Highlights

  • Fiscal 2026 revenue edged up 0.4% to $4.67 billion, while operating income declined 2.6% to $1.65 billion.
  • Diluted earnings per share came in at $1.55 compared with $1.59, with net income attributable to Copart of $1.48 billion.
  • The company repurchased about 43.4 million shares for $1.6 billion during the year, cutting cash and equivalents by 31%.
  • Copart agreed on September 10 to acquire ACV for $10.50 per share in cash, valuing its equity near $1.9 billion.

Copart (NASDAQ:CPRT) shares were trading near their 52-week low at USD 27.91 on October 21, 2026, up 0.27%. The online vehicle auction operator filed its annual report for the fiscal year ended July 31, 2026 on September 29, after signing a definitive merger agreement on September 10 to acquire ACV Auctions.

Based in Dallas, Texas, Copart was incorporated in California in 1982, became a public company in 1994 and reincorporated in Delaware in January 2012. It describes itself as a leading global provider of online auctions and vehicle remarketing services, selling vehicles mainly for insurance company sellers through its VB3 internet platform, with operations in 11 countries. It reports two segments, U.S. and International, and had about 11,900 full and part-time employees as of July 31, 2026.

Flat Revenue and Lower Operating Income in Fiscal 2026

Total service revenues and vehicle sales were $4.67 billion in fiscal 2026, against $4.65 billion in fiscal 2025. Service revenues were essentially unchanged at $3.97 billion. In the U.S. they fell 1.8% to $3.39 billion, which the company linked to one-time revenue from hurricanes Helene and Milton in the prior year and to lower volume, partly offset by higher revenue per car. International service revenues rose 12.4% to $581 million on higher revenue per car and volume, including a $21.9 million currency benefit. Vehicle sales revenue rose 2.7% to $697 million.

Costs grew faster than revenue. Operating expenses rose to $3.01 billion from $2.95 billion, with facility operations expenses up 1.1% to $1.97 billion and general and administrative expenses up 7.0% to $431 million. International facility costs rose 11.2% on a higher cost to process a car, while U.S. facility costs fell 0.7%. Operating income was $1.65 billion, down from $1.70 billion, and operating margin narrowed to about 35.4% from 36.5%. The U.S. segment earned $1.42 billion of operating income and International earned $234 million.

Net income attributable to Copart was $1.48 billion, down from $1.55 billion, and diluted EPS was $1.55 against $1.59. Other income fell 8.3% to $182 million, as lower gains on asset sales and currency gains outweighed higher interest income from U.S. Treasury bills.

Cash, Buybacks and a New Credit Facility

Operating cash flow decreased 10.8% to $1.60 billion, with larger receivables and a tax receivable cited among the changes in working capital. Capital expenditures and acquisitions fell 40% to $342 million. Financing cash outflows reached $1.61 billion, mainly from stock repurchases, versus a small inflow a year earlier.

Copart repurchased 43,433,164 shares for $1.6 billion in fiscal 2026. Under its repurchase program, 282 million shares remained available as of July 31, 2026, and the company has not paid a cash dividend since going public in 1994. Cash, cash equivalents and restricted cash ended the year at $1.91 billion, down from $2.78 billion. The company says cash and operating cash flow should cover its needs for the foreseeable future.

On January 23, 2026, Copart entered an unsecured revolving credit facility of up to $1.25 billion maturing in January 2031, replacing a secured facility due in December 2026. About $1.23 billion was available at year end, and the company said it was in compliance with its covenants.

ACV Merger Agreement and Stated Priorities

The ACV transaction is the main item after the balance sheet date. Copart agreed to buy ACV Auctions for $10.50 per share in cash, an implied equity value of roughly $1.9 billion, and its liquidity discussion points to cash flows from operations as a source for the payment. The company expects to close by the end of calendar year 2026. Completion depends on a majority of ACV shares being tendered, expiration or termination of the Hart-Scott-Rodino waiting period and other customary conditions, so the outcome is not yet certain.

The filing places the deal within a strategy of growing whole-car volumes and related services in the United States, alongside expanding the international insurance business and developing technology services for sellers and buyers. The annual report gives no numerical guidance for fiscal 2027.