as well as a profitability perspective. So we're really pleased with our performance. Operator: The next question comes from of Jash Patwa with JPMorgan. Jash Patwa: Could you just give us an update on the size of the noninsurance-insurance or whole car business? And it would be really helpful to get a sense of the typical profile of a crossover buyer. How does their wallet share with Copart tend to evolve over time? If possible, it would be helpful to hear an example or anecdote of how a dealer maybe initially engages with Copart and what that early exploration phase looks like and how that activity typically ramps up as the relationship develops. And I have a follow-up. Jeffrey Liaw: Fair question. On the -- I'll start with your second question. On the nature of the crossover buyer, these are both domestic buyers and international buyers as well, who will first discover Copart through some mix of SEM or SEO. So literally, a Google search for a given vehicle may lead them to Copart for the first time. It can also be via social media. If you will check us on the YouTubes and TikToks and Instagrams and such, not even just our content alone, but you'll find third parties posting about the vehicles they bought and transformed from Copart. So they'll discover us in a range of different ways. And naturally, it's often in the first car you explore Copart is one that could theoretically be driven off a Copart lot or close to it. Those are the cars that most intrigued them at the outset. Then when they begin bidding, when they begin engaging on the platform, they discover that there's an insurance vehicle that was a theft recovery, right? So perhaps it was never damaged at all that might be in their sweet spot as well. Their business is transforming Lexus SUVs, and they discover Lexus SUV with hail damage or theft recovery, that begins -- that whets their appetite for an insurance car. Then they discovered that there's a vehicle with light flood damage or rear-end damage, and it's just a camera that's knocked out the car is otherwise intact and the drivetrain is fine, right? So you can imagine that a given buyer comes for one type of car. And then once he or she realizes the breadth of inventory available to him or her, they migrate outward in concentric circles from that Lexus to other insurance Lexuses, then to Toyotas, then to BMWs, then to cars further away geographically from where they originated. So that tends to be the discovery journey. The member universe for us is very dynamic, right? So we have many tens of thousands of new members every year. It's -- there's tremendous creative disruption in the automotive rebuilding business, so to speak. So in every country, there are new folks in business every year, folks who go out of business every year. So replenishing that buyer universe is critical, but we have generally found that folks come to pursue very -- excellent conditioned vehicles, and then they tend to expand their aperture from there. Jash Patwa: Got it. That's very helpful. Just as a follow-up, could we double-click on the pure sale mix with U.S. insurance sellers? I just wanted to understand if this is more contractual in nature or something more dynamic that can be toggled up or down and whether a higher mix of PR sale units has positive implications for Copart's earnings profile? Jeffrey Liaw: It's a fair question. It's not contractual. So our insurance carrier maintained the discretion to manage the auctions as they see fit. So in comparison to say where we were even 7 or 8 years ago, many more insurance carriers have moved to effectively a nearly 100% pure sale approach and a handful of carriers have moved from 100% down very meaningfully as well. Effectively, nobody has increased their portion of managed sale auctions at Copart. The reason that's true is because they know and they can literally physically attend and not physically, but virtually other computers attend a Copart auction and they see the thousands of attendees at a given auction. They see the bidders. If you were to watch 1 car transact to Copart, you'll see buyers in Poland bidding against buyers in Oklahoma and then Maine and then Canada and then Ecuador. You'll see it happen in real time. So they recognize that there is no real way to escape the liquidity at Copart. A vehicle that is sold at Copart will find its highest and best use worldwide. And so the insurance carriers have voted with their feet. They could, in theory, impose high reserve prices on every car. I think they, at this point, recognize that's counterproductive as well, right? That will merely chill buyer participation. If you have ever bought anything at auction, and I myself have silly things, musical instruments or collectibles that I'll buy at the eBays and elsewhere, buyers tend to gravitate to pure sale, pure sale items. And you tend to generate better outcomes and faster outcomes when buyers are excited to participate. So that pure sale mix has increased very steadily and very meaningfully, really, through Copart's entire history, but in particular, over the past 5 to 7 years. Jash Patwa: Understood. Great color. If I could just sneak one more in on RPU, continued strong growth here despite having fully lapped prior pricing actions. Could you maybe unpack the drivers of the strength, maybe break it down between contribution from pure ASP expansion versus other vectors like mix and initiatives like Title Express? Jeffrey Liaw: Just directionally speaking, we definitely, as I noted, have provided more services of the Title Express offering. Here at Copart, we would estimate we are processing volume 6, 7, 8x more than anyone else in the industry. So that particular product has penetrated more accounts. So that's a portion of it. As you noted, a portion is simply by virtue of the higher selling prices we're sharing -- we're generating an auction. The mechanism of our economics are such that as we deliver higher sale prices to our sellers, we also share in a very small portion of that incremental proceeds as well. Those are the big drivers. Certainly, volume growth. Certainly, growth among those noninsurance-insurance sellers that we noted earlier. Those cars tend to sell for even more still than the average insurance card as well. Those are all the underlying drivers. Operator: The next question comes from the line of John Healy with Northcoast Research. John Healy: Jeff, I appreciate the comments on the whole car side. And frankly, that's kind of one of the areas we're getting most questions about from investors. So I would love to spend a couple more minutes there. Can you just remind us again just the size of the business, maybe either in terms of dollars or units again? And when you look at kind of the whole car business, I think there's different definitions that probably different folks in the industry use. When I talk to people in the industry, they seem to tell me that you guys are selling a lot of hail damage type vehicles. So would love to know from a consignor standpoint, not necessarily the demand side that you talked about in the last question, but from a seller standpoint, where those whole car units are coming from? And are they largely attached to some sort of, what I would say, damaged vehicle, not necessarily a complete salvage? But would just kind of love for you to kind of dive into help us think about your definition of whole car. And secondly, as you think about growing that business and aspirations to be more on the dealer side, I know you've had Copart Dealer Services for a number of years, is that a strong enough presence brand to do what you want to accomplish there? And I know you've kind of toyed around with BluCar for the last couple of years, but what's your level of satisfaction with BluCar? And do you think you maybe need a different tool, a different platform or maybe just a brand that doesn't say Copart to be a successful there as you want it to be? Jeffrey Liaw: Yes. It's a very fair question. And I think underlying it, John, you've got the intuition that every car is somewhere on a spectrum from a total burn that's almost unrecognizable as a vehicle at all the way to a brand-new Bentley that is just off the dealer lot, and there's a spectrum of vehicles in between. And assuredly, when we talk about vehicles, we are sourcing from institutions other than insurance companies, we start at one end of the spectrum. For sure, we are an obvious marketplace for a damaged rental car or a heavily beaten up repo vehicle. From there, we earn the right to sell the 3-year-old car that is being de-fleeted by one of the major rental car companies. We earn the right to sell a repo vehicle that is actually an excellent condition, right? That was a voluntary repo of a car that's 4 years old with very light mileage on it. And so we -- as we described the concentric circles earlier, we have our foot in the door and we earn the right to sell "better and better cars" over time. That is reflected in part in our average selling prices. We tend to talk about insurance in isolation, but it's reflected in the average selling prices of the cars we sell from financial institutions as well. So eventually, the TAM, when you consider all of the auction-mediated vehicles that are not from insurance companies in the United States, that's 15 million plus, right? And not all of them are day 1 addressable for us. But as total loss frequency rises, as we earn the right to sell, more of those cars from the noninsurance sellers with each passing year, we earn the right to sell more of those cars as well. So I think you're right, it is a spectrum, and we are moving up and to the right on that spectrum. John Healy: Great. And then just you might have mentioned it, and I missed it. Maybe talk a little bit about the industrial side of the business? Maybe where you're at as you think about investments there. Maybe I don't know if you mentioned how the GTV performed. Any call-outs for us to think about how Purple Wave is performing? Leah Stearns: Sure, John, I'll take that. Just in terms of GTV, we look at it on an LTM basis, and GTV has grown over 25% year-over-year. And so we're very pleased with that. The majority of the growth is coming from territory expansion. We started out the business with a principally Central Time zone focused territory sales force and have expanded out to the coast. The majority of our investment in Purple Wave has been in headcount in that territory sales force as well as some very focused enterprise-level accounts that are focused on building relationships with large nationwide sellers. So the GTV growth that we're seeing is a result of the success that we've had with that territory expansion and the enterprise relationships. We're pleased with that. I'd say we're probably about, in terms of overall size, the team is about 2.5 to 3x the size it was when we acquired Purple Wave. And we still have some ways to go in terms of achieving full nationwide coverage, but we certainly hit the top areas that are most important for Copart to penetrate from a territory presence perspective, and we're pleased with the progress we're seeing so far. Operator: [Operator Instructions] And the next question comes from the line of Jeff Lick with Stephens. Jeffrey Lick: I actually got most of them on the whole car side, but I was wondering if you could talk a little bit on the recent long haul that you referenced. What exactly you're doing there? And how is that impacting -- how you're adding that into your business? Leah Stearns: Sure, Jeff, on the long-haul side, that's an additional product that we have really always offered to our members. However, we shifted our market -- our product offering a little over 12 months ago. We've seen rapid adoption of it and are quite pleased with the level of buyer participation that we've seen effectively procure long-haul delivery through the Copart delivered product. So we believe it reduces friction. It gives our buyers certainty in terms of cost upfront. And we're -- like I said, we're pleased with how that's progressing. And just in terms of overall impact for the quarter, we saw about 15 million of year-over-year increase in cost on the facility ops line related to our long-haul delivery product. And that product is generating a nice margin for us as well as the revenue line. Jeffrey Lick: And just a quick point of clarification on pure sale units, is that just analogous to a non-reserved sale or is there any nuance there? Jeffrey Liaw: That's it. That's correct. Leah Stearns: Yes. Operator: Thank you. This concludes question-and-answer session. I'd like to turn the call back over to Jeff Liaw for closing remarks. Jeffrey Liaw: Great. Thank you, everybody. We'll talk to you next quarter. Operator: And this does conclude today's conference. You may disconnect your lines at this time, and we thank you for your participation. Before you buy stock in Copart, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Copart wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $477,813!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,320,088!* Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 25, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Copart. The Motley Fool has a disclosure policy. Copart (CPRT) Q3 2026 Earnings Transcript was originally published by The Motley Fool

In May 2026, Copart, Inc. reported its fiscal third-quarter results, with revenue rising to US$1,237.07 million and diluted earnings per share from continuing operations edging up to US$0.43, even as quarterly net income eased slightly to US$402.4 million. The company’s modest top-line growth was underpinned by higher average selling prices and solid international performance, while it continued investing in technology and logistics to support future operations despite softer U.S. insurance volumes. We’ll now examine how Copart’s earnings beat, driven partly by international growth, may influence its existing investment narrative and risk profile. AI is about to change healthcare. These 34 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. To own Copart, you need to believe its global salvage marketplace can stay attractive even when U.S. insurance volumes soften, with international demand and higher selling prices helping to support earnings. The latest quarter’s modest revenue and EPS growth, despite a dip in net income and lower insurance units, slightly reinforces that case, but also highlights a key near term risk: if softer claims and underinsurance persist, unit pressure could matter more than pricing. The most relevant recent announcement here is Copart’s new US$1,250 million revolving credit facility, which adds financial flexibility at a time when it continues to fund technology and logistics investments. Against a backdrop of weaker U.S. insurance volumes and stronger overseas performance, this extra liquidity could help Copart keep expanding its yard footprint and digital capabilities, which many investors see as important short term supports for its auction economics and pricing power. But while higher average selling prices are helpful, investors should still be aware that softer insurance volumes and rising operating costs could... Read the full narrative on Copart (it's free!) Copart's narrative projects $5.6 billion revenue and $1.8 billion earnings by 2029. Uncover how Copart's forecasts yield a $42.44 fair value, a 26% upside to its current price. Before this earnings beat, the most pessimistic analysts were penciling in about US$5.4 billion of 2028 revenue and US$1.9 billion of earnings, which paints a far more cautious picture than the base case that assumes Copart’s international demand and pricing power remain strong despite soft insurance units, so it is worth comparing how both stories might shift in light of these results. Explore 13 other fair value estimates on Copart - why the stock might be worth 11% less than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Copart research is our analysis highlighting 4 key rewards that could impact your investment decision. Our free Copart research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Copart's overall financial health at a glance. The market won't wait. These fast-moving stocks are hot now. Grab the list before they run: We've uncovered the 10 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. Outshine the giants: these 13 early-stage AI stocks could fund your retirement. Capitalize on the AI infrastructure supercycle with our selection of the 46 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CPRT. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Copart, Inc. CPRT delivered third-quarter fiscal 2026 earnings of 43 cents per share, which rose 2.4% year over year and beat the Zacks Consensus Estimate of 41 cents by 4.9%. Quarterly revenues rose 2.1% year over year to $1.24 billion and topped the Zacks Consensus Estimate of $1.21 billion by 2.4%.The quarter reflected resilient pricing amid softer volumes. Average selling prices (ASPs) increased 4.6% while unit volumes declined 2.4%, helping lift revenues despite pressure in global insurance units, which fell 2.7%. Copart, Inc. price-consensus-eps-surprise-chart | Copart, Inc. Quote Service revenues remained the primary engine, rising 2.1% year over year to $1.06 billion. Vehicle sales advanced 2.3% to $181 million, adding a modest but helpful tailwind to consolidated growth.The continued expansion in average selling prices across channels more than offset lower volumes. The company reported low-single-digit growth in global assignment volumes, even as global inventory declined by 2% from the prior year. Gross profit increased 3.7% to $572.6 million, and gross margin expanded 71 basis points to 46.3%. Cost of vehicle sales declined 5.6% to $160.3 million, helping offset higher facility operations expenses, which rose 2.5% to $450.3 million.Operating leverage was mixed below the gross line. General and administrative expenses increased 7.2% to $93.7 million, and total operating expenses rose 1.7% to $772.8 million. Even with that uptick, operating income grew 2.8% to $464.3 million, reflecting the benefit of stronger gross profit and continued operating discipline. The United States segment posted total revenues of $1 billion, down 0.4% year over year, as higher revenue per unit was offset by lower volumes. The U.S. insurance volumes decreased 4.2%, consistent with softer claims activity tied to consumer insurance affordability dynamics.Beyond insurance, the company noted encouraging momentum across parts of its diversified seller base. Dealer Services and powersports units increased 1%, BluCar commercial consignment expanded more than 4%, and combined fleet and finance seller volume grew at a double-digit pace, partly offset by higher repair activity among rental customers. International revenues climbed 14.1% year over year to $234.2 million, supported by a 5.9% increase in total units sold and solid fee momentum. Service revenues in the international segment increased as revenue per unit benefited from strong average selling price gains, with insurance ASPs up 8.4% and noninsurance ASPs up 16.7%.Profitability also strengthened overseas. International operating income rose to $73.8 million, translating to a 31.5% operating margin. As of April 30, 2026, Copart had cash, cash equivalents and restricted cash of $3.35 billion, up from $2.78 billion as of July 31, 2025. Liquidity was approximately $5.5 billion, including cash, equivalents and held-to-maturity securities, providing flexibility for investment and capital returns.Cash flow reflected heavy capital allocation activity. Net cash provided by operating activities for the first nine months of fiscal 2026 was $1.25 billion, while purchases of property and equipment totaled $258.6 million. The company also repurchased $1.63 billion of common stock during the first nine months, underscoring an ongoing commitment to returning capital alongside investments in land, facilities and technology. The auction returns remain a key lever in the insurance ecosystem. In the quarter, U.S. insurance average selling prices increased 4.1%, supported by a broad and diversified buyer base, including international demand that the company said represents a meaningful share of U.S. auction proceeds.The company continues the expansion of value-added services that can lift revenue per unit over time. Title processing offerings and logistics initiatives, including its domestic long-haul delivery product, were framed as both revenue opportunities and tools to reduce friction for buyers and sellers across the platform.CPRT currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Mobileye Global Inc. MBLY reported first-quarter 2026 results on April 23. It posted earnings of 12 cents per share, beating the Zacks Consensus Estimate of 8 cents by 58.52%. The bottom line rose 50% year over year, driven by higher shipments of EyeQ system-on-chip. The company posted revenues of $558 million, which beat the Zacks Consensus Estimate of $520 million by 7.36% and increased 27.4% year over year.Operating cash flow was $75 million, reflecting the company’s ability to convert its ADAS scale into cash generation.Mobileye also approved a share buyback program of up to $250 million. By the end of the first quarter, MBLY had $1.21 billion in cash, after spending $591 million (net of cash received) on the Mentee Robotics acquisition.Gentex Corporation GNTX reported first-quarter 2026 results on April 24. It posted adjusted earnings of 48 cents per share, which beat the Zacks Consensus Estimate of 44 cents by 8.28%. The figure increased 11.6% from 43 cents a year ago. Net sales came in at $675 million, topping the consensus mark of $647 million by 4.36%. Revenues rose 17.1% from $577 million in the year-ago quarter, aided by contributions from VOXX and a richer mix of advanced features.Liquidity improved during the quarter. As of March 31, 2026, GNTX’s cash and cash equivalents were $164.8 million compared with $145.6 million as of Dec. 31, 2025. Short-term investments increased to $10.3 million from $5.4 million.PACCAR Inc. PCAR reported first-quarter 2026 results on April 28. It reported earnings of $1.15 per share, beating the Zacks Consensus Estimate of $1.13 by 1.8%. The bottom line decreased 21.2% from $1.46 in the year-ago quarter. Consolidated revenues (including trucks and financial services) were $6.78 billion, down from $7.44 billion in the corresponding quarter of 2025. The decline reflected lower industry volumes. On the balance sheet, cash and marketable securities were $8.60 billion as of March 31, 2026, compared with $9.25 billion as of Dec. 31, 2025, while stockholders’ equity increased to $19.76 billion from $19.26 billion over the same span. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PACCAR Inc. (PCAR) : Free Stock Analysis Report Copart, Inc. (CPRT) : Free Stock Analysis Report Gentex Corporation (GNTX) : Free Stock Analysis Report Mobileye Global Inc. (MBLY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Global insurance unit sales declined 2.7% as consumers adjust insurance purchasing behavior in response to rising premiums, leading to a divergence between a growing vehicle fleet and declining insurance coverage. Management attributes the volume softness to a cyclical retrenchment where policyholders move from collision to liability-only coverage or increase deductibles to avoid rate hikes. Total loss frequency reached a record 23.6% for the first calendar quarter of 2026, acting as a structural offset to declining accident frequency by making the total loss pathway more economically attractive to carriers. U.S. insurance Average Selling Prices (ASPs) reached a seasonally adjusted all-time record high, driven by the breadth of a global buyer network spanning 160 countries. The 'crossover buyer' phenomenon is a key strategic driver, where members initially seeking non-insurance vehicles from dealers or rental fleets eventually bid on insurance units within 90 days. Pure sale units (non-reserve auctions) for U.S. insurance sellers are at all-time highs, which management views as a vote of confidence in Copart's ability to find the highest value globally on the first attempt. Management expects the current consumer pullback on insurance coverage to be cyclical rather than secular, anticipating a return to historical coverage levels as inflationary pressures moderate. Strategic focus remains on moving 'upstream' in the claims process to provide AI-enabled tools that help carriers make faster, more accurate total loss decisions at the scene of the accident. The company is aggressively expanding its non-insurance footprint, targeting a total addressable market of over 15 million auction-mediated vehicles from rental, fleet, and financial institutions. International expansion continues to be a primary growth lever, with particular focus on transitioning markets like Germany toward the Copart-style remarketing model. Ongoing investments in logistics, such as domestic long-haul delivery, are designed to reduce buyer friction and expand the geographic reach of the participant base. Global conflict has disrupted direct participation from certain Middle Eastern markets, though this has been offset by expanded demand from Central Europe, West Africa, and Central America. The company maintains a significant liquidity position of $5.5 billion with no debt, providing flexibility for opportunistic investments in land and technology throughout credit cycles. Copart repurchased over 43.4 million shares for approximately $1.6 billion fiscal year-to-date, reflecting management's confidence in long-term growth prospects. A $15 million year-over-year increase in facility operating costs was attributed to the launch and rapid adoption of the new domestic long-haul delivery service. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that their supply is a 'layer cake' of over a decade of vehicle shipments, making them less sensitive to short-term fluctuations in new car sales. The primary independent variable for volume is total miles driven and collision rates, rather than the specific year a vehicle was originally sold. The service provides buyers with upfront cost certainty and reduces friction in the auction process. While it added $15 million in costs this quarter, it is generating a positive margin and contributing to service revenue growth. Insurance carriers are exploring AI for underwriting and marketing, but remain cautious about 'black box' decision-making in claims that must be auditable. Copart is positioning itself as a fluent partner in deploying AI to help carriers automate front-end total loss decisions. Gross Transaction Value (GTV) grew over 25% in the last 12 months, driven by territory expansion from the Central U.S. to the coasts. The sales team has grown 2.5x to 3x since acquisition, focusing on deepening relationships with large nationwide enterprise accounts.

This article first appeared on GuruFocus. Consolidated Revenue: $1.24 billion, up 2.1% year over year. Average Selling Prices (ASP): Increased 4.6%. Global Gross Profit: $572.6 million, up 3.7%. Global Gross Margin: Increased 71 basis points to 46.3%. Operating Income: $464.3 million, up 2.8%. Net Income: $402.4 million. Earnings Per Diluted Share: Increased 2.4% to $0.43. US Insurance ASPs: Increased 4.1%. US Gross Profit: $484.1 million, up 0.9%. US Gross Profit Margin: 48.3%. International Revenue: Grew 14.1% to $234.2 million. International Gross Profit: Increased 21.9%. International Operating Income: $73.8 million, with a 31.5% operating margin. Liquidity: Approximately $5.5 billion, including $4.2 billion in cash and equivalents. Free Cash Flow: Increased 12% year-to-date. Share Repurchase: Over 43.4 million shares repurchased for over $1.6 billion fiscal year-to-date. Warning! GuruFocus has detected 4 Warning Signs with CPRT. Is CPRT fairly valued? Test your thesis with our free DCF calculator. Release Date: May 21, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Consolidated revenue grew to $1.24 billion, up 2.1% year over year, driven by strength in both service and purchase vehicle sales. US insurance ASPs increased 4.1% year over year, reaching a seasonally adjusted all-time record high. International revenue grew 14.1%, with strong contributions from the UK, Germany, and Canada. Copart Inc (NASDAQ:CPRT) ended the quarter with liquidity of approximately $5.5 billion and no debt, providing financial flexibility. The company continues to invest in technology platforms, physical infrastructure, and global buyer network to enhance service offerings. Global insurance unit sales declined 2.7%, with US insurance unit volume declining 4.2%. Claims activity remains softer as consumers adjust insurance purchasing behavior in response to rising premiums. US inventory was down 4.7% year over year, and US assignments declined at a low single-digit pace. Copart direct unit volume declined 26.3% as the company strategically shifted lower value units to its direct buy channel. Fuel prices and transportation costs are relevant challenges, impacting the company's hybrid towing fleet operations. Q: How does Copart manage the impact of rising fuel prices on transportation costs? A: Jeffrey Liaw, CEO: Copart operates a hybrid towing fleet, including in-house trucks and third-party contractors. The company adjusts rates as necessary to ensure ongoing service and support for its business and clients, accounting for fuel costs on a market-by-market basis. Q: What are the primary growth drivers for Copart over the next five years? A: Jeffrey Liaw, CEO: Growth will be driven by increasing total loss frequency in the insurance sector, expanding liquidity in non-insurance markets, and international expansion. Copart is also focused on enhancing auction returns and leveraging AI to improve claims processes. Q: What are insurance partners saying about the outlook for claims in 2026 and 2027? A: Jeffrey Liaw, CEO: Insurance partners report a decline in claims frequency due to consumers reducing coverage. However, these trends are seen as cyclical. The industry is also exploring AI for claims processing, with Copart supporting these efforts. Q: What is driving the growth in international service revenue? A: Leah Stearns, CFO: Growth is driven by strong demand in the UK, Germany, and Canada, with contributions from both insurance and non-insurance sectors. Germany, in particular, has shown significant progress in unit volume and profitability. Q: Can you provide an update on the non-insurance or whole car business and the profile of crossover buyers? A: Jeffrey Liaw, CEO: Crossover buyers often discover Copart through online searches or social media. They start with vehicles that can be driven off the lot and expand to insurance vehicles with minor damage. The non-insurance business is growing, with Copart earning the right to sell higher-value vehicles over time. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Copart, Inc.? Here are five stocks we like better. Copart posted a stronger fiscal Q3 2026, with revenue up 2.1% to $1.24 billion and diluted EPS up 2.4% to $0.43. Gross profit, operating income and margins all improved, helped by higher selling prices and share repurchases. Insurance unit volumes were weaker as claims activity softened and consumers pulled back on coverage, with global insurance units down 2.7% and U.S. insurance units down 4.2%. Management said the long-term outlook remains intact, citing rising total loss frequency and higher repair costs. International growth offset U.S. pressure, with units up 5.9% and revenue up 14.1% overseas, led by the U.K., Germany and Canada. Copart also highlighted its strong liquidity, no debt, and continued share repurchases as key strengths. 3 Stocks With Monopoly Power—and Minimal Competition Copart (NASDAQ:CPRT) reported higher revenue and profit for its fiscal third quarter of 2026, even as insurance unit volumes declined amid softer claims activity and shifting consumer insurance behavior. Chief Executive Officer Jeff Liaw said global insurance unit sales fell 2.7% in the quarter, or 1.9% excluding the impact of catastrophe-related volumes from the prior year. In the U.S., insurance unit volume declined 4.2%, or just over 3% excluding those catastrophic units. → CAVA Group’s Stock Looks Delicious After Strong Earnings 3 Oversold Stocks Flashing Bullish Reversal Signals Liaw said the company continues to believe the long-term growth outlook for its insurance business remains intact, citing a multiyear pattern in which modest declines in accident frequency have been more than offset by increases in total loss frequency. He said total loss frequency is being driven by rising repair costs and by Copart’s ability to generate strong auction returns by finding “the highest and best use” for vehicles globally. Chief Financial Officer Leah Stearns said consolidated revenue rose 2.1% year over year to $1.24 billion. The increase was driven by strength in service revenue and purchased vehicle sales, while average selling prices rose 4.6%, more than offsetting a 2.4% decline in total unit volumes. → SpaceX IPO: Opportunity? Or the Ultimate Hype Trade? These 2 Auto Stocks Are Profiting as Used Cars and Parts Thrive Global gross profit increased 3.7% to $572.6 million, and gross margin expanded 71 basis points to 46.3%. Operating income rose 2.8% to $464.3 million. Net income was $402.4 million, while diluted earnings per share increased 2.4% to $0.43, which Stearns said benefited in part from share repurchases. Copart ended the quarter with approximately $5.5 billion of liquidity, including $4.2 billion in cash, equivalents and held-to-maturity securities, and no debt. Stearns said year-to-date free cash flow increased 12%, supported by capital allocation into land, facilities and technology. → 2 Software Stocks Turning AI Fears Into Fundamental Gains The company has repurchased more than 43.4 million shares so far in fiscal 2026 for more than $1.6 billion through a combination of 10b5-1 and open market transactions. Liaw attributed near-term volume softness partly to policy-in-force mix shifts among insurance carriers and to reduced claims activity as consumers respond to higher premiums. He cited ISS Fast Track data showing earned car years declined 4% year over year in the fourth calendar quarter of 2025, while vehicles in operation grew 1.4%. “We believe this divergence, declining insurance coverage against a growing vehicle fleet, is clear evidence of the consumer pullback on insurance coverage,” Liaw said. He also cited CCC data indicating that 25% of repairs are now self-pay, saying consumers are absorbing more of the financial burden of claims. Liaw said this behavior has historically been cyclical, with consumers reducing coverage when they feel pressure from insurance costs and later adjusting as conditions change. Total loss frequency reached 23.6% in the first calendar quarter of 2026, an increase of nearly five percentage points over four years, Liaw said. He added that Copart sees itself as an active driver of that trend by improving auction returns and making total loss decisions more attractive to insurers. In the U.S., total units declined 4.2%, or 3.3% excluding Copart Direct units. Insurance volumes were down 4.2%. U.S. inventory declined 4.7% year over year, and assignments were down at a low single-digit pace. Stearns said momentum remained positive across parts of Copart’s diversified seller base. Dealer Services and powersports units grew 1%, while the Blue Car commercial consignment channel expanded more than 4%. Combined fleet and finance seller volume grew at a double-digit pace, partly offset by higher repair activity among rental customers. Copart Direct unit volume declined 26.3% as the company continued to shift lower-value units to its direct buy channel. U.S. revenue was essentially flat, down 0.4%, as higher revenue per unit offset volume pressure. U.S. gross profit rose 0.9% to $484.1 million, with a gross margin of 48.3%. U.S. operating income was $390.4 million, representing a 38.9% operating margin. Internationally, total units sold increased 5.9%, including a 4.6% increase in insurance units and an 11.2% gain in non-insurance units. International inventory rose more than 10% year over year, and assignments increased at a low-teens pace. Stearns cited broad-based growth, with particularly strong contributions from the U.K., Germany and Canada. International revenue increased 14.1% to $234.2 million, or 7.9% excluding foreign currency effects. Service revenue rose 17.9%, driven by a 10.5% increase in fee revenue per unit and stronger volumes. International gross profit increased 21.9%, and operating income reached $73.8 million, a 31.5% operating margin. Liaw said U.S. insurance average selling prices increased 4.1% year over year and reached a seasonally adjusted record high for Copart insurance ASPs in the third quarter. He said international buyers remain a critical driver of auction returns, accounting for more than one-third of the volume sold at U.S. Copart auctions and nearly half of auction proceeds. Although participation from some Middle Eastern markets declined amid recent conflicts, Liaw said demand was supported by growth from other regions, including parts of Central Europe, West Africa, Central America and the Caribbean. Copart’s buyer network now spans more than 160 countries, he said. Liaw also highlighted “crossover buyers,” or members who first come to Copart through non-insurance vehicles sold by rental car companies, financial institutions or dealers, and then begin bidding on insurance vehicles. He said that over the past three years, a majority of more than 30,000 buyers who first entered through non-insurance vehicles bid on an insurance vehicle within their first 90 days. The company also said more U.S. insurance sellers are using “pure sale” auctions, which Liaw confirmed are non-reserve sales. He said the mix of pure sale units among U.S. insurance sellers is at an all-time high. During the question-and-answer session, Liaw identified several long-term growth drivers, including continued increases in total loss frequency, expansion among non-insurance sellers such as rental car companies, dealers, fleets and financial institutions, and international growth. Stearns said Purple Wave, Copart’s industrial equipment auction platform, generated more than 25% gross transaction value growth over the last 12 months. She said the business has expanded its territory sales force beyond its original central U.S. focus and has grown its team to roughly 2.5 to 3 times its size at acquisition. Stearns also discussed Copart’s long-haul delivery service, saying the company shifted the offering a little over 12 months ago and has seen rapid adoption. She said the service added about $15 million year over year to facility operations costs in the quarter while also generating margin at the revenue line. Liaw said Copart recently held its 2026 Insurance Advisory Board meeting with major U.S. insurance clients, where topics included artificial intelligence deployment. He said insurers are exploring AI across their businesses, including claims, underwriting and pricing, while also being cautious because claims decisions must be auditable and accountable. Copart (NASDAQ: CPRT) is a global provider of online vehicle auction and remarketing services, focused primarily on the sale of salvage and clean-title vehicles. The company operates a technology-driven auction platform that connects sellers — including insurance companies, vehicle finance firms, rental car companies, dealerships and fleet owners — with a broad buyer base consisting of vehicle dismantlers, recyclers, rebuilders and retail buyers. Copart's business model centers on efficient vehicle disposition using digital bidding and logistics services to maximize recovery value for its clients. Core services include hosting live and timed online auctions, vehicle listing and inspection support, title processing, and transportation and storage solutions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Copart Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Copart, Inc. (CPRT) came out with quarterly earnings of $0.43 per share, beating the Zacks Consensus Estimate of $0.41 per share. This compares to earnings of $0.42 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4.88%. A quarter ago, it was expected that this company would post earnings of $0.4 per share when it actually produced earnings of $0.36, delivering a surprise of -10%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Copart, which belongs to the Zacks Auction and Valuation Services industry, posted revenues of $1.24 billion for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 2.39%. This compares to year-ago revenues of $1.21 billion. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Copart shares have lost about 15.6% since the beginning of the year versus the S&P 500's gain of 8.6%. While Copart has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Copart was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.39 on $1.15 billion in revenues for the coming quarter and $1.57 on $4.61 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Auction and Valuation Services is currently in the top 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the broader Zacks Business Services sector, Skillsoft Corp. (SKIL), has yet to report results for the quarter ended April 2026. This company is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of -83.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Skillsoft Corp.'s revenues are expected to be $121.08 million, down 2.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Copart, Inc. (CPRT) : Free Stock Analysis Report Skillsoft Corp. (SKIL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research