Annual Reports
Copart, Inc.'s annual reports contain management's most considered account of the business. These are the sections, passages and visual pages worth opening in the originals preserved in Sources.
Copart, Inc. — FY2025 Annual Report (Form 10-K) — FY2025 (year ended July 31, 2025)
Latest 10-K: the fullest account of Copart's salvage-auction model — insurance-fed volume, agent-vs-principal revenue, and the total-loss engine behind it. · Open the full document →
Item 1. Business — Overview — p. 4 · Read the full section →
Defines the business: a virtual salvage-auction marketplace fed overwhelmingly by insurers, selling mostly as an agent on consignment.
VB3 platform, seller mix, and the ~81% of processed vehicles that come from insurers.
We provide vehicle sellers with a full range of services to process and sell vehicles primarily over the internet through our Virtual Bidding Third Generation internet auction-style sales technology, which we refer to as VB3. Vehicle sellers consist primarily of insurance companies, but also include dealers, individuals, charities, rental car companies, banks, finance companies, and fleet operators. We obtained 81%, 81%, and 83% of the total number of vehicles processed during fiscal 2025, 2024, and 2023, respectively, from insurance company sellers. We sell the vehicles principally to licensed vehicle dismantlers, rebuilders, repair licensees, used vehicle dealers, exporters, and to the general public.
p. 6 · Read in context →
Industry Overview — p. 8 · Read the full section →
Explains the total-loss economics that drive volume — why ever more complex vehicles get salvaged rather than repaired.
Rising vehicle complexity lifts repair costs, pushing more accident cars into total-loss (Copart's supply).
Automobile manufacturers continuously incorporate new standard features, including: unibody construction utilizing exotic metals; passenger safety cages with surrounding crumple zones to absorb impacts; plastic and ceramic components; airbags; adaptive headlights; computer and navigation systems; advanced cameras, including backup camera systems; collision warning systems; dynamic cruise control; lane departure warning systems; automatic braking; blind spot detection systems; and electrification of drivetrains. We believe that one effect of these additional features is that newer vehicles involved in accidents are more costly to repair and, accordingly, more likely to be deemed a total loss for insurance purposes.
p. 10 · Read in context →
Our Business Segments — p. 16 · Read the full section →
Copart reports on just two geographic segments; shows how concentrated the model still is in the U.S.
Two reportable segments — U.S. and International — at a ~83% / 17% revenue split in FY2025.
Our U.S. and International regions are considered two separate operating segments and are disclosed as two reportable segments. The segments represent geographic areas and reflect how the chief operating decision maker allocates resources and measures results, including total revenues, operating income and income before income taxes. For the year ended July 31, 2025, we generated 83.0% of our revenue in our U.S. segment and 17.0% in our international segment.
p. 16 · Read in context →
Item 1A. Risk Factors — p. 30 · Read the full section →
The company-specific risks that can actually bite: storage-capacity limits after catastrophes, and reliance on independent subhaulers and fuel-exposed trucking.
Storage capacity swings with weather; hurricanes and zoning limits can constrain intake.
Capacity at our storage facilities varies from period to period and from region to region. For example, following adverse weather conditions in a particular area, our facilities in that area may fill and limit our ability to accept additional salvage vehicles while we process existing inventories. For example, Hurricanes Helene and Milton had, in certain quarters, an adverse effect on our operating results, in part because of facility capacity constraints in the impacted areas of the U.S. We regularly evaluate our capacity in all our markets and where appropriate, seek to increase capacity through the acquisition of additional land and facilities. We may not be able to reach agreements to purchase independent storage facilities in markets where we have limited excess capacity, zoning restrictions or difficulties obtaining and maintaining use permits, which may limit our ability to sustain and expand our capacity through acquisitions of new land. Failure to have sufficient capacity at one or more of our facilities could adversely affect our relationships with insurance companies or other sellers of vehicles, which could have an adverse effect on our consolidated results of operations and financial position.
p. 33 · Read in context →
Pickup and delivery depend on independent subhaulers and a fuel-exposed company fleet.
We rely primarily upon independent subhaulers to pick up and deliver vehicles to and from our storage facilities in the U.S., Canada, Brazil, the Republic of Ireland, Germany, Finland, the U.A.E., Oman, Bahrain, and Spain. We also utilize, to a lesser extent, independent subhaulers in the U.K. Our failure to pick up and deliver vehicles in a timely and accurate manner could harm our reputation and brand, which could have a material adverse effect on our business. Further, an increase in fuel cost may lead to increased prices charged by our independent subhaulers, which may significantly increase our cost. We may not be able to pass these costs on to our sellers or buyers.
In addition to using independent subhaulers, in the U.S., the U.K., and Germany, we utilize a fleet of company trucks to pick up and deliver vehicles to and from our storage facilities in those geographies. In connection therewith, we are subject to the risks associated with providing trucking services, including but not limited to inclement weather, disruptions in transportation infrastructure, accidents and related injury claims, availability and price of fuel, any of which could result in an increase in our operating expenses and reduction in our net income.
p. 36 · Read in context →
Item 7. MD&A — Overview and Key Financial Performance Measures — p. 58 · Read the full section →
Management's own list of what moves revenue — total-loss frequency, auction selling prices, commodity and used-car pricing.
The drivers management watches: total-loss frequency and the factors setting auction selling prices.
Our revenue is impacted by several factors, including total loss frequency and the average vehicle auction selling price, as a significant amount of our service revenue is associated in some manner with the ultimate selling price of the vehicle. Vehicle auction selling prices are driven primarily by: (i) market demand for rebuildable, drivable vehicles; (ii) used car pricing, which we also believe has an impact on total loss frequency; (iii) end market demand for recycled and refurbished parts as reflected in demand from dismantlers; (iv) the mix of cars sold; (v) changes in the U.S. dollar exchange rate to foreign currencies, which we believe has an impact on auction participation by international buyers;
p. 60 · Read in context →
Critical Accounting Policies — Revenue Recognition — p. 72 · Read the full section →
The accounting that defines the business model: consigned vehicles are recognized net (fees only), not at gross selling price.
More annual reports
Copart, Inc. — FY2024 Annual Report (Form 10-K) — FY2024 · 129 pages · Prior year: the edition reporting the fiscal-2024 Purple Wave acquisition and that year's facility openings. · Open →
Copart, Inc. — FY2023 Annual Report (Form 10-K) — FY2023 · 119 pages · Baseline for the current cycle, with the year's eleven new operational facilities across the U.S., Brazil, Germany and Canada. · Open →
Copart, Inc. — FY2022 Annual Report (Form 10-K) — FY2022 · 129 pages · The edition covering the fiscal-2022 Hills Motors (U.K. green-parts recycler) acquisition. · Open →
Copart, Inc. — FY2021 Annual Report (Form 10-K) — FY2021 · 140 pages · Earliest edition on the shelf; a baseline for the facility footprint and international expansion. · Open →