Copart, Inc. (CPRT): History, Ownership, Mission, How It Works & Makes Money

How does a company built on the salvage vehicle market become a technology-driven global powerhouse with a market capitalization of nearly $40 billion in late 2025? Copart, Inc. (CPRT) is that quiet giant, having reinvented the remarketing industry by turning damaged cars into a high-margin digital asset flow.

In the fiscal year ended July 31, 2025, Copart, Inc. generated a staggering $4.6 billion in revenue and $1.6 billion in net income, showcasing the incredible efficiency of its online auction model across over 250 locations in 11 countries. If you're looking to understand how a business that sold more than 4 million units last year maintains a dominant position, you need to look beyond the scrap yard and into the software.

Copart, Inc. (CPRT) History

You need to understand the DNA of a company like Copart, Inc. to truly grasp its valuation. It didn't just appear as a tech giant; it evolved from a single salvage yard into a global, tech-driven remarketing platform. The pivot from physical auctions to a purely online model in the early 2000s was the single most important, defintely transformative decision, and it's why they report a fiscal year 2025 revenue of over $4.6 billion.

Copart, Inc.'s Founding Timeline

Year established

The company was established in 1982.

Original location

Copart started as a single salvage yard operation in Vallejo, California.

Founding team members

Copart was founded by Willis J. Johnson. He began the business with a strong entrepreneurial spirit, bootstrapping the operation.

Initial capital/funding

Willis J. Johnson started the company with a salvage yard, using his industry knowledge and personal funds, a classic bootstrap story. The name itself, 'Copart,' was chosen to represent 'co-partnership' with both sellers and buyers.

Copart, Inc.'s Evolution Milestones

Copart, Inc.'s Transformative Moments

The company's trajectory wasn't a straight line; it was shaped by a few high-stakes, transformative decisions. The most critical was the move to a fully digital auction model with the VB2/VB3 platform in 2003. This wasn't just an upgrade; it was a fundamental shift from a local, physical business to a global, scalable technology company.

This digital pivot is why Copart now connects consignors to approximately 1 million members in over 185 countries. It turned salvage vehicles into a global commodity, so a buyer in Poland can bid on a car damaged in a hurricane in Florida. That's a massive market expansion.

• The IPO in 1994: Going public at $12 per share provided the capital to acquire the NER Auction Group the following year, which effectively doubled the company's size and national footprint.
• The Tech-First Mandate: The company continues to invest heavily in technology, including AI and machine learning, to optimize auction pricing and logistics. This focus on technology is what drives their strong financial performance, with net income attributable to Copart, Inc. reaching approximately $1.6 billion for the fiscal year ended July 31, 2025.
• Strategic Real Estate and Logistics: Proactive real estate acquisition, like securing large tracts of land for vehicle storage, is a key differentiator. This capacity, totaling more than 10,000 acres across over 281 physical locations as of 2025, allows them to handle massive, sudden surges in inventory from catastrophic weather events.

For a deeper dive into what guides their strategic decisions, you should review their core principles: Mission Statement, Vision, & Core Values of Copart, Inc. (CPRT).

Copart, Inc. (CPRT) Ownership Structure

Copart, Inc. (CPRT) is a publicly traded company on the NASDAQ, and its ownership structure is heavily weighted toward institutional investors, which is typical for a large-cap firm with a market capitalization of approximately $40.28 billion as of November 2025. This means the company is governed by a board of directors elected by shareholders, but the majority of strategic decisions are influenced by large asset managers like Vanguard and BlackRock.

Given Company's Current Status

Copart, Inc. is a publicly traded entity listed on the NASDAQ Global Select Market under the ticker symbol CPRT. This status requires the company to adhere to rigorous regulatory standards set by the Securities and Exchange Commission (SEC), including regular financial reporting and transparency in governance. The public nature ensures liquidity for investors, but it also means the company's stock price is subject to market fluctuations; for example, the share price was around $40.51 as of November 7, 2025. You can find a deeper dive into their performance in Breaking Down Copart, Inc. (CPRT) Financial Health: Key Insights for Investors.

Given Company's Ownership Breakdown

As of November 2025, institutional investors hold the commanding majority of Copart's shares, a key factor for any decision-maker to understand. Here's the quick math on who controls the float:

Given Company's Leadership

The company is steered by a seasoned executive team, blending long-time Copart veterans with leaders brought in from other major firms, which is defintely a good sign for stability and fresh perspectives. The average tenure for the board of directors is substantial, clocking in at over 15 years. That's a lot of institutional memory.

The key figures leading the organization as of November 2025 include:

• Jeff Liaw: Chief Executive Officer (CEO) and Director, appointed to the CEO role in April 2024.
• A. Jayson Adair: Executive Chairman of the Board, who has been with the company since 1990.
• Willis J. Johnson: Chairman of the Board, the company's founder, providing long-term strategic guidance.
• Leah Stearns: Chief Financial Officer (CFO), overseeing the company's financial strategy.
• Hessel Verhage: Chief Operating Officer (COO), managing operations across more than 200 locations globally.
• David Kang: Chief Marketing and Analytics Officer, leading product, marketing, and data science functions.

Copart, Inc. (CPRT) Mission and Values

Copart, Inc. anchors its global online vehicle auction leadership not just on technology, but on a clear, value-driven mission and a culture of ownership.

This commitment to value creation defintely paid off in the last cycle, with the company reporting annual revenue of approximately $4.6 billion for the fiscal year ended July 31, 2025, alongside a net income of around $1.6 billion.

Copart, Inc.'s Core Purpose

Official mission statement

Copart's mission is straightforward: to create value and opportunity through vehicle auctions and exchange. It's a focus that goes beyond just moving salvage vehicles; it's about optimizing the entire remarketing process for sellers-like major insurance companies-and for the global network of buyers.

Here's the quick math: by continually improving its platform, the company drives efficiency, which ultimately increases the return for sellers and expands the inventory available to over 1 million members in more than 185 countries.

Vision statement

The vision statement sets the bar high, aiming for operational excellence on a global scale.

• To provide an ultimate experience every day and everywhere... driven by our people, process and technology.

This vision is why they invest so heavily in their patented virtual auction technology (VB3) and logistics, ensuring that whether you're in Dallas or Dubai, the experience is seamless. They know that a great user experience is their competitive moat. If you're curious about who is actually using this platform, you should check out Exploring Copart, Inc. (CPRT) Investor Profile: Who's Buying and Why?

Copart, Inc. slogan/tagline

Copart doesn't use a single, formal, public-facing slogan or tagline, preferring to let their brand promise speak for itself. Their communication strategy avoids catchy one-liners that might dilute the core message, but their brand description is clear: Copart puts the power to bid and win in your hands.

Their core values are the actual operational guide, defining the company's cultural DNA and how they execute on their mission:

• Act with integrity: Treat others in the right way and do the right thing.
• Be an owner: Take responsibility for problems and solutions.
• Challenge the norm: Continuously look for opportunities to improve or innovate.
• Get results: Deliver on our promises.
• Celebrate our people: Share individual and collective success.

What this estimate hides is the sheer complexity of managing over 270 physical locations across 11 countries, but these values give you the framework for how they manage that scale.

Copart, Inc. (CPRT) How It Works

Copart, Inc. operates as a massive, digital-first marketplace for salvage and clean-title vehicles, connecting sellers-primarily insurance companies-with a global network of buyers through its proprietary online auction platform. It makes money by charging substantial service fees on the vehicles it sells on consignment, a model that generated nearly $4.0 billion in service revenue for the fiscal year ended July 31, 2025.

Copart, Inc.'s Product/Service Portfolio

You can think of Copart, Inc.'s core business as two main revenue streams: Service Revenues and Vehicle Sales, with the former being the defintely dominant and higher-margin driver. For the 2025 fiscal year, Service Revenues accounted for roughly 85% of the company's total revenue of $4.6 billion. The value proposition is a comprehensive, end-to-end remarketing solution.

Copart, Inc.'s Operational Framework

The operational framework is a highly efficient logistics and technology loop designed to process and auction millions of vehicles annually-over 4 million units were sold in the last fiscal year. It's a consignment model, meaning Copart, Inc. typically takes possession of the vehicle and charges a fee for the entire remarketing process, which is far less capital-intensive than owning the inventory outright.

• Inbound Logistics: Vehicles, mostly total losses from insurance claims, are towed to one of the company's 250+ global storage yards.
• Vehicle Processing: This is where the value-add services kick in. Teams handle the complex and time-consuming title work, which is crucial for a smooth sale, plus detailed photography and damage reports for the online listing.
• Digital Auction: The proprietary VB3 platform hosts the auctions, creating a competitive bidding environment that maximizes the vehicle's salvage value for the consignor. This platform is the central nervous system.
• Catastrophic Event (CAT) Capacity: The company proactively manages capacity for major events like hurricanes by acquiring land, such as the 400-acre Hull Ranch, to handle sudden, large-scale influxes of damaged cars.

Here's the quick math: high volume (over 4 million units) multiplied by a comprehensive fee structure on a global platform translates directly into the company's strong fiscal performance, including a net income of approximately $1.6 billion in FY 2025.

Copart, Inc.'s Strategic Advantages

The company's success is rooted in a few structural advantages that are incredibly difficult for a competitor to replicate. This isn't just about having a website; it's about owning the entire ecosystem. If you want to dive deeper into the company's foundational principles, you should check out its Mission Statement, Vision, & Core Values of Copart, Inc. (CPRT).

• Land and Scale: Copart, Inc. owns a significant portion of its physical yard space, giving it a massive cost advantage and control over its operational footprint, unlike competitors who rely heavily on leases.
• Network Effect: The sheer size of the global buyer base-around 1 million members-attracts more sellers (consignors), and more sellers attract more buyers, creating a self-reinforcing, high-liquidity marketplace.
• High-Margin Business Model: The consignment model is capital-light and generates exceptional margins. The company reported a trailing twelve-month (TTM) gross profit margin of about 47% as of October 2025, significantly outperforming its peers.
• Total Loss Frequency Tailwinds: The US total loss frequency-the percentage of damaged vehicles deemed uneconomical to repair-hit 22.8% in the first calendar quarter of 2025. This rising trend, driven by complex and expensive vehicle technology (especially in electric vehicles), is a direct and permanent driver of supply for Copart, Inc.

Copart, Inc. (CPRT) How It Makes Money

Copart, Inc. primarily makes money by operating a massive, high-liquidity online auction platform for salvage and clean-titled vehicles, essentially acting as a high-tech middleman for the global remarketing of damaged or unwanted cars. The vast majority of its revenue comes from service fees charged to both the seller-mostly large insurance companies-and the buyer for facilitating the auction and providing related value-added services.

This is a high-margin, capital-light business model, especially when compared to a traditional used-car dealership, because Copart typically sells vehicles on consignment (meaning they don't take ownership of the vehicle) for their largest clients, like insurance companies.

Copart, Inc.'s Revenue Breakdown

For the fiscal year ended July 31, 2025, Copart generated a total revenue of approximately $4.6 billion, a year-over-year increase of about 9.7%. The revenue streams are clearly split into two main categories, with the higher-margin Service Revenues dominating the financial engine.

Here's the quick math: Service Revenues, which include auction and auction-related fees, account for roughly 80% to 85% of the total revenue. This stream saw a solid annual growth of 11.4% in fiscal year 2025. Vehicle Sales, where Copart takes ownership of the vehicle before selling it, make up the remaining portion, and this segment's growth was a marginal 0.4% for the year.

Business Economics

Copart's business economics are built on a powerful network effect and a duopoly market position in the salvage auction industry, which gives them significant pricing power and margin resilience. They essentially run a two-sided marketplace that is defintely hard to replicate.

• Consignment Model Dominance: The core of the business is the consignment model with insurance companies, where Copart charges a fee to sell the vehicle for the insurer. This model is capital-light because Copart does not tie up its own capital in vehicle inventory, ensuring a steady supply of total-loss vehicles.
• Fee Structure: Revenue is primarily generated from transaction or auction fees charged to both the seller and the buyer. The majority-around 80%-of the total fees are generated from the buyer side, which is a highly diversified pool of dismantlers, rebuilders, and exporters.
• Global Buyer Base: About 40% of buyers are international customers. This global liquidity drives up the final auction price for the seller (the insurer), which strengthens Copart's relationship with its major clients. The higher the selling price, the lower the net loss for the insurer, making Copart a value-additive partner.
• Pricing Tailwinds: Fees typically scale based on the final sale price of the vehicle. As the average selling price for salvage vehicles continues to rise-driven by increasing vehicle complexity and repair costs-this creates a natural tailwind for Copart's revenue growth, even if the volume of vehicles remains stable.

To understand the players driving this growth, you should check out Exploring Copart, Inc. (CPRT) Investor Profile: Who's Buying and Why?

Copart, Inc.'s Financial Performance

The company's financial performance in fiscal year 2025 demonstrates a high-quality, high-margin business that effectively converts revenue growth into bottom-line profit, a hallmark of a dominant platform business.

• Profitability and Margins: For the fiscal year 2025, Copart reported a gross profit of $2.1 billion, a 10.1% increase year-over-year. The operating margin for the second quarter of fiscal 2025 was a robust 36.7%, up from 33.6% in the prior year, showing strong operational efficiency.
• Net Income and EPS: Net income for the full fiscal year 2025 reached $1.6 billion, representing a 13.9% increase over the previous year. Fully diluted Earnings Per Share (EPS) for the year was $1.59, a healthy 13.6% jump, indicating that net income growth is outpacing share count.
• Cash Flow Strength: The company's free cash flow margin improved to 31.2% in Q2 2025. This strong cash generation gives Copart the flexibility to invest in its global footprint and technology platform, such as its VB3 platform, which is a key competitive advantage.
• Low Leverage: Copart is a low-leverage business, holding about $4.79 billion in cash against total obligations of around $104 million, which provides a significant buffer and financial stability.

Copart, Inc. (CPRT) Market Position & Future Outlook

Copart, Inc. is firmly positioned as the dominant force in the global salvage vehicle auction market, leveraging its proprietary technology and massive land footprint to drive superior margins. The company closed its fiscal year 2025 with robust performance, posting total revenue of $4.6 billion and net income of $1.6 billion, demonstrating a resilient business model that thrives on industry tailwinds like increasing total loss frequency. This trajectory suggests continued outperformance, but you defintely need to watch the competitive dynamics and regulatory landscape.

Competitive Landscape

The US salvage auction market is essentially a duopoly, with Copart and IAA (RB Global) controlling the vast majority of volume. Copart's key advantage is its owned land, which provides unmatched storage capacity and cost control, a major barrier to entry for any newcomer.

Opportunities & Challenges

The company's future growth hinges on its ability to capitalize on global expansion and technology, while carefully navigating legislative hurdles that could cap its fee structure.

Industry Position

Copart's industry standing is built on its scale and its long-term strategy of owning, not leasing, its storage yards. This is a huge competitive moat, honestly. By owning the land, they control costs and have the surge capacity needed to handle catastrophic events like major hurricanes, which bring in high-volume inventory. For instance, they recently acquired the Hall Ranch in South Florida, adding nearly 400 usable acres for vehicle storage.

The shift to a services-centric model is also a key differentiator, moving beyond just the auction platform to offer high-margin services like vehicle processing and logistics. This focus drove a 9.7% year-over-year revenue increase in fiscal year 2025. This is how they maintain superior operating margins compared to peers. If you want a deeper dive into who is betting on this model, check out Exploring Copart, Inc. (CPRT) Investor Profile: Who's Buying and Why?

• Maintain strong relationships with major insurance companies, who are the primary consignors of salvage vehicles.
• Continue to invest capital in expanding yard capacity and enhancing the proprietary Virtual Bidding Third Generation (VB3) online auction platform.
• Leverage the duopoly to maintain pricing power, as they and IAA control over 80% of the US salvage market.