Copart reports fourth-quarter 2026 results

On Thursday, Copart (NASDAQ: CPRT ) discussed fourth-quarter financial results during its earnings call. The full transcript is provided below. APIs provide real-time access to earnings call transcripts and financial data. Visit to learn more.

4%. The company is focusing on three pillars for growth: international expansion, domestic whole car expansion, and investment in technology and services. Copart announced the acquisition of ACV, a digital automotive marketplace, expected to be accretive to earnings in the first full year. 7% and international sales up 10%.

7%, with efforts underway to address cost management. Management is optimistic about the integration of ACV, citing cultural alignment and strategic benefits. International operations showed strong performance with a 10% increase in units sold, driven by UK and Canadian operations. Full Transcript OPERATOR Good day everyone and welcome to Copart fourth quarter fiscal 2026 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 the 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, we refer you to the section titled Risk Factors in the Company's annual report on Form 10-K for the year ended July 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-looking statements. I will now turn the call over to the Company's CEO and Executive Chairman, Jay Adair. Jay Adair, Executive Chairman All right, thank you.

Well, welcome everyone to the fourth quarter earnings call for 2026. I've got some prepared remarks that I'll talk to and then I will turn it over to Leah Stearns, our CFO, and then we will open it up for questions. So I'll remind you that on the prior call I talked about the three pillars of growth for Copart. We will continue to focus on international expansion, on insurance, we'll continue to focus on whole car expansion domestically, and then we'll continue to invest in technology and services that assist all of our customers.

Additionally, we view the differentiators for Copart as, one, we are a business that is run by founders and that has a founder's mindset. We don't think in quarters or years, we think in decades. Very long term. Number two, I would say liquidity.

When you think about how our website functions, we are constantly focused on improving buyer activity and I'll talk more about some of the buyer data that we've got. But that liquidity continues to be a differentiator and then in the spirit of acting like a startup, we are very fast, we're moving very quickly and we're bringing products and services to market in quarters, not in years. So we expect to have some of that coming out in the next four quarters. 9%.

7%. Internationally we were up 10%. 2. 3%.

4% year over year. This is a moderation from a high of single-digit declines through 2025. 4% in the same quarter last year. 8% year over year, fastest in more than three years and the fourth straight quarter of acceleration.

Repair costs are up more than 50% from 2019 levels per data from CCC. 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.

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 approximately 100 million lines of code. So when we think about cars, they really are becoming computers on wheels. We believe total loss frequency will continue to go up.

27% year over year in the fourth quarter of 2026. 6% year over year in calendar quarter two, 2026. 1% year over year in 4Q26. 7% year over year in 4Q26.

3% year over year in 4Q26. 8% year over year in 4Q26. So we are outpacing the Mannheim index. As we stated before, liquidity comes from buyers.

And so I'd 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 one year or more ago that buyer was not buying from Copart, was likely not aware of Copart. 9% of our total vehicles.

3%. So we've seen nice growth there. 7% of our vehicles. S.

to international buyers. S. 2% of our units. 7% of the total amount of dollars that we sold in the vehicle.

So they're obviously buying a more valuable vehicle when they're purchasing it internationally. On the previous call, I spoke to AI and I think about AI as a very important differentiator for Copart. As we stated, we'll continue to lower costs through automation. This is an important part of our journey and we're very focused on that.

But I think even more important is using AI to create more demand for the vehicles that we're selling. The ability for a buyer to find that vehicle and to find a vehicle that matches their desired purchase is becoming more and more important every single day. So if you think about the journey of becoming aware of Copart, then 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 one of our core tenets in Copart, in continuing to make sure that we have less and less opportunity for mistakes. 7%. Leah will talk more about expense control. My point is that we are focused on it.

We are going to be working towards 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, one of the largest primarily digital automotive marketplaces in the country. ACV sells more than 800,000 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 22,000 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 one 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 one 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's 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 Stearns, Chief Financial Officer 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.

S. and international segments and close with capital structure and liquidity highlights. 4% year over year, driven by the strength in both service revenues and purchased vehicle sales. 3%.

4%, with service revenue up $1 million, which was primarily due to increased international volumes and higher revenue per unit. As a reminder, FY25 included the benefit of Hurricanes Helene and Milton. 4%. 7% on a per unit basis.

7% for the full year. 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. 8%.

S. 8%, and was flat when you exclude the impact of CAT events in 2025. 7% for the full year. 7 billion.

6%. As a reminder, we had a one-time $13 million gain on the disposal of assets in the fourth quarter of 2025. 63 billion into share repurchases earlier in the fiscal year, contributed to the year-over-year decline in net income. 55 per diluted common share.

1%. 2%, and as of year end global inventory was down 1% from the year-ago period. S. 4% in the quarter as higher revenue per unit largely offset a decline in volume.

S. service revenue decreased less than 1% for the quarter and less than 2% for the full year, with the full-year decline primarily related to the one-time revenue associated with Hurricanes Helene and Milton, which was recognized in fiscal 25, and offset by an increase in revenue per car. S. 7%.

S. 5%. S. 7%, representing an increase of 40 basis points compared to fiscal 25.

S. 2% increase on a per unit basis and again reflects the ongoing investments I referenced earlier. S. 6% on a per unit basis.

S. business on behalf of our sellers and members to 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.

S. 8% for the full year. S. 6% operating margin.

9% for the fiscal year 2026. S. 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.

S. 2%, marking a strong sequential improvement which we believe reflects the traction of our commercial and dealer initiatives. 9% for the year. 5% for the fiscal year, as we continue to optimize our principal unit strategy.

S. S. 5%. S.

5% for the full year. S. 2%. 1 million.

5% increase in fee revenue per unit and volume growth. 1%. 5%.