$CPRT · COPART INC

Copart filed its 10-K for the fiscal year ended July 31, 2026. Total service revenues and vehicle sales were $4.67 billion, essentially flat versus $4.65 billion in FY2025. Operating income declined 4.4% to $1.65 billion, with U.S. segment operating income falling 4.2% to $1.42 billion while International grew 8.2% to $233.6 million. Operating cash flow decreased 10.8% to $1.60 billion, and cash reserves dropped 31.4% to $1.91 billion as the company deployed $1.61 billion in financing outflows primarily for share repurchases.

Extended-hours trading shows CPRT at $27.16, down 0.22% from the regular close of $27.22 — a muted reaction to flat revenue and U.S. margin erosion. The $25.2B market cap company's aggressive buyback ($1.61B in financing outflows) may be cushioning downside.

Copart's U.S. profit engine is sputtering — flat revenue and declining operating income in its core segment raise questions about whether the 38.2% international buyer mix can offset domestic margin压缩

Copart's flat top line contrasts with the broader auto-remarketing sector's volume recovery. The 12.4% international service revenue growth signals overseas expansion is the primary growth engine as the mature U.S. market shows margin fatigue.

U.S. segment operating margin compressed as facility operations costs ($1.63B) consumed 48.2% of U.S. service revenues, up from 47.7% in FY2025. International expansion carries foreign currency exposure, with goodwill declining $7.4M on FX translation. Insurance concentration risk persists: 79% of 1