Copart delivered solid QQ1 2026 results characterized by revenue resilience, gross margin expansion, and a disciplined balance sheet. Total revenue stood at $1.155 billion, up 2.46% year-over-year (2.9% ex-cat), while gross profit rose to $537.0 million, up 3.16% year-over-year and 3.7% excluding CATs. The company posted operating income of $430.7 million and net income of $403.7 million, corresponding to an EPS of $0.41 (diluted). The quarter benefited from higher average selling prices (ASP) across segments, with global insurance ASP up 6.8% and U.S. insurance ASP up 8.4%. Copart also reported meaningful efficiency gains, including a 9% reduction in U.S. cycle times and a 17% decline in U.S. inventory, supported by expanding non-insurance volumes and the ongoing maturation of higher-value, higher-margin channels like Direct Buy and the Blue Car program. Importantly, Copart’s liquidity remains exceptionally strong (~$6.5B of liquidity with approximately $5.2B in cash) and the balance sheet is debt-free, underpinning a robust capacity to fund continued capacity expansion, technology investments, and potential strategic opportunities. Management reinforced a long-duration confidence in auction liquidity and the favorable long-term dynamics of international demand, while acknowledging near-term volatility in insured loss frequency and macro conditions. This sets up a constructive medium-term outlook driven by international growth, higher ASPs, and ongoing portfolio optimization across insurance and non-insurance channels.