Copart’s shares fell 6.5% after earnings, reflecting investor concern over weaker domestic volumes and rising operating costs, with OpEx per car increasing 12.7% year over year. Management highlighted long-term growth initiatives, including the ACV acquisition, but the quarter showed continued pressure in domestic insurance assignments and overall unit sales.
- Global unit sales declined 2.9% year over year; domestic units fell 5.7%, while international units increased 10%.
- Global insurance units declined 4.2%, including a 7.5% drop domestically; management said domestic insurance assignments would have risen 2.3% excluding one customer loss.
- Collision claim frequency decreased 3.4%, but average collision severity rose 8.8% to more than $6,300 per claim, while total-loss frequency reached a record 23.3% in the second quarter.
- Insurance ASPs increased 3.1% globally, including 3.7% domestically, and international buyers represented 38.2% of U.S. units sold and 45.7% of sales dollars.
- Copart agreed to acquire ACV, which sells more than 800,000 vehicles annually and processed approximately $10 billion of gross merchandise value in 2025; management expects the combination to expand digital marketplace capabilities and buyer liquidity.
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