Copart (CPRT) investor relations material

Executive summary

• Global insurance units declined 9% year-over-year, or 4% excluding catastrophic (CAT) units; U.S. insurance units fell 10.7%, or 4.8% excluding CAT.

• Net income for the quarter was $350.7 million, down 9.5% year-over-year, with diluted EPS at $0.36, a 10% decrease.

• Record average selling prices (ASPs) for U.S. insurance consignors, with ASPs up 6% year-over-year, or 9% excluding CAT.

• Cash, cash equivalents, and restricted cash increased to $5.1 billion as of January 31, 2026, reflecting strong operating cash flow and proceeds from maturing securities.

• Liquidity and technology, including AI deployment, are key competitive advantages, driving productivity and auction outcomes.

Financial highlights

• Consolidated revenue for the quarter was $1.12 billion, down 3.6% year-over-year; excluding CAT, revenue increased 1.3%.

• Global gross profit for the quarter was $492.8 million, down 6.2%; adjusted for CAT and a $6.8 million one-time VAT expense, gross profit increased 0.4% and gross margin rose 178 bps to 45%.

• Operating income for the quarter was $388.7 million, down 8.8% year-over-year.

• U.S. total revenue declined 5.5%, but was flat excluding CAT; international revenue increased 6.1% (7.7% ex-CAT) to $200 million, with a $13.4 million FX benefit.

• Free cash flow increased 58% year-to-date; operating cash flow for the six months was $662.8 million.

Outlook and guidance

• Management expects cyclical trends in insurance coverage and policy growth to eventually reverse, supporting future volume growth.

• Sufficient liquidity for ongoing operations and future expansion, with $1.25 billion in unused credit facility capacity.

• Continued disciplined investment in land, capacity, and facility expansion to support long-term growth.