Copart, Inc. Q4 2026 Earnings Recap

Copart shares fell 2.6% after earnings, a roughly flat reaction. Results showed softer unit volumes—global sales fell 2.9%, led by a 5.7% domestic decline—while higher operating expense per car and limited forward guidance in the transcript temper the positives.

Key Takeaways

• Global insurance units declined 4.2%; domestic insurance units fell 7.5%, while international insurance units rose 11.2%. Management said domestic assignments would have been up 2.3% excluding one customer loss.
• Collision claim frequency declined 3.4% year over year, moderating from high-single-digit declines in 2025. Total loss frequency reached 23.3% in the second quarter, versus 22.4% a year earlier.
• Global insurance ASPs increased 3.1% year over year; domestic ASPs rose 3.7%. Average collision severity topped $6,300, up nearly 8.8%.
• Operating expense per car rose 12.7% year over year in the quarter; management said it is focused on reducing costs per car.
• Copart agreed to acquire ACV, which sells more than 800,000 vehicles annually. Management highlighted the potential to combine ACV’s digital marketplace with Copart’s physical locations and buyer base.