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Copart

CPRT · Nasdaq

Operating margin has slipped five years in a row

Operating margin fell from 42.2% in FY2021 to 35.4% in FY2026, so revenue has grown faster than the profit it brings.

FY2026, the fiscal year to Jul 31, 2026 · 10-K filed Sep 29, 2026

FY2026 · revenue
$4.7B+0.4% on the year
Operating margin
35.4%
Net income
$1.5B
Free cash flow
$1.3B

Largest source of revenue: Service, 85.1% of the total.

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Where Copart's money goes

Tap the picture to explore the flow: levels, scale, every line and its figures.
Key insights · FY2026
  1. 01

    Operating margin has slipped five years in a row

    Operating margin fell from 42.2% in FY2021 to 35.4% in FY2026, so revenue has grown faster than the profit it brings.

    Why it matters

    Revenue rose from $2.69B in FY2021 to $4.67B in FY2026, while operating income rose from $1.14B to $1.65B. The operating margin went from 42.2% in FY2021 to 39.3% in FY2022. In FY2023 operating income was $1.49B on revenue of $3.87B. The margin was then 37.1% in FY2024, 36.5% in FY2025 and 35.4% in FY2026.1

    In FY2026 costs grew faster than revenue. Revenue rose 0.41%, total operating expenses 2.15% and general and administrative expense 7.0%, to 9.24% of revenue from 8.67%. Operating income fell 2.6% to $1.65B. The filing attributes the flat service line to the prior year's one-time hurricane revenue and lower U.S. volume, offset by higher revenue per car.1

    The squeeze was sharpest at year end. Fourth-quarter operating income was $368.9M on $1.15B of revenue, a 32.0% margin, against $412.6M on $1.13B, or 36.7%, a year earlier. The fourth-quarter figures are derived as the annual total less the first nine months.1

    AnalysisPart of the long slide may be mix rather than pricing: the purchased-car line keeps only a thin spread, so growth in it lowers the blended margin. The filing figures here give no fee or cost per car history, so mix and cost per car cannot be separated from them.

  2. 02

    Fees carry the profit; owned cars mostly pass through

    Vehicle sales were 14.9% of revenue, but their cost took 88.5% of that line, while yard costs took 49.5% of service fees.

    Why it matters

    Copart records its auction fees "as net revenue (not gross vehicle selling price)", so the price of the car never enters revenue. Service revenue was $3.97B, 85.1% of the $4.67B total. Facility operations, the cost of moving, storing and processing cars, were $1.97B, 49.5% of service revenue against 49.0% a year earlier.1

    Vehicle sales, the cars Copart buys and resells itself, mostly in the U.K., were $696.7M against a cost of vehicle sales of $616.5M, 88.5% of the line against 88.9% a year earlier. The line grew 2.71%, faster than service revenue at 0.02%, and its share of revenue rose 0.33 points to 14.9%.1

    AnalysisFacility operations also serve the purchased cars, so the 49.5% overstates the fee line's own yard cost; it is not a segment margin. The point holds either way: a dollar of fees keeps far more than a dollar of vehicle sales, so the balance between the two lines moves the blended margin.

  3. 03

    Free cash flow rose because land spending fell

    Operating cash flow fell to $1.60B from $1.80B, yet free cash flow rose to $1.27B as capital spending dropped to $337.4M.

    Why it matters

    Capital expenditure was $337.4M against $569.0M a year earlier, 21.0% of operating cash flow against 31.6%. Free cash flow was $1.27B against $1.23B, a 27.2% margin on revenue. Operating cash flow was 108.1% of net income attributable to Copart, against 115.9% a year earlier.1

    The year stands out in the record. Capital expenditure was $592.0M in FY2020, 26.8% of that year's revenue, and $569.0M in FY2025, 12.2%. FY2026's 7.23% of revenue is the lowest share in the eight years from FY2019.1

    AnalysisYard land is what lets Copart take a storm's cars, and the filing says the prior year's hurricanes hurt results partly through facility capacity constraints. A year of lower spending lifts free cash flow, but it reads as a timing choice, not a change in what the business earns. Whether the spending pace returns is the thing to watch.

  4. 04

    Interest on cash earns a tenth of pretax profit

    Interest income of $181.9M was 9.9% of pretax income, so net profit leans on the cash balance as well as the auctions.

    Why it matters

    Interest income was $181.9M against $178.9M a year earlier, 11.0% of operating income and 9.9% of pretax income of $1.83B. Other income fell to $0.46M from $20.0M, and the tax rate rose to 19.3% from 18.3%.1

    That is why net income fell faster than operating income: net income attributable to Copart fell 4.39% to $1.48B, against a 2.6% fall in operating income. Diluted earnings per share were $1.55 against $1.59, on 956.9M diluted shares against 977.6M.1

    AnalysisInterest income depends on the size of the cash balance and on rates. The year's share repurchases and the pending purchase of ACV Auctions both draw on that cash, so if both go ahead, more of the earnings would have to come from the operating line.

Sources

  1. 1.Copart 10-K for the period to 2026-07-31 (the filing), Sep 29, 2026, read Nov 2, 2026

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Business performance

Growth, profit and margin

Revenue went from $743.1M in FY2009 to $4.7B in FY2026, the operating margin from 30.3% to 35.4%, over 17 years.

  • Revenue$4.7B
  • Operating income$1.7B
  • Operating margin35.4%
Period
FY2026
Revenue
$4.7B
Operating income
$1.7B
Operating margin
35.4%
Net income
$1.5B
Free cash flow
$1.3B
Business performance

Does the profit turn into cash?

FY2026: free cash flow of $1.3B against net income of $1.5B.

  • Operating cash flow$1.6B
  • Capital expenditure$337.4M
  • Free cash flow$1.3B
  • Net income$1.5B

Capital expenditure is drawn below the axis as cash out. Cash conversion is operating cash flow over net income, shown in the tooltip for years with a profit.

Financial data and sources

How the revenue mix has shifted

Each breakdown the filing reports, as shares of revenue, for every period it restates.

Revenue streams

CONSOLIDATED STATEMENTS OF INCOME. The filing restates this breakdown for 3 periods.

Click a member to isolate it across the years shown.

The figures

Margins, cash and growth for the period, each with what it was computed from.

Gross margin
Not reported
the company reports expenses by nature: no cost of revenue or gross profit line exists
Operating margin
35.4%
Source10-K, Derived from Operating income and Total service revenues and vehicle sales in the 10-K filed 2026-09-29
Net margin
31.8%
Source10-K, Derived from Net income attributable to Copart, Inc. and Total service revenues and vehicle sales in the 10-K filed 2026-09-29
Free cash flow
$1.3B
Source10-K, Derived from Net cash provided by operating activities and Purchases of property and equipment in the 10-K filed 2026-09-29
Free cash flow margin
27.2%
Source10-K, Derived from Net cash provided by operating activities and Purchases of property and equipment and Total service revenues and vehicle sales in the 10-K filed 2026-09-29
Cash conversion
1.08x
Source10-K, Derived from Net cash provided by operating activities and Net income attributable to Copart, Inc. in the 10-K filed 2026-09-29
Capital spending
7.2%
Source10-K, Derived from Purchases of property and equipment and Total service revenues and vehicle sales in the 10-K filed 2026-09-29
Revenue growth
+0.4%
From the record's own history, against the prior year.

Not reported, or not derivable

  • gross margin: the company reports expenses by nature: no cost of revenue or gross profit line exists

Where revenue comes from

Every breakdown the filing reports for the period, with each item's share.

Revenue streams

Service$4.0B85.1%
Product$696.7M14.9%

Source10-K, us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax, as reported in the 10-K filed 2026-09-29

What it costs

The cost lines beneath operating income, each as a share of revenue, then the operating result.

Costs are reported by nature: what they are (food, labor, occupancy, personnel, marketing), not what they were for, so there is no cost-of-revenue line and no gross profit.

Cost lineFY2026Of revenueSource
Total operating expenses$3.0B64.6%Source10-K, us-gaap:CostsAndExpenses, as reported in the 10-K filed 2026-09-29
Operating income$1.7B35.4%Source10-K, us-gaap:OperatingIncomeLoss, as reported in the 10-K filed 2026-09-29

The statements, as filed

The income statement, cash flow statement and balance sheet in the company's own order and words. Every line links to the filing.

Income statement20 lines, as presented in the 10-K
LineFY2026A year earlierChangeOf revenueSource
Income Statement
Total service revenues and vehicle sales$4.67B$4.65B+0.4%100%Source10-K, us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax, as reported in the 10-K filed 2026-09-29
Service$3.97B$3.97B+0.0%85.1%Source10-K, us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax [us-gaap:ServiceMember], as reported in the 10-K filed 2026-09-29
Product$696.7M$678.3M+2.7%14.9%Source10-K, us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax [us-gaap:ProductMember], as reported in the 10-K filed 2026-09-29
Operating expenses:
Facility operations$1.97B$1.94B+1.1%42.1%Source10-K, us-gaap:DirectOperatingCosts, as reported in the 10-K filed 2026-09-29
Cost of vehicle sales$616.5M$603.0M+2.2%13.2%Source10-K, us-gaap:CostDirectMaterial, as reported in the 10-K filed 2026-09-29
General and administrative$431.3M$402.9M+7.0%9.2%Source10-K, us-gaap:GeneralAndAdministrativeExpense, as reported in the 10-K filed 2026-09-29
Total operating expenses$3.01B$2.95B+2.1%64.6%Source10-K, us-gaap:CostsAndExpenses, as reported in the 10-K filed 2026-09-29
Income Statement
Operating income$1.65B$1.70B-2.6%35.4%Source10-K, us-gaap:OperatingIncomeLoss, as reported in the 10-K filed 2026-09-29
Other income:
Interest income$181.9M$178.9M+1.7%3.9%Source10-K, us-gaap:InterestIncomeExpenseNonoperatingNet, as reported in the 10-K filed 2026-09-29
Other income (expense), net$464.0K$20.0M-98%0.0%Source10-K, us-gaap:OtherNonoperatingIncomeExpense, as reported in the 10-K filed 2026-09-29
Total other income$182.4M$198.9M-8.3%3.9%Source10-K, us-gaap:NonoperatingIncomeExpense, as reported in the 10-K filed 2026-09-29
Income Statement
Total income before taxes$1.83B$1.90B-3.2%39.3%Source10-K, us-gaap:IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest, as reported in the 10-K filed 2026-09-29
Income tax expense$354.6M$347.2M+2.1%7.6%Source10-K, us-gaap:IncomeTaxExpenseBenefit, as reported in the 10-K filed 2026-09-29
Net income$1.48B$1.55B-4.4%31.7%Source10-K, us-gaap:ProfitLoss, as reported in the 10-K filed 2026-09-29
Less: Net loss attributable to redeemable noncontrolling interest-$3.9M-$4.1M-5.2%0.1%Source10-K, us-gaap:NetIncomeLossAttributableToNoncontrollingInterest, as reported in the 10-K filed 2026-09-29
Net income attributable to Copart, Inc.$1.48B$1.55B-4.4%31.8%Source10-K, us-gaap:NetIncomeLoss, as reported in the 10-K filed 2026-09-29
Basic net income per common share$2$2-3.1%0.0%Source10-K, us-gaap:EarningsPerShareBasic, as reported in the 10-K filed 2026-09-29
Weighted average common shares outstanding949,640,000965,306,000-1.6%Source10-K, us-gaap:WeightedAverageNumberOfSharesOutstandingBasic, as reported in the 10-K filed 2026-09-29
Diluted net income per common share$2$2-2.5%0.0%Source10-K, us-gaap:EarningsPerShareDiluted, as reported in the 10-K filed 2026-09-29
Diluted weighted average common shares outstanding956,860,000977,563,000-2.1%Source10-K, us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding, as reported in the 10-K filed 2026-09-29
Cash flow statement40 lines, as presented in the 10-K
LineFY2026A year earlierChangeSource
Cash flows from operating activities:
Net income$1.48B$1.55B-4.4%Source10-K, us-gaap:ProfitLoss, as reported in the 10-K filed 2026-09-29
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization, including debt cost$238.5M$217.8M+9.5%Source10-K, us-gaap:DepreciationAmortizationAndAccretionNet, as reported in the 10-K filed 2026-09-29
Allowance for credit losses$5.6M$354.0K+1,482%Source10-K, us-gaap:ProvisionForDoubtfulAccounts, as reported in the 10-K filed 2026-09-29
Gain on extinguishment of liabilities (shown as a deduction)($0)$0Source10-K, cprt:GainLossOnExtinguishmentOfLiabilities, as reported in the 10-K filed 2026-09-29
Equity in losses (income) from unconsolidated affiliates (shown as a deduction)(-$326.0K)$149.0KSource10-K, us-gaap:IncomeLossFromEquityMethodInvestments, as reported in the 10-K filed 2026-09-29
Stock-based compensation$38.8M$38.0M+2.1%Source10-K, us-gaap:ShareBasedCompensation, as reported in the 10-K filed 2026-09-29
Loss (gain) on sale of property and equipment (shown as a deduction)(-$1.1M)$13.7MSource10-K, us-gaap:GainLossOnSaleOfPropertyPlantEquipment, as reported in the 10-K filed 2026-09-29
Deferred taxes$47.4M-$13.4MSource10-K, us-gaap:DeferredIncomeTaxExpenseBenefit, as reported in the 10-K filed 2026-09-29
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable (shown as a deduction)($80.6M)$34.0M+137%Source10-K, us-gaap:IncreaseDecreaseInAccountsReceivable, as reported in the 10-K filed 2026-09-29
Vehicle pooling costs (shown as a deduction)($6.4M)-$16.7MSource10-K, cprt:IncreaseDecreaseInVehiclePoolingCosts, as reported in the 10-K filed 2026-09-29
Inventories (shown as a deduction)($11.4M)-$4.7MSource10-K, us-gaap:IncreaseDecreaseInInventories, as reported in the 10-K filed 2026-09-29
Prepaid expenses and other current and non-current assets (shown as a deduction)($47.6M)-$7.7MSource10-K, us-gaap:IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets, as reported in the 10-K filed 2026-09-29
Operating lease right-of-use assets and lease liabilities (shown as a deduction)(-$690.0K)-$478.0K+44%Source10-K, us-gaap:IncreaseDecreaseInOtherOperatingAssets, as reported in the 10-K filed 2026-09-29
Accounts payable and accrued liabilities$32.5M$69.6M-53%Source10-K, us-gaap:IncreaseDecreaseInAccountsPayableAndAccruedLiabilities, as reported in the 10-K filed 2026-09-29
Deferred revenue$1.9M$2.2M-12%Source10-K, us-gaap:IncreaseDecreaseInDeferredRevenue, as reported in the 10-K filed 2026-09-29
Income taxes receivable (shown as a deduction)($49.3M)$575.0K+8,470%Source10-K, us-gaap:IncreaseDecreaseInIncomeTaxesReceivable, as reported in the 10-K filed 2026-09-29
Income taxes payable-$47.4M-$44.3M+7.1%Source10-K, us-gaap:IncreaseDecreaseInAccruedIncomeTaxesPayable, as reported in the 10-K filed 2026-09-29
Cash flows from operating activities:
Net cash provided by operating activities$1.60B$1.80B-11%Source10-K, us-gaap:NetCashProvidedByUsedInOperatingActivities, as reported in the 10-K filed 2026-09-29
Cash flows from investing activities:
Purchases of property and equipment (shown as a deduction)($337.4M)$569.0M-41%Source10-K, us-gaap:PaymentsToAcquirePropertyPlantAndEquipment, as reported in the 10-K filed 2026-09-29
Assets and liabilities acquired in connection with acquisition (shown as a deduction)($5.0M)$1.2M+309%Source10-K, us-gaap:PaymentsToAcquireBusinessesNetOfCashAcquired, as reported in the 10-K filed 2026-09-29
Proceeds from sale of property and equipment$12.6M$31.8M-60%Source10-K, us-gaap:ProceedsFromSaleOfPropertyPlantAndEquipment, as reported in the 10-K filed 2026-09-29
Investment in held to maturity securities (shown as a deduction)($2.89B)$4.00B-28%Source10-K, us-gaap:PaymentsToAcquireHeldToMaturitySecurities, as reported in the 10-K filed 2026-09-29
Proceeds from held to maturity securities$2.35B$3.96B-41%Source10-K, us-gaap:ProceedsFromSaleOfHeldToMaturitySecurities, as reported in the 10-K filed 2026-09-29
Investment in unconsolidated affiliate (shown as a deduction)($3.7M)$7.1M-48%Source10-K, us-gaap:PaymentsToAcquireInterestInSubsidiariesAndAffiliates, as reported in the 10-K filed 2026-09-29
Net cash used in investing activities-$877.6M-$587.4M+49%Source10-K, us-gaap:NetCashProvidedByUsedInInvestingActivities, as reported in the 10-K filed 2026-09-29
Cash flows from financing activities:
Proceeds from the exercise of stock options$16.7M$42.8M-61%Source10-K, us-gaap:ProceedsFromStockOptionsExercised, as reported in the 10-K filed 2026-09-29
Proceeds from the issuance of Employee Stock Purchase Plan shares$14.3M$14.7M-2.5%Source10-K, us-gaap:ProceedsFromIssuanceOfSharesUnderIncentiveAndShareBasedCompensationPlans, as reported in the 10-K filed 2026-09-29
Repurchases of common stock (shown as a deduction)($1.63B)$0Source10-K, us-gaap:PaymentsForRepurchaseOfCommonStock, as reported in the 10-K filed 2026-09-29
Payments for employee stock-based tax withholdings (shown as a deduction)($3.7M)$5.3M-29%Source10-K, us-gaap:PaymentsRelatedToTaxWithholdingForShareBasedCompensation, as reported in the 10-K filed 2026-09-29
Principal payments on revolver facility (shown as a deduction)($0)$0Source10-K, us-gaap:RepaymentsOfLinesOfCredit, as reported in the 10-K filed 2026-09-29
Debt issuance costs (shown as a deduction)($1.5M)$0Source10-K, us-gaap:PaymentsOfDebtIssuanceCosts, as reported in the 10-K filed 2026-09-29
Payments of finance lease obligations (shown as a deduction)($60.0K)$49.0K+22%Source10-K, us-gaap:FinanceLeasePrincipalPayments, as reported in the 10-K filed 2026-09-29
Net cash (used) provided by financing activities-$1.61B$52.1MSource10-K, us-gaap:NetCashProvidedByUsedInFinancingActivities, as reported in the 10-K filed 2026-09-29
Statement of Cash Flows
Effect of foreign currency translation$7.3M$2.0M+265%Source10-K, us-gaap:EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents, as reported in the 10-K filed 2026-09-29
Net increase (decrease) in cash, cash equivalents, and restricted cash-$872.6M$1.27BSource10-K, us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect, as reported in the 10-K filed 2026-09-29
Cash, cash equivalents, and restricted cash at beginning of period$2.78BSource10-K, us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents, as reported in the 10-K filed 2026-09-29
Cash, cash equivalents, and restricted cash at end of period$1.91B$2.78B-31%Source10-K, us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents, as reported in the 10-K filed 2026-09-29
Supplemental disclosure of cash flow information:
Interest paid$1.9M$2.0M-7.6%Source10-K, us-gaap:InterestPaidNet, as reported in the 10-K filed 2026-09-29
Income taxes paid, net of refunds$398.4M$409.0M-2.6%Source10-K, us-gaap:IncomeTaxesPaidNet, as reported in the 10-K filed 2026-09-29
Purchase of property and equipment through settlement of deposit$6.2M$64.1M-90%Source10-K, us-gaap:OtherSignificantNoncashTransactionValueOfConsiderationReceived1, as reported in the 10-K filed 2026-09-29
Balance sheet31 lines, as presented in the 10-K
LineFY2026A year earlierChangeSource
Current assets:
Cash, cash equivalents, and restricted cash$1.91B$2.78B-31%Source10-K, us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents, as reported in the 10-K filed 2026-09-29
Investment in held to maturity securities$2.58B$2.01B+29%Source10-K, us-gaap:DebtSecuritiesHeldToMaturityAmortizedCostAfterAllowanceForCreditLoss, as reported in the 10-K filed 2026-09-29
Accounts receivable, net of allowance for credit losses of $18,551 and $12,945, respectively$809.2M$762.8M+6.1%Source10-K, us-gaap:AccountsReceivableNetCurrent, as reported in the 10-K filed 2026-09-29
Vehicle pooling costs$122.9M$116.1M+5.9%Source10-K, cprt:VehiclePoolingCosts, as reported in the 10-K filed 2026-09-29
Inventories$51.4M$39.7M+30%Source10-K, us-gaap:InventoryNet, as reported in the 10-K filed 2026-09-29
Income taxes receivable$49.9M$580.0K+8,496%Source10-K, us-gaap:IncomeTaxesReceivable, as reported in the 10-K filed 2026-09-29
Prepaid expenses and other assets$45.0M$46.4M-3.0%Source10-K, us-gaap:PrepaidExpenseAndOtherAssetsCurrent, as reported in the 10-K filed 2026-09-29
Total current assets$5.57B$5.75B-3.2%Source10-K, us-gaap:AssetsCurrent, as reported in the 10-K filed 2026-09-29
Assets
Property and equipment, net$3.73B$3.60B+3.8%Source10-K, us-gaap:PropertyPlantAndEquipmentNet, as reported in the 10-K filed 2026-09-29
Operating lease right-of-use assets$83.7M$99.7M-16%Source10-K, us-gaap:OperatingLeaseRightOfUseAsset, as reported in the 10-K filed 2026-09-29
Intangibles, net$50.5M$62.8M-20%Source10-K, us-gaap:IntangibleAssetsNetExcludingGoodwill, as reported in the 10-K filed 2026-09-29
Goodwill$511.3M$517.8M-1.3%Source10-K, us-gaap:Goodwill, as reported in the 10-K filed 2026-09-29
Other assets$80.9M$57.9M+40%Source10-K, us-gaap:OtherAssetsNoncurrent, as reported in the 10-K filed 2026-09-29
Total assets$10.03B$10.09B-0.6%Source10-K, us-gaap:Assets, as reported in the 10-K filed 2026-09-29
Current liabilities:
Accounts payable and accrued liabilities$634.7M$591.8M+7.2%Source10-K, us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent, as reported in the 10-K filed 2026-09-29
Deferred revenue$32.5M$30.4M+6.7%Source10-K, us-gaap:ContractWithCustomerLiabilityCurrent, as reported in the 10-K filed 2026-09-29
Income taxes payable$21.4M$41.1M-48%Source10-K, us-gaap:AccruedIncomeTaxesCurrent, as reported in the 10-K filed 2026-09-29
Current portion of operating and finance lease liabilities$15.2M$19.9M-24%Source10-K, cprt:OperatingAndFinanceLeaseLiabilityCurrent, as reported in the 10-K filed 2026-09-29
Total current liabilities$703.7M$683.3M+3.0%Source10-K, us-gaap:LiabilitiesCurrent, as reported in the 10-K filed 2026-09-29
Liabilities, redeemable noncontrolling interests and stockholders' equity
Deferred income taxes$127.9M$80.6M+59%Source10-K, us-gaap:DeferredIncomeTaxLiabilitiesNet, as reported in the 10-K filed 2026-09-29
Income taxes payable$9.1M$35.6M-75%Source10-K, us-gaap:AccruedIncomeTaxesNoncurrent, as reported in the 10-K filed 2026-09-29
Operating and finance lease liabilities, net of current portion$73.2M$83.9M-13%Source10-K, cprt:OperatingAndFinanceLeaseLiabilityNoncurrent, as reported in the 10-K filed 2026-09-29
Total liabilities$913.9M$883.4M+3.5%Source10-K, us-gaap:Liabilities, as reported in the 10-K filed 2026-09-29
Redeemable non-controlling interest$16.6M$20.5M-19%Source10-K, us-gaap:RedeemableNoncontrollingInterestEquityCarryingAmount, as reported in the 10-K filed 2026-09-29
Stockholders' equity:
Preferred stock: $0.0001 par value - 5,000,000 shares authorized; none issued$0$0Source10-K, us-gaap:PreferredStockValue, as reported in the 10-K filed 2026-09-29
Common stock: $0.0001 par value - 1,600,000,000 shares authorized; 926,298,293 and 967,478,690 shares issued and outstanding, respectively$93.0K$97.0K-4.1%Source10-K, us-gaap:CommonStockValue, as reported in the 10-K filed 2026-09-29
Additional paid-in capital$1.23B$1.21B+1.0%Source10-K, us-gaap:AdditionalPaidInCapitalCommonStock, as reported in the 10-K filed 2026-09-29
Accumulated other comprehensive loss-$109.8M-$120.3M-8.7%Source10-K, us-gaap:AccumulatedOtherComprehensiveIncomeLossNetOfTax, as reported in the 10-K filed 2026-09-29
Retained earnings$7.98B$8.09B-1.4%Source10-K, us-gaap:RetainedEarningsAccumulatedDeficit, as reported in the 10-K filed 2026-09-29
Total stockholders' equity$9.10B$9.19B-1.0%Source10-K, us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest, as reported in the 10-K filed 2026-09-29
Liabilities, redeemable noncontrolling interests and stockholders' equity
Total liabilities, redeemable noncontrolling interests and stockholders' equity$10.03B$10.09B-0.6%Source10-K, us-gaap:LiabilitiesAndStockholdersEquity, as reported in the 10-K filed 2026-09-29

About this data

Source
Copart 10-K, accession 0001193125-26-405731, filed Sep 29, 2026, read on Nov 2, 2026.
History
From the SEC's XBRL company facts, the value from the latest filing that stated each period.
Reading
Paragraphs marked Analysis are CXProWealth's reading; everything else is the filing's own numbers and words, or a cited source.
Version
methodology business-lens-1.0 · schema 1.2.0 · run business-lens-2026-11-02
Edge and risks

What holds Copart's model up, and what could bend it

Competitive edge

  • One online auction reaches every registered buyer

    Internet-only auctions put every yard's cars in front of every member, which the filing says widens the buyer pool and removes live-auction costs.

    The detail

    Auctions run in two steps: open preliminary bidding, then "an internet-only virtual auction". The filing says this "increases the pool of available buyers" and removes "the expense and capital requirements" of live auctions. Buyers include dismantlers, rebuilders, repair licensees, used vehicle dealers, exporters and the general public. General and administrative cost was 9.24% of revenue.1

    AnalysisMore bidders per car support the sale price, a better price gives the insurer a better recovery, and that wins more cars, which draws more bidders. Paid by fixed or percentage fees, Copart gains from both volume and price. Revenue grew from $2.04B in FY2019 to $4.67B in FY2026 on this model.

  • Yard land lets Copart absorb a storm

    Owned and leased yards let Copart take a region's totaled cars at once, a capacity insurers judge in the worst seasons.

    The detail

    The filing lists a prompt response to catastrophes among its competitive advantages, and the prior year carried "the one-time revenue associated with hurricanes Helene and Milton". Facility operations, the cost of running the yards, were $1.97B, 42.1% of revenue. Zoning makes it "more challenging and expensive to identify, acquire and develop new facilities".1

    AnalysisThe same zoning that makes land hard to add makes an existing network hard for a rival to copy. The land is partly idle in normal years and earns its keep in the bad ones, when insurers see who had room.

  • Fees arrive as cash and fund the expansion

    Free cash flow rose from $272.8M in FY2019 to $1.27B in FY2026, paying for land, acquisitions and buybacks from inside the business.

    The detail

    Operating cash flow of $1.60B was 108.1% of net income attributable to Copart of $1.48B. Free cash flow was $1.27B, a 27.2% margin on revenue, against $272.8M in FY2019, 13.4% of that year's $2.04B revenue.1

    AnalysisOutside the purchased-car line the business holds little inventory, so fees turn into cash quickly. That cash has paid for yards, acquisitions and repurchases: diluted shares were 956.9M against 977.6M a year earlier.

What to watch

  • A few large insurers supply most of the cars

    Sellers are mainly insurers on contracts that can be non-exclusive and ended on limited notice, and named rivals compete for the same cars.

    The detail

    The filing says sellers "consist primarily of insurance companies" and that Copart depends on a limited number of large ones. Some contracts are non-exclusive and can be ended on limited notice. Dismantlers can buy directly from insurers, and the filing names RB Global, through Insurance Auto Auctions, Carvana, Openlane, Manheim and ACV Auctions as competitors, some with greater resources.1

    AnalysisThe pending purchase of ACV Auctions fits the stated goal of growing U.S. whole-car volume, supply that does not come from insurers. It still needs its tender condition and antitrust clearance, which the filing lists as a risk.

  • Weather, prices and safety tech set the volume

    Salvage volume depends on storms, accident rates, used car prices and total loss frequency, none of which Copart controls.

    The detail

    Mild weather means fewer salvage cars, and large storms can bring more than the yards hold. Sharp rises in used car prices can make it "less economical" for insurers to total a car, and driver-assistance or autonomous technology could mean fewer accidents. FY2026 service revenue was flat at $3.97B against a storm-lifted prior year.1

    AnalysisThe company says it believes the long-term rise in total loss frequency continues. That belief is the volume case, and the figures here give no frequency for the year to check it against.

  • A federal inquiry into controls over members

    The filing discloses a Department of Justice investigation into potential money laundering violations concerning its member controls, and says the company is cooperating.

    The detail

    The filing discloses a Department of Justice investigation into "potential violations by the Company of certain money laundering laws", concerning its controls over members, and says the company is cooperating. It also names cyberattacks, data privacy law, environmental liability at its yards and variable-rate debt.1

    AnalysisThe year's figures do not show its effect. If it came to matter, the first signs would likely be in member access or in general and administrative cost, which grew 7.0%; the filing figures here do not link that rise to the investigation.

Sources

  1. 1.Copart 10-K for the period to 2026-07-31 (the filing), Sep 29, 2026, read Nov 2, 2026
Go deeper

Copart, further in

Member research, then your own questions on ChatGPT.

What could change the outlook

What Copart's numbers depend on from here, read from the filing: the conditions behind this period's margins and growth, and where a change would show first.

  • What the operating margin depends on from here

    Which forces have pulled the margin down since FY2021, which of them can reverse, and what fee and cost per car would need to do for it to recover.

  • Capacity, cash and the ACV Auctions deal

    How lower land spending, the cash behind interest income and a pending acquisition fit together, and what each means for the next bad storm season.

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Questions to start with
  • Why has Copart's operating margin fallen every year since FY2021, and how much of that is the purchased-car line?
  • What could another year of capital spending near $337.4M mean for Copart's yard capacity in a large hurricane season?
  • How would Copart's net income change if interest income fell after buybacks and the ACV Auctions purchase reduce its cash?

Business Lens describes Copart from its own filings with the SEC. It is not a view on its shares, a target, or advice to buy, sell or hold anything; figures are as filed and may be restated by the company later. The filing, the dates and the version are under the financial data above.