CPRT

On September 10, 2026, Copart, Inc. (NASDAQ:CPRT) reported fourth-quarter results for the period ended July 31, 2026, and used the call to announce an all-cash acquisition of digital auto marketplace ACV Auctions. Revenue grew 2.4% to $1.2 billion, but gross profit fell 5.5% to $481.4 million and net income dropped 17.4% to $327.4 million. Diluted EPS came in at $0.35 against $0.41 a year earlier. Wall Street spent the following days separating the deal from the quarter. Barrington's Gary Prestopino saw enough in the transaction to move off the sidelines, upgrading Copart, Inc. (NASDAQ:CPRT) to Outperform from Market Perform with a $40 target. His argument is that combining Copart's physical network with ACV's digital marketplace, at an implied equity value of $1.9 billion or $10.50 per share in cash, creates an end-to-end remarketing platform and opens a new growth vector in dealer-to-dealer and commercial vehicle auctions. JPMorgan's Jash Patwa had already upgraded Copart, Inc. (NASDAQ:CPRT) to Overweight from Neutral ahead of the print, raising his target to $40 from $32 on encouraging salvage industry channel checks, web scraping data showing Copart gaining share with a carrier across several states, and a collision cycle he sees turning more favorable as insurance penetration recovers. Freedom Broker, which trimmed its target to $36 from $39 while keeping a Buy rating, called the report mixed but framed the ACV move as a strong pivot toward digital marketplace expansion. Baird's read was simpler: the quarter fell short of expectations, and the firm cut its target to $38 from $42 while holding an Outperform rating. The numbers support that. Operating expense per car rose 12.7% year-over-year as Copart funded long-haul delivery, TitleExpress, and dedicated wholesale facilities, while US facility costs climbed 7.7%. Lower interest income, a consequence of $1.63 billion in buybacks earlier in the fiscal year, added pressure. The core insurance business is cooling, with global insurance units down 4.2% and domestic assignments down 7.5%. For the full year, revenue grew just 0.4% to $4.7 billion while net income fell 4.4%. Meanwhile, management expects the ACV transaction to be neutral to EPS in the first full year of ownership and accretive in fiscal 2028 and beyond, which leaves a period of integration risk before the strategic case shows up in earnings. AQR Capital Management held the largest hedge fund position, 14.02 million shares worth $395 million as of the second quarter of 2026, up 49% from 10.71 million shares the prior quarter. Akre Capital Management, the second-largest holder, trimmed 1% to $225 million. The sharpest moves came from Marshall Wace, which raised its stake 437%, Millennium Management at 77%, and Citadel Investment Group at 62%. Overall hedge fund ownership rose to 60 funds from 57 between the first and second quarters of 2026. Short interest sits at just 5.09% of float, and shares trade at 18.90 times forward earnings as of September 15, 2026. The split on Copart is not really bull versus bear, it is deal versus quarter. Barrington and JPMorgan are underwriting a structural change in what Copart, Inc. (NASDAQ:CPRT) sells and to whom; Baird and Freedom Broker are marking down a business where costs per car rose 12.7% while insurance volumes shrank. The bridge between them is fiscal 2028, when management expects ACV to turn accretive. Until then, Copart, Inc. (NASDAQ:CPRT) has to integrate ACV while its core margin base is already compressing. While we acknowledge the potential of CPRT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years Disclosure: None. Follow Insider Monkey on Google News.

This article first appeared on GuruFocus. Revenue: Q4 consolidated revenue $1.2 billion, up 2.4% YoY; FY26 revenue $4.7 billion, up 0.4% (up 2.4% excluding FY25 CAT events). Service Revenue: Q4 global service revenue up $13 million, or 1.4%; FY26 service revenue up $1 million. Purchased Vehicle Sales: Q4 global purchased vehicle sales up $14 million, or 8.3%; FY26 up $18.4 million, or ~2.7%. Gross Profit: Q4 global gross profit $481 million, down 5.5%; FY26 gross profit $2.1 billion, down 0.8% (flat excluding FY25 CAT events). Gross Margin: Q4 global gross margin 41.8%; FY26 gross margin 44.7%. Operating Income: Q4 operating income $368.9 million, down 10.6%; FY26 operating income $1.7 billion, down 2.6%. Net Income: Q4 net income attributable to Copart $327.4 million, down 17.4%; FY26 net income $1.48 billion, down 4.4%. EPS: Q4 diluted EPS $0.35, down 14.6%; FY26 diluted EPS $1.55. Revenue Per Unit: Q4 revenue per unit up 5.4%; FY26 up ~5.7%. Average Selling Prices: Q4 global ASPs up 3.5% (US up 4.2%, international up 3.3%); FY26 global ASPs up 5.5%. Unit Sales: Q4 global units sold down 2.9% (US down 5.7%, international up 10%); FY26 units sold down 5.5%, or 3.1% excluding CAT units. Insurance Units: Q4 global insurance units down 4.2% (US down 7.5%, international up 11.2%); FY26 US insurance volumes down 8%. Assignments: Q4 global assignment volumes down 2.2%; international assignments up 10%. Inventory: Global inventory down 1% YoY; US inventory down 3.4%; international inventory up 10.4%. US Segment: Q4 total revenue up 0.4%; gross profit $403.8 million, down 8.3%; gross margin 43.4%; operating income $312.2 million at 33.6% operating margin. International Segment: Q4 revenue $222.1 million, up 11.7%; gross profit $77.6 million, up 11.8% at 35% gross margin; operating income $56.8 million at 25.6% operating margin. Facility-Related Costs: Q4 US facility-related costs up $30 million, or 7.7% (up 14.2% per unit); Q4 international facility-related costs up $8.8 million, or 11.4% (up 1.2% per unit). OpEx Per Car: Q4 FY26 up 12.7% vs. Q4 FY25. Liquidity: ~$5.7 billion total liquidity, comprising $4.5 billion in cash, cash equivalents and held-to-maturity securities, plus $1.25 billion revolving credit capacity with no debt outstanding. Share Repurchases: $1.63 billion deployed into share repurchases earlier in the fiscal year. ACV Acquisition: All-cash transaction funded from cash on hand with no financing conditions; expected accretive to earnings in first full year; expected to close by end of calendar year. Warning! GuruFocus has detected 4 Warning Signs with CPRT. Is CPRT fairly valued? Test your thesis with our free DCF calculator. Release Date: September 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Copart Inc (NASDAQ:CPRT) agreed to acquire ACV, a leading digital automotive marketplace, expected to be accretive to earnings in the first full year and to create a more complete automotive marketplace. International segment showed strong momentum with revenue up 11.7% and units sold up 10% in Q4, and all international markets are now profitable. Total loss frequency reached a record 23.3% in Q2 2026, up from 22.4% last year, driven by increasing vehicle complexity and repair costs, which benefits Copart Inc (NASDAQ:CPRT)'s salvage auction business. Copart Inc (NASDAQ:CPRT) has a strong balance sheet with $5.7 billion in liquidity and no debt, providing significant flexibility for investments and future M&A. Noninsurance unit volume returned to growth in Q4, up 0.2%, with dealer units up 5.8% and Blue Car up nearly 20%, indicating traction in commercial and dealer initiatives. Global unit sales declined 2.9% in Q4, with domestic units down 5.7% and global insurance units down 4.2%, primarily due to a single customer loss and industry trends. Operating costs per car increased 12.7% in Q4, driven by investments in new products and services, pressuring margins. US insurance volumes decreased 7.5% in Q4 and 8% for the fiscal year, reflecting lower collision claim frequency and a challenging insurance market. Gross profit declined 5.5% in Q4 and operating income decreased 10.6%, with net income down 17.4% year-over-year. The ACV acquisition is expected to be breakeven in the current year and accretive only in FY28, with integration risks and potential delays in closing. Q: Can you talk about the fit of ACV into the Copart culture?A: CEO Jay Adair said ACV has a start-up mentality and operates very agile and non-corporate, similar to Copart's scrappy, fast-moving culture. He noted both companies are results-driven and have a friendship-oriented culture, so they will fit together perfectly. Q: Will ACV operate as a subsidiary and retain its brand?A: CEO Jay Adair confirmed both brands will be maintained. ACV will keep its separate website and operations, but Copart will integrate buyer liquidity so buyers are available on both platforms. ACV will also leverage Copart's logistics network, which can move vehicles anywhere in the country in less than 24 hours. Q: How does growing whole car and dealer liquidity ultimately benefit insurance customers?A: CEO Jay Adair explained that bringing in more independent and franchise dealers improves returns, especially for economically totaled insurance vehicles that are still drivable. ACV's lower-end trade-ins are attractive to international buyers, particularly in Mexico, and Copart's logistics network solves the challenge of picking up vehicles from dealerships efficiently. Q: Where do you plan to invest in ACV to accelerate the growth plan?A: CEO Jay Adair said investments will include training to cross-educate both teams, creating partitioned specialty areas at Copart facilities for ACV, and technology. He emphasized doubling down on tech to enable buyers to access both platforms in a connected experience. Q: Operating cost per vehicle was up 12.7% what is the plan to address that?A: CEO Jay Adair said the company is aware of the increase and is focused on reducing costs. He expects per-car costs to come down through cost control and by leveraging fixed costs across more units as volume grows. Q: Is there still uncertainty around insurance RFPs, or has the drama died down?A: CEO Jay Adair said there is no drama and described the current mood at Copart as having "swagger." He expressed confidence in relationships with existing customers and said everything is positive. Q: Does the ACV acquisition preclude Copart from doing another substantial deal?A: CEO Jay Adair said no, noting Copart will still have over $2 billion in cash after the deal. He said Copart will look at other auction-space businesses that are synergistic and where Copart can add value, but he is not interested in unrelated acquisitions. Q: How should we think about the international expansion strategy?A: CEO Jay Adair said Copart is now profitable in all international markets and wants to expand both in existing markets and into new countries. He noted international units were up 10% in the quarter and that the company has now figured out the German consignment model, positioning it to grow across Europe. Q: What are the guardrails on the ACV tender offer, such as breakup fees or go-shop provisions?A: CEO Jay Adair said customary provisions like go-shop and breakup fees exist but declined to share specifics on the call, saying the details will come out in the filings. CFO Leah Stearns confirmed the information is on file. Q: What have you learned from past whole car strategies like Blue Car and Copart Dealer Services?A: CEO Jay Adair noted that noninsurance is now roughly a quarter of Copart's volume, up from nothing 20 years ago, so the strategy has been successful. However, reaching franchise dealers and higher-end trades requires a different product, and ACV's inspection and valuation technology fills that gap. Q: A peer has been using price to gain volume what are you seeing on insurance pricing behavior?A: CEO Jay Adair said Copart does not need to compete on price because its liquidity generates superior returns for customers. He said the ACV deal will make liquidity even stronger, putting every vehicle in front of thousands of dealers, and he is focused on improving liquidity rather than cutting pricing. Q: Could Copart expand the repo business with ACV's bank relationships?A: CEO Jay Adair said Copart did not buy a repo business and does not want to repossess cars, but it loves selling repos. He said Copart will focus on picking up vehicles from repo lots and auctioning them off. Q: How will Copart's real estate enhance ACV's dealer and commercial businesses?A: CEO Jay Adair said it helps both. For dealer sales, Copart can move vehicles that dealers want off their lots and store vehicles for buyers who need time before pickup. On the commercial side, repossession vehicles must be moved from repo lots, and Copart can bring them in and auction them off. Q: Is the ACV deal expected to be accretive this year or next year?A: CFO Leah Stearns clarified the transaction is expected to be breakeven in the current year and effectively accretive in the first full year, which will be FY28, given uncertainty around the closing date. Q: How much of the increased spending is discretionary investment versus uncontrollable cost increases?A: CFO Leah Stearns said the majority is driven by new products and services, including $17 million of the year-over-year increase in facility operations cost from long-haul delivery. Only a small portion was related to higher fuel costs from the broader cost environment. Q: Should we expect the magnitude of spending to increase further in the coming quarter?A: CFO Leah Stearns said Copart does not guide to specific cost metrics but continues to see opportunities to drive growth across new products and services, implying continued investment. Q: Should margins be comparable next year, or are there pressures that could weigh on them?A: CEO Jay Adair declined to give guidance on earnings or margins. He said Copart is focused on customer satisfaction, cost control, and reducing cost per car, and the results will speak for themselves. Q: Could ACV's Viper technology For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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. Management attributes domestic insurance unit declines primarily to a single customer loss and broader industry trends in collision claim frequency, which fell 3.4% year-over-year. Total loss frequency reached a record 23.3% for the second quarter, driven by increasing vehicle complexity and repair costs that have risen over 50% since 2019. The acquisition of ACV is framed as a highly complementary move to bridge the gap between salvage expertise and franchise dealer liquidity without forcing a single operating model. International growth remains a primary pillar, with insurance units up 11.2% and all international markets now operating profitably. Management emphasized a 'founder's mindset' focused on decade-long horizons rather than quarterly results, prioritizing long-term liquidity and technological speed. Buyer liquidity is identified as the core differentiator, with international buyers now representing 45.7% of total purchase dollars in the U.S. market. Operational expenses per car rose 12.7% due to investments in new services like long-haul delivery and TitleExpress, which management intends to leverage through higher future volumes. The ACV transaction is expected to be breakeven in the current period and accretive to earnings in the first full year, projected for fiscal 2028. Management plans to integrate buyer liquidity across both Copart and ACV platforms while maintaining separate brand identities and marketing channels. Future growth strategy involves utilizing Copart's 275+ physical locations as staging areas for ACV's digital-first inventory to optimize logistics for international buyers. Technology investment will focus on using AI to improve demand generation by better matching buyers to specific vehicle types and reducing administrative errors. Expansion plans include scaling existing international markets and entering new countries now that the German consignment model has been successfully proven. The ACV acquisition is an all-cash transaction funded from cash on hand, leaving approximately $2 billion in liquidity for further opportunistic M&A. Net income comparisons were impacted by a one-time $13 million asset disposal gain in the prior year and lower interest income following $1.63 billion in share repurchases. Facility-related costs in the U.S. increased 7.7% in Q4, reflecting deliberate discretionary spending on service expansion rather than purely inflationary pressures. Inventory levels in the U.S. decreased 3.4% due to faster cycle times and a strategic reduction in aged inventory. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed both brands will remain distinct but will share buyer liquidity and logistics infrastructure. Copart's physical network will solve ACV's 'last mile' challenges for international buyers who need centralized pickup points for multi-unit exports. Management acknowledged the 12% rise in per-car costs and stated they have identified specific areas for reduction. The plan relies on both direct cost management and leveraging fixed facility costs against higher unit volumes expected from the ACV integration. The CEO stated the deal does not preclude further acquisitions, noting that the company would consider future acquisitions if they offer similar benefits to the ACV transaction. With over $2 billion in cash remaining post-deal, the company maintains flexibility for additional 'synergistic' bolt-on acquisitions. Management noted that achieving profitability in Germany has provided a blueprint for expansion across other European markets. While declining to give specific growth guidance, the CEO confirmed a shift toward active expansion in new international territories.

Interested in Copart, Inc.? Here are five stocks we like better. Fourth-quarter revenue rose 2.4% to $1.2 billion, helped by higher revenue per unit and selling prices, but profitability weakened: net income fell 17.4% to $327.4 million and operating income declined 10.6%. Global units sold decreased 2.9%, driven by a 5.7% U.S. decline, while international units grew 10%. International revenue and gross profit each increased about 12%, making overseas operations a key growth driver. Copart agreed to acquire digital automotive marketplace ACV in an all-cash deal expected to close by year-end. ACV will remain a separate subsidiary, with Copart targeting breakeven initially and accretion in fiscal 2028. 3 Stocks With Monopoly Power—and Minimal Competition Copart (NASDAQ:CPRT) reported fourth-quarter fiscal 2026 revenue growth despite lower global unit sales, as higher selling prices and international expansion helped offset weaker domestic insurance volumes. The company also announced an agreement to acquire ACV, a primarily digital automotive marketplace, in an all-cash transaction expected to close by the end of the calendar year. Chief Executive Officer and Executive Chairman Jay Adair said Copart remains focused on three growth pillars: international expansion in insurance, domestic expansion in whole-car sales, and technology and services for customers. He described buyer liquidity, operational speed and a long-term founder-led approach as key differentiators for the company. → Morgan Stanley Eyes Good Things Ahead for Meta After $18 Billion Legal Settlement 3 Oversold Stocks Flashing Bullish Reversal Signals Consolidated fourth-quarter revenue rose 2.4% year over year to $1.2 billion. Global service revenue increased by more than $13 million, or 1.4%, while purchased vehicle sales increased $14 million, or 8.3%, Chief Financial Officer Leah Stearns said. For fiscal 2026, revenue totaled $4.7 billion, up 0.4%. Stearns noted that fiscal 2025 benefited from Hurricane Helene and Hurricane Milton. Excluding the impact of those events, fiscal 2026 total revenue increased 2.4%. Fourth-quarter revenue per unit increased 5.4% year over year. Full-year revenue per unit rose about 5.7%. Global average selling prices increased 3.5% in the fourth quarter and 5.5% for the full year. Fourth-quarter gross profit declined 5.5% to $481 million, with gross margin of 41.8%. Operating income fell 10.6% to $368.9 million in the quarter. Net income attributable to Copart declined 17.4% to $327.4 million, or $0.35 per diluted share. → Tesla’s Robotaxi Launch Wasn’t the Moment Investors Expected These 2 Auto Stocks Are Profiting as Used Cars and Parts Thrive Stearns said the net-income comparison reflected a $13 million gain on asset disposals in the prior-year fourth quarter, as well as lower interest income after Copart deployed $1.63 billion toward share purchases earlier in fiscal 2026. Full-year net income attributable to Copart decreased 4.4% to $1.48 billion, or $1.55 per diluted share. Full-year operating income declined 2.6% to $1.7 billion. → Despite Post-Earnings Drop, Wall Street Analysts Eye New Highs for Broadcom Stock Global units sold declined 2.9% in the fourth quarter, including a 5.7% decrease in the U.S. and a 10% increase internationally. Global insurance units fell 4.2%, with domestic insurance volume down 7.5% and international insurance units up 11.2%. Adair said that, excluding the loss of one customer, domestic insurance assignments would have increased 2.3%. He attributed broader insurance-volume pressure to lower collision claim frequency, which declined 3.4% year over year. However, he said total-loss frequency rose to 23.3% in the second quarter of fiscal 2026, the highest second-quarter level on record, while average collision severity exceeded $6,300 per claim, up nearly 8.8%. Adair said increasing vehicle complexity could support future total-loss frequency. He cited an estimate that a new Tesla vehicle contains about 100 million lines of code, describing modern vehicles as “computers on wheels.” Costs increased as Copart continued to invest in products and services including long-haul delivery, Title Express and dedicated wholesale facilities. Operating expense per car increased 12.7% in the fourth quarter, according to Adair. Stearns said the company is targeting lower facility costs per unit through cost management while continuing investments intended to support growth. In the U.S., fourth-quarter facility-related costs increased $30 million, or 7.7%, and rose 14.2% on a per-unit basis. International facility-related costs rose $8.8 million, or 11.4%, but increased only 1.2% per unit. Copart’s international business remained a major source of growth. Fourth-quarter international revenue increased 11.7% to $222.1 million, while international gross profit rose 11.8% to $77.6 million. International units sold increased 10%, led by an 11.2% gain in insurance units. International operating income reached $56.8 million, representing a 25.6% operating margin. Adair said Copart is now profitable in all of its international markets and intends to expand both within existing markets and into new countries. He said the company has developed an operating model for Germany that it plans to use as it grows across Europe. In the U.S., non-insurance volumes returned to modest growth in the fourth quarter, rising 0.2%. Dealer units grew 5.8%, while Blue Car volume, which serves banks, rental companies and fleet customers, increased nearly 20% from the prior-year quarter. Copart Direct units declined 11.7% as the company continued to optimize its principal-unit strategy. Stearns said Copart now has 25 dedicated wholesale facilities co-located at existing U.S. locations in major metro markets, serving 80% of the addressable wholesale market. Copart said it has agreed to acquire ACV, which sells more than 800,000 vehicles annually and operates primarily as a digital marketplace with little land of its own. ACV transacted approximately $10 billion in gross merchandise value in 2025 across more than 22,000 active buyers, Adair said. Copart plans to maintain the Copart and ACV brands as separate operations, while integrating buyer liquidity, logistics and selected technology capabilities. ACV will operate as an independent subsidiary led by its existing team after the deal closes. Adair said Copart expects to use its more than 275 locations as staging areas for ACV vehicles, while combining Copart’s international buyer base and logistics network with ACV’s dealer relationships, inspection capabilities and valuation technology. He said the combination could broaden access to franchise dealers and higher-end trade-ins, while potentially supporting demand for lightly damaged insurance vehicles and international sales. The all-cash deal will be funded with cash on hand and has no financing condition. Both boards unanimously approved the transaction, which remains subject to customary closing conditions and regulatory review. Stearns clarified that Copart expects the acquisition to be breakeven during the current period and accretive in its first full fiscal year, fiscal 2028. As of the end of July, Copart had approximately $5.7 billion of liquidity, including $4.5 billion in cash equivalents and held-to-maturity securities, plus $1.25 billion available under a revolving credit facility. The company had no debt outstanding. Copart, Inc (NASDAQ: CPRT) provides online vehicle auction and remarketing services. The company operates a global marketplace where damaged, recovered, used and other vehicles are sold primarily through online auctions. Its offerings include salvage and clean-title vehicles, with inventory sourced from insurance companies, banks, dealerships, fleet operators, rental companies, government agencies and other organizations. Copart supports the vehicle remarketing process through inspection, storage, transportation, title processing and auction services. 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 Q4 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

Image source: The Motley Fool. Thursday, Sept. 10, 2026, at 5:30 p.m. ET Chief Executive Officer and Executive Chairman-A. Jayson Adair Chief Financial Officer-Leah C. Stearns Operator: Please stand by. Good day, everyone, and welcome to the Copart Incorporated Fourth Quarter Fiscal 26 Earnings Call. Just a reminder, today's conference is being recorded. Before turning the call over to management, I will share Copart's safe harbor statement. The company's comments today include forward-looking statements within the meaning of federal securities laws. Including management's current views with respect to trends, opportunities, and uncertainties in the company's industry. These forward-looking statements involve substantial risks and uncertainties. For more detail on the risks associated with the company's business, refer you to the section titled risk factors in the company's annual report on Form 10 k for the year ended 07/31/2025. And each of the company's subsequent quarterly reports On Form 10-Q. Any forward-looking statements are made as of today, and the company has no obligation to update or revise any forward statements. A. Jayson Adair: I will now turn the call over to the company's CEO and executive chairman, A. Jayson Adair. Alright. Thank you. Well, welcome everyone to the fourth quarter earnings call for 26. I have got some prepared remarks that I will talk to and then I will turn it over to Leah C. Stearns, our CFO. And then we will open it up for questions. So I will remind you that on the prior call, I talked about the 3 pillars of growth for Copart. We will continue to focus on international expansion on insurance, We will continue to focus on whole car expansion domestically and then we will continue to invest in technology and services that assist all of our customers. Additionally, we view the differentiators for Copart as 1, we are a business that is run by founders and that has a founder's mindset. We do not think in quarters or years. We think in decades. Very long term, Number 2, I would say liquidity. When you think about how our website functions, we are constantly focused on improving, buyer activity. And I will talk more about some of the buyer data that we have got. But that liquidity continues to be a differentiator. And then in the spirit of acting like a start up, we are very fast. We are moving very quickly. And we are bringing products and services to market in quarters, not in years. So we expect to have some of that coming out in the next 4 quarters. Looking at global unit sales, we were down across the company 2.9% Domestically, that was down 5.7%. Internationally, we were up 10%. Global insurance units were down 4.2% with domestic insurance being down 7.5%. And international insurance being up 11.2%. With the exception of 1 single customer loss domestic insurance assignments would be up 2.3%. Collision claim frequency we are down 3.4% year over year This is a moderation from a high of single digit declines through 2025. Total loss frequency reached 23.3% in the second quarter. Of 2026, the highest second quarter on record up from 22.4% in the same quarter last year. Looking at severity, average collision severity was over $6.3 thousand per claim. Up nearly 8.8% year over year. Fastest in more than 3 years and the fourth straight quarter of acceleration. Repair costs are up more than 50% from 2019 levels per data from CCC. Looking at rental car rates, and that is something that obviously costs or increases the cost of repair for insurers. That rose by 4.5% year over year. Obviously, every additional day of repair and any costs associated with that increase the total cost of repair. Turning to the complexity of vehicles, I recently had a conversation with a client friend of mine that was talking about how complex cars are And there was a recent article by Parametric Technology Corporation that pointed out a military drone has 3.5 million lines of code. An Airbus aircraft has 30 million lines of code. And the Windows 10 operating system has 50 million lines of code. What makes this interesting is that a new Tesla has a approximately 100 million lines of code. So when we think about cars, they really are becoming computers on wheels. Believe total loss frequency will continue to go up. Vehicle miles traveled were up 0.27% year over year in the fourth quarter of 26. Vehicles in operation or what we refer to as the car park was up 1.6% year over year. In calendar quarter Q2 2026. Looking at insurance ASPs globally, we were up 3.1% year over year in the fourth quarter of 26 Domestically, we were up 3.7% year over year in quarter 26, and internationally, we were up 3.3% year over year in fourth quarter 26. Turning to the Manheim Used Vehicle Value Index, it was up 2.8% year over year in the fourth quarter of 26. So we are outpacing the Manheim index As we stated before, liquidity comes from buyers. And so I would like to give you some statistics now on why we believe and others believe that we have the greatest liquidity in the industry. Vehicles sold to buyers less than a year This means that 1 year or more ago, that buyer was not buying from Copart was likely not aware of Copart. Vehicles that have been sold to buyers less than a year for 2026 were 8.9% of our total vehicles. That number for fiscal year 2025 was 8.3%. So we have seen nice growth there. Expanding it out an additional year, vehicles sold to buyers that have been with Copart less than 2 years, for 2026, our total sales, they represented 21.7% of our vehicles. Now I would like to turn to vehicles sold in The US to international buyers. These are buyers outside The US. Total units sold in fiscal year 26 represent 38.2% of our units. However, more importantly, the dollars purchased, the amount of dollars that were spent on the vehicles that we sold represented 45.7% of the total amount of dollars that we sold in the vehicle. So they are obviously buying a more valuable vehicle when they are purchasing internationally. On the previous call, I spoke to AI, and I think about AI as a very important differentiator for Copart, we stated, we will continue to lower cost through automation. This is an important part of our journey. And we are very focused on that. But I think even more important is using AI to create more demand for the vehicles that we are selling. The ability for buyer to find that vehicle and to find a vehicle that matches their desired purchase, is becoming more and more important every single day. If you think about the journey of becoming aware of Copart, and signing up, becoming a member, and then from membership to bidding and then to buying, us connecting that buyer to that vehicle we believe, is more important than ever. And then finally, I think about accuracy. Every time that we can automate something and use AI, we eliminate errors and improved accuracy is 1 of our core tenants in Copart and continuing to make sure that we have less and less opportunity for mistakes. Looking at OpEx per car in Q4 26 versus Q4 25, we are up 12.7%. Leo will talk more about expense control My point is that we are focused on it. We are we are going to be working toward reducing our costs on a per car basis. Finally, let me close by talking about our most recent announcement. We have agreed to acquire ACV. 1 of the largest primarily digital automotive marketplaces in the country. ACV sells more than 800 thousand vehicles, each year, and importantly, operates with virtually no land of its own. We are excited about using our locations as staging areas for their vehicles and combining our global buyer base with their digital marketplace and remarketing technology. Copart and ACV are highly complementary. We bring physical scale, deep institutional relationships, salvage expertise, and international buyer demand, with more than 275+ locations, over 4 million vehicles sold a year, and approximately 1 million members across more than 185+ countries. ACV, brings dealer liquidity and relationships and inspections and valuation technology transacting approximately $10 billion of gross merchandise value in 2025 across more than 22 thousand+ active buyers. Together, Copart and ACV create a more complete automotive marketplace connecting the right vehicle to the right buyer through the right channel without forcing every vehicle into a single operating model. For dealers, that means 1 partner to value, manage, and dispose of virtually every used vehicle they touch. For commercial consignors like banks, rental car companies, fleet, and leasing companies, it means 1 national relationship across multiple disposition channels. Optimizing net proceeds. For buyers, it means unparalleled wholesale selection at every price point. With integrated transportation, and complete vehicle marshaling. Copart has a very strong track record of driving strong return on invested capital across the businesses it has acquired. And we view this transaction in the same framework as our past acquisitions. We expect the transaction to be accretive to earnings in the first full year and we will provide more details after it closes. We are excited about ACV's people, first culture, which fits naturally with our own culture. This is an all-cash transaction funded from cash on hand with no financing conditions. it is structured as a tender offer which supports a relatively quick and clean path to closing. It is subject to the customary conditions you would expect including regulatory review. Both boards have unanimously approved the transaction. We expect to close by the end of the calendar year. And ACV will operate as an independent subsidiary led by its existing team. I will obviously explain more after the close. With that, let me hand it over to Leah, our CFO, who will give you an update on the numbers, and then we will open it up for questions. Leah C. Stearns: Thank you, Jay, and good afternoon to everyone on the call. I will lead today with our financial results and per unit economics for the fourth quarter and fiscal year 2026. I will walk you through our US and international segments, and close with capital structure and liquidity highlights. For the fourth quarter, consolidated revenue grew to $1.2 billion up 2.4% year over year, driven by the strength in both service revenues and purchased vehicle sales. Global service revenue increased more than $13 million or 1.4%, global purchased vehicle sales increased $14 million, or 8.3%. For fiscal year 2026, revenue was $4.7 billion, up 0.4% with service revenue up $1 million, which was primarily due to increased international volumes and higher revenue per unit. As a reminder, FY 2025 included the benefit of Hurricanes Helene and Milton, Excluding the impact of these storms, FY 2026 total revenue grew 2.4%. Finally, purchased vehicle sales were up $18.4 million during the quarter or approximately 2.7%. On a per unit basis, fourth quarter revenue per unit increased 5.4% and approximately 5.7% for the full year. Average selling prices continue to expand across the platform, with global ASPs increasing 3.5%, versus the prior year quarter and 5.5% for the full year. We believe that continued growth in our ASPs reflects the strength of our auctions as our global auction liquidity continues to deliver superior outcomes for our sellers. Global gross profit for the quarter was $481 million a decrease of $28 million or 5.5%. With gross margin of 41.8%. Our gross profit declines primarily reflect the impact of cost associated with our continued investment across new products and services, including long haul delivery, TitleExpress and our dedicated wholesale facilities in the U.S. For the fiscal year, gross profit was $2.1 billion down $15.8 million or 0.8%. Was flat when you exclude the impact of cat events in 2025. Gross margin was 44.7% for the full year. Fourth quarter operating income decreased 10.6% to $368.9 million And for the fiscal year, operating income decreased 2.6% to $1.7 billion. Fourth quarter net income attributable to Copart decreased 17.4% to $327.4 million or $0.35 per diluted common share, which was down 14.6%. As a reminder, we had a onetime $13 million gain on the disposal of assets in the fourth quarter of 2025. This combined with lower interest income in the fourth quarter of 2026, which was a result of our deployment of $1.63 billion into share repurchases earlier in the fiscal year, contributed to the year over year decline in net income. The fiscal year net income attributable to Copart decreased 4.4% to $1.48 billion or $1.55 per diluted common share. On a global basis, total fourth quarter sold units declined 2.9% year over year, while fiscal 2026 units sold declined 5.5% or 3.1% excluding CAT units. For the quarter, global assignment volumes decreased 2.2% And as of year end, global inventory was down 1% from a year ago period. Turning to our U. S. Segment. Total revenue was up 0.4% in the quarter. As higher revenue per unit largely offset a decline in volume. U. S. Service revenue decreased <1% for the quarter, and <2% for the full year. With the full year decline primarily related to the onetime revenue associated with Hurricanes Helene and Milton, which was recognized in fiscal 25. And offset by an increase in revenue per car. U.S. purchased vehicle revenue was up $11.1 million or 10.9% in the quarter. With purchased vehicle gross profit up $5 million or 8.7% For the fiscal year, U. S. Purchased vehicle revenue increased $15.6 million or 3.9%. And purchased vehicle gross profit increased $2.7 million or 10.5%. For the full year, U. S. Purchased unit margins were 6.7%, representing an increase of 40 basis points compared to fiscal 25. U.S. facility-related costs increased $30 million or 7.7% in the fourth quarter. Which is a 14.2% increase on a per unit basis, and again, reflects the ongoing investments I referenced earlier. For the full fiscal year, U. U.S. facility-related costs decreased $11.8 million or 0.7%. While increasing 6.6% on a per unit basis. We continue to invest across our U. S. Business on behalf of our sellers and members enhance the products and services we offer. That being said, cost management is an equally important component of our long term strategy, and we believe we can execute on both dimensions. We are focused on managing our facility costs down on a per unit basis through focused cost management across the company. U.S. gross profit was $403.8 million down 8.3% for the quarter and down 2.7% for the fiscal year. With gross margin of 43.4% for the quarter. And 46.8% for the full year. Our U. S. Operating income was $312.2 million reflecting a 33.6% operating margin for the quarter. Total fourth quarter units sold declined 5.7% and 6.9% for the fiscal year 2026. U.S. insurance volumes decreased 7.5% in the quarter, and 8% for the fiscal year. Which is primarily a result of the industry trends around claims frequency, which Jay described a few moments ago. Beyond insurance, our diversified seller base is showing signs of inflection While our U.S. noninsurance unit volume declined 3.9% for the full fiscal year, was primarily a result of lower Copart direct units. Our non insurance unit volume returned to modest growth in the fourth quarter, up 0.2%, marking a strong sequential improvement, which we believe reflects the traction of our commercial and dealer initiatives. Our dealer units grew 5.8% in the quarter and 3.9% for the year. BluCar, which serves our bank, rental and fleet partners, expanded nearly 20% over the prior year quarter. And 2.4% for fiscal 26. With continued double digit growth across our bank and fleet customers. And Copart direct unit volume declined 11.7% in the quarter or 34.5% for the fiscal year. 2026, as we continue to optimize our principal unit strategy. U. S. Inventory was down 3.4% year over year, with the 3 main drivers being the decline in assignments of 5%, faster cycle times, experienced by our customers, and the reduction in overall aged inventory in the U.S., ASPs increased 4.2% in the quarter with full year ASPs increasing 5.5%. U. S. Insurance ASPs increased 3.7% or 5.5% for the full year. U.S. non-insurance ASPs increased 5.9% in the quarter, 5.6% for the full year, and were led by bank and finance seller ASPs, which were up 12.4% year to date. And with Copart direct ASPs, increasing 29.2% Turning to our international segment. Fourth quarter revenue grew 11.7% to $222.1 million. The primary source of growth was service revenues, up 15% for the quarter and 12.4% for the year. Driven by a 3.5% increase in fee revenue per unit and volume growth. International purchased vehicle revenue increased $2.9 million or 4.4% in the quarter. While purchased vehicle gross profit decreased $3.4 million or 22.1%. For the full year, international purchased vehicle revenue increased $2.8 million or 1%, and purchased vehicle gross profit increased $2.3 million or 4.5%. International facility related costs were up $8.8 million or 11.4% in the quarter, an increase of 1.2% on a per unit basis. And up $33.3 million or 11.2% for the fiscal year or 7.2% on a per unit basis. The profit picture for international is equally compelling. Our international gross profit increased 11.8% to $77.6 million for the quarter, at a 35% gross margin and was $301.9 million for fiscal year 2026, which was up 12.3% and drove a 35.2% margin. International operating income reached $56.8 million, representing a 25.6% operating margin. International ASPs were up 3.3% in the quarter and 7.3% on a full year basis. International insurance ASPs increased 3.3% for the quarter and 5.2% for the full year. Internationally, the story is 1 of continued momentum. Total units sold increased 10% in the quarter with insurance units up 11.2% and non insurance units up 6%. Fee units increased 11.5% for the quarter, and 4.6% for the fiscal year and were primarily driven by our UK and Canadian operations. While purchase units increased 0.2% for the quarter and declined 2.1% for the full year. For fiscal year 26, total international units grew 3.7% International inventory ended the quarter up 10.4% from a year ago period, and international assignments grew 10% in the quarter. Our performance continues to reflect the investments we are making in complementary products and services. And as I mentioned earlier, this includes TitleExpress for insurance customers, long haul delivery for our members, and dedicated wholesale facilities for our dealer and commercial. On that last point, today, we have 25 dedicated wholesale facilities colocated at existing Copart locations in the top US metro markets, which serve 80% of the addressable wholesale market. Our investments to date have included facility upgrades, the hiring of skilled technicians, and the implementation of technology capabilities to serve this segment of our customers at a superior level. And finally, turning to our capital structure and liquidity. Copart remains in an exceptionally strong financial position. As of the end of July, we had approximately $5.7 billion of liquidity comprised of $4.5 billion in cash, cash equivalents, and held to maturity securities. Plus $2.05 billion of capacity under our revolving credit facility with no debt outstanding. Our balance sheet gives us tremendous flexibility to be opportunistic investors throughout business and credit cycles. Accounting for the consideration associated with the ACV transaction, we announced a short while ago, we will still retain significant financial flexibility to drive further accretive investments. We continue to focus on driving best in class outcomes for our customers while generating superior long term returns for our shareholders. Thank you. And with that, Jan and I would be happy to take your questions. Operator: Thank you. Before pressing the star keys to ask a question. And the first question comes from the line of Bob Labick with CJS Securities. Please proceed. Bob Labick: Good afternoon and congratulations on buying a great company and getting a great management team as well. A. Jayson Adair: Thank you, Bob. We are excited about it. Bob Labick: Really exciting. And just on that, can you talk a little bit about the fit of ACV into the Copart culture? Could you guys have such a strong culture and tell us how they fit into it? A. Jayson Adair: Sure. George and I have gotten to know each other really well as well as many of his senior team. You know, it is 1 of the things I talked about. They really they have a start up mentality the way they run the company. They think very agile, and they are as noncorporate And I would say as non-large public company as you can get. They think scrappy like we do, and you have heard me use those terms in the past. We are a very scrappy company that can make decisions very quickly. And they have that same they have very much that same culture. Additionally, I would say, there is a friendship culture that they have. We are all friends in this company. We get along. I mean, we do not just get along. We hang out together. So it is 1 of those things where we are all pretty chummy, and I noticed that with them as well. So they are going to fit in perfectly. We are about winning. They are about results driven. Culture, and I think we are just going to get along great. We are going to put these 2 companies together, it is going to be-- it is going to be amazing. Bob Labick: that is great. And then you said they are gonna operate as a subsidiary. So I am assuming that means you will retain each of the brands. A. Jayson Adair: Yes, that-- we are going to-- yes for sure. We are gonna maintain both brands. But look, make no mistake. We are going to integrate buyers. We are gonna integrate the liquidity of the buyers so that they are available on both platforms. But they will be marketing that product separately They will be selling those cars on that website separately from Copart. They will be utilizing the logistics of Copart. You know, we can move a vehicle anywhere in the country in less than 24 hours, and we do it sometimes over 15 to 20 thousand times a day. So there is a bunch that we bring to the table, but there is also a bunch that they bring to the table their technology. And their buyer base. So it is-- they are going to be separate brands, but they will be integrated on some level. Between, you know, between buyers and experiences, that kind of thing. But, again, separately, separate websites, separately operating. Bob Labick: Okay. Great. And last 1 for me. I will jump back. I promise. But obviously, you already have some whole cars, and you have massive auction liquidity. Just thinking over the next several years, how does growing your liquidity in whole car and going up value in dealer to dealer Ultimately, ultimately benefit your insurance customers as well. A. Jayson Adair: Well, I think it is just going to-- it is obvious it is going I mean, I feel like it is a loaded question. You just you knew the answer, but you want me to answer it anyway. It is obvious that as we bring in more independent dealers yes. You are right. We have a huge number of independent dealers today as we bring in more independent dealers. In their case, more franchise dealers. Have more franchise dealers than we do. So as we bring in more of those buyers, that will improve returns, especially when you start to look at insurance vehicles. More often than not now, you are seeing cars that do not look like they should have been totaled, but they are economic totals. And so while they are still drivable, while they are repairable, they are economically totaled. So that is going to help on that front. On their units, they have a certain amount of trade ins that are on the lower end that our international buyers, especially Mexico, just love those vehicles. And so given our network, you know, 1 of the things that you challenge logistically is if you buy 50 cars from dealerships, and they are staying at the dealership, how does a 9 car get in there to pick those up? With Copart, we can move those vehicles over to Copart, and then a 9 car coming through can pick those up on their time and bring them down to Mexico or bring them to a port where they are gonna be shipped. So the international play and the logistics play is going to become real powerful. Bob Labick: that is great. Really exciting stuff. Thanks, Jay. A. Jayson Adair: Thank you. Thanks, Bob. Operator: The next question comes from the line of Craig Kennison with Baird. Please proceed. Craig Kennison: Hey, good afternoon. Thank you for taking my question as well. Wanted to ask, Jay, I am trying to anticipate, I guess, where you may want to invest in ACV to accelerate the growth plan Sounds like you plan to leverage existing land Do you need to invest in people or technology or do you need new parts of the business like wholesale financing or intend to get into reconditioning? Just trying to get the scope and scale of where your investments may be Sure. A. Jayson Adair: Some of the investment, Craig, is gonna be in training. So we have got a we have got to bring the ACV folks up to speed on what Copart can do and what offerings we have, and we have got to do the same thing for Copart. So we have got to bring some of the Copart folks up to speed on what ACV products and services are Some of the investment will be in making areas for our facilities that are specialty for ACV. So that they are not considered Copart areas. They will be part partitioned off and separated so that they are for ACV. And then part of the investment will be technology. We are going to-- you know, we are going to keep-- we are-- we are doubling down on tech right now. I mean, there is no question about that. We are there is a buzz at Copart right now about all that we are accomplishing and that getting done at Copart on the technology front, and that will continue with this deal. So you will see a continued investment in ACV as well as Copart on tech and making tech that enables the buyer to come in and access both products. So they are separate, but they feel-- they feel connected. Craig Kennison: Thank you. And then with respect to your core operations, Jay, I think you mentioned your operating costs per vehicle were they were up 12%. And you had a plan to address that. Can you help us understand that plan? A. Jayson Adair: I mean, we are on it. that is really all I can tell you. We are aware of it. We have identified it. And we are on it. We are gonna be focusing on reducing cost. And getting that cost down. And so, you know, in just focusing on the cost, that is gonna be 1 piece of it. The other side is as we bring more units through, we are gonna leverage those costs through more units. So the per car, I fully anticipate per car cost to go down. Craig Kennison: And on that unit side, I know you mentioned 1 customer loss, but has the drama died down Or are there still RFPs out there that lead to uncertainty? A. Jayson Adair: You know, I do not think there is any drama. I mean, if anything, there is swagger maybe right now is what I would say at Copart. We are pretty pumped up about where we are headed. And we have got we have got a lot of great people that are kicking ass, and that is going to continue. that is not gonna change. And I feel wonderful about our relationships with our existing customers. So, everything's good. I do not I do not really have anything that I would say right now is drama. I think everything's really positive. Craig Kennison: Great. Well, thank you. A. Jayson Adair: Thanks, Craig. Operator: The next question comes from the line of Chris Bottiglieri with BNP Paribas. Please proceed. Chris Bottiglieri: Hey. This is Chris Davis on for Chris. Jay, first 1 for me is how should we think about opportunities for future M&A from here? You think this acquisition precludes you from doing another deal of substantial size for a little while. I know there were some rumors floating around for other opportunities. Towards tech services. So I just wanted to your thoughts on other acquisitions and maybe SaaS based models that could further improve your access to data from here. A. Jayson Adair: No, I do not think this prohibits us from doing any future acquisitions. We are looking at other businesses that we may want to acquire in the auction space. So you know, we have got a lot of options. Even with this deal done, we have got over $2 billion of cash on our balance sheet. So I think we are in a great spot. What really matters to me is that we buy companies that make sense that fit in with Copart, and that Copart can add a lot of value. I am not really big on buying businesses that are you know, I am not gonna go out and buy hotels tomorrow. Because Copart you know, books hotel rooms across the country. that is not that is not synergistic enough. In this case, this is gonna be a sharing of customers, sharing of buyers, Remember, we do a bunch of wholesale today already. A bunch of the customers that are with ACV are with Copart. So we are sharing customers. We are we are we are we are sharing buyers in some cases, and now we have the ability to put this network of facilities and logistics network. By the way, ACV's got a logistics engine internally that they have developed as well. So there is a lot of benefit here. If there is something in the future that has similar benefit, we will look at it. Chris Bottiglieri: Got it. that is helpful. And then I think thinking about that international pillar, what is the frame-- the frame-- you know, the way to frame your thinking there? You know, is this something that you-- you know, you want to strike a balance between greater depth and expanded capabilities in existing international markets, or maybe pursuing completely new international markets? Is that you know, how should we think about that for the coming year or 2, and what role would, you know, potential bolt on M&A play into that part? A. Jayson Adair: We are profitable in all of our international markets now, and that was something that we wanted to see. But do we want to expand on the existing markets? Absolutely. Think what we said for the quarter, we were up 10%. So we want to expand in the existing markets. Do we want to expand outside of those markets into new countries? The answer is yes. Chris Bottiglieri: Got it. Thanks a lot. Appreciate it. A. Jayson Adair: You bet. Operator: The next question comes from the line of John Healy with Northcoast Research. Please proceed. John Healy: Thanks for taking my question. Jay, I wanted to ask just about how the transaction is structured with the tender offer. I know you mentioned that helps close faster. But curious if there is any sort of guardrails on the transaction Is there any sort of, like, breakup fee or is there anything that prohibits a competing tender offer that would you guys have evaluated or any parameters or, you know, I mean, any way you have kind of attempted to get deal certainty with us? A. Jayson Adair: I mean it is a publicly held company. So some of the what you would expect in terms of GoShop or breakup fees exist. But at the end of the day, think we have I think, you know, we negotiated a good deal for both of us. I think it makes sense for both companies. John Healy: Okay. Could you share with us? Because I have not seen any filings with those might be, the breakups or go shops or anything like that? A. Jayson Adair: No. No. Not really. I think it is best that it just comes out in the filings. Okay? I do not think I do not think it is I do not think it is appropriate for the call. But for 1, Analyst: But for 2, I am not a lawyer. Leah C. Stearns: So, John, the inquiry is on file, so you should be able to see the detail there. John Healy: Okay. And then, you know, you know, you guys have made a go at whole car in the past. And, you know, you have had the blue car. I think you had Copart Go. You had Copart Dealer Services. And some different iterations of things. And just curious your thoughts kind of thinking backward, You have had traction, but maybe not as big of a splash as maybe we would have thought. Or maybe hoped for. So was it just the branding And maybe that is a big part of the ACV value to you guys is just kinda keeping it distinctly and kind of their presence in the mind of dealers. Just kind of curious what you have kind of learned and in the past iterations of the whole car strategy and how that might have evolved with what you are going to do going forward? Thanks. A. Jayson Adair: Sure. Happy to do that for you. If you go back 20 years ago, literally, there was no dealer services at Copart. We founded that in 2007. And there is definitely no blue car. And yet if you look at noninsurance, it is 25% or 26%, 24%, give or take. Around a quarter. Okay. So it is roughly a quarter of our volume today. So given that, I think we have been very successful. But to get into those franchise dealers and get into the higher end trades, I think, does take a different product. An ACV is a different product than Copart. The way they inventory the vehicle all the way through to the condition report, it is different. So I think this opens up the world and our ability to do a lot more vehicles in that space. John Healy: Understood and great. Good luck with things. A. Jayson Adair: Thanks. Thank you, sir. Appreciate it. Operator: The next question comes from the line of Bret Jordan with Jefferies. Please proceed. Bret Jordan: Hey, guys. How's it going? Good. On the, you know, 1 of your peers seems to have been using price to gain some volume and I guess could you talk about what you are seeing sort of in the market on the insurance side around pricing, is behavior getting back to rational? A. Jayson Adair: I mean, look, there is you have 2 options in this business. You either generate the liquidity and get the returns on the units. That are going to generate-- you know, that are going to bring the dollars in for the customer. Or you have just got to cut pricing dramatically because you are not getting the return and that is how you offset that weakness. And at the end of the day, we do not need to play that game. We have got we have got an amazing liquidity. This is only going to make it better. We are gonna be that much stronger. In terms of our returns and our prices. I mean, think about every car that is that is not damaged or lightly damaged is gonna be put in front of thousands of dealers. I mean, that alone gets me excited. So, I am not I am not concerned about pricing per se going forward. I am focused on in improving liquidity so it is even more compelling. Bret Jordan: Great. And then I guess you mentioned ACV's bank relationships on the commercial side, giving you a physical real estate. Could you sort of expand a repo business with this relationship, or is that something just a path you do not want to-- I mean, we do not know. A. Jayson Adair: We did not we did not buy a repo business. We are not repossessing the car. We are not a business just given the bank relationships that they may have. We love selling repos. I do not think I want to be the guy on television. That picks the car up at someone's house. So I do not think we want to actually do the repo, but we love selling repos. We love picking them up from the repo lots and then auctioning them off. So we are gonna focus heavily on that. Bret Jordan: Great. Thank you. A. Jayson Adair: You bet. Operator: The next question comes from the line of Jeffrey Lick with Stephens. Please proceed. Jeff Licht: Good afternoon. Thanks for taking my question. I will add my congratulations as a great acquisition. I think you guys are going to do great with it. Thanks, Jeff. I was curious, you mentioned your real estate in your properties and kind of melding that in with ACV. And I was curious, is that along the lines of their commercial business? Or do you see a way on their dealer business as well? Obviously, part of the allure or the value of the digital business is the car sits there, those you do not have the cost of the move. Sometimes you can actually consider wholesaling it or retailing it at the same time. Do you see ways where you might actually be able to bolster the product offering on the dealer side as well using physical locations? A. Jayson Adair: Well, let me start by saying they built an amazing business selling over 800 thousand+ cars, of which the majority are sold at the dealership. That said, there are some dealers that get frustrated that the vehicles they have got limited inventory. They want the vehicles moved. So I think it is both is the answer to your question. it is going to enhance vehicles that are sold at dealerships where they need to be moved. it is gonna enhance when the buyer has bought the vehicle, but they do not want to pick it up for 2 weeks. We can move it to our location and store it until the buyer has time to get it. And then I say both because then it is also gonna help on the commercial side. So when it comes to repos, that was the last question. Repossessions cannot be kept at the repo lot and sold. They have to be brought to Copart. So we will bring them in, and then we will auctioning them off. So I think it is both. Jeff Licht: And then just a quick follow-up on international. During your introductory call, you would mentioned about Germany and how you are using that as a model on the consignment side. Was wondering it is always struck me as a little counterintuitive that Europe is not a little more into the salvage business. If you could just kind of update where that is in other countries? A. Jayson Adair: Sure. I mean there is some markets that are similar to The U. S. Model and there is some markets that are similar to the German model. And I would say the good news is that we figured out the German model. We have had The US model figured out for quite a while. But we have now got the German model figured out. So it is time to start growing and time to start expanding across Europe, and we are going to be doing that. Jeff Licht: And do you think the current growth rate you are at where you are kind of growing low double digits, that is sustainable for a real period of time? A. Jayson Adair: I never give guidance on growth. I am just telling you, as the CEO that we are going to start growing in those markets. Jeff Licht: Awesome. Thank you very much, and best of luck. A. Jayson Adair: You bet. Thank you. Operator: The next question comes from the line of John Babcock with Barclays. Please proceed. Analyst: First 1 is a clarification question. I think in the press release, you have mentioned you expect the deal to be accretive in fiscal 28. I was just quite curious because I think you might have mentioned accretive this year. So is it supposed to be accretive this year or next? Sorry, Jay. Leah C. Stearns: Well, we expect the transaction to be breakeven in the current and effectively accretive in the first full year Which will be in FY 28. Okay. Gotcha. that is helpful. And then the next-- you know, it depends. I said given there is uncertainty in terms of when it closes, we have just guided to 28 months. And then the next 1, was wondering, I just wanted a little bit of clarity on the increase in spending that you had. I was wondering how much of that is driven by your own decision to increase investments in the business versus increases in cost that you cannot control? So the majority of it is driven by the introduction of new products and services. So for example, I think $17 million of the year over year increase in our facility operations cost was driven by increased costs associated with our long haul delivery service. And again, that is a business that we typically generate a nice margin on. So from where we stand, some of this is purely discretionary. We see the revenue coming from a product like that, we are willing to forego we are we are we are willing to take on the additional cost associated with it. And the vast majority of the costs that we have incurred year over year have been associated with products and services that we have introduced for customers as well as bringing on additional capacity with new facilities. So only a small portion was related to the increase in fuel costs. For example, as a result of some of the elevated cost environment the broader economy is experiencing. Okay. And then I guess just as a follow-up to that, On the call in early July, you talked about increasing spending and I mean, that basically happened partway through the quarter. I am just kind of curious, should we expect that the magnitude of spending should increase further in the coming quarter as you start to hit more of a run rate for the quarter? Or how would you have us think about that? So we do not sorry. We do not guide specifically to cost or to any of the metrics on the P and L. But I would say we continue to see opportunities to drive growth across the new products and services that we are offering. So that, you can extrapolate your expectation. With respect to how costs will trend. Analyst: Okay. Thanks. And then just 1 last question, if you do not mind. You mentioned that you are not concerned about pricing Should we think that margins should be comparable next year? Or are there pressures that could weigh on them? A. Jayson Adair: I mean, like Leah said, I am gonna jump in because we just do not give guidance on earnings or any of that. We are very focused on making sure our customers are happy, and we are very focused on increasing buyer liquidity. And we are we are focused on cost control. We are going to try and reduce cost per car. So that is that is what we are letting the street know, and then you will see the results. Analyst: Sounds good. Thanks for the help. Thank you, John. Operator: As a reminder, if you would like to ask a question, please press the star keys. And the next question comes from the line of Jash Patwa with JPMorgan. Please proceed. Analyst: Congratulations on the acquisition announcement as well. Thank you. Just on ACV Auctions, you know, the Viper technology in particular seems like a very compelling tool I was curious if that is something you would look to deploy at the salvage yards to accelerate intake and condition reporting. And, relatedly, is there an opportunity to bring ACVs dealer to dealer wholesale auction capabilities to international markets? Thanks for the follow-up. A. Jayson Adair: We are going to look at-- we are going to look at everything that we can do internally. So we will be forming a team to see what benefits we can bring from ACV over to Copart, what benefits we can bring from Copart over to ACV. And we have I have made it very clear that we are looking at expanding domestically in whole car right now. And internationally in insurance and in salvage. And so we are gonna continue on that path. Analyst: that is fair. Thanks. And just as a quick follow-up, could you give us a refresher on RPU composition within the U.S. insurance business? I am just wondering how large a share is the fixed fee from insurance carriers today and how that has evolved over the past few years. And more broadly, as the value of your service improvements compounds, you know, with rising repair and rental car costs, is there an opportunity to capture more of that in how you are compensated and where else in the claim process do you see room to take on more for carriers? Thank you. Leah C. Stearns: So, Jash, I would say we do not speak specifically to our pricing strategy, but we certainly have had an opportunity to expand products like Title Express to our customers, which is driven an increase in revenue per unit over the course of the last several years. So we will continue to look for ways to add incremental value, for example, offering loan payoff products for our carrier customers. Those will come along with additional fee opportunities, but we will not speak specifically to the mix or how that pricing strategy is developed. Analyst: that is helpful. Thanks, and good luck. Thank you. A. Jayson Adair: Thank you. Operator: This concludes our Q and A session. And I would like to hand the call back to Jay Adair for closing remarks. A. Jayson Adair: Thanks, sir. Appreciate it. George, if you are listening, we are excited and I could not be more excited to be your partner on this. it is great to be back at Copart. I look forward to, all that we are going to do together. Again, I am going to reiterate the fact that we are focused on speed, and that we are as a team, we have got great people, and we are super fired up. So I cannot wait. To report on the next quarter. I look forward to all that we are going to do, and I thank you for attending today. Thanks so much. Bye. Operator: Thank you. This concludes today's conference. You may disconnect your lines at this time. 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. 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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) Q4 2026 Earnings Call Transcript was originally published by The Motley Fool

DALLAS, September 10, 2026--(BUSINESS WIRE)--Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter and year ended July 31, 2026. For the three months ended July 31, 2026, revenue, gross profit, and net income attributable to Copart, Inc. were $1.2 billion, $481.4 million, and $327.4 million, respectively. These represent an increase in revenue of $27.3 million, or 2.4 %; a decrease in gross profit of $28.3 million, or (5.5)%; and a decrease in net income attributable to Copart, Inc. of $68.9 million, or (17.4)%, respectively, from the same period last year. Fully diluted earnings per share for the three months ended July 31, 2026 declined to $0.35 compared to $0.41 last year, or (14.6)%. For the year ended July 31, 2026, revenue, gross profit, and net income attributable to Copart, Inc. were $4.7 billion, $2.1 billion, and $1.5 billion, respectively. These represent an increase in revenue of $19.3 million, or 0.4 %; a decrease in gross profit of $15.8 million, or (0.8)%; and a decrease in net income attributable to Copart, Inc. of $68.2 million, or (4.4)%, respectively, from the same period last year. Fully diluted earnings per share for the year ended July 31, 2026 declined to $1.55 compared to $1.59 last year, or (2.5)%. On Thursday, September 10, 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 November 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. Copart, Inc. 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260910840347/en/ Contacts Copart Investor [email protected]

Copart, Inc. (CPRT) came out with quarterly earnings of $0.35 per share, missing the Zacks Consensus Estimate of $0.39 per share. This compares to earnings of $0.41 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -10.26%. A quarter ago, it was expected that this company would post earnings of $0.41 per share when it actually produced earnings of $0.43, delivering a surprise of +4.88%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Copart, which belongs to the Zacks Auction and Valuation Services industry, posted revenues of $1.15 billion for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 0.52%. This compares to year-ago revenues of $1.13 billion. The company has topped consensus revenue estimates two times 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 18.2% since the beginning of the year versus the S&P 500's gain of 11.6%. 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 $0.42 on $1.18 billion in revenues for the coming quarter and $1.67 on $4.86 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 9% 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. Concentrix Corporation (CNXC), another stock in the broader Zacks Business Services sector, has yet to report results for the quarter ended August 2026. The results are expected to be released on September 29. This company is expected to post quarterly earnings of $2.71 per share in its upcoming report, which represents a year-over-year change of -2.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Concentrix Corporation's revenues are expected to be $2.48 billion, down 0.2% 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 Concentrix Corporation (CNXC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

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