Copart (CPRT) Q2 2025 earnings summary

Executive summary

• Global revenue for Q2 FY2025 was $1.16 billion, up 14% year-over-year, with net income rising 19% to $387.4 million and diluted EPS of $0.40.

• Service revenues grew 15% to $991.3 million, driven by higher U.S. and international volumes and revenue per car.

• Technology investments, including AI-enabled image recognition and Title Express, are enhancing operational efficiency and customer satisfaction.

• Cash, cash equivalents, and restricted cash more than doubled to $3.34 billion as of January 31, 2025, reflecting strong operating cash flow and security maturities.

• The company expanded into non-insurance sellers, completed the acquisition of Purple Wave, Inc., and opened several new U.S. and international facilities.

Financial highlights

• Total service revenues and vehicle sales for the quarter were $1.16 billion, up from $1.02 billion year-over-year.

• Gross profit for Q2 was $525.6 million, up 13.2% year-over-year, with a gross margin of about 45%.

• GAAP operating income increased 12% to over $426 million; net income rose 19% to over $387 million, or $0.40 per diluted share.

• Cash from operations for the six months was $660.4 million, up 23% year-over-year.

• Interest income increased by nearly $7 million due to active cash investment in Treasury securities.

Outlook and guidance

• Management expects continued growth through facility expansion, acquisitions, and increased service offerings.

• Sufficient liquidity is anticipated to fund working capital, expansion, and potential acquisitions, with $1.25 billion in undrawn revolving credit available.

• Management views potential tariffs as neutral to modestly positive for business, with diversified international demand mitigating risks.