Copart, Inc. F3Q EPS Beat; Increasing Focus on Non-Insurance, International, and Ancillary Revenue as Salvage Business Contends with Macro and Competitive Headwinds; Remain Neutral

研报英文原文证据摘录

Copart, Inc. F3Q EPS Beat; Increasing Focus on Non-Insurance, International, and Ancillary Revenue as Salvage Business Contends with Macro and Competitive Headwinds; Remain Neutral

Jash Patwa AC North America Equity Research

(1-212) 622-5472 22 May 2026 J P M O R G A N

jash.patwa@jpmchase.com

volume growth. Among individual markets, UK was the strongest growth contributor in

F3Q, followed by Germany, where carriers continue to turn more sophisticated in their

total loss processes, and Canada was noted as another strong contributor in F3Q.

Management reiterated that additional markets sharing structural preconditions for total

loss adoption (i.e., rising repair costs, growing vehicle fleets, underdeveloped

remarketing infrastructure) remain on the expansion horizon moving forward.

• Non-insurance expansion optimism rekindled. After minimal updates for several

quarters, we once again sense a growing management emphasis on the non-insurance

segment, with the company’s strategy centered on progressively earning the right to sell

higher-quality institutional vehicles, with crossover buyer dynamics reinforcing the

flywheel. CPRT is leveraging its existing auction liquidity to move up the vehicle quality

spectrum with commercial consignors, starting with damaged or high-mileage units and

expanding into better condition de-fleet and repo vehicles as sellers gain confidence in

platform returns. BlueCar volumes tracked +4% y/y in F3Q, while dealer and NPA sales

tracked +1% y/y. Notably, of the ~30K+ buyers who first entered the ecosystem through

non-insurance vehicles over the past three years, majority bid on an insurance vehicle

within 90 days, indicating positive feedback loops prevalent in the marketplace.

• Purple Wave update.