Key Highlights
- Fourth-quarter revenue reached $1.15 billion, reflecting a 2.4% year-over-year increase and surpassing the $1.14 billion analyst consensus
- Earnings per share of $0.35 fell short of the $0.39 analyst projection, declining 14.6% compared to the same quarter last year
- Shares declined 4% in regular trading to $30.75, before rallying 8.59% to $33.39 in after-hours activity
- The company unveiled plans to purchase ACV Auctions for $1.9 billion in cash at $10.50 per share, representing a 45% premium
- Quarterly net income dropped 17.4% to $327.4 million while gross profit decreased 5.5% and operating expenses increased
On Thursday, Copart delivered fourth-quarter financial results that showed strength in revenue but weakness in profitability. The vehicle auction platform saw its shares decline 4% during regular market hours before staging a dramatic reversal in extended trading.
Following the closing bell, CPRT shares climbed 8.59% to reach $33.39, rebounding from the regular session finish of $30.75.
The quarter’s revenue totaled $1.15 billion, representing a 2.4% increase year over year and slightly exceeding Wall Street’s projection of $1.14 billion. However, profitability disappointed with earnings of $0.35 per diluted share, falling roughly 10% below the consensus estimate of $0.39.
Attributable net income declined 17.4% from the prior year to $327.4 million. The company’s gross profit slipped 5.5% to $481 million, resulting in a gross margin of 41.8%.
Operating income fell 10.6% to $368.9 million, while per-vehicle operating expenses climbed 12.7% year over year. Company leadership recognized the cost pressures and expressed confidence in reducing this metric going forward.
Worldwide vehicle units sold decreased 2.9% during the quarter and 5.5% for the complete fiscal year when excluding catastrophe-related inventory. Insurance-sourced volume in the United States softened, mirroring reduced claims frequency throughout the broader industry.
Major ACV Auctions Acquisition
The evening’s most significant development came with Copart’s announcement of a definitive agreement to acquire ACV Auctions through an all-cash transaction valued at roughly $1.9 billion. The $10.50 per share offer price delivers a 45% premium over ACV’s previous closing price. ACV shares surged more than 40% in after-hours trading.
ACV manages a digital platform facilitating wholesale vehicle sales, linking dealers, commercial purchasers, and sellers throughout the used vehicle ecosystem. According to Copart, this acquisition broadens its footprint in the dealer-to-dealer wholesale remarketing segment.
Deal completion is anticipated by the conclusion of calendar year 2026. Copart projects the transaction will have neutral earnings impact during the current fiscal year and become earnings-accretive by fiscal 2028. Following the transaction’s close, the company anticipates maintaining over $2 billion in cash reserves.
Evercore serves as financial advisor to Copart for the transaction, with J.P. Morgan Securities providing advisory services to ACV.
Global Expansion and Financial Position
International operations provided a positive highlight during the quarter. Revenue from international markets increased 11.7% year over year to $222.1 million, demonstrating stronger momentum than domestic operations.
Per-unit revenue improved 5.4% in the quarter, while worldwide average selling prices advanced 3.5% compared to the year-ago period. Non-insurance sourced volumes in the United States showed signs of renewed modest expansion.
Copart concluded the period with $5.7 billion in available liquidity as of July 31, encompassing $4.5 billion in cash equivalents and held-to-maturity securities. The company maintains a debt-free balance sheet and possesses $1.25 billion in unused capacity under its revolving credit arrangement.
Chief Executive Officer Jay Adair emphasized that Copart maintains a long-term perspective, thinking “in decades” rather than quarters, and characterized artificial intelligence as “a very important differentiator” the organization intends to leverage for cost reduction and platform demand generation.
CPRT’s 52-week trading range extends from $26.81 to $49.05. The after-hours trading price of $33.39 positions the stock approximately 32% beneath its 52-week peak.
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