Copart Inc (NASDAQ: CPRT)

Copart, Inc. is a leading global provider of online auctions and vehicle remarketing services. The company operates in the United States, the United Kingdom, Germany, Brazil, Canada, the United Arab Emirates, Spain, Finland, Oman, the Republic of Ireland and Bahrain. Its stated goals are to generate sustainable profits for stockholders while delivering environmental and social benefits. Copart, Inc. views its business as an enabler for the global reuse and recycling of vehicles, parts and raw materials. By extending the useful life of existing vehicles, the company helps reduce the need for new vehicle manufacturing and associated carbon emissions.

Copart, Inc. generates revenue primarily from auction and auction related sales transaction fees charged for vehicle remarketing services. These fees consist of vehicle listing fees, selling fees that may be a percentage of the sales price or a fixed amount per vehicle, transportation fees, title processing and preparation fees, storage fees, bidding fees and loading fees. In fiscal 2025, the company reported total revenue of $4.6 billion and operating income of $1.7 billion. Additionally, Copart, Inc. earns purchased vehicle revenue from the gross sales price of vehicles it acquires and resells for its own account, mainly under agreements with insurance companies in the United Kingdom and through purchases in the open market.

Copart, Inc. considers itself a leader in the online vehicle auction industry because of its virtual bidding platform that connects sellers with a worldwide pool of buyers. The company cites several competitive advantages, including a virtual platform that reduces towing and third party storage expenses, provides local presence for vehicle inspection stations and enables prompt response to catastrophes and natural disasters. Copart, Inc. also offers a comprehensive range of services such as merchandising, efficient title processing, timely pick up and delivery of vehicles and internet based sales. The firm continually integrates new facilities and acquisitions to expand its capacity and geographic reach. By using internet bidding, the company increases the number of bidders that can participate in each sale, which enhances competition and potential sale prices. Copart, Inc. applies technology such as web based order processing, salvage value quotes, electronic communication with members and sellers and vehicle imaging to improve operational efficiency. Historically, the company’s growth has stemmed from acquisitions, rising overall volume in the salvage car market, gains in market share, higher revenue per transaction driven by increased selling prices and added value added services, and growth in sellers beyond insurance companies.

Copart, Inc. obtains most of its vehicles from insurance companies, which represented about 81% of the total volume processed in fiscal 2025. Other sellers include dealers, individuals, charities, rental car companies, banks, finance companies and fleet operators. The company sells vehicles to licensed dismantlers, rebuilders, repair licensees, used vehicle dealers, exporters and members of the general public. In the United States, approximately 69.8% of vehicles sold went to members registered outside the state where the vehicle was located, with 31.0% sold to out of state buyers within the United States and 38.8% sold to international buyers based on internet protocol address.