A global online vehicle auction and remarketing company, Copart runs the VB3 virtual auction platform that lets buyers worldwide bid on salvage and used vehicles, with insurance companies supplying most of the cars it processes. Operating across a dozen countries, it connects insurers and other sellers with bidders around the globe.
Q3 FY2026 revenue rose 2.1% to $1,237.1M, reversing the prior quarter's first decline in the series
The decline ended after one quarter. Revenue rose 2.1% to $1,237.1M and was $0.43, up 2.4% , as rose 2.8% to $464.3M on a 2.9-point sequential margin gain to 37.5%. Growth has returned to low single digits after post-COVID normalization completed.
Key takeaways
rose 2.1% to $1,237.1M and 10.3% from Q2 FY2026's $1,125.1M, reversing the first annual decline in the reported quarterly series as post-COVID volume normalization completed.
rose 2.8% to $464.3M and was 37.5%, up 0.3 points and 2.9 points sequentially from Q2's 34.7%, while rose 2.4% to $0.43.
fell 1.0% to $402.4M despite the and increase, and rose 14.7% sequentially from $350.7M.
Section summaries
Management's Discussion and Analysis
Results of Operations 16 Liquidity and Capital Resources 19 Critical Accounting Policies and Estimates 21 Recently Issued Accounting Standards 21 Contractual Obligations and Commitments 21 Item 3 - Quantitative and Qualitative Disclosures About Market Risk 22
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Results of Operations 16
Liquidity and Capital Resources 19
Critical Accounting Policies and Estimates 21
Recently Issued Accounting Standards 21
Contractual Obligations and Commitments 21
Item 3 - Quantitative and Qualitative Disclosures About Market Risk 22
Quantitative and Qualitative Disclosures About Market Risk
The company states there have been no material changes to market risk exposures from the 2025 10-K, and provides no new sensitivity figures.
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fell 16.6% to $584.2M but rose 358.2% sequentially from Q2's $127.5M; was $503.3M, down 20.2% year over year and up 769.5% sequentially.
Cash and equivalents was $3,354.1M, up 41.7% but down 34.3% sequentially from $5,233.6M, with not reported after ending FY2025 at $0.0M.
The DOJ investigation into potential money-laundering violations related to auction platform members remains a flagged risk that could lead to fines or operational restrictions.
What changed
Q3 FY2026 growth was flagged to watch after Q2 fell 3.6%; it reversed to +2.1% ($1,237.1M), ending the one-quarter decline.
The DOJ money-laundering investigation flagged each prior period remains open with no fine or restriction disclosed this quarter.
Sequential was flagged after Q2 dropped 86.5% to $350.8M; it rose to $503.3M, up 769.5% sequentially.
No has been reported since FY2025 close at $0.0M, and cash remained above $3.3B versus $2,780.5M at FY2025 year-end, with no share repurchases disclosed.
International expansion risks now include Brazil regulatory proposals added in Q2 FY2026 and carried into Q3's risk factors alongside the DOJ probe and seller concentration.
What to watch
Q4 FY2026 growth rate to see if 2.1% holds or fades toward flat as post-COVID normalization completes
Outcome of the DOJ money-laundering investigation, including any fines or operational restrictions disclosed next period
Whether Copart resumes stock repurchases or raises after cash of $3,354.1M and no reported
Sequential trend after the fall to $584.2M in Q3 FY2026
The company explicitly states no material changes to market risk information since the 2025 Form 10-K.
No quantitative sensitivity analysis or specific risk exposures (interest rate, currency, commodity, equity) are disclosed in this section.
The section references the prior annual report for detailed market risk disclosures, implying those remain current.
Management does not describe any new hedging strategies or risk management activities in this filing.
For a discussion of Legal Proceedings that affect us, refer to the Notes to Unaudited Consolidated Financial Statements, NOTE 9 – Legal Proceedings included in Part I, Item 1 of this Quarterly Report on Form 10-Q.
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For a discussion of Legal Proceedings that affect us, refer to the Notes to Unaudited Consolidated Financial Statements, NOTE 9 – Legal Proceedings included in Part I, Item 1 of this Quarterly Report on Form 10-Q.
Copart's Q3 FY2026 risk factors highlight dependence on major vehicle sellers, international expansion challenges, and regulatory scrutiny.
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A limited number of vehicle sellers account for a substantial portion of revenues, and loss of any major seller could materially harm results.
International expansion exposes Copart to integration risks, foreign currency fluctuations, and compliance with anti-bribery laws like the FCPA.
The DOJ is investigating potential money laundering violations related to auction platform members, which could lead to fines, penalties, or reputational harm.
Extreme weather events can strain facility capacity and increase costs, as seen with Hurricanes Helene and Milton in fiscal 2025.
Online commerce security threats, including ransomware attacks, could disrupt operations and damage reputation; a subsidiary suffered an attack in March 2023.
Macroeconomic factors like fuel prices, used car prices, and accident avoidance technology may reduce salvage vehicle supply and growth.