Copart (NASDAQ:CPRT) reported fourth-quarter fiscal 2026 revenue growth despite lower global unit sales, as higher selling prices and international expansion helped offset weaker domestic insurance volumes. The company also announced an agreement to acquire ACV, a primarily digital automotive marketplace, in an all-cash transaction expected to close by the end of the calendar year.
Chief Executive Officer and Executive Chairman Jay Adair said Copart remains focused on three growth pillars: international expansion in insurance, domestic expansion in whole-car sales, and technology and services for customers. He described buyer liquidity, operational speed and a long-term founder-led approach as key differentiators for the company.
Fourth-Quarter Results
For fiscal 2026, revenue totaled $4.7 billion, up 0.4%. Stearns noted that fiscal 2025 benefited from Hurricane Helene and Hurricane Milton. Excluding the impact of those events, fiscal 2026 total revenue increased 2.4%.
- Fourth-quarter revenue per unit increased 5.4% year over year.
- Full-year revenue per unit rose about 5.7%.
- Global average selling prices increased 3.5% in the fourth quarter and 5.5% for the full year.
- Fourth-quarter gross profit declined 5.5% to $481 million, with gross margin of 41.8%.
- Operating income fell 10.6% to $368.9 million in the quarter.
- Net income attributable to Copart declined 17.4% to $327.4 million, or $0.35 per diluted share.
Stearns said the net-income comparison reflected a $13 million gain on asset disposals in the prior-year fourth quarter, as well as lower interest income after Copart deployed $1.63 billion toward share purchases earlier in fiscal 2026.
Full-year net income attributable to Copart decreased 4.4% to $1.48 billion, or $1.55 per diluted share. Full-year operating income declined 2.6% to $1.7 billion.
Volume Trends, Insurance Dynamics and Costs
Global units sold declined 2.9% in the fourth quarter, including a 5.7% decrease in the U.S. and a 10% increase internationally. Global insurance units fell 4.2%, with domestic insurance volume down 7.5% and international insurance units up 11.2%.
Adair said that, excluding the loss of one customer, domestic insurance assignments would have increased 2.3%. He attributed broader insurance-volume pressure to lower collision claim frequency, which declined 3.4% year over year. However, he said total-loss frequency rose to 23.3% in the second quarter of fiscal 2026, the highest second-quarter level on record, while average collision severity exceeded $6,300 per claim, up nearly 8.8%.
Adair said increasing vehicle complexity could support future total-loss frequency. He cited an estimate that a new Tesla vehicle contains about 100 million lines of code, describing modern vehicles as “computers on wheels.”
Costs increased as Copart continued to invest in products and services including long-haul delivery, Title Express and dedicated wholesale facilities. Operating expense per car increased 12.7% in the fourth quarter, according to Adair. Stearns said the company is targeting lower facility costs per unit through cost management while continuing investments intended to support growth.
In the U.S., fourth-quarter facility-related costs increased $30 million, or 7.7%, and rose 14.2% on a per-unit basis. International facility-related costs rose $8.8 million, or 11.4%, but increased only 1.2% per unit.
International Growth and Wholesale Initiatives
Copart’s international business remained a major source of growth. Fourth-quarter international revenue increased 11.7% to $222.1 million, while international gross profit rose 11.8% to $77.6 million. International units sold increased 10%, led by an 11.2% gain in insurance units.
International operating income reached $56.8 million, representing a 25.6% operating margin. Adair said Copart is now profitable in all of its international markets and intends to expand both within existing markets and into new countries. He said the company has developed an operating model for Germany that it plans to use as it grows across Europe.
In the U.S., non-insurance volumes returned to modest growth in the fourth quarter, rising 0.2%. Dealer units grew 5.8%, while Blue Car volume, which serves banks, rental companies and fleet customers, increased nearly 20% from the prior-year quarter. Copart Direct units declined 11.7% as the company continued to optimize its principal-unit strategy.
Stearns said Copart now has 25 dedicated wholesale facilities co-located at existing U.S. locations in major metro markets, serving 80% of the addressable wholesale market.
ACV Acquisition Plans
Copart said it has agreed to acquire ACV, which sells more than 800,000 vehicles annually and operates primarily as a digital marketplace with little land of its own. ACV transacted approximately $10 billion in gross merchandise value in 2025 across more than 22,000 active buyers, Adair said.
Copart plans to maintain the Copart and ACV brands as separate operations, while integrating buyer liquidity, logistics and selected technology capabilities. ACV will operate as an independent subsidiary led by its existing team after the deal closes.
Adair said Copart expects to use its more than 275 locations as staging areas for ACV vehicles, while combining Copart’s international buyer base and logistics network with ACV’s dealer relationships, inspection capabilities and valuation technology. He said the combination could broaden access to franchise dealers and higher-end trade-ins, while potentially supporting demand for lightly damaged insurance vehicles and international sales.
The all-cash deal will be funded with cash on hand and has no financing condition. Both boards unanimously approved the transaction, which remains subject to customary closing conditions and regulatory review. Stearns clarified that Copart expects the acquisition to be breakeven during the current period and accretive in its first full fiscal year, fiscal 2028.
As of the end of July, Copart had approximately $5.7 billion of liquidity, including $4.5 billion in cash equivalents and held-to-maturity securities, plus $1.25 billion available under a revolving credit facility. The company had no debt outstanding.
About Copart (NASDAQ:CPRT)
Copart, Inc (NASDAQ: CPRT) provides online vehicle auction and remarketing services. The company operates a global marketplace where damaged, recovered, used and other vehicles are sold primarily through online auctions. Its offerings include salvage and clean-title vehicles, with inventory sourced from insurance companies, banks, dealerships, fleet operators, rental companies, government agencies and other organizations.
Copart supports the vehicle remarketing process through inspection, storage, transportation, title processing and auction services.
