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Copart reported Q4 FY2026 revenue of $1.2 billion, compared with the consensus of $1.1 billion; the company’s revenue was 0.52% above the consensus. The company reported adjusted EPS, as the consensus counts it, of $0.35 against a consensus of $0.39, or −10.3% against the consensus. Copart reported diluted EPS of $0.35, down from $0.41 in Q4 FY2025.
Copart reported revenue growth of 2.43% from a year earlier. Leah Stearns said global service revenue increased more than $13 million and purchase-vehicle sales increased $14 million during the quarter. The company reported a gross margin of 41.8%, compared with 45.3% a year earlier, and an operating margin of 32.0%, compared with 36.7%. Stearns attributed the gross-profit decline primarily to costs associated with new products and services, including long-haul delivery, Title Express and dedicated wholesale facilities. Copart reported free cash flow of $275.2 million, compared with $376.9 million a year earlier.
| Q4 FY2026 | Q4 FY2025 | Change | |
|---|---|---|---|
| Revenue | $1.2 billion | $1.1 billion | 2.43% |
| Diluted EPS | $0.35 | $0.41 | −14.6% |
| Gross margin | 41.8% | 45.3% | −3.5 percentage points |
| Operating margin | 32.0% | 36.7% | −4.7 percentage points |
| Free cash flow | $275.2 million | $376.9 million | −27.0% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $0.35 | $0.39 | Missed by 10.3% |
| Revenue | $1.2 billion | $1.1 billion | Beat by 0.52% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
Jay Adair said global unit sales declined 2.9% in Q4, as domestic units declined 5.7% while international units increased. Adair said global insurance units declined 4.2%, with domestic insurance units down 7.5% and international insurance units up 11.2%. He said collision-claim frequency declined 3.4% year over year, while total-loss frequency reached 23.3% in the second quarter of 2026. Adair said Copart believes total-loss frequency will continue to rise as repair costs and vehicle complexity affect insurers’ repair-versus-salvage decisions.
On pricing, Adair said global insurance average selling prices increased 3.1% year over year in Q4, including increases in domestic and international markets. He said buyer liquidity remains a differentiator and that Copart is focused on bringing buyers to relevant vehicles. In response to questions about pricing, Stearns said Copart does not discuss its specific pricing strategy, but said Title Express and loan-payoff offerings can create additional fee opportunities.
Stearns said fourth-quarter operating expense per car increased 12.7% from a year earlier. She said new products and services and additional facility capacity accounted for most of the year-over-year cost increase, including $17 million associated with long-haul delivery. Adair said Copart is focused on reducing per-car costs, while Stearns said the company continues to invest in products and services for sellers and members.
Adair said Copart has agreed to acquire ACV, which he described as complementary to Copart’s physical network, buyer base and wholesale operations. He said the transaction is an all-cash deal funded from cash on hand and is subject to customary conditions, including regulatory review. In response to analysts’ questions about the acquisition, Adair said Copart expects to retain over $2 billion of cash after the transaction, and Stearns said the deal is expected to be break-even in the current fiscal year and accretive in its first full year, FY2028. Adair said Copart expects ACV to operate as an independent subsidiary after closing.
Guidance
Copart did not provide numerical management guidance for earnings, costs or other income-statement metrics on the latest call. Stearns said Copart does not guide specifically to costs or profit-and-loss metrics, and Adair said, we just don’t give guidance on earnings or any of that. Stearns separately said Copart expects the ACV transaction to be break-even in the current fiscal year and accretive in FY2028.