Copart reported QQ2 2024 revenue of $1.020 billion, up approximately 7% year over year, with consolidated gross profit of $460.1 million and a gross margin of 45.5%. Operating income reached $379.9 million (operating margin 37.2%), and net income totaled $325.6 million or $0.34 per basic share ($0.33 per diluted share). The quarter benefited from a favorable margin mix: a meaningful shift toward higher-margin fee units (non-insurance) and a resilient U.S. and international ASP backdrop even as the Manheim Used Vehicle Value Index declined about 7% YoY. Management framed the period as a step in Copart’s longer-run operating-leverage trajectory, supported by disciplined capital investment in real estate, fleet and technology to scale core and adjacent businesses.
Key growth drivers included: (1) non-insurance volume growth north of 30% YoY in the U.S. (dealer, fleet and finance channels) and over 21% international unit growth, (2) a continued shift toward fee-based and higher-margin transactions, (3) international expansion with a 16%+ inventory delta versus prior year, and (4) ongoing investments in talent and technology to enhance auction liquidity and operating efficiency. Copart ended QQ2 with a robust liquidity position of approximately $3.9 billion, including roughly $2.7 billion in cash and held-to-maturity investments, and a net cash position of about $1.14 billion. Free cash flow for the quarter was $38.8 million, after $123 million of capex primarily directed toward real estate and infrastructure to enable capacity expansion.
Management signaled a constructive longer-term outlook emphasizing operating leverage from ongoing investments and capacity expansion, while noting no formal quarterly guidance. The company also highlighted strategic actions (Purple Wave consolidation, new executive hires) aimed at broadening product capabilities and geographic reach. While the insurance cycle remains a key driver of Copart’s mix, the leadership framed the period as evidence of durable earnings quality under a diversified model, with net cash and an aversion to excessive capex relative to growth opportunities.