New York, Feb 20, 2026, 05:49 ET — Before the bell
- Copart slipped 0.2% in premarket trading, following a drop in both profit and revenue for the quarter.
- Vehicle sales and service volumes fell, undercutting a major revenue source for the salvage-auction operator, the results showed.
- As U.S. markets get underway, investors are on the lookout for any indication that insurance-unit flows are finding their footing.
Copart Inc slipped in premarket trading Friday, dropping roughly 0.2% to $37.65 after the online vehicle auction operator reported lower profit and revenue for the quarter.
Now it’s all about volume for Copart—more damaged and total-loss vehicles in the auction lanes typically drive up fees, spark bidding, and push prices higher. But if the cars aren’t there, suddenly the model doesn’t look so seamless or quick.
The pipeline has started to thin. Copart is seeing fewer vehicles come in from insurance companies, while higher costs are prompting some drivers to cut back on their auto coverage—resulting in fewer claims and tightening up salvage inventory. Shares slid over 10% in post-market trading on Thursday, after the close of the regular U.S. session. (Reuters)
Copart’s revenue came in at $1.12 billion for the quarter ended Jan. 31, a 3.6% drop compared to the same stretch last year. Net income attributable to Copart slid 9.5% to $350.7 million, with diluted EPS easing back to $0.36 from $0.40, according to the company. (Business Wire)
Chief Executive Jeffrey Liaw told investors on the earnings call that “global insurance units declined 9%” for the quarter, highlighting ongoing strain in Copart’s main insurance-driven supply. (Seeking Alpha)
Copart’s revenue relies heavily on fees from remarketing damaged cars and offering related services. As a result, shares react to changes in accident rates, how insurers operate, and the speed at which total-loss vehicles get from claims to auction lots.
The margin angle isn’t going away. Fewer units push yard utilization and strain transport networks, but if buyers pull back or insurers dig in, fee pressure tends to surface fast.
Still, things can shift quickly. Severe weather and unpredictable accident rates mean claims could bounce back, or a jump in insurer “total losses” might send more cars into the market sooner than anticipated, turning the conversation on volumes around.
