Copart achieved a 12.3% increase in gross profit per fee unit and a gross margin improvement of 184 basis points to 46.5% in Q1 2026, demonstrating strong pricing power despite headwinds. FY2025 showed 9.7% revenue growth with 45.2% global gross margin, driven by 18.9% international revenue surge outpacing US growth, positioning the company for global expansion.
Cyborg Score Rationale
Q1 2026 net income climbed 11.5% to $403.7 million while fully diluted earnings per share increased 11.7%, showing strong profitability growth. However, revenue grew by less than 1% to $1.16 billion year-over-year due to collision repair headwinds including higher total loss declarations and reduced insurance coverage.
Top Insights
Copart secured a $1.25B credit facility through 2031 with $6B liquidity buffer (including $4.8B cash) to support global expansion and acquisitions
Global insurance ASPs increased 6.8% and US insurance ASPs by 8.4% to all-time highs, with international buyers purchasing vehicles 38% higher in value than US buyers
US Non-Insurance business performed well with dealer unit sales increasing by 5.3%, providing a growth offset to insurance weakness
Insurance unit sales declined 8.4% globally in Q1 2026 while rivals like IAA and ADESA are eroding market share through digital infrastructure
Named Competitors
Insurance Auto Auctions — Alternative online vehicle auction platform
ADESA — Dealer and remarketing auction services
Recent Developments
(February 2026) Announced a $1.25B unsecured senior revolving credit facility signed January 23, 2026
(November 2025) Q1 2026 revenue of $1.16B (+0.7% YoY) with gross profit rising 4.9% to $537M and net income climbing 11.5% to $403.7M
(August 2025) Q2 2026 revenue of $1.1B (+5.2% YoY) with gross profit increasing 12.4%
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