- Company name
- Copart
- Sector
- Vehicle auctions
- About
- Copart runs online auctions for wrecked and total-loss vehicles. Insurance companies list totaled cars on Copart's platform. Buyers bid on the cars, mostly for parts or export. Copart owns the land the cars sit on. This land, plus long-term local permits, is hard for a new competitor to copy.
- Thesis
- Copart trades at a discount because one large insurance customer moved its business to rival RB Global. The market fears this is the start of a bigger shift, not one lost contract. Jeff Liaw's sudden exit as CEO in July 2026 adds to this uncertainty. Jay Adair, the previous CEO, returned to the role the same day. The new $1.9 billion deal to buy ACV Auctions adds integration risk on top of this. ACV loses money today, and Copart does not expect it to add to profit before fiscal 2028. For the discount to close, total-loss car volume must stabilize once the RB Global loss fully laps the year-over-year numbers, expected by mid-2027. The ACV deal, launched as a tender offer on September 17, 2026, should close by the end of 2026. Its early progress will show whether it distracts management from the core auction business. Copart's next quarterly report is expected around December 2026. A clear read on whether the volume loss was a one-time event likely takes another two to four quarters, stretching into mid-2027.
- Risks
- A large insurance customer moved business to Copart's main competitor, RB Global, starting January 2026. The loss expands in stages through mid-2027. If Copart keeps losing volume after that, this was not one lost contract. It is a sign the business is easier to switch away from than the moat rating assumes.
The ACV Auctions deal adds integration risk. ACV loses money today. Copart says the deal will not add to profit before fiscal year 2028.
Costs are growing faster than revenue right now. If this continues, profit keeps falling even while revenue grows.
- Recent events
- 2026-09-17: Copart began a tender offer, through subsidiary Apple Merger Sub, Inc., to buy all outstanding ACV Auctions shares for $10.50 per share in cash. The offer is set to expire September 30, 2026, subject to a majority-tender condition and antitrust clearance. The deal has no financing condition and is expected to close by the end of calendar 2026.
2026-09-10: Copart reported Q4 FY2026 results. Revenue grew 2.4% to $1.15 billion. Operating income fell 10.6%. The operating margin fell 4.7 percentage points.
2026-09-10: Copart agreed to buy ACV Auctions for $1.9 billion in cash. ACV runs a separate marketplace, where car dealers buy and sell used cars from each other.
2026-07-31: Jeff Liaw stepped down as CEO. Jay Adair, the previous CEO, returned to the role the same day.