Copart Q4 Earnings Surpass Estimates, Revenues Increase Y/Y

Core Insights - Copart, Inc. (CPRT) reported adjusted earnings per share of 41 cents for Q4 fiscal 2025, exceeding the Zacks Consensus Estimate of 37 cents, with a year-over-year increase of 24.24% [1][9] - The company generated revenues of $1.13 billion, slightly missing the Zacks Consensus Estimate of $1.15 billion, but reflecting a 5.25% increase from the previous year [1] Revenue Breakdown - Service revenues for the fourth quarter were $956.2 million, up from $893.1 million in the same period last year, but below the Zacks Consensus Estimate of $969 million, accounting for 84.98% of total revenues [2] - Vehicle sales totaled $168.89 million, a decline from $175.91 million in the prior-year quarter and below the Zacks Consensus Estimate of $178 million [2] Industry Context - Global insurance volumes decreased by approximately 2% year over year in Q4 fiscal 2025, while total loss frequency in the U.S. rose to 22.2% from 21.5% in the previous year, indicating a trend that may benefit Copart due to increased salvage vehicles [3] Cost and Profit Analysis - Yard operations expenses increased by 2.8% year over year to $418.5 million, while the cost of vehicle sales decreased by 9% to $147.4 million [4] - Gross profit rose by 12.4% year over year to $509.72 million, with total operating expenses increasing by 0.4% to $712.5 million [4] Income and Cash Position - Operating income increased to $412.6 million from $359.5 million in the prior year, with net income growing by 22.7% year over year to $395.31 million [5] - As of July 31, 2025, Copart had cash, cash equivalents, and restricted cash totaling $2.78 billion, up from $1.51 billion a year earlier [5]