Copart Inc 10-Q for FY2026 Q3

Copart Inc (CPRT)

10-Q 2026-05-29 For: 2026-04-30

Added on May 30, 2026

About this 10-Q

Copart Inc filed this 10-Q on May 29, 2026, covering the quarter ended April 30, 2026 (FY2026 Q3).

Headline figures

Quarter ended April 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.24B; up 2.1% from $1.21B a year earlier
Net income: $402.4M; down 1.0% from net income of $406.61M a year earlier
Diluted EPS: $0.43; up 2.4% from $0.42 a year earlier

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Delaware	94-2867490
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
14185 Dallas Parkway, Suite 300 Dallas, Texas	75254
(Address of principal executive offices)	(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.0001	CPRT	The Nasdaq Global Select Market


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐


Table of Contents		Page Number
PART I - Financial Information
Item 1 - Financial Statements (Unaudited)
Consolidated Balance Sheets		3
Consolidated Statements of Income		4
Consolidated Statements of Comprehensive Income		5
Consolidated Statements of Changes in Redeemable Noncontrolling Interests and Stockholders' Equity		6
Consolidated Statements of Cash Flows		8
Notes to Consolidated Financial Statements		9

Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations
Results of Operations		16
Liquidity and Capital Resources		19
Critical Accounting Policies and Estimates		21
Recently Issued Accounting Standards		21
Contractual Obligations and Commitments		21

Item 3 - Quantitative and Qualitative Disclosures About Market Risk		22

Item 4 - Controls and Procedures
Evaluation of Disclosure Controls and Procedures		22
Changes in Internal Control Over Financial Reporting		22

PART II - Other Information
Item 1 - Legal Proceedings		22
Item 1A - Risk Factors		22
Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds		35
Item 3 - Defaults Upon Senior Securities		35
Item 4 - Mine Safety Disclosures		35
Item 5 - Other Information		35
Item 6 - Exhibits		36
Signatures		37


(In thousands, except share amounts)	April 30, 2026			July 31, 2025
ASSETS
Current assets:
Cash, cash equivalents, and restricted cash	$	3,354,142		$	2,780,531
Investment in held to maturity securities		845,570			2,008,539
Accounts receivable, net of allowance for credit losses of $14,636 and $12,945, respectively		794,472			762,811
Vehicle pooling costs		117,979			116,145
Inventories		49,632			39,661
Income taxes receivable		721			580
Prepaid expenses and other assets		54,157			46,361
Total current assets		5,216,673			5,754,628
Property and equipment, net		3,715,922			3,598,093
Operating lease right-of-use assets		88,066			99,708
Intangibles, net		53,943			62,832
Goodwill		522,703			517,779
Other assets		51,729			57,862
Total assets	$	9,649,036		$	10,090,902
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	598,290		$	591,831
Deferred revenue		33,494			30,440
Income taxes payable		37,650			41,141
Current portion of operating and finance lease liabilities		15,825			19,869
Total current liabilities		685,259			683,281
Deferred income taxes		89,733			80,625
Income taxes payable		5,308			35,635
Operating and finance lease liabilities, net of current portion		77,291			83,870
Total liabilities		857,591			883,411
Commitments and contingencies
Redeemable non controlling interest		17,181			20,458
Stockholders’ equity:
Preferred stock: $0.0001 par value - 5,000,000 shares authorized; none issued		-			-
Common stock: $0.0001 par value - 1,600,000,000 shares authorized; 925,811,482 and 967,478,690 shares issued and outstanding, respectively.		93			97
Additional paid-in capital		1,207,201			1,214,150
Accumulated other comprehensive loss		(87,207	)		(120,283	)
Retained earnings		7,654,177			8,093,069
Total stockholders’ equity		8,774,264			9,187,033
Total liabilities, redeemable noncontrolling interests and stockholders’ equity	$	9,649,036		$	10,090,902


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Three Months Ended April 30,						Nine Months Ended April 30,
(In thousands, except per share amounts)	2026			2025			2026			2025
Service revenues and vehicle sales:
Service revenues	$	1,056,080		$	1,034,836		$	2,999,976		$	3,012,453
Vehicle sales		180,986			176,880			513,794			509,408
Total service revenues and vehicle sales		1,237,066			1,211,716			3,513,770			3,521,861
Operating expenses:
Facility operations		504,190			489,735			1,459,109			1,476,337
Cost of vehicle sales		160,277			169,714			452,252			455,599
General and administrative		108,317			100,722			318,723			305,802
Total operating expenses		772,784			760,171			2,230,084			2,237,738
Operating income		464,282			451,545			1,283,686			1,284,123
Other income (expense):
Interest income, net		38,813			42,776			142,305			129,070
Other (expense) income, net		(1,001	)		8,483			4,275			3,980
Total other income		37,812			51,259			146,580			133,050
Income before income taxes		502,094			502,804			1,430,266			1,417,173
Income tax expense		100,701			97,466			276,696			264,118
Net income		401,393			405,338			1,153,570			1,153,055
Less: Net loss attributable to redeemable noncontrolling interest		(1,008	)		(1,271	)		(3,277	)		(3,040	)
Net income attributable to Copart, Inc.	$	402,401		$	406,609		$	1,156,847		$	1,156,095

Basic net income per common share	$	0.43		$	0.42		$	1.21		$	1.20
Weighted average common shares outstanding		936,293			966,234			957,280			964,702

Diluted net income per common share	$	0.43		$	0.42		$	1.20		$	1.18
Diluted weighted average common shares outstanding		942,770			978,089			965,215			977,485


	Three Months Ended April 30,						Nine Months Ended April 30,
(In thousands)	2026			2025			2026			2025
Comprehensive income, net of tax:
Net income	$	401,393		$	405,338		$	1,153,570		$	1,153,055
Other comprehensive income:
Foreign currency translation adjustments		84			58,260			33,076			29,672
Comprehensive income		401,477			463,598			1,186,646			1,182,727
Less: Comprehensive loss attributable to redeemable noncontrolling interest		(1,008	)		(1,271	)		(3,277	)		(3,040	)
Comprehensive income attributable to Copart, Inc.	$	402,485		$	464,869		$	1,189,923		$	1,185,767


	Common Stock						Additional			Accumulated Other						Total			Redeemable
(In thousands, except share amounts)	Outstanding Shares			Amount			Paid-in Capital			Comprehensive Income (Loss)			Retained Earnings			Stockholders’ Equity			Noncontrolling Interest
Balances at July 31, 2025		967,478,690		$	97		$	1,214,150		$	(120,283	)	$	8,093,069		$	9,187,033		$	20,458
Net income (loss)		—			—			—			—			403,714			403,714			(1,504	)
Currency translation adjustment		—			—			—			207			—			207			—
Exercise of stock options, net of repurchased shares		305,803			—			1,785			—			(1,330	)		455			—
Stock-based compensation		120,141			—			8,748			—			—			8,748			—
Balances at October 31, 2025		967,904,634			97			1,224,683			(120,076	)		8,495,453			9,600,157			18,954
Net income (loss)		—			—			—			—			350,732			350,732			(765	)
Currency translation adjustment		—			—			—			32,785			—			32,785			—
Exercise of stock options, net of repurchased shares		597,365			—			7,293			—			(861	)		6,432			—
Stock-based compensation		44,947			—			9,663			—			—			9,663			—
Shares issued for Employee Stock Purchase Plan		224,177			—			7,460			—			—			7,460			—
Shares repurchased		(5,480,191	)		(1	)		(6,935	)		—			(211,248	)		(218,184	)		—
Balances at January 31, 2026		963,290,932			96			1,242,164			(87,291	)		8,634,076			9,789,045			18,189
Net income (loss)		—			—			—			—			402,401			402,401			(1,008	)
Currency translation adjustment		—			—			—			84			—			84			—
Exercise of stock options, net of repurchased shares		441,392			—			5,084			—			(571	)		4,513			—
Stock-based compensation		32,131			—			8,893			—			—			8,893			—
Shares repurchased		(37,952,973	)		(3	)		(48,940	)		—			(1,381,729	)		(1,430,672	)		—
Balances at April 30, 2026		925,811,482		$	93		$	1,207,201		$	(87,207	)	$	7,654,177		$	8,774,264		$	17,181


Level I		Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities traded in active markets.

Level II		Inputs other than quoted prices included within Level I that are observable for the asset or liability, either directly or indirectly.

Level III		Inputs that are generally unobservable. These inputs may be used with internally developed methodologies that result in management’s best estimate.


(In thousands)	April 30, 2026
	Amortized Cost		Gross Unrealized Gains		Fair Value
Investment in held to maturity securities	$	845,570	$	878	$	846,448


	Time Based					Time and Market Condition Based
(In thousands, except per share and term data)	Shares			Weighted Average Exercise Price		Shares		Weighted Average Exercise Price
Outstanding as of July 31, 2025		12,487		$	21.61		5,995	$	24.70
Grants of options		746			44.56		75		46.57
Exercises		(1,345	)		10.53		—		—
Forfeitures or expirations		(476	)		47.95		—		—
Outstanding as of April 30, 2026		11,412		$	23.32		6,070	$	24.97
Exercisable as of April 30, 2026		10,354		$	21.32		5,596	$	24.06


(In thousands, except per share data)	Restricted and Performance Shares			Weighted Average Grant Date Fair Value
Outstanding as of July 31, 2025		1,778		$	48.93
Grants		596			45.05
Vested		(208	)		40.15
Forfeitures or expirations		(245	)		49.84
Outstanding as of April 30, 2026		1,921		$	47.77


	Three Months Ended April 30, 2026						Three Months Ended April 30, 2025
(In thousands)	United States		International		Total		United States		International		Total
Service revenues	$	895,464	$	160,616	$	1,056,080	$	898,625	$	136,211	$	1,034,836
Vehicle sales		107,398		73,588		180,986		107,832		69,048		176,880
Total service revenues and vehicle sales		1,002,862		234,204		1,237,066		1,006,457		205,259		1,211,716
Facility operations		419,714		84,476		504,190		412,895		76,840		489,735
Cost of vehicle sales		99,024		61,253		160,277		113,853		55,861		169,714
General and administrative		93,679		14,638		108,317		87,244		13,478		100,722
Operating income	$	390,445	$	73,837	$	464,282	$	392,465	$	59,080	$	451,545

Depreciation and amortization, excluding debt issuance costs	$	50,259	$	8,724	$	58,983	$	46,461	$	7,955	$	54,416
Interest income, net		35,439		3,374		38,813		39,262		3,514		42,776
Capital expenditures and acquisitions		75,213		5,733		80,946		62,906		7,561		70,467


	Three Months Ended April 30,									Nine Months Ended April 30,
(In thousands)	2026		2025		Change		% Change			2026		2025		Change			% Change
Facility operations expenses
United States	$	419,714	$	412,895	$	6,819		1.7	%	$	1,213,549	$	1,255,336	$	(41,787	)		(3.3	)%
International		84,476		76,840		7,636		9.9	%		245,560		221,001		24,559			11.1	%
Total facility operations expenses	$	504,190	$	489,735	$	14,455		3.0	%	$	1,459,109	$	1,476,337	$	(17,228	)		(1.2	)%

Facility operations expenses, excluding depreciation and amortization
United States	$	376,160	$	372,432	$	3,728		1.0	%	$	1,090,719	$	1,133,390	$	(42,671	)		(3.8	)%
International		76,037		69,140		6,897		10.0	%		220,480		198,344		22,136			11.2	%

Facility depreciation and amortization
United States	$	43,554	$	40,463	$	3,091		7.6	%	$	122,830	$	121,946	$	884			0.7	%
International		8,439		7,700		739		9.6	%		25,080		22,657		2,423			10.7	%


	Three Months Ended April 30,									Nine Months Ended April 30,
(In thousands)	2026		2025		Change		% Change			2026		2025		Change		% Change
General and administrative expenses
United States	$	93,679	$	87,244	$	6,435		7.4	%	$	271,301	$	267,142	$	4,159		1.6	%
International		14,638		13,478		1,160		8.6	%		47,422		38,660		8,762		22.7	%
Total general and administrative expenses	$	108,317	$	100,722	$	7,595		7.5	%	$	318,723	$	305,802	$	12,921		4.2	%

General and administrative expenses, excluding depreciation and amortization
United States	$	86,974	$	81,247	$	5,727		7.0	%	$	251,634	$	250,257	$	1,377		0.6	%
International		14,353		13,222		1,131		8.6	%		46,587		37,906		8,681		22.9	%

General and administrative depreciation and amortization
United States	$	6,705	$	5,997	$	708		11.8	%	$	19,667	$	16,885	$	2,782		16.5	%
International		285		256		29		11.3	%		835		754		81		10.7	%


	Nine Months Ended April 30,
(In thousands)	2026			2025			Change			% Change
Operating cash flows	$	1,246,951		$	1,361,274		$	(114,323	)		(8.4	)%
Investing cash flows		933,470			(559,049	)		1,492,519			(267.0	)%
Financing cash flows		(1,615,222	)		44,173			(1,659,395	)		(3756.6	)%

Capital expenditures and acquisitions	$	(263,300	)	$	(482,562	)	$	219,262			(45.4	)%


Period	Total Number of Shares		Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Program		Maximum Number of Shares That May Yet be Purchased Under the Program(1)
Balance at January 31, 2026		5,480,191	$	39.82		5,480,191		320,323,017
February 1, 2026 through February 28, 2026		22,377,862	$	37.01		22,377,862		297,945,155
March 1, 2026 through March 31, 2026		15,575,111	$	37.69		15,575,111		282,370,044
April 1, 2026 through April 30, 2026		—	$	—		—		282,370,044


	Nine Months Ended April 30, 2026						Nine Months Ended April 30, 2025
(In thousands)	United States		International		Total		United States		International		Total
Service revenues	$	2,570,465	$	429,511	$	2,999,976	$	2,626,745	$	385,708	$	3,012,453
Vehicle sales		306,631		207,163		513,794		302,097		207,311		509,408
Total service revenues and vehicle sales		2,877,096		636,674		3,513,770		2,928,842		593,019		3,521,861
Facility operations		1,213,549		245,560		1,459,109		1,255,336		221,001		1,476,337
Cost of vehicle sales		285,356		166,896		452,252		282,946		172,653		455,599
General and administrative		271,301		47,422		318,723		267,142		38,660		305,802
Operating income	$	1,106,890	$	176,796	$	1,283,686	$	1,123,418	$	160,705	$	1,284,123

Depreciation and amortization, excluding debt issuance costs	$	142,497	$	25,915	$	168,412	$	138,831	$	23,411	$	162,242
Interest income, net		132,492		9,813		142,305		122,254		6,816		129,070
Capital expenditures and acquisitions		205,546		57,754		263,300		428,035		54,527		482,562


	Three Months Ended April 30,						Nine Months Ended April 30,
(In percentages)	2026			2025			2026			2025
Service revenues and vehicle sales:
Service revenues		85	%		85	%		85	%		86	%
Vehicle sales		15	%		15	%		15	%		14	%
Total service revenues and vehicle sales		100	%		100	%		100	%		100	%

Operating expenses:
Facility operations		40	%		41	%		41	%		42	%
Cost of vehicle sales		13	%		14	%		13	%		13	%
General and administrative		9	%		8	%		9	%		9	%
Total operating expenses		62	%		63	%		63	%		64	%
Operating income		38	%		37	%		37	%		36	%
Other income (expense)		3	%		4	%		4	%		4	%
Income before income taxes		41	%		41	%		41	%		40	%
Income taxes		8	%		8	%		8	%		7	%
Net income		33	%		33	%		33	%		33	%


3.1		Amended and Restated Certificate of Incorporation of Copart, Inc. (incorporated by reference from Exhibit 3.1 to the registrant’s Current Report on Form 8-K filed on November 2, 2022)
3.2		Amended and Restated Bylaws of Copart, Inc. (incorporated by reference from Exhibit 3.1 to the registrant’s Current Report on Form 8-K filed on March 12, 2024)
31.1*		Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*		Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1**		Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2**		Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS		XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH		Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)


*		Filed herewith

**		The certifications furnished in Exhibits 32.1 and 32.2 hereto are deemed to accompany this Quarterly Report on Form 10-Q and will not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. Such certifications will not be deemed to be incorporated by reference into any filings under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except to the extent that the registrant specifically incorporates it by reference.


	COPART, INC.

	/s/ LEAH STEARNS
	Leah Stearns, Chief Financial Officer
	(Principal Financial and Accounting Officer and duly Authorized Officer)


	Date: May 28, 2026
	/s/ JEFFREY LIAW
	Jeffrey Liaw
	Chief Executive Officer, Director
	(Principal Executive Officer)


	Date: May 28, 2026
	/s/ LEAH STEARNS
	Leah Stearns
	Chief Financial Officer
	(Principal Financial and Accounting Officer)