Key financial results
- Consolidated: For the fourth quarter, consolidated revenue grew to $1.2 billion, up 2.4% year-over-year, driven by strength in service revenues and purchased vehicle sales.
consolidated revenue grew to $1.2 billion, up 2.4% year-over-year
- Global revenue: Global service revenue increased more than $13 million or 1.4%, and global purchased vehicle sales increased $14 million or 8.3%.
Global service revenue increased more than $13 million or 1.4%
- Full year: For fiscal year 2026, revenue was $4.7 billion, up 0.4%, with service revenue up $1 million.
revenue was $4.7 billion, up 0.4%
- Gross profit: Fourth quarter gross profit was $481 million, a decrease of $28 million or 5.5% with a gross margin of 41.8%.
Global gross profit for the quarter was $481 million, a decrease of $28 million
- Net income: Fourth quarter net income attributable to Copart decreased 17.4% to $327.4 million, or $0.35 per diluted common share, which was down 14.6%.
net income attributable to Copart decreased 17.4% to $327.4 million
Business segment results
- U.S. segment: U.S. total revenue was up 0.4% in the quarter as higher revenue per unit largely offset a decline in volume.
Total revenue was up 0.4% in the quarter
- U.S. insurance: U.S. insurance volumes decreased 7.5% in the quarter and 8% for the fiscal year.
U.S. insurance volumes decreased 7.5% in the quarter
- U.S. dealers: U.S. dealer units grew 5.8% in the quarter and 3.9% for the year.
Our dealer units grew 5.8% in the quarter
- BluCar: BluCar expanded nearly 20% over the prior year quarter and 2.4% for fiscal 2026.
- International segment: International fourth quarter revenue grew 11.7% to $222.1 million, driven by service revenues up 15.5%.
Fourth quarter revenue grew 11.7% to $222.1 million
- International profitability: International gross profit increased 11.8% to $77.6 million for the quarter at a 35% gross margin.
international gross profit increased 11.8% to $77.6 million
Capital allocation
- Liquidity: As of the end of July, Copart had approximately $5.7 billion of liquidity, comprised of $4.5 billion in cash, cash equivalents and held-to-maturity securities, plus $1.25 billion of revolving credit capacity with no debt outstanding.
we had approximately $5.7 billion of liquidity
- Share repurchases: Management noted that lower interest income in the fourth quarter of 2026 resulted from the deployment of $1.63 billion into share repurchases earlier in the fiscal year.
deployment of $1.63 billion into share repurchases earlier in the fiscal year
Industry trends and dynamics
- Claim frequency: Collision claim frequency was down 3.4% year-over-year, which management described as a moderation from high single-digit declines through 2025.
Collision claim frequency, we are down 3.4% year-over-year.
- Total loss frequency: Total loss frequency reached 23.3% in the second quarter of 2026, the highest second quarter on record, up from 22.4% in the same quarter last year.
Total loss frequency reached 23.3% in the second quarter of 2026
- Severity: Average collision severity was over $6,300 per claim, up nearly 8.8% year-over-year.
average collision severity was over $6,300 per claim, up nearly 8.8% year-over-year
- Manheim index: The Manheim used vehicle value index was up 2.8% year-over-year in the fourth quarter of 2026.
Manheim used vehicle value index. It was up 2.8% year-over-year
Competitive landscape
- Buyer acquisition: Management highlighted that vehicles sold to buyers with Copart for less than a year were 8.9% of total vehicles in fiscal 2026, compared to 8.3% in fiscal 2025.
- International buyers: Total units sold to international buyers outside the U.S. represented 38.2% of units, and the dollars spent on those vehicles represented 45.7% of total sales dollars.
Macroeconomic environment
- Miles traveled: Vehicle miles traveled were up 0.27% year-over-year in the fourth quarter of 2026.
Vehicle miles traveled were up 0.27% year-over-year
- Car park: Vehicles in operation, or the car park, was up 1.6% year-over-year in calendar quarter 2, 2026.
Vehicles in operation or what we refer to as the car park was up 1.6% year-over-year
Growth opportunities and strategies
- Growth pillars: Copart continues to focus on three pillars of growth: international expansion, domestic whole car expansion, and investments in technology and services.
international expansion, on insurance, we'll continue to focus on whole car expansion domestically
- Wholesale facilities: The company has 25 dedicated wholesale facilities co-located at existing Copart locations in top U.S. metro markets, serving 80% of the addressable wholesale market.
25 dedicated wholesale facilities co-located at existing Copart locations
Financial guidance and outlook
- Guidance: Management did not give specific quarterly or annual earnings or revenue guidance on the call.
ACV Acquisition
- Transaction terms: Copart agreed to acquire ACV in an all-cash transaction funded from cash on hand with no financing conditions, structured as a tender offer.
This is an all-cash transaction funded from cash on hand with no financing conditions.
- ACV scale: ACV sells more than 800,000 vehicles each year, transacting approximately $10 billion of gross merchandise value in 2025 across more than 22,000 active buyers.
ACV sells more than 800,000 vehicles each year.
- Accretion: Management expects the transaction to be accretive to earnings in the first full year, which will be fiscal year 2028.
accretive in the first full year, which will be in FY '28.
- Closing timeline: The transaction is expected to close by the end of the calendar year, subject to customary conditions and regulatory review.
We expect to close by the end of the calendar year
Q4 FY2026 results
| Metric | Result | Change |
|---|---|---|
| Consolidated Revenue | $1.2 billion | up 2.4% |
| Global Gross Profit | $481 million | decrease of $28 million or 5.5% |
| Operating Income | $368.9 million | decrease 10.6% |
| Net Income Attributable to Copart | $327.4 million | decrease 17.4% |
| Diluted Earnings Per Share | $0.35 | down 14.6% |
| International Revenue | $222.1 million | up 11.7% |
How management sounded
Balanced (+30 on our -100 to +100 scale). Management expressed strong conviction in their growth strategy, global auction liquidity, and the announced acquisition of ACV Auctions. Management sounded more upbeat than on 16% of the 302 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Read the analyst Q&A summary and guidance and outlook for this call.
What to watch before the next call
- The closing of the ACV Auctions acquisition by the end of the calendar year.
- Trends in operating expenses and per-unit costs.
- International unit growth across Europe and existing markets.
Earlier calls
- Q3 FY2026 (May 21, 2026), tone Balanced: Copart reported consolidated revenue of $1.24 billion, up 2.1% year-over-year, driven by strength in average selling prices despite a modest decline in unit volumes.
