INAUGURAL ZÜRICH AUCTION TO TAKE PLACE ON 1 NOVEMBER 2025 AS A HIGHLIGHT OF THE RENOWNED AUTO ZÜRICH SHOW | APPROXIMATELY 60 EXCEPTIONAL COLLECTOR CARS TO BE AUCTIONED AT THE SPECTACULAR DOLDER GRAND A snapshot of the spectacular Dolder Grand, where Broad Arrow is set to hold its inaugural Zürich Auction in partnership with Auto Zürich on 1 November 2025 Credit – Courtesy of The Dolder Grand LONDON, England, June 10, 2025 (GLOBE NEWSWIRE) -- Broad Arrow Auctions, a Hagerty (NYSE: HGTY) company, continues ...

Company Performance - Copart, Inc. reported third-quarter fiscal 2025 adjusted earnings per share of 42 cents, in line with the Zacks Consensus Estimate, representing a year-over-year increase of 7.7% [1] - The company generated revenues of $1.21 billion, which fell short of the Zacks Consensus Estimate of $1.24 billion, but still marked a 7.5% increase from the previous year [1] - Service revenues for the quarter were $1.03 billion, up from $946.6 million year-over-year, but below the Zacks Consensus Estimate of $1.06 billion, accounting for 85.4% of total revenues [3] - Vehicle sales totaled $176.8 million, a decline from $180.6 million in the prior-year quarter and below the Zacks Consensus Estimate of $187 million, with U.S. sales increasing by 22% while international revenues dropped by 25% [4] Financial Metrics - Gross profit increased by 5.1% year-over-year to $552 million, while total operating expenses rose by 10.2% to $760 million [5] - Operating income rose to $451.5 million from $437.2 million recorded in the year-ago quarter, and net income grew 6.1% year-over-year to $405.3 million [5] - As of April 30, 2025, the company had cash, cash equivalents, and restricted cash of $2.36 billion, compared to $1.5 billion as of July 31, 2024 [5] Management Insights - Management noted that total loss frequency in the U.S. rose to 22.8% in the first calendar quarter of 2025, up about 100 basis points from the prior year, which is beneficial for Copart's business model as it leads to more salvage vehicles [7] - The company is making ongoing investments in storage capacity, technology, and operations to prepare for both everyday needs and storm-related surges, with expectations that rising total loss frequency will support long-term growth [8]

Financial Data and Key Metrics Changes - Q1 revenue reached $183 million, representing a 25% year-over-year growth, with adjusted EBITDA of $14 million exceeding the high end of guidance [7][22][28] - Organic revenue growth was approximately 20% year-over-year, with adjusted EBITDA margin improving by 500 basis points [22][23] - Non-GAAP net income was above the high end of guidance, with margin increasing approximately 300 basis points year-over-year [23] Business Line Data and Key Metrics Changes - Auction and assurance revenue accounted for 58% of total revenue, growing 28% year-over-year, driven by 19% unit growth and an average revenue per unit (ARPU) of $500, which grew 8% [24] - Marketplace services revenue comprised 37% of total revenue, growing 24% year-over-year, reflecting record revenue for ACV Transport and ACV Capital [24] - SaaS and data services products made up 5% of total revenue, with a growth of 5% year-over-year [24] Market Data and Key Metrics Changes - The dealer wholesale market grew in the low single digits, with ACV selling 208,000 vehicles, a 19% year-over-year increase despite soft market conditions in February [7][22] - The overall dealer wholesale market is expected to be approximately flat year-over-year for 2025, with expectations for conversion rates and wholesale price depreciation to follow normal seasonal patterns [29][107] Company Strategy and Development Direction - The company focuses on three pillars for long-term shareholder value: growth, innovation, and scale, with a strong emphasis on expanding its dealer partner network and enhancing product offerings [6][8] - The strategy includes leveraging AI across product offerings to provide accurate pricing guidance and improve operational efficiencies [9][15] - The company aims to continue executing its profitable growth strategy while investing in long-term growth objectives [6][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong top-line growth and increased adjusted EBITDA despite evolving macroeconomic conditions [6][31] - The company anticipates continued market share gains and is focused on expanding its addressable market as market conditions improve [31] - Management noted that while there are uncertainties in the broader market, the company is well-positioned to navigate these challenges [31][84] Other Important Information - The company ended Q1 with $342 million in cash and cash equivalents and marketable securities, alongside $167 million of debt [26] - For Q2, the company expects revenue in the range of $193 million to $198 million, reflecting a year-over-year growth of 20% to 23% [28] Q&A Session Summary Question: Is there any customer pushback regarding recent fee increases? - Management reported very little pushback from customers regarding price increases, emphasizing a fair pricing strategy and strong value proposition [34][36] Question: What growth avenues does ACV see under a tariff backdrop? - Management highlighted that ACV continues to grow and take market share, with value-added solutions helping to differentiate the company [39][42] Question: Have dealers' needs shifted due to tariffs? - Management noted that dealers are primarily focused on acquiring more inventory, with increased interest in new products [50][52] Question: What is the penetration and potential impact of the price guarantee tool and Project Viper? - Management indicated that the guarantee offering is growing, with significant interest, and Project Viper is in early beta stages with high demand [57][66] Question: How is ACV managing risk in ACV Capital? - Management explained that risk is minimized through regular dealer visits and improved risk management capabilities, resulting in reduced bad debt expense [75][76] Question: How does the company view the impact of tariffs on wholesale listings? - Management stated that while tariffs may affect pricing, the company primarily sources supply from dealers, which mitigates potential impacts [80][82] Question: What are the competitive dynamics in the market? - Management noted that competition remains strong, but ACV continues to execute well and take market share, positioning itself as a neutral partner for dealers [92][95] Question: How are dealers leveraging real-time data provided by ACV? - Management shared examples of dealers using ACV tools to buy cars from service drives and automate pricing, enhancing their operational efficiency [98][100]

Priced as of April 17, 2025 In this note, we include the latest comp sheet and valuation metrics for global automotive OEMs (page 3), auto parts suppliers (page 5), auto auction service providers (page 13), tire manufacturers (page 14), auto rentals (page 15), and auto dealers (page 16). J P M O R G A N North America Equity Research 21 April 2025 Autos Valuation Comp Sheet Autos & Auto Parts Ryan Brinkman AC (1-212) 622-6581 ryan.j.brinkman@jpmorgan.com Rajat Gupta AC (1-212) 622-6382 rajat.gupta@jpmorgan.c ...