Copart Inc (CPRT) Q1 2025 Earnings Report

Copart delivered a solid QQ1 2025 against a backdrop of ongoing growth in insurance-related vehicle recovery and a notable pace of international expansion. Revenue rose 12% year over year to $1.147 billion, supported by a 13% unit-volume increase in the insurance segment (excluding catastrophic events) and a 16% rise in international unit volumes. Management highlighted the company’s strategic investments in capacity, logistics, and technology to support continued growth, including the expansion of Title Express and the shift toward consignment-based models in international markets (e.g., Germany and the U.K.). However, the quarter also featured margin pressures from elevated facility-related costs and incremental hurricane-related expenses tied to Hurricanes Helene and Milton, which reduced per-unit cost efficiency in the near term. Despite these headwinds, Copart generated meaningful free cash flow and maintains a very strong liquidity position, underpinned by approximately $4.9 billion of liquidity (roughly $3.7 billion in cash) and over $4.9 billion of overall liquidity at quarter end. The combination of secular industry drivers (higher total loss frequency, growing vehicle miles traveled, and a expanding complex vehicle fleet) with Copart’s scalable platform supports a constructive long-term outlook, albeit with near-term volatility tied to catastrophe events and insurance loss dynamics.