COPART INC
For the period ended Jan 31, 2026. Filed Mar 3, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jan 31, 2026 · Filed Mar 3, 2026
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Item 2. Results of Operations
sults of Operations
The following table shows certain data from our consolidated statements of income expressed as a percentage of total service revenues and vehicle sales for the three and six months ended January 31, 2026 and 2025:
| Three Months Ended January 31, | Six Months Ended January 31, | |||
|---|---|---|---|---|
| (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 | 43% | 42% | 42% | 43% |
| Cost of vehicle sales | 13% | 13% | 13% | 12% |
| General and administrative | 9% | 9% | 9% | 9% |
| Total operating expenses | 65% | 64% | 64% | 64% |
| Operating income | 35% | 36% | 36% | 36% |
| Other income (expense) | 5% | 3% | 5% | 4% |
| Income before income taxes | 40% | 39% | 41% | 40% |
| Income taxes | 8% | 6% | 8% | 7% |
| Net income | 32% | 33% | 33% | 33% |
Comparison of the three and six months ended January 31, 2026 and 2025
The following table presents a comparison of service revenues for the three and six months ended January 31, 2026 and 2025:
| Three Months Ended January 31, | Six Months Ended January 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| (In thousands) | 2026 | 2025 | Change | %Change | 2026 | 2025 | Change | %Change |
| Service revenues | ||||||||
| United States | $819,467 | $868,130 | $(48,663) | (5.6)% | $1,675,001 | $1,728,120 | $(53,119) | (3.1)% |
| International | 132,584 | 123,151 | $9,433 | 7.7% | 268,895 | 249,497 | $19,398 | 7.8% |
| Total service revenues | $952,051 | $991,281 | $(39,230) | (4.0)% | $1,943,896 | $1,977,617 | $(33,721) | (1.7)% |
Service Revenues. The decrease in service revenues during the three months ended January 31, 2026 of $(39.2) million, or (4.0)%, as compared to the same period last year resulted from (i) a decrease in the U.S. of $(48.7) million and (ii) an increase in International of $9.4 million. The decrease in the U.S. compared to the same period last year was primarily related to the one time revenue associated with hurricanes Helene and Milton recognized in fiscal year 2025. The growth in International, after excluding positive fluctuations in currency exchange rates of $8.4 million, was driven primarily by an increase in revenue per car, offset by a decrease in volume.
The decrease in service revenues during the six months ended January 31, 2026 of $(33.7) million, or (1.7)%, as compared to the same period last year resulted from (i) a decrease in the U.S. of $(53.1) million and (ii) an increase in International of $19.4 million. The decrease in the U.S. compared to the same period last year was primarily related to the one time revenue associated with hurricanes Helene and Milton recognized in fiscal year 2025 offset by an increase in revenue per car. The growth in International, after excluding positive fluctuations in currency exchange rates of $12.2 million, was driven primarily by an increase in revenue per car, offset by a decrease in volume.
The following table presents a comparison of vehicle sales for the three and six months ended January 31, 2026 and 2025:
| Three Months Ended January 31, | Six Months Ended January 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| (In thousands) | 2026 | 2025 | Change | %Change | 2026 | 2025 | Change | %Change |
| Vehicle sales | ||||||||
| United States | $102,153 | $106,715 | $(4,562) | (4.3)% | $199,233 | $194,265 | $4,968 | 2.6% |
| International | 67,470 | 65,320 | $2,150 | 3.3% | $133,575 | 138,263 | $(4,688) | (3.4)% |
| Total vehicle sales | $169,623 | $172,035 | $(2,412) | (1.4)% | $332,808 | $332,528 | $280 | 0.1% |
Vehicle Sales. The decrease in vehicle sales for the three months ended January 31, 2026 of $(2.4) million, or (1.4)%, as compared to the same period last year, resulted from (i) a decrease in the U.S. of $(4.6) million and (ii) an increase in International of $2.2 million. The decrease in the U.S. was primarily driven by a decrease in volume, offset by an increase in revenue per car, which we believe was due to a change in mix of vehicles sold. The decrease in International, after excluding positive fluctuations in currency exchange rates of $5.1 million, was primarily driven by a decrease in volume related to sellers switching to a consignment model, offset by an increase in revenue per car, which we believe was due to a change in mix of vehicles sold.
The increase in vehicle sales for the six months ended January 31, 2026 of $0.3 million, or 0.1%, as compared to the same period last year, resulted from (i) an increase in the U.S. of $5.0 million and (ii) a decrease in International of $(4.7) million. The increase in the U.S. was primarily driven by an increase in revenue per car, which we believe was due to a change in mix of vehicles sold, offset by a decrease in volume. The decrease in International, after excluding positive fluctuations in currency exchange rates of $7.6 million, was primarily driven by a decrease in volume related to sellers switching to a consignment model.
The following table presents a comparison of facility operations expenses for the three and six months ended January 31, 2026 and 2025:
| Three Months Ended January 31, | Six Months Ended January 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| (In thousands) | 2026 | 2025 | Change | %Change | 2026 | 2025 | Change | %Change |
| Facility operations expenses | ||||||||
| United States | $395,350 | $418,824 | $(23,474) | (5.6)% | $793,835 | $842,441 | $(48,606) | (5.8)% |
| International | 83,080 | 71,232 | 11,848 | 16.6% | 161,084 | 144,161 | 16,923 | 11.7% |
| Total facility operations expenses | $478,430 | $490,056 | $(11,626) | (2.4)% | $954,919 | $986,602 | $(31,683) | (3.2)% |
| Facility operations expenses, excluding depreciation and amortization | ||||||||
| United States | $355,107 | $377,361 | $(22,254) | (5.9)% | $714,559 | $760,958 | $(46,399) | (6.1)% |
| International | 74,796 | 63,732 | 11,064 | 17.4% | 144,443 | 129,204 | 15,239 | 11.8% |
| Facility depreciation and amortization | ||||||||
| United States | $40,243 | $41,463 | $(1,220) | (2.9)% | $79,276 | $81,483 | $(2,207) | (2.7)% |
| International | 8,284 | 7,500 | 784 | 10.5% | 16,641 | 14,957 | 1,684 | 11.3% |
Facility Operations Expenses. The decrease in facility operations expense for the three months ended January 31, 2026 of $(11.6) million, or (2.4)%, as compared to the same period last year resulted from (i) a decrease in the U.S. of $(23.5) million, and (ii) an increase in International of $11.8 million. The decrease in the U.S. compared to the same period last year was related to one time costs associated with hurricanes Helene and Milton recognized in fiscal year 2025 offset by increases in subhaul, freight, insurance, and bank charges. The increase in International, after excluding negative fluctuations in currency exchange rates of $(5.6) million, was the result of an increase in the cost to process a car. Included in facility operations expenses were depreciation and amortization expenses. The decrease in facility operations depreciation and amortization expenses during the three months ended January 31, 2026 as compared to the same period last year resulted primarily from the disposal of assets and a customer relationship being fully amortized in the United States. The increase in the International was result of depreciating new and expanded facilities placed into service
The decrease in facility operations expense for the six months ended January 31, 2026 of $(31.7) million, or (3.2)%, as compared to the same period last year resulted from (i) a decrease in the U.S. of $(48.6) million, and (ii) an increase in International of $16.9 million. The decrease in the U.S. compared to the same period last year was related to one time costs associated with hurricanes Helene and Milton recognized in fiscal year 2025 offset by increases in subhaul, insurance, and bank charges. The increase in International, after excluding negative fluctuations in currency exchange rates of $(7.6) million, was the result of an increase in the cost to process a car. Included in facility operations expenses were depreciation and amortization expenses. The decrease in facility operations depreciation and amortization expenses during the six months ended January 31, 2026 as compared to the same period last year resulted primarily from the disposal of assets and a customer relationship being fully amortized in the United States. The increase in the International was result of depreciating new and expanded facilities placed into service
The following table presents a comparison of cost of vehicle sales for the three and six months ended January 31, 2026 and 2025:
| Three Months Ended January 31, | Six Months Ended January 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| (In thousands) | 2026 | 2025 | Change | %Change | 2026 | 2025 | Change | %Change |
| Cost of vehicle sales | ||||||||
| United States | $96,375 | $92,807 | $3,568 | 3.8% | $186,334 | $169,093 | $17,241 | 10.2% |
| International | 54,057 | 54,900 | (843) | (1.5)% | 105,641 | 116,792 | (11,151) | (9.5)% |
| Total cost of vehicle sales | $150,432 | $147,707 | $2,725 | 1.8% | $291,975 | $285,885 | $6,090 | 2.1% |
Cost of Vehicle Sales. The increase in cost of vehicle sales for the three months ended January 31, 2026 of $2.7 million, or 1.8%, as compared to the same period last year resulted from (i) an increase in the U.S. of $3.6 million and (ii) a decrease in International of $(0.8) million. The increase in the U.S. was primarily the result of a change in the mix of vehicles sold offset by a decrease in volume. The decrease in International, after excluding the negative fluctuations of currency exchange rates of $4.3 million, was primarily due to a decrease in volume related to sellers switching to a consignment model.
The increase in cost of vehicle sales for the six months ended January 31, 2026 of $6.1 million, or 2.1%, as compared to the same period last year resulted from (i) an increase in the U.S. of $17.2 million and (ii) a decrease in International of $(11.2) million. The increase in the U.S. was primarily the result of a change in the mix of vehicles sold offset by a decrease in volume. The decrease in International, after excluding the negative fluctuations of currency exchange rates of $6.3 million, was primarily due to a decrease in volume related to sellers switching to a consignment model, combined with a change in the mix of vehicles sold.
The following table presents a comparison of general and administrative expenses for the three and six months ended January 31, 2026 and 2025:
| Three Months Ended January 31, | Six Months Ended January 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| (In thousands) | 2026 | 2025 | Change | %Change | 2026 | 2025 | Change | %Change |
| General and administrative expenses | ||||||||
| United States | $88,423 | $87,321 | $1,102 | 1.3% | $177,621 | $179,898 | $(2,277) | (1.3)% |
| International | 15,679 | 12,021 | 3,658 | 30.4% | 32,785 | 25,182 | 7,603 | 30.2% |
| Total general and administrative expenses | $104,102 | $99,342 | $4,760 | 4.8% | $210,406 | $205,080 | $5,326 | 2.6% |
| General and administrative expenses, excluding depreciation and amortization | ||||||||
| United States | $81,837 | $82,329 | $(492) | (0.6)% | $164,659 | $169,011 | $(4,352) | (2.6)% |
| International | 15,405 | 11,777 | 3,628 | 30.8% | 32,235 | 24,683 | 7,552 | 30.6% |
| General and administrative depreciation and amortization | ||||||||
| United States | $6,586 | $4,992 | $1,594 | 31.9% | $12,962 | $10,887 | $2,075 | 19.1% |
| International | 274 | 244 | 30 | 12.3% | 550 | 499 | 51 | 10.2% |
General and Administrative Expenses. The increase in general and administrative expenses for the three months ended January 31, 2026 of $4.8 million, or 4.8%, as compared to the same period last year resulted from (i) an increase in the U.S. of $1.1 million and (ii) an increase in International of $3.7 million. Excluding depreciation and amortization, the decrease in the U.S. of $(0.5) million resulted primarily from decreases in legal, compliance, and system implementation, offset by increases in consulting, bank charges, and labor. The increase in International of $3.6 million, after excluding the negative fluctuations in currency exchange rates of $(1.1) million, resulted primarily from an increase in labor, third party outside services (including consulting and legal), and taxes. Depreciation and amortization expenses for the three months ended January 31, 2026 as compared to the same period last year increased as a result of the addition of technology assets being placed in service in the U.S. and Internationally.
The increase in general and administrative expenses for the six months ended January 31, 2026 of $5.3 million, or 2.6%, as compared to the same period last year resulted from (i) a decrease in the U.S. of $2.3 million and (ii) an increase in International of $7.6 million. Excluding depreciation and amortization, the decrease in the U.S. of $4.4 million resulted primarily from decreases in legal, compliance, and system implementations offset by increase in labor, consulting services, insurance, and bank charges. The increase in International of $7.6 million, after excluding the negative fluctuations in currency exchange rates of $(1.7) million, resulted primarily from an increase in third party outside services (including consulting and legal), and labor. Depreciation and amortization expenses for the six months ended January 31, 2026 as compared to the same period last year increased as result of the addition of technology assets being placed in service in the U.S. and Internationally.
The following table summarizes total other income (expense) for the three and six months ended January 31, 2026 and 2025:
| Three Months Ended January 31, | Six Months Ended January 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| (In thousands) | 2026 | 2025 | Change | %Change | 2026 | 2025 | Change | %Change |
| Total other income | $52,339 | $36,840 | $15,499 | 42.1% | $108,768 | $81,791 | $26,977 | 33.0% |
Other Income (Expense). The increase in total other income for the three months ended January 31, 2026 of $15.5 million, or 42.1%, as compared to the same period last year was due to higher interest income earned from U.S. Treasury Bills, and realized and unrealized currency gains.
The increase in total other income for the six months ended January 31, 2026 of $27.0 million, or 33.0%, as compared to the same period last year was due to higher interest income earned from U.S. Treasury Bills, realized and unrealized currency gains, and gain on sale of fixed assets.
The following table summarizes income taxes for the three and six months ended January 31, 2026 and 2025:
| Three Months Ended January 31, | Six Months Ended January 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| (In thousands) | 2026 | 2025 | Change | %Change | 2026 | 2025 | Change | %Change |
| Income taxes | $91,082 | $76,510 | $14,572 | 19.0% | $175,995 | $166,652 | $9,343 | 5.6% |
Income Taxes. See the Note to Unaudited Consolidated Financial Statements, NOTE 7 – Income Taxesin this Quarterly Report on Form 10-Q.
Liq
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