Copart (CPRT) Q1 2026 earnings summary

Executive summary

• Net income for the quarter ended October 31, 2025, was $404 million, up 11.5% year-over-year, with diluted EPS of $0.41 compared to $0.37 last year.

• Revenue for the quarter was $1.16 billion, up 0.7% year-over-year, driven by higher international service revenues and U.S. vehicle sales.

• Operating income rose 6% to $431 million, reflecting improved revenue per car and cost management.

• Global insurance units declined 8.4% year-over-year, or 5.6% excluding catastrophic (CAT) volumes, with U.S. insurance units down 9.5% (7.3% ex-CAT).

• Despite lower volumes, average selling prices for U.S. insurance carriers reached all-time highs, with global insurance ASPs up 6.8% and U.S. insurance ASPs up 8.4% year-over-year.

Financial highlights

• Consolidated revenue grew just under 1% year-over-year (2.9% ex-CAT) to $1.16 billion.

• Gross profit increased 4.9% to $537 million; gross margin improved to 46.5%.

• Operating income rose 6% (4.5% ex-CAT) to $431 million; net income was $404 million, up 11.5% year-over-year.

• Net cash provided by operating activities was $535.3 million, up 11% year-over-year.

• Cash and equivalents at quarter-end totaled $5.23 billion, up from $2.78 billion at the start of the quarter.

Outlook and guidance

• Management maintains long-term conviction in rising total loss frequency, expecting it to reach 25–30% over time.

• Sufficient liquidity and cash flow are expected to support ongoing operations, expansion, and potential acquisitions.

• Softness in used car markets and potential insurance rate relief are seen as supportive for future volume growth.

• Ongoing investments in technology, storage, and logistics are expected to support long-term growth.