Copart Reports Q2 Fiscal 2026 Revenue of $1.12 Billion, Net Income Declines 9.5%

Copart, Inc. reported its financial results for the second quarter of fiscal year 2026, revealing a total revenue of $1.12 billion for the three months ended January 31, 2026, a decrease of 3.6% from $1.16 billion in the same period last year. The company's service revenues fell to $952.1 million, down 4.0% year-over-year, while vehicle sales also declined slightly to $169.6 million, a 1.4% decrease. For the six-month period, total revenues reached $2.28 billion, down 1.4% from $2.31 billion in the prior year. Net income for the quarter was $350.7 million, compared to $387.4 million in the previous year, reflecting a decrease of 9.5%.

The company's operating expenses for the quarter were $733.0 million, a slight reduction from $737.1 million in the prior year. Notably, facility operations expenses decreased by 2.4% to $478.4 million, while general and administrative expenses increased by 4.8% to $104.1 million. The decline in service revenues was attributed primarily to a one-time revenue boost from hurricanes in the previous fiscal year, which did not recur. However, international service revenues increased by 7.7%, driven by higher revenue per car, despite a decrease in volume.

In terms of strategic developments, Copart entered into a new Senior Revolving Credit Agreement on January 23, 2026, providing an unsecured revolving credit facility of up to $1.25 billion. This agreement replaces a previous secured facility and is expected to enhance the company's liquidity position. The company also repurchased 5.48 million shares of its common stock during the six months ended January 31, 2026, totaling $218.2 million, as part of its ongoing stock repurchase program.

Operationally, Copart reported a significant increase in cash, cash equivalents, and restricted cash, which rose to $5.1 billion as of January 31, 2026, compared to $2.8 billion at the end of July 2025. This increase was primarily due to cash generated from operations and the maturity of held-to-maturity securities. The company’s working capital also improved by 9.7% to $5.56 billion. Despite the challenges in revenue generation, Copart's strong cash position and operational efficiency indicate a solid foundation for future growth.

Looking ahead, Copart remains optimistic about its growth prospects, focusing on expanding its facilities and enhancing its service offerings. The company plans to utilize its cash flows for potential acquisitions and further investments in technology and infrastructure. Management believes that the current cash reserves and operational cash flows will be sufficient to meet its working capital needs and support its strategic initiatives in the foreseeable future.