What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2025-09-26 compared with 2024-09-30 · 44 added, 45 removed, 421 unchanged (17% of the section changed)

24 unchanged sentences

This includes our investments in equipment and infrastructure which support our overall disaster recovery efforts.

For example, we mobilized our people, and engaged with a multitude of service providers to timely retrieve, store, and remarket tens of thousands of flood-damaged vehicles in South Florida in the wake of Hurricane Ian in the fall of 2022.

We provide vehicle sellers with a full range of services to process and sell vehicles primarily over the internet through our Virtual Bidding Third Generation internet auction-style sales technology, which we refer to as VB3.

Vehicle sellers consist primarily of insurance companies, but also include dealers, individuals, charities, rental, banks, finance companies, and fleet operators.

Vehicle sellers consist primarily of insurance companies, but also include dealers, individuals, charities, rental car companies, banks, finance companies, and fleet operators.

We obtained 81%, 81%, and 83% of the total number of vehicles processed during fiscal 2025, 2024, and 2023, respectively, from insurance company sellers.

6 unchanged sentences

In the U.K., Germany, and Spain we operate both as an agent and on a principal basis, in some cases purchasing salvage vehicles outright and reselling the vehicles for our own account.

we recognize revenue on a principal basis from selling dismantled parts through Green Parts Specialist (“GPS”).

In Germany and Spain, we also derive revenue from listing vehicles on behalf of insurance companies and insurance experts to determine the vehicle’s residual value and/or to facilitate a sale for the insured.

In the U.K., we recognize revenue on a principal basis from selling dismantled parts through Green Parts Specialist (“GPS”).

In Germany we also derive revenue from listing vehicles on behalf of insurance companies and insurance experts to determine the vehicle’s residual value and/or to facilitate a sale for the insured.

Through our VB3 auction platform, our sales process is open to registered buyers (whom we refer to as “members”) anywhere in the world with access to the internet.

23 unchanged sentences

For fiscal 2025, our revenues were $4.6 billion, and our operating income was $1.7 billion.

In fiscal 2022, we opened one new operational facility in Canada, one new operational facility in Spain, and five new operational facilities in the U.S.

We also acquired a parts recycler in the U.K.

that has four operating facilities.

In fiscal 2023, we opened one new operational facility in Brazil, one new operational facility in Germany, one new operational facility in Canada, and eight new operational facilities in the U.S.

In fiscal 2024, we opened three new operational facilities in the U.K., one new operational facility in Spain, one new operational facility in Canada, and four new operational facility in the U.S.

In fiscal 2025, we opened one new operational facility in the U.K., two new operational facilities in Spain, and three new operational facilities in the U.S.

Our service revenues consist of auction and auction-related sales transaction fees charged for vehicle remarketing services.

13 unchanged sentences

Operating costs consist primarily of:

(i) labor (operating personnel at yards);

(i) labor (operating personnel at facilities);

(ii) transportation (miles traveled and fuel rates);

10 unchanged sentences

While companies in this industry remarket vehicles through a physical auction or a hybrid internet and physical auction, we sell virtually all our vehicles on our virtual marketplace platform VB3, thus eliminating the requirement for buyers to travel to an auction location to participate in the sales process.

Although there are other sellers of vehicles, such as dealers, individuals, charities, rental, banks, finance companies, and fleet operators, our primary sellers of vehicles are insurance companies.

Although there are other sellers of vehicles, such as dealers, individuals, charities, rental car companies, banks, finance companies, and fleet operators, our primary sellers of vehicles are insurance companies.

The primary buyers of vehicles at our auctions are vehicle dismantlers, rebuilders, repair licensees, used vehicle dealers, exporters, and the general public.

Vehicle dismantlers, which we believe are the largest group of vehicle buyers, based on volume of vehicles purchased, either dismantle a salvage vehicle and sell parts individually or sell the entire vehicle to rebuilders, used vehicle dealers, or the general public.

Vehicle rebuilders and vehicle repair licensees generally purchase salvage vehicles to repair and resell.

Vehicle rebuilders and vehicle repair licensees generally purchase

salvage vehicles to repair and resell.

Used vehicle dealers generally purchase recovered stolen or slightly damaged vehicles for resale.

58 unchanged sentences

The primary focus of these new service offerings is to maximize returns to our sellers and maximize product value to our members.

This includes, for our sellers, real-time access to sales data over the internet, the ability to respond on a national scale, and for our members, the implementation of VB3 real-time bidding at substantially all of our facilities, thereby permitting members at any location worldwide to participate in the sales at our yards.

We plan to continue to refine and expand our services, including offering software that can assist our sellers in expediting claims and salvage management tools that help sellers integrate their systems with ours.

3 unchanged sentences

Since our inception in 1982, we have expanded from a single facility in Vallejo, California to an integrated network of facilities located in the U.S., Canada, the U.K., Brazil, the Republic of Ireland, Germany, Finland, the U.A.E., Oman, Bahrain, and Spain.

In Germany, we also derive revenue from listing vehicles on behalf of insurance companies and insurance experts to determine the vehicle’s residual value and/or to facilitate a sale for the insured.

We offer integrated services to our vehicle sellers, which allow us to respond to the needs of our sellers and members with maximum efficiency.

17 unchanged sentences

• sophisticated vehicle processing at storage sites, including digital imaging of each vehicle and the scanning of each vehicle’s title and other significant documents such as body shop invoices, all of which are available from us over the internet;

• expedited process to assess total loss through our Total Loss Express 360 and Rapid Total Loss AI tools;

• expedited process to assess total loss through our Total Loss Express 360 and Co.ai tools;

• title procurement and loan payoff services offered through Title Express;

3 unchanged sentences

Proven Ability to Acquire and Integrate Acquisitions

We have a proven track record of successfully acquiring and integrating facilities.

We have a proven track record of successfully acquiring and integrating facilities and companies.

Since becoming a public company in 1994, we have completed acquisitions of facilities in the U.S., Canada, the U.K., Brazil, the U.A.E., Germany, Finland, and Spain.

25 unchanged sentences

Online Seller Access

Through Copart Access, our internet-based service for vehicle sellers, we enable sellers to assign vehicles for sale, check sales calendars, view vehicle images and history, view and reprint body shop invoices and towing receipts, and view the historical performance of the vehicles sold at our sales.

Copart Access, our proprietary internet-based service for vehicle sellers, provides a comprehensive suite of tools designed to maximize efficiency and transparency throughout the sales process.

This platform empowers sellers to seamlessly manage their inventory by assigning vehicles for sale, monitoring sales calendars, and accessing detailed vehicle information, including high-resolution images and historical data.

Furthermore, Copart Access streamlines critical administrative functions such as viewing and reprinting body shop invoices and towing receipts, proactively managing the title procurement process, and optimizing total loss determination and management and the handling of unrelated/undisclosed damage.

The platform also provides sellers with valuable insights into the historical performance of vehicles sold through our auctions, enabling data-driven decision-making and improved returns.

Salvage Estimation Services

We offer Copart ProQuote, a proprietary service that assists sellers in the vehicle claims evaluation process by providing online salvage value estimates, which helps sellers determine whether to repair a vehicle or deem it a total loss.

We offer Co.ai, a proprietary suite of total loss determination and valuation tools that leverage machine learning and computer vision to assist sellers in the vehicle claims evaluation process by providing online salvage value estimates, which helps sellers determine whether to repair a vehicle or deem it a total loss.

IntelliSeller

13 unchanged sentences

In the International segment, we perform transportation services through a combination of our fleet and third-party vehicle transport companies.

Our international network and transportation capabilities provide cost and time savings to our vehicle sellers throughout the U.K.

Europe, Canada, Brazil and Middle east market.

Our international network and transportation capabilities provide cost and time savings to our vehicle sellers throughout the U.K., Europe, Canada, Brazil and Middle East market.

Vehicle Inspection Stations

We offer some of our major insurance company sellers office and yard space to house vehicle inspection stations on-site at our facilities.

We offer some of our major insurance company sellers office and facility space to house vehicle inspection stations on-site at our facilities.

We have over 100 vehicle inspection stations at our facilities.

16 unchanged sentences

Under PIP, we agree to sell all of the vehicles of a seller in a specified market, usually for a predetermined percentage of the vehicle sales price.

Because our revenues under PIP are directly linked to the vehicle’s sale price, we have an incentive to actively merchandise those vehicles to maximize the net return.

Because our revenues under PIP are directly linked to the vehicle’s sale

price, we have an incentive to actively merchandise those vehicles to maximize the net return.

We provide the vehicle seller, at our expense, with transportation of the vehicle to our nearest facility.

14 unchanged sentences

The VB3 technology and model employs a two-step bidding process.

The first step is an open preliminary bidding feature that allows a member to enter bids either over the internet during the preview days.

The first step is an open preliminary bidding feature that allows a member to enter bids over the internet during the preview days.

To improve the effectiveness of bidding, the VB3 system lets a member see the current high bid on the vehicle they want to purchase.

7 unchanged sentences

We provide financial institutions, fleet and rental car companies with an efficient method to sell their vehicles.

We have a dedicated team of employees that support the processing and remarketing of BluCar vehicles.

We have a dedicated team of employees that support the processing of BluCar vehicles which includes market specific services such as asset recovery, comprehensive condition reports and arbitration.

Copart Dealer Services

33 unchanged sentences

Membership Tiers

We now offer three tiers of membership in the U.S.

- Guest, Basic, and Premier - for those registering to buy vehicles through Copart.com.

We now offer three tiers of membership Guest, Basic, and Premier, except for Copart U.K.

where we offer only Guest, and Basic.

Guest Member Benefits

15 unchanged sentences

We obtained 81%, 81%, and 83% of the total number of vehicles processed during fiscal 2025, 2024, and 2023, respectively, from insurance company sellers.

We typically contract with the national, regional or branch office of an insurance company or other vehicle sellers.

The agreements are customized to each vehicle seller’s needs and often provide for the disposition of different types of salvage vehicles by differing methods.

Our arrangements generally provide that we will sell total loss and recovered stolen vehicles generated by the vehicle seller in a designated geographic area.

We typically contract with the national, regional or branch office of an insurance company, fleet, financial institutions, and rental car companies and other vehicle sellers.

The agreements are customized to each vehicle seller’s needs and often provide for the disposition of different types of vehicles by differing methods.

Our arrangements generally provide that we will sell vehicles generated by the vehicle seller in a designated geographic area.

We market our services to vehicle sellers through an in-house sales force that utilizes a variety of sales techniques, including personal sales calls, internet search engines, employee referrals, tow shop referrals, and participation in trade shows and vehicle and insurance industry conventions, targeted mailing of our sales literature, and telemarketing.

18 unchanged sentences

The largest national or regional vehicle auctioneers in the U.S.

include Ritchie Bros.

(including its subsidiary Insurance Auto Auctions, Inc.);

Carvana, Openlane, Manheim, Inc.

include RB Global (including its subsidiary Insurance Auto Auctions, Inc.), Carvana, Openlane, Manheim, Inc.

and ACV Auctions Inc.

4 unchanged sentences

Management Information Systems

Our primary yard management information system consists of a series of IBM AS/400 mainframe computer systems and other servers which run our proprietary software developed to process salvage sales vehicles throughout the auction process.

This system is integrated with the internet to enable buyers to view salvage vehicles and bid on them.

It can also be integrated with the seller’s system and enables the sellers to monitor their vehicles and analyze the progression of vehicles through the auction process.

Our VB3 auction platform is served by an array of identical high-density, high-performance servers.

Each individual sale is configured to run on an available server in the array and can be rapidly provisioned to any other available server in the array as required.

We have invested in production data centers that are designed to continuously operate to support the business, even in the event of an emergency.

The data centers’ electrical and mechanical systems are continually monitored.

The data centers are located in areas generally considered to be free of frequent weather-related disasters and earthquakes.

We operate fully redundant infrastructure to ensure ongoing operations, even in the event of physical damage to one of our data centers.

We have a proprietary enterprise operating system that provides multi-language and multi-currency capabilities, thereby facilitating future international expansion.

We began using our internally developed proprietary system with our expansion into Spain in fiscal 2016 and Germany in fiscal 2017.

Our primary management information system runs on a platform called G2, an integrated mesh of proprietary, distributed systems that is based on services architecture and open standards.

A portion of the functionality still resides in the legacy system called CAS.

Employees from various facilities, support centers and offices around the world access the G2 platform to perform various activities like take pictures, receive vehicles, inventory vehicles, process titles, accept payments, etc.

Members access the G2 Platform to search for, view, bid and pay for the vehicles.

Sellers integrate their systems with Copart’s G2 Platform via B2B Application Programming Interface “APIs”.

They also access G2 to assign vehicles, monitor the progression of a vehicle through the lot processing lifecycle, approve charges or bids and make and receive payments.

We have invested in multiple co-located data centers around the world and multiple cloud platforms to create a hybrid infrastructure that provides redundancy and is designed to run continuously, even in the event of an emergency.

All our facilities, offices and employees connect to our servers through the internet using publicly available multiple networks, designed to provide redundancy.

Employees and Human Capital

19 unchanged sentences

Additionally, of the approximately 500 employees serving Internationally in management roles and above, up to and including executives, 70% identify as male and 30% identify as female.

Our executive leadership team today reflects our commitment to inclusion.

Among our three named executive officers (NEOs), our chief executive officer is ethnically diverse, and our chief financial officer is a woman.

Within our broader executive management team, comprised of 11 executives with “chief” designations, two c-level executives are women and 5 are ethnically diverse.

At Copart, our human resources function known as People and Culture, plays a vital role in creating a supportive and productive work environment for all employees.

Our People and Culture department is dedicated to fostering a culture of growth, collaboration, and employee well-being with a “people first” mindset.

We understand that our people are our most valuable asset, and our People and Culture team is committed to providing comprehensive support across various aspects of the employee lifecycle.

We understand that our people are our most valuable asset, and our People and Culture team is committed to providing comprehensive support across various aspects of the employee employment.

We identify and attract top talent that aligns with our values and objectives.

3 unchanged sentences

Our Employee Development and Training Department plays a crucial role in driving organizational growth by equipping our employees with the skills and knowledge they need to succeed.

This department designs and delivers comprehensive

training from compliance to leadership development.

This department designs and delivers comprehensive training from compliance to leadership development.

By aligning training initiatives with corporate goals, the team ensures that employees are not only well-prepared to meet current job demands but are also future-ready.

35 unchanged sentences

These zoning requirements vary from location to location.

At various times, we may be involved in disputes with governmental officials regarding the development and/or operation of our business facilities.

times, we may be involved in disputes with governmental officials regarding the development and/or operation of our business facilities.

We believe that we are in compliance, in all material respects, with applicable regulatory requirements.

11 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business