Copart, Inc. (NASDAQ: CPRT) — FY2026 Form 10-K
Reporting period: Fiscal year ended July 31, 2026; comparisons are principally with fiscal 2025. Copart operates online vehicle auctions and remarketing services in the U.S. and international markets. Insurance companies supplied 79% of vehicles processed. The U.S. generated 81.6% of FY2026 revenue.
Financial performance and liquidity
| Metric | FY2026 | FY2025 | Change |
|---|---|---|---|
| Service revenue | $3.970 billion | $3.969 billion | Effectively flat |
| Vehicle sales revenue | $696.7 million | $678.3 million | +2.7% |
| Total revenue | $4.666 billion | $4.647 billion | +0.4% |
| Operating income | $1.653 billion | $1.697 billion | -2.6% |
| Net income attributable to Copart | $1.484 billion | $1.552 billion | -4.4% |
| Diluted EPS | $1.55 | $1.59 | -2.5% |
| Cash from operations | $1.604 billion | $1.800 billion | -10.8% |
- Operating margin was approximately 35.4% of total revenue, versus 36.5% in FY2025; net income attributable to Copart was approximately 31.8% of revenue, versus 33.4%.
- FY2026 total other income was $182.4 million, mainly interest income; income tax expense was $354.6 million and the effective tax rate was 19.3%, up from 18.3%.
- At July 31, 2026, cash, cash equivalents and restricted cash totaled $1.908 billion, and held-to-maturity Treasury securities were $2.582 billion. Working capital was $4.864 billion.
- The company reported no revolver borrowings; $1.228 billion of the $1.250 billion unsecured revolving facility was available after $22.5 million of letters of credit. The facility matures January 23, 2031. Lease liabilities totaled $88.4 million.
- Property and equipment, net, was $3.733 billion. Capital expenditures and acquisitions totaled $342.4 million, primarily reflecting $337.4 million of property and equipment purchases.
Changes and notable items
- U.S. service revenue declined 1.8%, while international service revenue rose 12.4%. International growth included favorable foreign-exchange effects; excluding those effects, management cited higher revenue per vehicle and volume.
- Management attributed lower U.S. service revenue partly to the prior-year one-time revenue from Hurricanes Helene and Milton and lower volume, partly offset by higher revenue per vehicle. FY2025 also included substantial hurricane-related costs, making year-over-year comparisons unusual.
- Operating income and earnings declined despite slightly higher total revenue, as facility operations and general and administrative expenses increased. G&A rose 7.0%, including higher labor and other business investment costs.
- Copart repurchased 43.4 million shares for approximately $1.6 billion during FY2026; no program repurchases were reported in FY2025 or FY2024. The company does not pay a cash dividend.
- On September 10, 2026, after year-end, Copart agreed to acquire ACV Auctions for $10.50 per share in cash, with an implied equity value of approximately $1.9 billion. Closing is expected by the end of calendar 2026, subject to shareholder tender, regulatory review and other conditions. The transaction is not reflected in FY2026 financial statements.
Outlook, risks and contingencies
- No quantified revenue, earnings or margin guidance is provided. Management expects available cash and operating cash flow to meet foreseeable operating and working-capital needs, while anticipating facility expansion and the ACV cash purchase price.
- Key business sensitivities include salvage-vehicle supply, accident and total-loss frequency, used-car and commodity prices, weather, vehicle mix, transportation costs, foreign exchange and international buyer demand. Severe weather can increase volumes but also strain facility capacity and raise costs; mild weather can reduce supply.
- The Department of Justice is conducting an ongoing investigation into potential money-laundering-law violations concerning controls over auction-platform members. Copart says it is cooperating; it cannot predict the investigation’s duration, outcome or potential loss range.
- Other material risks include seller concentration collectively (although no single customer exceeded 10% of revenue), competition, facility capacity and zoning, international expansion, tariffs and import restrictions, environmental liabilities, cybersecurity and privacy, and evolving regulation of AI. Copart disclosed a 2023 ransomware incident at an immaterial subsidiary; it did not affect the rest of the business.
- Management reported effective disclosure controls and internal control over financial reporting; the auditor issued unqualified opinions on the financial statements and internal controls. The filing reports no critical audit matters.
Important facts for investors to verify
- Review the complete segment disclosures and assess whether international growth can offset flat U.S. service revenue and lower consolidated operating income.
- Track operating cash flow, working-capital movements and the deployment of the $4.49 billion in cash and Treasury securities, especially after the $1.6 billion share repurchase and ahead of the proposed ACV acquisition.
- Verify ACV transaction financing, closing conditions, regulatory status and expected integration costs; the filing does not estimate its financial-statement impact.
- Monitor developments in the DOJ investigation, including any eventual proceedings, penalties or changes to member-compliance practices; no loss range is currently estimable.
- Reconcile the filing’s facility-opening disclosures: one section says seven U.S. facilities opened in FY2026, while another says six. Confirm the correct count and related capacity additions.