Copart (CPRT) Q1 2025 earnings summary

Executive summary

• Q1 fiscal 2025 revenue reached $1.15 billion, up 12.4% year-over-year, with strong growth in insurance, bank, rental, and fleet seller segments, and a focus on storm response and long-term industry trends.

• Net income attributable to Copart rose 8.9% to $362.1 million, with diluted EPS up 8.8% to $0.37.

• Service revenues grew 14.8% to $986.3 million, driven by higher U.S. and international volumes and revenue per car.

• The company responded to back-to-back hurricanes in Florida with improved speed and efficiency, incurring $29 million in hurricane-related costs.

• Copart operates over 250 locations in 11 countries, selling more than 4 million units in the last year.

Financial highlights

• Global revenue was $1.15 billion, up 12.4% year-over-year; U.S. service revenues grew 12.8%, international 30.2%.

• Operating income increased 2.8% to $406.4 million; operating margin was about 35.5%.

• Gross profit rose 10.4% to $512.1 million, with gross margin at 44.7%.

• Net cash from operating activities was $482.3 million, up 28.5% year-over-year.

• Free cash flow for the quarter was $246 million.

Outlook and guidance

• Management expects ongoing organic industry growth over 5, 10, and 20-year horizons, driven by population, vehicle miles traveled, and total loss frequency.

• Continued growth is expected through facility expansion, acquisitions, and increased service offerings.

• Sufficient liquidity and cash flow are anticipated to fund operations and expansion for the foreseeable future.

• Investments will continue in land, technology, and operational capacity to support growth and volatility.