Copart Reports 7.4% Revenue Growth to $1.21 Billion in Latest Quarter

Copart, Inc. reported significant financial growth in its latest quarterly filing, with total service revenues and vehicle sales reaching $1.21 billion for the three months ended April 30, 2025, marking a 7.4% increase from $1.13 billion in the same period last year. The company's net income for the quarter was $406.6 million, up from $382.3 million a year earlier, resulting in a basic net income per share of $0.42, compared to $0.40 in the prior year. For the nine months ending April 30, 2025, total revenues increased to $3.52 billion, a 11.1% rise from $3.17 billion in the previous year.

The company experienced notable changes in its operational metrics, with service revenues increasing by 9.3% year-over-year, driven by higher revenue per vehicle sold in both the U.S. and international markets. The U.S. market alone contributed $898.6 million in service revenues, reflecting an increase of $67.9 million, while international revenues rose by $20.3 million. However, vehicle sales saw a slight decline of 2.1% in the latest quarter, primarily due to a decrease in international sales volume, which was attributed to a shift in sellers opting for a consignment model.

Strategically, Copart expanded its operations by acquiring an 80% controlling interest in Purple Wave, Inc., an online heavy equipment auction company, in October 2023. This acquisition is expected to enhance Copart's service offerings and market reach. Additionally, the company opened several new facilities across the U.S. and internationally, including locations in Vermont, Arizona, and the U.K., as part of its ongoing expansion strategy. As of April 30, 2025, Copart's total assets increased to $9.67 billion, up from $8.43 billion a year prior, reflecting its growth trajectory.

Operationally, Copart reported a total employee headcount of 5,000, with a focus on enhancing its workforce to support its expanding operations. The company also noted an increase in cash, cash equivalents, and restricted cash to $2.37 billion, a 56.3% increase from $1.51 billion at the end of the previous fiscal year. This increase in liquidity is attributed to strong cash flows from operations and the maturity of held-to-maturity securities.

Looking ahead, Copart remains optimistic about its growth prospects, emphasizing its commitment to expanding its market presence and enhancing operational efficiencies. The company plans to continue investing in technology and infrastructure to support its auction platform and improve customer engagement. However, it also acknowledges potential risks, including fluctuations in vehicle supply and market conditions, which could impact future performance.