VOL. XCIV, NO. 247
★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★
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Sunday, December 28, 2025
Copart, Inc.
CPRT · The NASDAQ Global Select Market
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
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Overview
Copart operates an online marketplace for salvage and used vehicles, earning primarily fee-based service revenue plus some vehicle sales. Its core moats are marketplace liquidity (large buyer base + seller relationships), a dense field network (yards, transport, inspection stations), workflow integrations for sellers, and regulatory/title-processing expertise. Financial reporting splits into U.S. and International segments, with the U.S. producing most revenue and operating income.
Primary segment
United States
Market structure
Oligopoly
Market share
—
HHI: —
Coverage
2 segments · 6 tags
Updated 2025-12-28
Segments
United States
Online salvage & used vehicle remarketing services
Revenue
83%
Structure
Oligopoly
Pricing
—
Share
—
Peers
International
Online salvage & used vehicle remarketing services
Revenue
17%
Structure
Competitive
Pricing
—
Share
—
Peers
Moat Claims
United States
Online salvage & used vehicle remarketing services
Segment shares derived from FY2025 segment reporting (Note 14) in Copart's Form 10-K.
Two Sided Network
Network
Two Sided Network
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 2 evidence
Liquidity flywheel between a large buyer base and high-return outcomes for vehicle sellers (especially insurers).
Erosion risks
- Buyer multi-homing across auction platforms
- Insurers shifting volume via RFPs to keep competition
- Disintermediation if sellers transact directly with dismantlers/exporters
Leading indicators
- Registered member growth and activity
- Average bidders per lot / sell-through rate
- Seller retention and share of insurer volume
Counterarguments
- Buyers can bid across multiple marketplaces with low switching costs
- Large sellers can pressure fees via contract bidding and volume reallocation
Service Field Network
Supply
Service Field Network
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 3 evidence
Nationwide logistics + facility footprint enable fast pickup, storage, processing, and catastrophe response.
Erosion risks
- Zoning/land availability constraints
- Rising land and labor costs
- Competitors bidding up storage facility acquisitions
Leading indicators
- Facility count / capacity additions
- Average pickup time and cycle time
- Catastrophe volume response performance
Counterarguments
- Competitors can lease yards and contract towing to narrow service differences
- Asset-heavy footprint can become a cost drag if volumes fall
Data Workflow Lockin
Demand
Data Workflow Lockin
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 2 evidence
Seller-facing software and integrations embed Copart into the claims and disposition workflow (assignment -> processing -> sale -> settlement).
Erosion risks
- Standardized APIs reducing integration switching costs
- Insurers adopting in-house salvage management workflows
- Security incidents undermining trust in integrated tools
Leading indicators
- Growth in integrated seller accounts / API usage
- Seller retention and contract renewals
- Adoption of seller tools (Copart Access / Co.ai / title tools)
Counterarguments
- Large customers can integrate with multiple remarketers in parallel
- Workflow tools could be replicated by competitors or third-party software
Compliance Advantage
Legal
Compliance Advantage
Strength: 3/5 · Durability: durable · Confidence: 4/5 · 3 evidence
Regulatory, licensing, and title-processing complexity create barriers; Copart cites title-processing know-how as an advantage.
Erosion risks
- Regulatory changes increasing compliance costs
- Operational lapses leading to license/permit issues
- Modernized digital title systems reducing process advantage
Leading indicators
- Title processing cycle time (days to sell/settle)
- Permit/zoning approval lead times for new yards
- Material regulatory findings or enforcement actions
Counterarguments
- Competitors can hire compliance/title specialists and invest to match capabilities
- Some sellers may prioritize auction proceeds over process speed
Benchmark Pricing Power
Financial
Benchmark Pricing Power
Strength: 3/5 · Durability: medium · Confidence: 4/5 · 2 evidence
Revenue model uses multiple fee levers (seller fees, buyer fees, transport/title/storage add-ons) and percentage-based programs tied to sale prices.
Erosion risks
- Fee compression from competitive bidding for insurer contracts
- Regulatory scrutiny of fees or buyer access
- Lower auction prices reducing percentage-based revenue
Leading indicators
- Average auction fees per unit / take rate
- Renewal terms on major seller agreements
- Buyer fee schedule changes and buyer churn
Counterarguments
- Large sellers can negotiate fees and reallocate volume
- Transparent fee schedules can intensify price competition
International
Online salvage & used vehicle remarketing services
Segment shares derived from FY2025 segment reporting (Note 14) in Copart's Form 10-K.
Two Sided Network
Network
Two Sided Network
Strength: 3/5 · Durability: medium · Confidence: 4/5 · 2 evidence
Global buyer participation and a shared technology platform support liquidity in newer/non-U.S. geographies, though local fragmentation is higher.
Erosion risks
- Local competitors with incumbent relationships
- Cross-border trade restrictions or export frictions
- Lower network effects if buyers/sellers remain local
Leading indicators
- International unit volumes and buyer participation
- Cross-border buyer share
- International ASP and sell-through
Counterarguments
- Network effects may be weaker where buyers and sellers can easily multi-home locally
- Regulatory and logistics frictions can limit cross-border demand
Service Field Network
Supply
Service Field Network
Strength: 3/5 · Durability: medium · Confidence: 4/5 · 2 evidence
International transport and facility operations enable end-to-end services (pickup, storage, processing), but scale varies by country.
Erosion risks
- Country-level permitting constraints
- FX and inflation pressuring operating costs
- Integration challenges when acquiring new sites abroad
Leading indicators
- International facility openings and utilization
- Pickup time and cycle time by country
- Operating margin trends in International segment
Counterarguments
- Local players may have lower costs or better local relationships
- Smaller scale can limit cost advantages versus domestic U.S. network
Data Workflow Lockin
Demand
Data Workflow Lockin
Strength: 3/5 · Durability: medium · Confidence: 4/5 · 2 evidence
Shared software platform provides sellers online visibility and can integrate into insurer processes, but penetration differs by geography.
Erosion risks
- Local regulatory differences limiting workflow standardization
- Competing local platforms integrating with insurers
- Data localization requirements increasing platform costs
Leading indicators
- International seller tool adoption
- API-integrated seller count outside the U.S.
- International customer retention
Counterarguments
- International insurers may prefer local vendors with bespoke processes
- Integration value may be lower in markets with less formalized claims workflows
Compliance Advantage
Legal
Compliance Advantage
Strength: 3/5 · Durability: durable · Confidence: 4/5 · 2 evidence
Regulatory licensing, environmental handling, and title transfer requirements add friction; capabilities can be a differentiator in some jurisdictions.
Erosion risks
- Regulatory changes or enforcement tightening
- Environmental liabilities at acquired sites
- Inconsistent compliance execution across jurisdictions
Leading indicators
- Environmental remediation and compliance costs
- Permitting/zoning disputes and delays
- International legal proceedings or regulatory actions
Counterarguments
- Local specialists can sometimes meet regulatory requirements more efficiently
- Compliance complexity can also slow Copart expansion
Benchmark Pricing Power
Financial
Benchmark Pricing Power
Strength: 2/5 · Durability: medium · Confidence: 3/5 · 2 evidence
Fee-based model exists internationally, but auction rights and supply can be more contested (e.g., periodic tenders in some markets).
Erosion risks
- Competitive tenders reducing fee leverage
- Buyer demand weakness in specific countries
- Regulatory constraints on buyer access and fees
Leading indicators
- International fee yield per unit
- Mix of consignment vs purchase programs
- International segment margin volatility
Counterarguments
- Local competitors can undercut pricing to win supply contracts
- Principal purchase programs can introduce margin risk if residual values move
Evidence
We maintain a database of approximately 1 million registered members ("buyers").
Large buyer network supports marketplace liquidity and competitive bidding.
VB3 opens our sales process... anywhere in the world where internet access is available.
Online auction model broadens demand beyond local yards, supporting seller proceeds.
pick up most of our sellers' vehicles within 24 hours.
Speed and responsiveness are enabled by contracted transport capacity and a national network.
We have over 100 vehicle inspection stations at our facilities.
On-site inspection reduces friction for major insurer sellers and supports volume concentration.
acquiring and developing additional vehicle storage facilities in key markets.
Ongoing expansion strategy implies physical footprint is a core strategic asset.
Showing 5 of 19 sources.
Risks & Indicators
Erosion risks
- Buyer multi-homing across auction platforms
- Insurers shifting volume via RFPs to keep competition
- Disintermediation if sellers transact directly with dismantlers/exporters
- Zoning/land availability constraints
- Rising land and labor costs
- Competitors bidding up storage facility acquisitions
Leading indicators
- Registered member growth and activity
- Average bidders per lot / sell-through rate
- Seller retention and share of insurer volume
- Facility count / capacity additions
- Average pickup time and cycle time
- Catastrophe volume response performance
Curation & Accuracy
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