COPART INC recently released its 10-K report. Copart, Inc. is an online vehicle remarketing company operating in the United States, the United Kingdom, Germany, Brazil, Canada, the United Arab Emirates, Spain, Finland, Oman, the Republic of Ireland, and Bahrain. It processes and sells vehicles primarily through its VB3 internet auction platform, while also offering services such as title processing, transportation, inspection, reporting, and end-of-life vehicle processing. The company was incorporated in 1982 and is headquartered in Dallas, Texas.
In Item 7, management says the company’s business is built around auction and auction-related fees, along with vehicle sales where it acts as principal in some markets. In the U.S., Canada, Brazil, Ireland, Finland, the U.A.E., Oman, and Bahrain, Copart operates mainly as an agent and earns revenue from transaction fees and post-auction services such as delivery and storage. In the U.K., Germany, and Spain, it also buys salvage vehicles outright in some cases and resells them for its own account, and in the U.K. it recognizes principal revenue from selling dismantled parts through GPS.
Copart says insurance companies supplied 79% of the vehicles processed in fiscal 2026, compared with 81% in both fiscal 2025 and fiscal 2024. The company says its revenue is influenced by total loss frequency, average auction selling prices, used car pricing, demand for rebuildable vehicles, demand for recycled parts, foreign exchange rates, and commodity prices, especially crushed car bodies. It also says the average age of cars on the road increased from 11.4 years in 2013 to 13.0 years in 2026.
On costs, Copart points to facility labor, transportation, maintenance, property taxes, rent, insurance, and vehicle costs as the main drivers of facility operations expense. General and administrative expense is tied to executive management, accounting, data processing, sales personnel, professional services, marketing, and technology maintenance. Other income is driven mainly by interest income on U.S. Treasury bills, foreign exchange gains and losses, gains and losses on asset disposals, credit facility fees and interest expense, and earnings from unconsolidated affiliates.
For liquidity, Copart says cash flow from operations is its main source of working capital, with cash and cash equivalents and revolving credit commitments under its 2026 Credit Agreement as its primary liquidity sources. It also says cash flow is affected by seasonality, market wins and losses, supplier mix, accident frequency, total loss frequency, commodity pricing, used car pricing, foreign exchange rates, product mix, capital expenditures, and other macroeconomic factors. The company adds that it can also generate liquidity from asset sales and share issuance through option exercises and its employee stock purchase plan.
Copart listed a series of facility openings from August 2023 through June 2026. In the U.S., those included Rutland, Vermont; Phoenix, Arizona; Austin, Texas; Casper, Wyoming; Napa, California; Laurel, Maryland; Chicago, Illinois; Cedar Rapids, Iowa; Clewiston, Florida; La Grange, North Carolina; Vinton, Louisiana; Spanaway, Washington; Cusseta, Alabama; and Tampa, Florida. International openings included Corby, Glasgow, Gloucester, St. Helens, and other sites in the U.K.; Alhendin, Barcelona, Castellón, and Vitoria in Spain; Cookstown, Ontario; and Eusebio and Caçapava in Brazil.
The company also disclosed that on September 10, 2026, it entered into a definitive merger agreement to acquire ACV for $10.50 per share in cash, implying an equity value of about $1.9 billion. Copart said the deal is expected to close by the end of calendar year 2026, subject to a majority tender of ACV shares, antitrust clearance, and other customary conditions. The market has reacted to these announcements by moving the company's shares -1.34% to a price of $27.22. For more information, read the company's full 10-K submission here.
