[Financial Results Overview](index=1&type=section&id=Financial%20Results%20Overview) [Fourth Quarter Fiscal 2025 Financial Results](index=1&type=section&id=Fourth%20Quarter%20Fiscal%202025%20Financial%20Results) Copart reported strong fourth quarter fiscal 2025 results, demonstrating significant year-over-year growth in revenue, gross profit, net income, and diluted earnings per share Q4 FY2025 Financial Performance (YoY Change) | Metric | Q4 FY2025 (Millions) | Q4 FY2024 (Millions) | % Change | | :--------------------------------- | :------------------- | :------------------- | :------- | | Revenue | $1,100 | $1,043.9 | 5.2% | | Gross Profit | $510 | $453.9 | 12.4% | | Net Income Attributable to Copart, Inc. | $396 | $322.2 | 22.9% | | Fully Diluted EPS | $0.41 | $0.33 | 24.2% | - Revenue increased by **$56.1 million**, or **5.2%**, compared to the same period last year[4](index=4&type=chunk) - Net income attributable to Copart, Inc. increased by **$73.8 million**, or **22.9%**, year-over-year[4](index=4&type=chunk) [Full Year Fiscal 2025 Financial Results](index=1&type=section&id=Full%20Year%20Fiscal%202025%20Financial%20Results) For the full fiscal year ended July 31, 2025, Copart achieved substantial growth across its key financial indicators, including revenue, gross profit, net income, and diluted earnings per share Full Year FY2025 Financial Performance (YoY Change) | Metric | FY2025 (Millions) | FY2024 (Millions) | % Change | | :--------------------------------- | :---------------- | :---------------- | :------- | | Revenue | $4,600 | $4,189.9 | 9.7% | | Gross Profit | $2,100 | $1,907.6 | 10.1% | | Net Income Attributable to Copart, Inc. | $1,600 | $1,410.6 | 13.9% | | Fully Diluted EPS | $1.59 | $1.40 | 13.6% | - Revenue for the year increased by **$410.1 million**, or **9.7%**, from the prior year[5](index=5&type=chunk) - Net income attributable to Copart, Inc. increased by **$189.4 million**, or **13.9%**, compared to the previous fiscal year[5](index=5&type=chunk) [Company Overview](index=1&type=section&id=About%20Copart) Copart, Inc. is a global leader in online vehicle auctions, leveraging innovative technology to connect consignors with a vast international buyer network - Copart, Inc., founded in 1982, is a **global leader in online vehicle auctions**[7](index=7&type=chunk) - The company's innovative technology and online auction platforms connect vehicle consignors to approximately **1 million members** in over **185 countries**[7](index=7&type=chunk) - Copart offers a comprehensive suite of vehicle remarketing services to various clients, including insurance companies, financial institutions, dealers, rental car companies, charities, fleet operators, and individuals[7](index=7&type=chunk) - With operations at over **250 locations** in **11 countries**, Copart sold more than **4 million units** in the last year[7](index=7&type=chunk) [Conference Call Information](index=1&type=section&id=Conference%20Call) Copart will host a conference call on September 4, 2025, to discuss quarterly results, accessible via live webcast and replay - Copart will conduct a conference call on **Thursday, September 4, 2025, at 5:30 p.m. Eastern Time** to discuss the quarterly results[6](index=6&type=chunk) - The call will be webcast live and accessible at **www.copart.com/investorrelations**, with a replay available through **November 2025**[6](index=6&type=chunk) [Cautionary Note About Forward-Looking Statements](index=2&type=section&id=Cautionary%20Note%20About%20Forward-Looking%20Statements) This section advises investors that the press release contains forward-looking statements subject to risks and uncertainties, recommending review of SEC filings - This press release contains forward-looking statements subject to substantial risks and uncertainties, as defined by federal securities laws[10](index=10&type=chunk) - Investors are encouraged to review Copart's latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K for a complete discussion of risks that could affect the business[10](index=10&type=chunk) - The company does not undertake to update any forward-looking statements[10](index=10&type=chunk) [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Income](index=3&type=section&id=Consolidated%20Statements%20of%20Income) The Consolidated Statements of Income reflect strong financial performance for both the three and twelve months ended July 31, 2025, with notable increases in service revenues, gross profit, operating income, and net income attributable to Copart, Inc Consolidated Statements of Income (Three Months Ended July 31, 2025 vs. 2024) | Metric | 2025 (in thousands) | 2024 (in thousands) | % Change | | :--------------------------------- | :------------------ | :------------------ | :------- | | Service revenues | $956,209 | $893,091 | 7.1 % | | Total service revenues and vehicle sales | $1,125,097 | $1,068,999 | 5.2 % | | Gross profit | $509,718 | $453,576 | 12.4 % | | Operating income | $412,591 | $359,544 | 14.8 % | | Net income attributable to Copart, Inc. | $396,354 | $322,567 | 22.9 % | | Diluted net income per common share | $0.41 | $0.33 | 24.2 % | Consolidated Statements of Income (Twelve Months Ended July 31, 2025 vs. 2024) | Metric | 2025 (in thousands) | 2024 (in thousands) | % Change | | :--------------------------------- | :------------------ | :------------------ | :------- | | Service revenues | $3,968,662 | $3,561,002 | 11.4 % | | Total service revenues and vehicle sales | $4,646,958 | $4,236,823 | 9.7 % | | Gross profit | $2,099,643 | $1,907,252 | 10.1 % | | Operating income | $1,696,714 | $1,572,023 | 7.9 % | | Net income attributable to Copart, Inc. | $1,552,449 | $1,363,020 | 13.9 % | | Diluted net income per common share | $1.59 | $1.40 | 13.6 % | - Total operating expenses for the twelve months ended July 31, 2025, increased by **10.7%** to **$2,950,244 thousand**[13](index=13&type=chunk) [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Copart's Consolidated Balance Sheets as of July 31, 2025, show a significant increase in total assets, primarily driven by a substantial rise in cash and cash equivalents, alongside a healthy growth in stockholders' equity Consolidated Balance Sheets Highlights (As of July 31, 2025 vs. 2024) | Metric | July 31, 2025 (in thousands) | July 31, 2024 (in thousands) | | :--------------------------------- | :--------------------------- | :--------------------------- | | Total assets | $10,090,902 | $8,427,764 | | Cash, cash equivalents, and restricted cash | $2,780,531 | $1,514,111 | | Property and equipment, net | $3,598,093 | $3,175,838 | | Total liabilities | $883,411 | $879,209 | | Total stockholders' equity | $9,187,033 | $7,524,011 | - Cash, cash equivalents, and restricted cash increased by **$1,266,420 thousand** (**83.6%**) year-over-year[15](index=15&type=chunk) - Total assets grew by **$1,663,138 thousand** (**19.7%**) from the previous fiscal year-end[15](index=15&type=chunk) [Consolidated Statements of Cash Flows](index=5&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The Consolidated Statements of Cash Flows indicate robust cash generation from operating activities in fiscal year 2025, contributing to a significant net increase in cash and cash equivalents, despite substantial investments in property and equipment and held-to-maturity securities Consolidated Statements of Cash Flows (Year Ended July 31, 2025 vs. 2024) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :--------------------------------- | :------------------ | :------------------ | | Net cash provided by operating activities | $1,799,750 | $1,472,564 | | Net cash used in investing activities | $(587,448) | $(940,079) | | Net cash provided by financing activities | $52,107 | $19,273 | | Net increase in cash, cash equivalents, and restricted cash | $1,266,420 | $556,716 | | Cash, cash equivalents, and restricted cash at end of period | $2,780,531 | $1,514,111 | - Net cash provided by operating activities increased by **$327,186 thousand** (**22.2%**) year-over-year[18](index=18&type=chunk) - Purchases of property and equipment amounted to **$568,990 thousand** in FY2025, an increase from **$510,990 thousand** in FY2024[18](index=18&type=chunk)

Group 1: Stock Performance - Copart, Inc. (CPRT) stock increased by 2.68% to $48.96, outperforming the S&P 500's gain of 1.52% on the same day [1] - Over the past month, the stock has risen by 3.05%, contrasting with the Business Services sector's decline of 0.57% and the S&P 500's increase of 1.1% [1] Group 2: Earnings Projections - The upcoming earnings per share (EPS) for Copart, Inc. is projected at $0.37, indicating a 12.12% increase from the same quarter last year [2] - The Zacks Consensus Estimate for revenue is expected to be $1.15 billion, reflecting a 7.23% increase from the previous year [2] Group 3: Full Year Estimates - For the full year, earnings are projected at $1.56 per share, representing an 11.43% increase from the prior year [3] - Revenue for the full year is estimated to be $4.67 billion, showing no change from the previous year [3] Group 4: Analyst Estimates and Market Sentiment - Changes in analyst estimates for Copart, Inc. are crucial as they reflect short-term business trends and can indicate analysts' favorable outlook on the company's health and profitability [4] - Recent research indicates that estimate revisions correlate with near-term share price momentum, providing investors with actionable insights [5] Group 5: Zacks Rank and Valuation - Copart, Inc. currently holds a Zacks Rank of 3 (Hold), with the consensus EPS projection remaining unchanged over the past 30 days [6] - The company has a Forward P/E ratio of 27.61, which is lower than the industry average Forward P/E of 37.7, indicating a valuation discount [7] Group 6: Industry Context - The Auction and Valuation Services industry, part of the Business Services sector, has a Zacks Industry Rank of 210, placing it in the bottom 15% of over 250 industries [7] - The Zacks Industry Rank assesses the performance of industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [8]

Market Overview - In the US, Copart and its main competitor control at least 80% of the market for salvage auctions [1] Competitive Landscape - The relative market share among Copart and its competitor is not precisely tracked, but they have a similar number of yards [1]

Group 1 - The core viewpoint is that Copart, Inc. (NASDAQ: CPRT) was downgraded due to valuation concerns, as its stock was trading above fair value despite expectations of healthy revenue growth and margin expansion [1] Group 2 - Triba Research aims to identify high-quality businesses capable of delivering sustainable, double-digit returns over the long term, focusing on companies with strong competitive advantages, low debt levels, and skilled management teams [2]

Group 1 - Copart, Inc. (CPRT) stock closed at $46.69, showing a +1.09% change, outperforming the S&P 500 which fell by 0.25% [1] - Over the last month, Copart's shares decreased by 2.69%, underperforming the Business Services sector's loss of 1.99% and the S&P 500's gain of 2.71% [1] Group 2 - Analysts expect Copart to report earnings of $0.37 per share, reflecting a year-over-year growth of 12.12%, with quarterly revenue projected at $1.15 billion, up 7.23% from the previous year [2] - For the entire fiscal year, earnings are predicted to be $1.56 per share, with revenue expected to remain at $4.67 billion, indicating a growth of +11.43% in earnings and no change in revenue from the prior year [3] Group 3 - Recent changes in analyst estimates for Copart are crucial as they reflect near-term business trends, with upward revisions indicating positive sentiment towards the company's operations [4] - Adjustments in estimates are linked to stock price performance, and the Zacks Rank system is designed to leverage these changes for investment decisions [5] Group 4 - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown that 1 ranked stocks have yielded an average annual return of +25% since 1988, with Copart currently holding a Zacks Rank of 3 (Hold) [6] Group 5 - Copart has a Forward P/E ratio of 26.75, which is a discount compared to the industry average Forward P/E of 41.75, indicating potential valuation attractiveness [7] - The Auction and Valuation Services industry, part of the Business Services sector, ranks in the bottom 16% of all industries, with a current Zacks Industry Rank of 208 [7]

Group 1: Near-Monopoly Stocks - The concept of near-monopolies can provide significant returns for investors, especially during uncertain economic cycles [1][2] - Examples of near-monopoly stocks include Copart Inc., ASML Holding, and Fair Isaac Corporation, which hold substantial market shares in their respective sectors [3] Group 2: Copart Inc. (CPRT) - Copart operates in the auto market, purchasing damaged vehicles from insurance companies, repairing them, and selling them at auctions, generating $4.7 billion in net revenue [4][5] - Copart holds approximately 40% market share in its field, positioning it as a near-monopoly [5] - Currently trading at 71% of its 52-week high, there is an expectation for price recovery, supported by institutional investment [6][7] Group 3: ASML Holding (ASML) - ASML is a leading company in lithography technology, essential for chipmaking, with minimal competition due to well-patented technology [8][9] - The stock is trading at 73% of its 52-week high, indicating potential for systemic buying as the industry surges [9][10] - Institutional investors have increased their holdings in ASML, reflecting confidence in its market position [10] Group 4: Fair Isaac Corporation (FICO) - Fair Isaac is integral to the U.S. banking and lending system, managing credit scores that are crucial for issuing loans and credit [12][13] - The stock is currently trading at 57% of its 52-week high, with analysts projecting a price target of $2,163, indicating a potential upside of 56.4% [14][15] - The company commands a high valuation premium, suggesting strong market confidence in its ability to outperform peers [15][16]

Shares of the company witnessed a loss of 6.33% over the previous month, trailing the performance of the Business Services sector with its loss of 3.04%, and the S&P 500's gain of 0.96%. Market participants will be closely following the financial results of Copart, Inc. in its upcoming release. The company is expected to report EPS of $0.37, up 12.12% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $1.15 billion, indicating a 7.23% growth compared to ...

Core Viewpoint - Copart, Inc. is experiencing a decline in stock performance compared to the broader market, with upcoming earnings expected to show growth in both EPS and revenue [1][2][3]. Group 1: Stock Performance - Copart, Inc. closed at $46.08, down 1.31% from the previous session, underperforming the S&P 500's gain of 0.02% [1]. - The stock has decreased by 3.09% over the past month, while the Business Services sector gained 1.39% and the S&P 500 increased by 4.93% [1]. Group 2: Earnings Projections - The upcoming EPS for Copart, Inc. is projected at $0.37, reflecting a 12.12% increase year-over-year [2]. - Revenue is expected to reach $1.15 billion, indicating a 7.23% growth compared to the same quarter last year [2]. - For the full year, earnings are projected at $1.56 per share and revenue at $4.67 billion, representing increases of 11.43% and 10.18% respectively from the prior year [3]. Group 3: Analyst Estimates and Rankings - Changes in analyst estimates are crucial as they reflect the shifting dynamics of the business, with upward revisions indicating positive sentiment [4]. - The Zacks Rank system, which assesses these estimate changes, currently ranks Copart, Inc. at 3 (Hold) [6]. Group 4: Valuation Metrics - Copart, Inc. has a Forward P/E ratio of 29.93, which is lower than the industry average of 45.34, suggesting it is trading at a discount [7]. - The Auction and Valuation Services industry, part of the Business Services sector, has a Zacks Industry Rank of 219, placing it in the bottom 12% of over 250 industries [7].

Summary of Conference Call Company and Industry - The conference call pertains to the insurance and vehicle auction industry, specifically focusing on Copart, a leading provider in the vehicle auction market. Key Points and Arguments Insurance Business Performance - Global insurance volume remained relatively flat year-over-year, with a nominal decline of 0.3% in unit sales globally and 0.9% in the U.S. [1] - Adjusting for the extra business day in leap year 2024, global insurance and U.S. insurance units sold grew by 1.3% and 0.6% respectively [1] - Total loss frequency in the U.S. reached 22.8% in Q1 2025, up 100 basis points compared to the previous year [1] Economic Factors Affecting Insurance - Increasing vehicle complexity, rising parts prices, and labor rates are making vehicle repairs less economically attractive for clients in the insurance industry [2] - The economics of total loss are becoming more attractive, particularly in emerging economies where salvaged vehicles are essential for mobility [2] - The rate of uninsured and underinsured drivers has increased significantly over the past four years, impacting overall insurance volumes [2] Storm Season Preparedness - Anticipation of an active 2025 storm season, similar to 2024, has led to investments in real estate, infrastructure, and operational readiness [3] - Acquisition of Hall Ranch in South Florida provides nearly 400 usable acres for vehicle storage during storms, enhancing operational capacity [3] Financial Performance - Global revenue increased to $1.2 billion, with global service revenue up by over 9% year-over-year [5] - U.S. service revenue grew by 8%, while international service revenue increased by about 18% [5] - Gross profit for the U.S. was approximately $480 million, with a gross margin of about 48% [7] Inventory and Sales Trends - Global inventory decreased nearly 10% year-over-year, with U.S. inventory down approximately 11% [5] - U.S. insurance unit volume decreased close to 1% year-over-year, while non-insurance U.S. unit volume growth outpaced that of the U.S. insurance business [4] - International segment saw unit sales growth of 6% in the quarter [4] Challenges and Opportunities - Softness in the heavy equipment auction space due to uncertainty regarding infrastructure spending and tariffs [4] - Facility-related costs increased by $51 million, or about 12%, reflecting ongoing investments in operations [6] Legislative Impacts - Potential legislative actions could cap storage fees, benefiting Copart, while other actions could raise total loss thresholds, which may negatively impact the business model [19] Market Dynamics - Market share dynamics are influenced by the growth rates of individual insurance carriers served by Copart [14] - The pricing in auction markets is affected by local economies and the affordability of mobility solutions, with no significant impact observed from pending or enacted tariffs so far [15] Future Outlook - The cyclical nature of underinsured and uninsured motorists is expected to revert over time, impacting future volumes positively [3] - Continuous investment in technology and physical storage is seen as essential for enhancing operational capabilities and auction outcomes [3] Additional Important Content - The company emphasizes the importance of physical storage and logistics in its value proposition for sellers, particularly in the insurance sector [8] - The impact of tariffs on repair costs and total loss decisions is acknowledged, with ongoing uncertainty in trade policy affecting the business landscape [12][13]

Core Insights - Copart, Inc. (NASDAQ: CPRT) is recognized as a strong compounder with a competitive advantage derived from strategic yard acquisitions and investments in online auction technology [1] - The company has pioneered online auctions for junked cars, establishing significant network effects through an active and international platform [1] Company Strategy - The strategic focus on yard acquisitions has allowed Copart to enhance its operational capabilities and market presence [1] - Investments in online auction technology have positioned the company as a leader in the junked car auction space, facilitating a robust online marketplace [1] Market Position - Copart has built impressive network effects, which contribute to its competitive moat and long-term growth potential [1] - The company's innovative approach in the auction process has attracted a diverse customer base, further solidifying its market position [1]