Copart, Inc.

Fourth-quarter consolidated revenue increased 2.4% year over year to $1.2 billion. Global service revenue rose more than $13 million, or 1.4%, and global purchased vehicle sales increased $14 million, or 8.3%. Q4 gross profit was $481 million, down $28 million or 5.5%, with gross margin of 41.8%; operating income fell 10.6% to $368.9 million. Net income attributable to Copart declined 17.4% to $327.4 million, or $0.35 per diluted share, partly due to a $13 million gain on asset disposal in the prior-year quarter and lower interest income. For the fiscal year, revenue was $4.7 billion, up 0.4%; gross profit was $2.1 billion, down $15.8 million or 0.8%; gross margin was 44.7%; net income attributable to Copart was $1.48 billion, or $1.55 per diluted share, down 4.4%. Global units sold declined 2.9% in the quarter and 5.5% for the year, while international units sold rose 10% in the quarter and 3.7% for the year. Management did not provide numeric next-quarter or full-year financial guidance; for ACV, Leah Stearns said the deal is expected to be breakeven in the current period and effectively accretive in the first full year, FY28. The company ended July with approximately $5.7 billion of liquidity, including $4.5 billion of cash, cash equivalents and held-to-maturity securities, plus $2.05 billion of revolver capacity and no debt outstanding.

Jay Adair framed Copart’s strategy around three pillars: international insurance expansion, domestic whole-car expansion, and continued technology and service investment. He emphasized Copart’s liquidity advantage, its speed in bringing products to market, and AI as a tool not only to lower costs but also to improve buyer matching and demand creation. On ACV, he said the businesses are highly complementary, called the deal a fit with Copart’s founder-driven culture, and described the acquisition as a way to combine physical logistics scale with digital marketplace and dealer liquidity.

Leah Stearns focused on the earnings mechanics: revenue growth was positive, but gross profit and net income declined because of continued investment in new products and services, including long haul delivery, TitleExpress, and dedicated wholesale facilities. She cited Q4 gross margin of 41.8% and full-year gross margin of 44.7%, while noting U.S. facility-related costs rose $30 million, or 7.7%, in Q4 and international facility-related costs increased $8.8 million, or 11.4%. She also highlighted strong liquidity of approximately $5.7 billion and said Copart will still retain significant financial flexibility after the ACV transaction.

Analysts pressed on how ACV fits culturally and operationally, and management said both companies have a startup-like, scrappy mentality and will remain separate brands while sharing buyer liquidity and logistics. Questions also focused on cost inflation and whether higher spending would continue; management said most of the increase came from discretionary investments in new products, facilities, and services, with only a small portion tied to fuel costs. Analysts asked about pricing and margin pressure, and management said it is not focused on cutting price to win volume, but on improving liquidity and reducing cost per car.