Copart Inc 10-Q for FY2026 Q1

Copart Inc (CPRT)

10-Q 2025-11-24 For: 2025-10-31

Added on April 11, 2026

About this 10-Q

Copart Inc filed this 10-Q on November 24, 2025, covering the quarter ended October 31, 2025 (FY2026 Q1).

Headline figures

Quarter ended October 31, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.16B; up 0.7% from $1.15B a year earlier
Net income: $403.71M; up 11.5% from net income of $362.09M a year earlier
Diluted EPS: $0.41; up 10.8% from $0.37 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 Statement of Changes in Redeemable Noncontrolling Interests and Stockholders' Equity		6
Consolidated Statements of Cash Flows		7
Notes to Consolidated Financial Statements		8

Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations
Results of Operations		14
Liquidity and Capital Resources		16
Critical Accounting Policies and Estimates		18
Recently Issued Accounting Standards		18
Contractual Obligations and Commitments		18

Item 3 - Quantitative and Qualitative Disclosures About Market Risk		19

Item 4 - Controls and Procedures
Evaluation of Disclosure Controls and Procedures		19
Changes in Internal Control Over Financial Reporting		19

PART II - Other Information
Item 1 - Legal Proceedings		19
Item 1A - Risk Factors		19
Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds		31
Item 3 - Defaults Upon Senior Securities		31
Item 4 - Mine Safety Disclosures		31
Item 5 - Other Information		31
Item 6 - Exhibits		32
Signatures		33


(In thousands, except share amounts)	October 31, 2025			July 31, 2025
ASSETS
Current assets:
Cash, cash equivalents, and restricted cash	$	5,233,590		$	2,780,531
Investment in held to maturity securities		9,861			2,008,539
Accounts receivable, net of allowance for credit losses of $14,916 and $12,945, respectively		759,687			762,811
Vehicle pooling costs		118,166			116,145
Inventories		40,408			39,661
Income taxes receivable		574			580
Prepaid expenses and other assets		39,848			46,361
Total current assets		6,202,134			5,754,628
Property and equipment, net		3,650,424			3,598,093
Operating lease right-of-use assets		95,594			99,708
Intangibles, net		59,615			62,832
Goodwill		518,756			517,779
Other assets		54,491			57,862
Total assets	$	10,581,014		$	10,090,902
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	607,386		$	591,831
Deferred revenue		30,471			30,440
Income taxes payable		125,469			41,141
Current portion of operating and finance lease liabilities		17,870			19,869
Total current liabilities		781,196			683,281
Deferred income taxes		85,839			80,625
Income taxes payable		12,802			35,635
Operating and finance lease liabilities, net of current portion		82,066			83,870
Total liabilities		961,903			883,411
Commitments and contingencies
Redeemable non-controlling interest		18,954			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; 967,904,634 and 967,478,690 shares issued and outstanding, respectively.		97			97
Additional paid-in capital		1,224,683			1,214,150
Accumulated other comprehensive loss		(120,076	)		(120,283	)
Retained earnings		8,495,453			8,093,069
Total stockholders’ equity		9,600,157			9,187,033
Total liabilities, redeemable noncontrolling interests and stockholders’ equity	$	10,581,014		$	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 October 31,
(In thousands, except per share amounts)	2025			2024
Service revenues and vehicle sales:
Service revenues	$	991,845		$	986,336
Vehicle sales		163,185			160,493
Total service revenues and vehicle sales		1,155,030			1,146,829
Operating expenses:
Facility operations		476,489			496,546
Cost of vehicle sales		141,543			138,178
General and administrative		106,304			105,738
Total operating expenses		724,336			740,462
Operating income		430,694			406,367
Other income (expense):
Interest income, net		53,505			45,547
Other income (expense), net		2,924			(596	)
Total other income		56,429			44,951
Income before income taxes		487,123			451,318
Income tax expense		84,913			90,142
Net income		402,210			361,176
Less: Net (loss) income attributable to redeemable noncontrolling interest		(1,504	)		(910	)
Net income attributable to Copart, Inc.	$	403,714		$	362,086

Basic net income per common share	$	0.42		$	0.38
Weighted average common shares outstanding		967,650			963,176

Diluted net income per common share	$	0.41		$	0.37
Diluted weighted average common shares outstanding		977,100			976,506


	Three Months Ended October 31,
(In thousands)	2025			2024
Comprehensive income, net of tax:
Net income	$	402,210		$	361,176
Other comprehensive income:
Foreign currency translation adjustments		207			(1,767	)
Comprehensive income		402,417			359,409
Less: Comprehensive (loss) income attributable to redeemable noncontrolling interest		(1,504	)		(910	)
Comprehensive income attributable to Copart, Inc.	$	403,921		$	360,319


	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		—		—		—		—			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


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)	October 31, 2025
	Amortized Cost		Gross Unrealized Gains		Fair Value
Investment in held to maturity securities	$	9,861	$	123	$	9,984


	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		567			46.39		75		46.57
Exercises		(306	)		5.84		—		—
Forfeitures or expirations		(63	)		50.13		—		—
Outstanding as of October 31, 2025		12,685		$	22.96		6,070	$	24.97
Exercisable as of October 31, 2025		11,005		$	19.98		5,402	$	23.78


(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		488			45.83
Vested		(92	)		42.01
Forfeitures or expirations		(104	)		47.78
Outstanding as of October 31, 2025		2,070		$	48.33


	Three Months Ended October 31, 2025						Three Months Ended October 31, 2024
(In thousands)	United States		International		Total		United States		International		Total
Service revenues	$	855,534	$	136,311	$	991,845	$	859,990	$	126,346	$	986,336
Vehicle sales		97,080		66,105		163,185		87,549		72,944		160,493
Total service revenues and vehicle sales		952,614		202,416		1,155,030		947,539		199,290		1,146,829
Facility operations		398,485		78,004		476,489		423,617		72,929		496,546
Cost of vehicle sales		89,959		51,584		141,543		76,286		61,892		138,178
General and administrative		89,198		17,106		106,304		92,577		13,161		105,738
Operating income	$	374,972	$	55,722	$	430,694	$	355,059	$	51,308	$	406,367

Depreciation and amortization, excluding debt costs	$	45,409	$	8,633	$	54,042	$	45,915	$	7,712	$	53,627
Interest Income		50,095		3,410		53,505		43,843		1,704		45,547
Capital expenditures and acquisitions		71,458		41,283		112,741		211,917		26,098		238,015


	Three Months Ended October 31,
(In thousands)	2025			2024			Change			% Change
Operating cash flows	$	535,253		$	482,274		$	52,979			11.0	%
Investing cash flows		1,916,306			1,702,228			214,078			12.6	%
Financing cash flows		450			2,137			(1,687	)		(78.9	)%

Capital expenditures and acquisitions	$	(112,741	)	$	(238,015	)	$	125,274			(52.6	)%


*		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: November 21, 2025
	/s/ JEFFREY LIAW
	Jeffrey Liaw
	Chief Executive Officer, Director
	(Principal Executive Officer)


	Three Months Ended October 31,
(In percentages)	2025			2024
Service revenues and vehicle sales:
Service revenues		86	%		86	%
Vehicle sales		14	%		14	%
Total service revenues and vehicle sales		100	%		100	%

Operating expenses:
Facility operations		41	%		43	%
Cost of vehicle sales		12	%		12	%
General and administrative		9	%		9	%
Total operating expenses		62	%		64	%
Operating income		38	%		36	%
Other income (expense)		4	%		3	%
Income before income taxes		42	%		39	%
Income taxes		7	%		8	%
Net income		35	%		31	%


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)


	Date: November 21, 2025
	/s/ LEAH STEARNS
	Leah Stearns
	Chief Financial Officer
	(Principal Financial and Accounting Officer)