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Copart, Inc. Faces Insurance Unit Pressure As Volumes Fall 9%

Copart, Inc.’s recent earnings call provided investors with a nuanced picture of the company’s performance in the second quarter of fiscal 2026. On the downside, the company faced a decline in global insurance units by 9%, with U.S. insurance units decreasing by 10.7%. This was attributed to shifts in insurance carriers’ growth rates and a reduction in auto insurance coverage among consumers. These challenges resulted in a 3.6% year-over-year decline in consolidated revenue to $1.12 billion. Furthermore, operating income dropped by 8.8% to $388.7 million, with net income falling by 9.5% to $350.7 million. These figures indicate pressures within the insurance segment and the potential impact of consumer behavior on the company’s top line. Offsetting these challenges, Copart experienced growth in its average selling prices (ASPs) in both its U.S. and international markets. ASPs for the U.S.