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Copart’s Four-Engine Growth Setup—Efficiency, Global Expansion, Cash Power, & Rising Total Losses!

Copart, Inc. reported its first quarter of fiscal 2026 results with mixed performance across its various business segments. The company’s global insurance units saw an 8.4% decline, with the U.S. insurance units down by 9.5%, largely attributed to market share shifts and changing consumer behaviors in auto insurance purchasing. Despite these declines, Copart achieved record high average selling prices (ASPs) for its U.S. insurance carriers, with global insurance ASPs increasing by 6.8% and U.S. ASPs by 8.4%. This growth in sales prices suggests strong auction performance, especially compared to benchmarks such as the Manheim Used Vehicle Value Index. Copart’s noninsurance vehicle business showed resilience, with positive contributions from rental car companies, financial institutions, and corporate fleets. The company highlighted its investments in technology and logistics to enhance auction returns and maintain high auction liquidity, a key strength of its business model.