How Does Copart Make its Money?
Copart is a global leader in online vehicle auctions, providing salvage and clean title vehicle auction services to insurance companies, dealers, fleet operators, and the general public. When a vehicle is totaled in an accident or damaged by weather, insurers use Copart to sell the salvage through its online auction platform. The company operates in 11 countries with over 250 locations and more than 200,000 acres of vehicle storage yard capacity. Copart’s network effect — more buyers attract more sellers and vice versa — creates a powerful competitive moat. The company has invested heavily in land acquisition, building a real estate asset that would be virtually impossible for competitors to replicate.
Copart (CPRT) Business Model
Copart operates in the industrials sector. Below is a summary of Copart’s revenue streams, how the company generates income, and the key financial metrics from its most recent annual report. This breakdown uses data from Copart’s 2024 fiscal year filings with the SEC.
Copart Competitors
Copart’s key competitors and comparable public companies in the industrials sector include Carvana, Ford, Progressive, and General Motors. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Copart stacks up by comparing their revenue breakdown, margins, and growth metrics.
Copart Competitors
Copart’s key competitors and comparable public companies in the industrials sector include Carvana, Ford, Progressive, and General Motors. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Copart stacks up by comparing their revenue breakdown, margins, and growth metrics.
Copart Competitors
Copart’s key competitors and comparable public companies in the industrials sector include Carvana, Ford, Progressive, and General Motors. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Copart stacks up by comparing their revenue breakdown, margins, and growth metrics.
Copart Competitors
Copart’s key competitors and comparable public companies in the industrials sector include Carvana, Ford, Progressive, and General Motors. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Copart stacks up by comparing their revenue breakdown, margins, and growth metrics.
Revenue Breakdown
| Segment | 2024 | 2023 | YoY Growth |
|---|---|---|---|
| Service Revenue (Auction Fees, Storage, Transport) | $3,600 | $3,200 | +12.5% |
| Vehicle Sales | $500 | $500 | +0.0% |
| Total Revenue | $4,200 | $3,900 | +7.7% |
Service Revenue (Auction Fees, Storage, Transport) — 86% of Revenue
Vehicle Sales — 12% of Revenue
Income Statement Overview
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $4,200 | $3,900 |
| Cost of Revenue | $1,700 | $1,600 |
| Gross Profit | $2,500 | $2,300 |
| Operating Expenses | $400 | $400 |
| Operating Income | $2,100 | $1,900 |
| Net Income | $1,600 | $1,400 |
All values in millions USD unless otherwise stated.
Key Financial Metrics
- Gross Margin: 59.5%
- Operating Margin: 50.0%
- Revenue Growth: 7.7%
Is Copart Profitable?
Yes, Copart is profitable. The company reported net income of $1,600 on total revenue of $4,200. With an operating margin of 50.0%, Copart demonstrates solid profitability for the industrials sector. The gross margin of 59.5% reflects Copart’s pricing power and cost structure.
What to Watch
- Total loss frequency trends as vehicle repair costs continue rising
- International expansion in Germany, Spain, Finland, and other European markets
- Non-insurance seller growth (dealer consignment, fleet, charity, government)
- Land bank expansion as yard capacity becomes the key constraint
Copart (CPRT) Financial Summary
Copart (CPRT) is an industrials company that generated $4,200 in total revenue in fiscal year 2024. Revenue grew 7.7% year-over-year. The company earned $1,600 in net income, making it profitable. For a deeper look at Copart’s revenue breakdown, business segments, and financial performance, review the detailed analysis above.