Copart Reports Second Quarter Fiscal 2025 Financial Results

Rhea-AI Summary

Copart (NASDAQ: CPRT) reported strong financial results for Q2 fiscal 2025. The company achieved revenue of $1.16 billion, up 14.0% year-over-year, with gross profit reaching $525.6 million, a 13.2% increase. Net income grew 19.0% to $387.4 million.

The company's fully diluted earnings per share rose 21.2% to $0.40 compared to $0.33 in the same period last year. For the six-month period ending January 31, 2025, Copart reported revenue of $2.31 billion (up 13.2%), gross profit of $1.0 billion (up 11.8%), and net income of $749.5 million (up 13.9%). Six-month EPS increased 13.2% to $0.77 from $0.68 year-over-year.

Positive

• Revenue increased 14.0% YoY to $1.16 billion in Q2 2025
• Gross profit grew 13.2% YoY to $525.6 million
• Net income rose 19.0% YoY to $387.4 million
• Quarterly EPS increased 21.2% to $0.40

Negative

• None.

Insights

Financial Analyst

Copart's Q2 FY2025 results reveal impressive operational execution and financial strength. The 14% revenue growth to $1.16 billion demonstrates strong market demand, while the 19% increase in net income outpacing revenue growth indicates enhanced operational efficiency and successful cost management.

The expansion in profit margins is particularly noteworthy - while revenue grew 14%, net income increased by 19%, suggesting improved operational leverage and pricing power. The gross profit margin remained robust at 45.3%, reflecting the company's strong competitive position in the vehicle remarketing industry.

The six-month performance data reinforces the sustainability of Copart's growth trajectory, with consistent double-digit increases across all key metrics. The 13.2% increase in EPS to $0.77 for the half-year period reflects effective capital allocation and shareholder value creation.

Three key factors make these results particularly impressive:

• Operating leverage is improving, as demonstrated by the faster growth in net income compared to revenue
• Gross profit margins remain stable despite inflationary pressures, indicating strong pricing power
• Consistent performance across both quarterly and half-yearly periods suggests sustainable business momentum rather than one-time gains

DALLAS--(BUSINESS WIRE)-- Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter ended January 31, 2025.

For the three months ended January 31, 2025, revenue, gross profit, and net income attributable to Copart, Inc. were $1.16 billion, $525.6 million, and $387.4 million, respectively. These represent an increase in revenue of $143.2 million, or 14.0%; an increase in gross profit of $61.4 million, or 13.2%; and an increase in net income attributable to Copart, Inc. of $61.8 million, or 19.0%, respectively, from the same period last year. Fully diluted earnings per share for three months ended January 31, 2025 was $0.40 compared to $0.33 last year, an increase of 21.2%.

For the six months ended January 31, 2025, revenue, gross profit, and net income attributable to Copart, Inc. were $2.31 billion, $1.0 billion, and $749.5 million, respectively. These represent an increase in revenue of $269.6 million, or 13.2%; an increase in gross profit of $109.5 million, or 11.8%; and an increase in net income attributable to Copart, Inc. of $91.3 million, or 13.9%, respectively, from the same period last year. Fully diluted earnings per share for the six months ended January 31, 2025 was $0.77 compared to $0.68 last year, an increase of 13.2%.

On Thursday, February 20, 2025, at 5:30 p.m. Eastern Time (4:30 p.m. Central Time), Copart, Inc. will conduct a conference call to discuss the results for the quarter. The call will be webcast live and can be accessed via hyperlink at www.copart.com/investorrelation. A replay of the call will be available through May 2025 by visiting www.copart.com/investorrelation.

About Copart

Copart, Inc., founded in 1982, is a global leader in online vehicle auctions. Copart’s innovative technology and online auction platform connect vehicle consignors to approximately 1 million members in over 185 countries. Copart offers a comprehensive suite of vehicle remarketing services to insurance companies, financial institutions, dealers, rental car companies, charities, fleet operators, and individuals, and offers vehicles via auction to dealers, dismantlers, rebuilders, exporters, and the general public. With operations at over 250 locations in 11 countries, Copart sold more than 4 million units in the last year. Copart currently operates in the United States (Copart.com), Canada (Copart.ca), the United Kingdom (Copart.co.uk), Brazil (Copart.com.br), the Republic of Ireland (Copart.ie), Germany (Copart.de), Finland (Copart.fi), the United Arab Emirates, Oman and Bahrain (Copartmea.com), and Spain (Copart.es). For more information, or to become a Member, visit Copart.com/register.

Cautionary Note About Forward-Looking Statements

This press release contains forward-looking statements within the meaning of federal securities laws. These forward-looking statements are subject to substantial risks and uncertainties. These forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected or implied by our statements and comments. For a more complete discussion of the risks that could affect our business, please review the “Management’s Discussion and Analysis” and the other risks identified in Copart’s latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, as filed with the Securities and Exchange Commission. We encourage investors to review these disclosures carefully. We do not undertake to update any forward-looking statement that may be made from time to time on our behalf.

Copart, Inc. Consolidated Statements of Income (In thousands, except per share amounts) (Unaudited)
		Three Months Ended January 31,											Six Months Ended January 31,
		2025				2024				% Change			2025				2024				% Change
Service revenues and vehicle sales:
Service revenues		$	991,281			$	861,745			15.0	%		$	1,977,617			$	1,721,281			14.9	%
Vehicle sales			172,035				158,404			8.6	%			332,528				319,284			4.1	%
Total service revenues and vehicle sales			1,163,316				1,020,149			14.0	%			2,310,145				2,040,565			13.2	%
Operating expenses:
Facility operations			439,274				366,342			19.9	%			886,519				734,184			20.7	%
Cost of vehicle sales			147,707				146,819			0.6	%			285,885				294,715			(3.0	)%
Facility depreciation and amortization			48,963				41,208			18.8	%			96,440				80,311			20.1	%
Facility stock-based compensation			1,819				1,628			11.7	%			3,643				3,184			14.4	%
Gross profit			525,553				464,152			13.2	%			1,037,658				928,171			11.8	%
General and administrative			86,608				72,657			19.2	%			177,605				130,288			36.3	%
General and administrative depreciation and amortization			5,236				4,054			29.2	%			11,386				8,115			40.3	%
General and administrative stock-based compensation			7,498				7,541			(0.6	)%			16,089				14,492			11.0	%
Total operating expenses			737,105				640,249			15.1	%			1,477,567				1,265,289			16.8	%
Operating income			426,211				379,900			12.2	%			832,578				775,276			7.4	%
Other income (expense):
Interest income, net			40,747				33,956			20.0	%			86,294				65,961			30.8	%
Other (expense), net			(3,907	)			(3,103	)		25.9	%			(4,503	)			(7,175	)		(37.2	)%
Total other income			36,840				30,853			19.4	%			81,791				58,786			39.1	%
Income before income taxes			463,051				410,753			12.7	%			914,369				834,062			9.6	%
Income tax expense			76,510				85,226			(10.2	)%			166,652				176,003			(5.3	)%
Net income			386,541				325,527			18.7	%			747,717				658,059			13.6	%
Less: Net (loss)/income attributable to noncontrolling interest			(859	)			(108	)		695.4	%			(1,769	)			(103	)		1617.5	%
Net income attributable to Copart, Inc.		$	387,400			$	325,635			19.0	%		$	749,486			$	658,162			13.9	%
Basic net income per common share		$	0.40			$	0.34			17.6	%		$	0.78			$	0.69			13.0	%
Weighted average common shares outstanding			964,746				960,525			0.4	%			963,961				959,326			0.5	%
Diluted net income per common share		$	0.40			$	0.33			21.2	%		$	0.77			$	0.68			13.2	%
Diluted weighted average common shares outstanding			977,910				974,589			0.3	%			977,208				973,135			0.4	%

Copart, Inc. Consolidated Balance Sheets (In thousands) (Unaudited)
		January 31, 2025				July 31, 2024
ASSETS
Current assets:
Cash, cash equivalents, and restricted cash		$	3,338,909			$	1,514,111
Investment in held to maturity securities			458,542				1,908,047
Accounts receivable, net			882,745				785,877
Vehicle pooling costs			142,815				132,638
Inventories			59,072				43,639
Income taxes receivable			48,240				—
Prepaid expenses and other assets			36,460				33,872
Total current assets			4,966,783				4,418,184
Property and equipment, net			3,462,768				3,175,838
Operating lease right-of-use assets			114,839				116,301
Intangibles, net			68,083				74,088
Goodwill			509,670				513,909
Other assets			65,204				129,444
Total assets		$	9,187,347			$	8,427,764
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities		$	562,205			$	518,148
Deferred revenue			26,892				28,121
Income taxes payable			17,844				60,994
Current portion of operating and finance lease liabilities			22,696				21,304
Total current liabilities			629,637				628,567
Deferred income taxes			92,886				93,653
Income taxes payable			44,091				59,560
Operating and finance lease liabilities, net of current portion			96,701				97,429
Total liabilities			863,315				879,209
Commitments and contingencies
Redeemable non-controlling interest			22,775				24,544
Stockholders' equity:
Preferred stock			—				—
Common stock			97				96
Additional paid-in capital			1,179,816				1,120,985
Accumulated other comprehensive loss			(171,560	)			(142,972	)
Retained earnings			7,292,904				6,545,902
Total stockholders' equity			8,301,257				7,524,011
Total liabilities, redeemable noncontrolling interests and stockholders’ equity		$	9,187,347			$	8,427,764

Copart, Inc. Consolidated Statements of Cash Flows (In thousands) (Unaudited)
		Six Months Ended January 31,
		2025				2024
Cash flows from operating activities:
Net income		$	747,717			$	658,059
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization, including debt cost			109,122				88,485
Allowance for credit loss			1,056				3,702
Equity in losses of unconsolidated affiliates			(61	)			(5,402	)
Stock-based compensation			19,732				17,676
Gain on sale of property and equipment			(194	)			(971	)
Deferred income taxes			47				(2,103	)
Changes in operating assets and liabilities:
Accounts receivable			(133,024	)			(169,508	)
Vehicle pooling costs			(10,675	)			(14,387	)
Inventories			(16,175	)			(2,994	)
Prepaid expenses, other current and non-current assets			4,976				(35,040	)
Operating lease right-of-use assets and lease liabilities			614				865
Accounts payable, accrued liabilities and other liabilities			44,765				6,556
Deferred revenue			(1,066	)			(13	)
Income taxes receivable			(48,239	)			(10,463	)
Income taxes payable			(58,194	)			2,577
Net cash provided by operating activities			660,401				537,039
Cash flows from investing activities:
Purchases of property and equipment			(353,399	)			(285,289	)
Purchase of assets and liabilities in connection with acquisitions			(1,213	)			17,662
Proceeds from sale of property and equipment			662				2,069
Purchases of held to maturity securities			(458,542	)			(1,411,122	)
Proceeds from held to maturity securities			1,940,000				1,430,000
Investment in unconsolidated affiliate			—				(1,000	)
Net cash provided by (used in) investing activities			1,127,508				(247,680	)
Cash flows from financing activities:
Proceeds from the exercise of stock options			32,833				13,482
Proceeds from the issuance of Employee Stock Purchase Plan shares			7,404				5,961
Payments for employee stock-based tax withholdings			(2,484	)			(2,164	)
Principal payments on revolver facility			—				(10,820	)
Payments of finance lease obligations			(40	)			(11	)
Net cash provided by financing activities			37,713				6,448
Effect of foreign currency translation			(824	)			3,746
Net increase in cash, cash equivalents, and restricted cash			1,824,798				299,553
Cash, cash equivalents, and restricted cash at beginning of period			1,514,111				957,395
Cash, cash equivalents, and restricted cash at end of period		$	3,338,909			$	1,256,948
Supplemental disclosure of cash flow information:
Interest paid		$	1,371			$	2,036
Income taxes paid, net of refunds		$	277,051			$	188,480
Purchase of property and equipment through settlement of deposit		$	57,453			$	—

 

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Copart Investor Relations

investor.relations@copart.com

Source: Copart, Inc.

FAQ

What was Copart's (CPRT) revenue growth in Q2 2025?

Copart reported revenue growth of 14.0% year-over-year, reaching $1.16 billion in Q2 fiscal 2025.

How much did CPRT's earnings per share increase in Q2 2025?

Copart's fully diluted earnings per share increased by 21.2%, from $0.33 to $0.40 in Q2 fiscal 2025.

What was Copart's (CPRT) net income for Q2 2025?

Copart's net income for Q2 fiscal 2025 was $387.4 million, representing a 19.0% increase from the previous year.

How did CPRT perform in the first six months of fiscal 2025?

In the first six months of fiscal 2025, Copart achieved revenue of $2.31 billion (up 13.2%), gross profit of $1.0 billion (up 11.8%), and net income of $749.5 million (up 13.9%).