Description

Copart’s $5.5 Billion Liquidity Cushion: Hidden Strength In A Softer Claims Cycle?

Copart, Inc. reported its third quarter fiscal 2026 results, displaying a mixed picture influenced primarily by trends in the insurance market and broader macroeconomic factors. Consolidated revenue rose 2.1% year-over-year to $1.24 billion, driven by growth in both service and purchased vehicle sales. Average selling prices increased 4.6%, offsetting a 2.4% decline in unit volume. Global insurance unit sales declined 2.7%, or 1.9% excluding the impact of catastrophic event volumes from the previous year, with the U.S. insurance volume down 4.2%. These declines are consistent with industry-wide softness in claims activity, attributable to consumers reducing insurance coverage amid rising premiums—a trend reflected by a 4% drop in earned car years despite a 1.4% increase in vehicles in operation. The company highlighted a long-term industry dynamic of modestly decreasing accident frequency offset by rising total loss frequency, which reached 23.