Q1 2026 Copart Inc Earnings Call Transcript
Key Points
- Copart Inc (CPRT) achieved all-time high average selling prices for US insurance carriers, with global insurance ASPs increasing by 6.8% and US insurance ASPs by 8.4%.
- The company reported a strong increase in auction liquidity, with international buyers purchasing vehicles 38% higher in value compared to US buyers.
- Copart Inc (CPRT) saw a 12.3% increase in gross profit per fee unit, contributing to a gross margin improvement of 184 basis points to 46.5%.
- The company's US Non-Insurance business performed well, with dealer unit sales increasing by 5.3%.
- Copart Inc (CPRT) continues to invest in technology and infrastructure, such as Purple Wave, which saw a GTV growth of over 10% in the last 12 months, outperforming the broader industry.
- Global units sold decreased by 6.7%, with fee units decreasing by 6.3%, impacted by the non-recurrence of catastrophic events from the prior year.
- US insurance units declined by 9.5%, reflecting a decrease in insurance coverage and consumer retrenchment in auto insurance purchasing behavior.
- The company's International segment saw a decline in average selling price for insurance units by 2.4% from the previous year.
- Copart Inc (CPRT) experienced a decline in US inventory levels by over 17% from the previous year, driven by a decrease in cycle times.
- The market continues to face broad uncertainty, causing customers to delay decisions around equipment purchases and sales, impacting the company's operations.
Good day, everyone. Welcome to the Copart Incorporated first-quarter fiscal 2026 earnings call.
Just a reminder, today's conference is being recorded.
Before turning the call over to management, I will share Copart's Safe Harbor statement. The company's comments today include forward-looking statements within the meaning of the federal securities laws, including management's current views with respect to trends, opportunities, and uncertainties in the company's industry.
These forward-looking statements involve substantial risks and uncertainties. For more detail on the risks associated with the company's business, we refer you to the section titled Risk factors in the company's annual report on Form 10-K for the year ended July 31, 2025; and each of the company's subsequent quarterly reports on Form 10-Q.
Any forward-looking statements are made as of today. The company has no obligation to update or revise any forward-looking statements.
I will now turn the call over to the company's CEO, Jeff Liaw.
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