Copart Inc (CPRT) 2026 Q2 法說會逐字稿

Good day, everyone, and welcome to the Copart, Inc. second-quarter fiscal 2026 earnings call. Just a reminder, today's conference is being recorded.

大家好，歡迎參加 Copart 公司 2026 財年第二季財報電話會議。提醒一下，今天的會議正在錄影。

Before turning the call over to management, I will share Copart's safe harbor statement. The company's comments today include forward-looking statements within the meaning of the federal securities laws, including management's current views with respect to trends, opportunities and uncertainties and in the company's industry. These forward-looking statements involve substantial risks and uncertainties.

在將電話轉交給管理層之前，我將分享 Copart 的安全港聲明。公司今天發表的評論包含聯邦證券法意義上的前瞻性陳述，包括管理階層目前對公司所在產業的趨勢、機會和不確定性的看法。這些前瞻性陳述涉及重大風險和不確定性。

For more detail on the risks associated with the company's business -- we refer you to the section titled Risk Factors in the company's annual report on Form 10-K for the year ended July 31, 2025, and and each of the company's subsequent quarterly reports on Form 10-Q. Any forward-looking statements are made as of today, and the company has no obligation to update or revise any forward-looking statements.

有關公司業務相關風險的更多詳細信息，請參閱公司截至 2025 年 7 月 31 日止年度的 10-K 表格年度報告中題為“風險因素”的部分，以及公司隨後的每個季度的 10-Q 表格季度報告。所有前瞻性陳述均截至今日，本公司沒有義務更新或修改任何前瞻性陳述。

I will now turn the call over to the company's CEO, Jeff Liaw.

現在我將把電話轉交給公司執行長廖傑夫。

Thank you, Owen. Welcome, and thank you for joining our second quarter fiscal year 2026 earnings call. I'll begin with some brief remarks on trends in our insurance business before passing the call to Leah to provide a summary of our financial results. We'll then be happy to take your questions.

謝謝你，歐文。歡迎各位參加我們2026財年第二季財報電話會議，感謝您的參與。我先簡單談談我們保險業務的發展趨勢，然後再把電話交給莉亞，讓她總結一下我們的財務表現。屆時我們將樂意回答您的問題。

On our insurance business. For the second quarter, our global insurance units declined 9% or 4% excluding the effect of catastrophic units from a year ago. Our US insurance units declined 10.7% for the same period or 4.8%, excluding those catastrophic units. The underlying drivers of these changes remain consistent with what we've discussed on our prior calls.

關於我們的保險業務。第二季度，我們的全球保險業務下降了 9%，如果排除去年同期巨災業務的影響，則下降了 4%。同期，我們的美國保險業務下降了 10.7%，如果排除那些巨災險業務，則下降了 4.8%。這些變化背後的根本驅動因素與我們先前電話會議中討論的內容一致。

First, shifts in policies in force and exposure levels across insurance carriers who themselves are experiencing differential growth rates, softer overall claims activity driven by a consumer pullback in auto insurance coverage, all partially offset by continuing increases in total loss frequency.

首先，各保險公司的有效保單和風險敞口水平發生了變化，而這些保險公司本身的增長率也各不相同；此外，由於消費者減少了汽車保險的投保，整體索賠活動有所放緩；所有這些都被全損頻率的持續上升部分抵消。

On the latter point, total loss frequency continues. It's an extra rise consistent with the long-term historical trends we've observed and discussed at great length. In the United States, total loss frequency was 24.2% in the fourth quarter of calendar year 2025, a slight 10-basis point uptick from a year ago. The year ago period, of course, does include the effects of Hurricanes Helene and Milton. It's notable that total loss frequency has increased over that period nonetheless.

關於後一點，總損耗頻率仍在持續。這是與我們觀察和深入討論過的長期歷史趨勢一致的額外上漲。在美國，2025 年第四季的總損失頻率為 24.2%，比一年前略微上升了 10 個基點。當然，一年前的情況也包括了颶風海倫和米爾頓的影響。值得注意的是，儘管如此，總損失頻率在此期間有所增加。

Then when you step back a bit over a multi-year horizon, the upward trajectory becomes clearer still. Total loss frequency in calendar year 2015 was 15.6% in comparison to 23.1% in calendar year 2025. Against that backdrop, our focus remains on delivering superior long-term economic and service outcomes to our insurance clients.

當你把目光放長遠，從多年的角度來看，上升趨勢就更加清晰了。2015 年曆年的總損失頻率為 15.6%，而 2025 年曆年的總損失頻率為 23.1%。在此背景下，我們將繼續專注於為保險客戶提供卓越的長期經濟和服務成果。

First and foremost, we maximize returns for our insurance partners. We believe our auction returns continue to reflect structural advantages of our marketplace and recent account wins for which we have empirical before and after returns data validates that position. As you know, industry-wide vehicle values have normalized somewhat from the elevated levels we observed during supply chain constrained period of 2021 and 2022, as evidenced by Manheim indices and otherwise. We are nevertheless generating record average selling prices for our US insurance consignors.

首先，我們致力於為保險合作夥伴實現收益最大化。我們相信，我們的拍賣收益繼續反映出我們市場的結構優勢，而我們最近贏得的帳戶（我們有經驗性的前後收益數據）也證實了這一觀點。如您所知，從 2021 年和 2022 年供應鏈受限期間觀察到的高點來看，整個產業的車輛價值已經有所回落，Manheim 指數和其他指標都證明了這一點。儘管如此，我們仍然為美國保險委託人創造了創紀錄的平均售價。

As we discussed at great length on our first quarter call, we attribute this performance to the scale and diversity of our global buyer network, rising international participation, enhanced data-driven merchandising, and the liquidity that comes from consistently finding for each vehicle, we auction its highest and best use globally. The critical driver of long-term competitive advantage for Copart is that liquidity. We migrated first to an online-only auction in 2003 and have benefited from an almost two decade head start in comparison to the rest of the industry.

正如我們在第一季電話會議上詳細討論的那樣，我們將這一業績歸功於我們全球買家網絡的規模和多樣性、不斷增長的國際參與度、增強的數據驅動型商品銷售，以及通過不斷為每輛車找到其在全球範圍內最高和最佳用途而帶來的流動性。Copart 長期競爭優勢的關鍵驅動因素是流動性。我們於 2003 年率先轉型為純線上拍賣，與業內其他公司相比，我們享有近二十年的先發優勢。

In short then, we benefit from a growing base of bidders as evidenced in bidders per auction bidders per lot watch list additions per lot and so on. Our selling customers have also voted with their pocketbooks entrusting us with more pure sale units than they ever have before, knowing our auction will achieve a full and fair market value. The ancillary benefit from that change and that evolution is that our sellers can themselves reduce their own internal administrative burdens by extension.

簡而言之，我們受益於競標者群體的不斷增長，這體現在每次拍賣的競標者人數、每件拍品的競標者人數、每件拍品的關注列表新增人數等等。我們的賣家客戶也用實際行動表達了他們的信任，他們比以往任何時候都更信任我們，委託我們出售更多的純銷售單元，因為他們知道我們的拍賣會能夠實現充分且公平的市場價值。這種變化和發展帶來的附帶好處是，我們的賣家可以相應地減輕他們自身的內部管理負擔。

As evidenced by marketplaces across a multitude of industries, liquidity begets liquidity. The fact that our auctions continue to drive strong returns and price discovery yields further growth by bringing new sellers to our platform. And frankly, by enhancing the economic attractiveness of the total loss pathway for our insurance clients as well, our strong returns are literally one of the critical drivers of rising total loss frequency in the industry.

眾多產業的市場都證明了這一點：流動性會帶來更多的流動性。我們的拍賣持續帶來強勁的回報和價格發現，吸引新的賣家加入我們的平台，進而實現進一步成長。坦白說，透過提高全損路徑對我們保險客戶的經濟吸引力，我們強勁的回報實際上是推動產業全損頻率上升的關鍵因素之一。

To that point, our US insurance ASPs for the quarter increased 6% year over year, excluding the effect of the catastrophic events from a year ago, our average selling prices for the US insurance sector grew by 9% and year over year, yet again outpacing industry trends.

截至目前，本季美國保險平均售價年增 6%，剔除去年同期災難性事件的影響，美國保險業的平均售價年增 9%，再次超過產業趨勢。

The second important element from our insurance carriers perspective is cycle times, both from assignment to vehicle retrieval and from vehicle retrievable to vehicle sale. These are critical drivers of economic value and policyholder satisfaction for our insurance clients. To deliver excellent pickup times, we operate the largest toe network in the industry by a long shot, a unique combination of third-party subcontractors, owned trucks and employed drivers, and what we call, truck and a box operators, who are independent third-party drivers who leverage Copart's purchasing and financing scale for their vehicles. All of these service providers benefit from Copart's best-in-class route density to optimize performance and cost.

從我們保險公司的角度來看，第二個重要因素是周期時間，包括從分配到車輛取回的時間，以及從可取回車輛到車輛出售的時間。這些因素對我們的保險客戶而言，是經濟價值和保單持有人滿意度的關鍵驅動因素。為了提供卓越的取貨時間，我們經營著業內規模最大的貨運網絡，這得益於第三方分包商、自有卡車和僱傭司機的獨特組合，以及我們稱之為「卡車和貨箱運營商」的獨立第三方司機，他們利用 Copart 的採購和融資規模來購買自己的車輛。所有這些服務提供者都受益於 Copart 一流的路線密度，從而優化效能和成本。

Finally, our Title Express offering, the process by which we obtain loan payoff balances and accelerate the retrieval of original titles, whether held by the banks or by individual policyholders is by a factor of 5x or more the largest such platform in our industry. In many cases, we deliver cycle times 10 days better or more than the insurance clients can deliver on their own because we benefit from unmatched scale and the purpose-built technology platform that that scale enables.

最後，我們的 Title Express 服務，即我們取得貸款償還餘額並加快收回原始所有權證書（無論是銀行持有的還是個人保單持有人持有的）的過程，其規模是業內同類平台的 5 倍甚至更多。在許多情況下，我們的周期時間比保險客戶自己能夠實現的周期時間快 10 天甚至更多，因為我們受益於無與倫比的規模以及這種規模所帶來的專用技術平台。

On the specific question of claims activities, we talked at length about on our last two calls, about trends we've observed in the insurance industry, including consumers paring back their coverage by foregoing collision coverage raising their deductibles or both. These trends have continued in our most recent quarter. Historical data does indicate over the long haul that these are more cyclical forces than they are secular.

關於理賠活動的具體問題，我們在最近兩次電話會議中詳細討論了我們在保險業觀察到的趨勢，包括消費者透過放棄碰撞險、提高免賠額或兩者兼而有之來減少保險範圍。這些趨勢在最近一個季度仍在持續。歷史數據表明，從長遠來看，這些因素更多的是週期性因素，而不是長期因素。

The last point I wanted to make was to shed some light on artificial intelligence and what it means as a critical tool for Copart specifically. We have deployed artificial intelligence at scale along multiple dimensions across our enterprise, including my own significant personal engagement in quad code and other such platforms. We've observed, not surprisingly, an exponential monthly increase in use by our own in-house team of engineers, with approximately 1,000 full-time engineers across North America, Europe, and Asia, we have, by a healthy margin, the most robust and experienced pensive technology talent in the industry and the tech platform to show for it.

最後我想強調的是，人工智慧對於 Copart 而言，尤其是作為一項關鍵工具的意義。我們已在企業內從多個維度大規模部署了人工智慧，包括我個人對四元程式碼和其他類似平台的深入參與。不出所料，我們觀察到公司內部工程師團隊的使用量每月呈指數級增長。我們在北美、歐洲和亞洲擁有約 1,000 名全職工程師，擁有業界最強大、最有經驗的思考技術人才，並且擁有相應的技術平台。

Artificial intelligence is turbocharging their productivity day to day. We have also deployed artificial intelligence in business analytics, document processing, our call for release processes, driver dispatch and so on and so forth. As one commercial example, two full years ago, we launched a total loss decision tool to the industry, which assists insurance carriers and making expedited total loss decisions with limited information, including for example, a small sample of photos and otherwise.

人工智慧正在極大地提升他們的日常生產力。我們也將人工智慧應用於業務分析、文件處理、發布流程、司機調度等等。舉個商業例子，兩年前，我們向業界推出了一款全損決策工具，該工具可以幫助保險公司在資訊有限的情況下（例如，只有少量照片樣本等）快速做出全損決策。

In every case, as we deploy this critical technology, we are appropriately respectful of the critical privacy and reliability considerations that our sellers will have, as well as the business practices, legal, and regulatory considerations of our insurance business partners specifically. We have already seen AI substantially increase our productivity across functions, and we will continue to deploy it to continue doing so. We also know that artificial intelligence will enhance the value proposition we can deliver to sellers and buyers at our marketplace over the long haul.

在任何情況下，當我們部署這項關鍵技術時，我們都會適當尊重賣家的隱私和可靠性方面的考量，以及保險業務合作夥伴的商業慣例、法律和監管方面的考慮。我們已經看到人工智慧大幅提高了我們各個職能部門的生產力，我們將繼續部署人工智慧以繼續提高生產力。我們也知道，從長遠來看，人工智慧將提升我們能夠為市場上的賣家和買家提供的價值主張。

With that, I'll turn the call over to our CFO, Leah, to discuss our second quarter financial results.

接下來，我將把電話交給我們的財務長莉亞，讓她來討論我們第二季的財務表現。

Thank you, Jeff, and good afternoon to everyone on the call. I'll begin by walking through our financial results for the quarter, beginning with our consolidated performance, followed by a review of our US and international segments.

謝謝你，傑夫，也祝所有參加電話會議的朋友們下午好。我將首先介紹我們本季的財務業績，從我們的綜合業績開始，然後回顧我們在美國和國際市場的業務。

For the second quarter, consolidated revenue declined 3.6% year over year to $1.12 billion. The prior year included revenue from over 49,000 CAT-related vehicles. Excluding CAT, consolidated revenue increased 1.3%. Service revenue declined 4% and purchased vehicle sales decreased 1.4%. Revenue performance was driven by higher ASPs, which were up 6% on a reported basis and 7.1% excluding CAT, which were offset by lower unit volumes, which declined 8% globally and down 3.6%, excluding CAT. Global Insurance units declined 9.3% or 4.1% adjusted for CAT, while global noninsurance units decreased 2.7%. The Global inventory declined 7% from the prior year, while global assignment volume declined low single digit.

第二季度，合併營收年減 3.6% 至 11.2 億美元。上一年的收入包括來自超過 49,000 輛 CAT 相關車輛的收入。剔除CAT的影響，合併收入成長1.3%。服務收入下降了 4%，購車銷量下降了 1.4%。營收成長主要得益於平均售價上漲，按報告數據計算上漲 6%，不計 CAT 則上漲 7.1%，但銷量下降抵消了這一增長，全球銷量下降 8%，不計 CAT 則下降 3.6%。全球保險業務下降 ​​9.3%（經巨災調整後下降 4.1%），全球非保險業務下降 ​​2.7%。全球庫存較前一年下降 7%，而全球派遣量則下降了個位數百分比。

Global gross profit decreased 6.2% to $492.8 million, the prior year included profit from the CAT units, and this quarter included a $6.8 million onetime expense accrual related to international FAP.

全球毛利下降 6.2% 至 4.928 億美元，去年同期包含 CAT 部門的利潤，本季包含與國際 FAP 相關的 680 萬美元一次性費用提列。

Adjusting for these items, global gross profit increased 0.4% and global gross margin increased 178 basis points to 45%. Operating income declined 8.8% to $388.7 million while net income was $350.7 million, down 9.5% from last year, and earnings per diluted share decreased 9.2% to $0.36.

剔除這些項目的影響，全球毛利成長0.4%，全球毛利率成長178個基點至45%。營業收入下降 8.8% 至 3.887 億美元，淨收入為 3.507 億美元，比去年下降 9.5%，稀釋後每股收益下降 9.2% 至 0.36 美元。

Turning to our US segment. Total units declined 9.5% or 4.5%, excluding cat and direct buy. Insurance volumes decreased 10.7% or 4.8%, excluding cat, which are consistent with the claims frequency trends Jeff described a few moments ago.

接下來我們來看看美國市場。總銷量下降 9.5%，若不計入貓咪和直接購買，則下降 4.5%。保險業務量下降了 10.7%，若不計巨災損失，則下降了 4.8%，這與 Jeff 剛才描述的索賠頻率趨勢一致。

Dealer Services unit growth was 5%. And while commercial consignment units, which are marketed through our BluCar channel, declined 11.8%, reflecting higher repair activity among our rental customers. while fleet and bank and finance seller volume continues to grow at a healthy double-digit pace. In addition, as we continue to shift lower value units to our direct buy channel, reported US purchase units declined 23.6% or just 8% on a normalized basis.

經銷商服務部門成長了 5%。雖然透過我們的BluCar管道銷售的商業寄售車輛數量下降了11.8%，反映出我們的租賃客戶維修活動增加，但車隊、銀行和金融機構的賣家數量繼續以兩位數的健康速度增長。此外，隨著我們繼續將低價值產品轉移到我們的直接購買管道，報告的美國購買量下降了 23.6%，以正常水平計算僅下降了 8%。

As of the end of the quarter, our US inventory had declined 8.1% from the year ago period. During the quarter, US assignments declined low single digit from the prior year. Purple Wave's gross transaction value growth of more than 17% over the last 12 months. continues to significantly outperform the broader industry and reflects our strong performance in our expansion markets as well as growth in our enterprise accounts. US total revenue declined 5.5%, but was flat excluding prior year CAT events. Fee revenue declined 5.6% and was also flat, excluding CAT as lower unit volume was offset by an increase in revenue per unit. US insurance ASPs increased 6% or 9%, excluding cat and noninsurance ASPs increased 2%.

截至本季末，我們的美國庫存比去年同期下降了 8.1%。本季度，美國派遣任務數量較上年同期下降了個位數百分比。Purple Wave過去12個月的總交易額成長超過17%，持續顯著優於整個產業，反映了我們在擴張市場的強勁表現以及企業客戶的成長。美國總收入下降了 5.5%，但若不計入上年發生的重大災害事件，則與去年持平。費用收入下降了 5.6%，並且與去年同期持平，但不包括 CAT 費用，因為單位銷售下降被單位收入增加所抵消。美國保險平均售價增加了 6% 或 9%，不包括巨災和非保險平均售價增加了 2%。

US gross profit decreased 7.2% to $430 million or 1.6%, excluding CAT, and gross margin was 46.6%. The Operating income was $341.5 million, down 9.2% year over year or 2.3% excluding cat, and US segment operating margin was 37.1%.

美國毛利下降 7.2% 至 4.3 億美元，降幅 1.6%（不含 CAT），毛利率為 46.6%。營業收入為 3.415 億美元，年減 9.2%，若不計巨災損失則下降 2.3%；美國業務部門的營業利潤率為 37.1%。

Turning to our International segment. International units declined less than 1% or grew 1%, excluding prior year CAT events. Insurance units decreased 2.6% or 1%, excluding CAT, and international noninsurance units increased 9.1%. We continue to see strong noninsurance growth across our diversified international footprint, including in the UK and Canada. Revenue increased 6.1% or 7.7%, excluding CAT to $200 million, including a $13.4 million favorable FX impact. Service revenues increased 7.7% or 9.4% excluding CAT, which was driven by a 7.6% increase in fee revenue per unit. International insurance ASPs rose 9%. Gross profit grew 0.9% and operating income was $47.2 million or a 23.6% operating margin. Finally, turning to our capital structure and liquidity. And Copart remains in an exceptionally strong position.

接下來我們來看看國際業務板塊。國際單位下降不到 1% 或成長 1%（不包括上一年 CAT 事件）。保險業務量下降 2.6% 或 1%（不包括 CAT），國際非保險業務量成長 9.1%。我們在多元化的國際業務中，包括英國和加拿大，繼續保持強勁的非保險業務成長。營收成長 6.1% 或 7.7%（不包括 CAT），達到 2 億美元，其中包括 1,340 萬美元的有利匯率影響。服務收入成長了 7.7%，若不計入 CAT 則成長了 9.4%，這主要得益於每單位費用收入成長了 7.6%。國際保險平均售價上漲9%。毛利成長0.9%，營業收入為4,720萬美元，營業利益率為23.6%。最後，我們來談談資本結構和流動性。Copart 仍然處於非常強勢的地位。

We ended the quarter with liquidity of approximately $6.4 billion, including cash and cash equivalents of $5.1 billion and no debt. We continue to generate robust free cash flow, which has increased 58% year to date. This is supported by disciplined capital allocation into assets, which position us to efficiently support our growth to serve both insurance and noninsurance clients, while also delivering strong operational efficiency.

本季末，我們的流動資金約為 64 億美元，其中包括 51 億美元的現金及現金等價物，且無任何債務。我們持續產生強勁的自由現金流，今年迄今已成長 58%。這得益於我們嚴格的資產資本配置，這使我們能夠有效率地支援業務成長，為保險和非保險客戶提供服務，同時實現強大的營運效率。

In addition, during the second quarter, we began to repurchase shares of our common stock through open market purchases and have subsequently repurchased shares under a 10b5-1 plan through the month of February. Fiscal year-to-date we have repurchased over 13 million shares for an aggregate amount of over $500 million.

此外，在第二季度，我們開始透過公開市場購買回購普通股，隨後在 2 月根據 10b5-1 計畫回購了股份。本財年至今，我們已回購超過 1,300 萬股股票，總金額超過 5 億美元。

And with that, I'd like to thank you for joining the call, and we'll open it up for questions.

最後，感謝各位參加本次電話會議，現在我們來回答大家的問題。

(Operator Instructions) Bob Labick, CJS Securities.

（操作員說明）Bob Labick，CJS Securities。

Good afternoon, thanks for taking my questions.

下午好，謝謝您回答我的問題。

You're welcome.

不客氣。

Okay. So Jeff, you talked a little bit about some of the macro factors, claims frequency and lower earning car miles. We talked about last call and stuff, trending similarly to prior calls. What are the things you guys are watching to see changes that will change this trend line and get the industry volumes back to growth going forward? I know, obviously, total loss frequency will impact that as well, but excluding total loss frequency. What are the other kind of macro factors that we can watch and you're watching to get industry volumes back to growth?

好的。傑夫，你剛才談到了一些宏觀因素，例如索賠頻率和較低的汽車行駛里程收入。我們聊了最後的通話內容等等，情況和之前的通話類似。你們正在關注哪些方面的變化，以期改變目前的趨勢，並使產業銷售在未來恢復成長？我知道，顯然，總損失頻率也會對此產生影響，但這裡暫且不考慮總損失頻率。為了推動產業銷售恢復成長，我們還可以關注哪些其他宏觀因素？你們也在關注哪些宏觀因素？

Yeah. Fair question, Bob. I think there is -- as you know, there's cyclicality in the auto insurance industry itself, which you'll see in the form of premium growth and contraction, you'll see in the form of combined ratios and so forth. And I think a good portion of the industry, as you know, had passed through finally with the approval of various regulatory bodies, rate increases over the course of the past two years, long after, frankly, the carriers themselves had experienced underlying cost inflation in the repair universe, labor and otherwise. So there's a lagging effect where it took them a while and which it took them a while to pass the rate increases through.

是的。問得好，鮑伯。我認為確實存在這種情況——正如你所知，汽車保險行業本身就存在周期性，你會從保費的增長和收縮、綜合比率等等方面看到這一點。如您所知，我認為很大一部分行業最終在各種監管機構的批准下，在過去兩年中提高了費率，而坦率地說，在此之前很久，保險公司本身就已經經歷了維修領域（包括人工和其他方面）的潛在成本上漲。所以存在著滯後效應，他們花了一段時間才將利率上漲的政策傳達出去。

And so today, they have now far healthier income statements, but also compromise growth as a result. I think historical trends or any guide, there are ebbs and flows in that regard and many or some -- some more many will begin reinvesting in growth and driving policy growth in the form of both marketing dollars as well as more competitive approaches to rates as well.

因此，如今他們的收入報表要健康得多，但同時也因此犧牲了成長。我認為歷史趨勢或任何指導原則都會帶來起伏，許多或一些——甚至更多——將開始重新投資於成長，並透過行銷資金以及更具競爭力的利率方式來推動政策成長。

So I think those are the kind of things I'd look to as the consumer always weigh various -- their basket of goods and services purchased. I think more so than on average over the course of my time in the industry and over -- in comparison to Copart's own history, I think consumers have felt the pain more in the past year or so relatively speaking, and have pared back their insurance coverage as a result. I think the numbers do bear that out.

所以我認為，身為消費者，我總是會考慮這些因素──他們購買的商品和服務組合。我認為，與我從事該行業以來的平均水平相比，以及與 Copart 自身的歷史相比，消費者在過去一年左右的時間裡感受到的痛苦相對更大，因此也減少了他們的保險覆蓋範圍。我認為數據確實證實了這一點。

Okay. Great. And then just one more for me, just changing gears a little. SG&A has been back to getting generally operating leverage have been flat after a period of time where you had growth for multiple reasons. One of them was the sales force buildup. So I was wondering maybe if you could just give us a sense of what you've learned from that sales force, but what you've learned from the build out? What are the expected returns and outcomes from the larger sales force? And what are the successes in failure so far from that?

好的。偉大的。然後，我再來一個，稍微換個風格。由於多種原因，SG&A 已經恢復到通常的營運槓桿水平，此前一段時間的增長已經趨於平穩。其中一項是銷售團隊的建立。所以我想知道，您能否跟我們分享您從銷售團隊中學到了什麼，以及您從團隊建立中學到了什麼？擴大銷售團隊後，預期收益和成果是什麼？那麼，迄今為止，失敗中又有哪些成功之處呢？

Yeah, a fair question, Bob. And I think it'd be probably oversimplifying the picture to say it's merely the sales force itself, for sure. We have invested in our commercial capabilities, as you described them, but also in product in tech. And along each other dimensions, you've heard us talk about, whether it's the services we provide to the insurance carriers in the form of Title Express, the artificial intelligence back to tools, and so on and so forth. So there's more to the picture than just that alone.

嗯，問得好，鮑伯。而且我認為，如果僅僅說問題出在銷售隊伍本身，那肯定是對情況過於簡化了。正如你所描述的那樣，我們不僅投資於我們的商業能力，還投資於科技產品。在其他各方面，你們也聽我們談過，無論是我們以 Title Express 的形式向保險公司提供的服務，還是人工智慧工具等等。所以，事情遠不止如此。

But yes, we do believe it drives differential returns to us both in the form of unit volume, better selling prices, better economics period overall. I don't tend to read too much into any given quarter or any given quarter's percentage change versus a year ago. I understand for a host of reasons why you and other analysts might right, but we basically treat each expenditure as its own decision that needs to be warranted by the economics.

是的，我們相信這會為我們帶來不同的回報，包括更高的銷售量、更好的售價以及整體上更好的經濟效益。我通常不會過度閱讀任何一個季度或任何一個季度與去年同期相比的百分比變化。我理解你和其他分析師的觀點可能有很多正確之處，但我們基本上將每一筆支出視為一個獨立的決策，需要以經濟效益為基礎。

Every investment we make is justified by the economics of this specific project or so. And so in the aggregate, there will be periods in which SG&A grows more than in others, I wouldn't have read that much into even the past few years as you described, just as I wouldn't read a whole up into today's results either.

我們所做的每一筆投資都是基於該特定項目的經濟效益而進行的。因此，總體而言，SG&A 的成長速度會因時期而異，即使是過去幾年，我也不會像你描述的那樣過度解讀，就像我不會對今天的業績做出過度解讀一樣。

The calculus remain the same. Invest the capital on behalf of our shareholders as ours, because it is to generate profitable growth for the enterprise hearts.

計算方法不變。像對待自己的資金一樣，代表股東投資資金，因為這將為企業帶來獲利成長。

Craig Kennison, Baird.

克雷格·肯尼森，貝爾德。

Hey, good afternoon, thank you for taking my questions as well. I wanted to ask about your land capacity needs. If you look at project your volume for the next 1-, 5-, and 10-year period and take into account faster cycle times that you've experienced, but also whatever market share dynamics are out there. How would you frame your need to invest in additional land capacity.

嗨，下午好，也謝謝你回答我的問題。我想諮詢一下貴公司的土地容量需求。如果你展望未來 1 年、5 年和 10 年的銷量，並考慮到你已經經歷的更快的周期時間，以及任何市場份額動態。您會如何闡述您投資擴建土地產能的需求？

Sure, Craig, I'll take that. Today, I think we are in an incredibly strong position relative to where we were, say, a decade or even longer ago. That has been a result of very disciplined and focused investment in the magnitude of several hundreds of millions of dollars per year. But we are still focused on where we want to be positioned 10 years from now. And that ultimately may require additional investments in land.

當然，克雷格，我接受。我認為，與十年前甚至更久以前相比，我們今天所處的地位非常有利。這是每年數億美元規模的嚴謹而專注的投資的結果。但我們仍然專注於10年後我們希望達到的地位。而這最終可能需要對土地進行額外的投資。

Certainly, faster cycle times will allow us to use our land on a more efficient basis. And we take all of that into consideration as we look at individual assets, as Jeff said, even on the investment front. Whether it's G&A or incremental land parcel, we look at it on a specific investment basis to ensure that it's adding capacity and capabilities for Copart to serve our customers in the future. So ultimately, we'll continue to use that same discipline and that same approach.

當然，更快的生產週期將使我們能夠更有效地利用土地。正如傑夫所說，我們在評估單一資產時，會將所有這些因素考慮在內，即使在投資方面也是如此。無論是一般及行政費用或新增土地，我們都會根據具體的投資情況進行評估，以確保它能為 Copart 增加產能和能力，以便將來更好地服務我們的客戶。所以最終，我們將繼續採用同樣的紀律和同樣的方法。

I certainly think that relative to where we were, like I said, at the outset 10 years ago, we're in a much better position from a land ownership perspective and capacity, but we do anticipate continuing to invest in our portfolio on a disciplined basis to ensure that in a decade from now, we will be well positioned as well.

我當然認為，與我之前所說的10年前創業之初相比，我們現在在土地所有權和能力方面都處於更好的地位，但我們預計將繼續以嚴謹的方式投資於我們的投資組合，以確保十年後我們也能處於有利地位。

Yeah. Thanks, Leah and --

是的。謝謝，莉婭。--

Craig, I'd add to that point that I think it was now April 2016, so almost exactly 10 years ago, we launched the -- what you remember you were here at the time of the 2020 initiative in which we were going to acquire 20 facilities, expand 20 facilities in the course of two months, in recognition that the industry was growing and that we were shorter on capacity than we should be. We've invested very aggressively over the decade since to develop both new capacity purchase new land to develop new and existing facilities, and frankly, buy out facilities that we had largely leased over the years.

克雷格，我還要補充一點，我認為現在是 2016 年 4 月，也就是差不多 10 年前，我們啟動了——你還記得你當時在這裡嗎？我們當時啟動了 2020 年計劃，打算在兩個月內收購 20 家工廠，擴大 20 家工廠，因為我們意識到產業正在發展，而我們的產能卻不足。在過去的十年裡，我們進行了非常積極的投資，以開發新的產能，購買新土地來開發新的和現有的設施，坦白說，也收購了我們多年來主要租賃的設施。

We recognize that long-term stewardship for the industry really requires ownership, leasing means you don't ultimately control your ability to service the insurance industry, we want to ensure that we can do just that. Now sitting here, where we are, as we just described in February of 2026, we are in a considerably stronger position than we were then. We now have dedicated catastrophic facility are well aware in the many hundreds of acres of otherwise idle land in anticipation of storms.

我們認識到，對行業的長期管理真正需要所有權，租賃意味著你最終無法控制你為保險業提供服務的能力，我們希望確保我們能夠做到這一點。現在，正如我們剛才在 2026 年 2 月所描述的那樣，我們所處的位置比那時要好得多。我們現在擁有專門的災難應變設施，並且非常清楚，在數百英畝原本閒置的土地上，為了應對風暴，這些設施都得到了充分利用。

The one caveat I'd provide to you is that this is a dynamic puzzle, as you know, with industry trends. and distribution of vehicles and population and so forth, that land acquisition and development by its nature is a long lead time activity, right? So we can't wake up one morning and discovery that we suddenly need from asking more land in the state of x and be able to respond accordingly. So we have to account for some margin, which we effectively do across the United States and invest accordingly. But for sure, as we have said, we are in in a far more robust position than we once were.

我唯一要提醒你的是，這是一個動態的難題，正如你所知，它受到行業趨勢、車輛分佈、人口等等因素的影響，土地徵用和開發本質上就是一個需要很長時間才能完成的活動，對吧？所以我們不能一覺醒來發現我們突然需要向 x 州索取更多土地，然後做出相應的反應。因此，我們必須預留一定的利潤空間，我們在美國各地都有效地這樣做，並據此進行投資。但可以肯定的是，正如我們所說，我們現在的處境比以前好得多。

Yeah. Thank you, both. And then, Jeff, just a follow-up on your AI commentary. Certainly, it's been a big topic, especially in the last week, but could you maybe share with us where you see any disruption risk to what Copart does and where you feel well defended by your moat as it stands today?

是的。謝謝你們兩位。傑夫，關於你之前對人工智慧的評論，我還有一點後續問題。當然，這的確是一個熱門話題，尤其是在過去一周，但您能否和我們分享一下，您認為 Copart 的業務在哪些方面存在任何中斷風險，以及您認為目前您的護城河在哪些方面能夠很好地保護自身利益？

I think we're always appropriately paranoid about disruption and the directions that it could come from. So we are always acutely aware of the need to disrupt ourselves to inject the technology in all the places where we could enhance productivity first, but also deliver a better experience still to our sellers and buyers. So there are certainly a range of different folks, different purveyors of vehicles today, some that have been in exists for decades, others of which are more upstart by nature, virtual only, et cetera.

我認為我們對各種幹擾因素及其可能來源的方向始終保持著應有的警覺。因此，我們始終敏銳地意識到需要進行自我革新，將技術應用到所有能夠提高生產力的地方，同時為我們的賣家和買家提供更好的體驗。所以，如今肯定存在各種各樣的人，各種各樣的車輛供應商，有些已經存在了幾十年，而另一些則本質上是新興的，只提供虛擬服務等等。

I think the fundamental moats that ultimately define who we are still are physical storage capacity for sure, a global liquid buyer base, for sure, a highly recognized online auction platform deep regulatory knowledge across 50 states across a multitude of countries where that is, in and of itself, a barrier to entry as well. And then as for where those disruptive dimensions might be on the technology front, or help in, on making sure that we do it first. So I would say, I don't see a specific threats on the horizon, but I'm also -- we're always looking over our shoulder as well.

我認為，最終定義我們地位的根本護城河仍然是：實體儲存能力、全球流動買家基礎、備受認可的線上拍賣平台，以及在眾多國家/地區的 50 個州擁有的深厚監管知識，而這些知識本身也是進入障礙。至於這些顛覆性因素可能出現在科技領域的哪個方面，或者它們如何幫助我們確保率先做到這一點。所以我覺得，目前還沒有看到具體的威脅，但是──我們也會時時保持警覺。

Excellent. Thank you.

出色的。謝謝。

Bret Jordan, Jefferies.

Bret Jordan，傑富瑞集團。

Hey, good afternoon, guys. Just a question about market share dynamics. Do you think it's becoming more price competitive as the other player in the space doing, I guess, either rebating or discounting or pricing delta to you that would explain what seems to be a differential in unit growth? Obviously, you've got the title transfer product and the cycle times and the foreign buyer base that would suggest that Copart might be a better outcome. But I guess, how do we think about the differences that we're seeing in units recently.

嘿，各位下午好。關於市佔率動態，我有個問題。你認為隨著該領域其他競爭者採取回扣、折扣或價格差異等措施，價格競爭是否會變得更加激烈？這是否可以解釋銷售成長上的差異？顯然，考慮到產權過戶產品、交易週期以及海外買家群體，Copart 可能是更好的選擇。但我想，我們該如何看待最近在單位數量上看到的差異呢？

Yeah. The unit growth phenomenon, I think, as described is explained in part by just differential growth rates in the insurance industry itself, right? Which is to say, if we didn't win any accounts from others in the industry, and they didn't win any from us. There still is a delta in the growth rate of our underlying customers themselves that can explain a market share shift, right, without the one accounts one way or the other.

是的。我認為，如前文所述，單位成長現象的部分原因在於保險業本身的成長率有差異，對嗎？也就是說，如果我們沒有從業內其他公司贏得任何客戶，而他們也沒有從我們這裡贏得任何客戶。我們現有客戶本身的成長率仍然存在差異，這可以解釋市場份額的變化，對吧，而與任何一方的帳戶無關。

That said, I think your second point is the important one, which is that our industry has always been price competitive for the years that I've been here in many years before that. Probably for the entire existence of Copart, we have competed against others in the industry on the basis of price. Today, we are increasingly competing on the basis economic outcomes, which is a far better lens through which to view the Copart business. It's our responsibilities in enterprise.

話雖如此，我認為你的第二點才是最重要的，那就是在我從事這個行業的這些年裡，以及之前的許多年裡，我們這個行業一直都具有價格競爭力。或許自 Copart 成立以來，我們一直都是以價格為基礎與業界其他公司競爭。如今，我們越來越傾向於根據經濟成果來競爭，這才是看待 Copart 業務的更佳視角。這是我們身為企業主應盡的責任。

Our commercial team's responsibility and my personal responsibility to make sure that we can pay that message to our customers and to the industry, that they understand, it's not just the X that you're paying to Copart or to your alternative providers, but it is the deliberate economic outcome, which is first and foremost, overwhelmingly so the selling price for the vehicle that you're selling at the platform. secondarily, the cycle times, which have both direct economic consequences in the form of storage, for example, an indirect consequences in the form of policyholder satisfaction and on a tertiary maybe further down still than that the fee that you're paying us or to others in the industry. It's our job to convey that message.

我們的商務團隊和我個人都有責任確保我們能夠向客戶和整個產業傳達這一訊息：他們明白，這不僅僅是您支付給 Copart 或其他供應商的費用，而是最終的經濟效益。這首先也是最重要的，是您在平台上出售車輛的售價。其次是交易週期，它既有直接的經濟影響（例如倉儲成本），也有間接的經濟影響（例如保單持有人的滿意度）。最後，可能還有您支付給我們或業內其他機構的費用。傳達這一訊息是我們的職責。

It's a complex nuance to one. We have to make sure we have the right audience for it and the data behind it, but I would say, in virtually every case in which we have run the test empirically, the data bears out that leases that the returns that we generate dwarf any other differences that you could perceive in the full stack P&L.

對一個人來說，這是一個複雜的細微差別。我們必須確保我們擁有合適的受眾和數據支持，但我想說，在我們幾乎每一個進行過實證測試的案例中，數據都證實了這一點：我們產生的回報遠遠超過了你在全端損益表中可能看到的任何其他差異。

Okay. Great. And I might have missed this. Did you give us an update on how CDS has been doing?

好的。偉大的。我可能錯過了這一點。您有沒有向我們報告CDS的進展？

Yeah. CDS had a nice quarter. They were up 5% year over year in terms of unit volume.

是的。CDS本季表現不錯。銷量較去年同期成長5%。

Okay. Is that growth with various dealers? Or is that comp store is that comp dealer growth? Are you expanding it to a broader user base? Or are you growing within the current user base?

好的。這是與多家經銷商共同實現的成長嗎？或者，那家競爭對手商店指的是競爭對手經銷商的成長嗎？你們是否正在將使用者群體擴展到更廣泛的範圍？或者，你們的用戶群正在不斷擴大？

We're always growing the user base.

我們的用戶群一直在成長。

Thank you.

謝謝。

John Healy, Northcoast Research.

John Healy，北海岸研究公司。

John, you're on mute.

約翰，你已靜音。

Sorry about that. I wanted to spend a little bit of time just on exited frequency. -- for the last three or four quarters, I feel like it's been a hot button debate. And knowing Leah and Jeff, I'm sure you guys don't stop thinking and working on this viewpoint. Would love to spend a little bit of time there, just any updated thoughts about ADAS view of kind of the algorithm that investors might be able to use to think about the nuances of growth. Obviously, the volume numbers are down big, but there's some explainable reasons in terms of policies in force that you noted.

抱歉。我想花點時間專門談談興奮頻率。 ——在過去的三個或四個季度裡，我覺得這一直是個熱門話題。了解Leah和Jeff的人都知道，我相信你們一定會繼續思考和研究這個觀點。我很想花點時間了解一下，想聽聽投資者對 ADAS 演算法的最新看法，以便他們思考成長的細微差別。顯然，銷量大幅下降，但正如您所指出的，這在現行政策方面有一些可以解釋的原因。

But I was just hoping we can try to get some comfort with thinking about that overarching volume number for the industry, put aside whatever you or I are doing. Just what does this business really grow do you think in the next three to five years? Thanks.

但我只是希望我們能夠試著從產業整體銷售這個角度來思考問題，暫時拋開你我正在做的事情。您認為未來三到五年內，這項業務究竟會成長到什麼程度？謝謝。

A fair question, John. And I would say it has been true for probably all of our adult waves, if not, our entire lives, that accident frequency, generally speaking, declines year over year. That has always been true because cars are designed better and they're safer over the years.

約翰，你問得好。而且我認為，對於我們所有成年時期，甚至可以說是我們整個人生來說，事故發生率總體上都是逐年下降的。一直以來都是如此，因為這些年來汽車的設計越來越好，也越來越安全。

In the 1970s and the 1980s, we saw for the first time the proliferation of antilock brakes. Eventually, we'd see traction control and so on. Today, of course, the safety technologies are arriving in the form of forward autonomous braking modules, lane departure warning sensors, rear cameras, and so on and so forth. So accident frequency has declined always plus or minus, year over year.

在1970年代和1980年代，我們第一次看到了防鎖死煞車系統的普及。最終，我們會看到牽引力控制等等。當然，如今安全技術已經以各種形式出現，例如前向自動煞車模組、車道偏離警告感測器、後視攝影機等等。因此，事故發生率每年都在下降，或多或少。

I think there's one blip from, if I have my year straight in 2013 to '15 or '14 to '16, some short period of time. which that wasn't true, I think cell phone proliferation smartphone use accelerated in a way that was unusual even by historical standards. So accident frequency declines it always has, and as a result, the number of cars involved in declines generally.

我認為，如果我把2013年到2015年或2014年到2016年這段時間算作一個短暫的波動期，那段時間的情況並不理想。我認為，手機的普及和智慧型手機的使用加速發展，即使以歷史標準來看也是不尋常的。因此，事故發生頻率一直呈下降趨勢，結果，涉及的車輛數量也普遍下降。

The reason it historically has happened very gradually is because the relevant population of vehicles is in the hundreds of millions in the US And the number of new vehicles will ship in a given year, depending on the state of the economy, it's $15 million, or $14 million, or $18 million, right? The vehicle park of $300 million or so in the US can turn over only so fast. So the changes in accident frequency end up being gradual. And the tailwind in the business is that even if the number of cars that are in an accident decline, the number of cars that are total in absolute terms still grows because there are more -- enough total loss frequency increases to more than offset the decrease in accident frequency.

歷史上，這種情況的發生非常緩慢，是因為美國的汽車保有量高達數億輛。而且，根據經濟狀況，每年新車出貨量可能是 1500 萬美元、1400 萬美元或 1800 萬美元，對吧？美國價值約 3 億美元的車輛保有量週轉速度終究有限。因此，事故發生頻率的變化最終是漸進的。而該行業的利多因素是，即使發生事故的車輛數量下降，車輛總數的絕對值仍然會增長，因為車輛數量更多——總損失頻率的增加足以抵消事故頻率的下降。

Based on what we know now, I don't think that calculus changes. I think there are certainly folks in the autonomous driving universe who may have a different view. But we continue to believe that the out is still the same. There is an installed base of vehicles that will collide there is an awkward transitional period also as many of those cars don't have the newest and best technology while cars are on the road that do the cars that do are often driven by drivers who are still more distracted than they otherwise would be.

根據我們目前所掌握的知識，我認為微積分不會改變。我認為自動駕駛領域肯定有人會持不同的觀點。但我們仍然相信，最終結果還是一樣。已經安裝了一定數量的車輛，這些車輛會發生碰撞；此外，由於許多車輛沒有配備最新最好的技術，因此存在一個尷尬的過渡期；而路上行駛的車輛雖然配備了最新最好的技術，但這些車輛的駕駛員往往比平時更容易分心。

We've talked about that thesis some in the past as well, the notion of risk homeostasis and folks tolerating more risk as they drive as they depend still more on technology. So the interplay of all of the above leads us to believe that the number of cars total industry-wide is likely to grow over the medium and long term. That's still the calculus as we see it.

我們過去也討論過這個論點，即風險穩態的概念，以及隨著人們對技術的依賴程度越來越高，他們在駕駛時會容忍更大的風險。因此，上述所有因素相互作用，使我們相信，從中長期來看，整個汽車產業的汽車總數可能會成長。我們看到的計算結果仍然是這樣。

If your question also on accident frequency, the reality is that a lot of the data often happens in arrears, right? The lease reported crashes, fatalities, the most objective such indicators sometimes are published on a lightening basis. But based on everything we track on a regular basis, our fundamental thesis remains unchanged.

如果你的問題還涉及事故頻率，那麼現實情況是，許多數據往往是滯後的，對吧？租賃報告顯示，事故、死亡人數等最客觀的指標有時會以閃電般的速度發布。但根據我們定期追蹤的所有數據，我們的基本論點仍然不變。

Got it. That's helpful. Thank you, Jeff. And just on capital allocation, obviously, you're being pretty direct with the repurchase visibility now. But -- is this the right tool for you guys? Do you see yourself just using open market purchases? Or do you look to kind of evaluate maybe something more formal or conceptual in terms of accelerated program or something like that? Or do you think this is just the right approach for right now?

知道了。那很有幫助。謝謝你，傑夫。就資本配置而言，顯然，你們現在對回購的可見度非常明確。但是──這對你們來說是合適的工具嗎？你覺得你只會透過公開市場採購嗎？或者您是否考慮評估一些更正式或概念性的東西，例如加速課程之類的東西？還是你認為這正是目前最適合的做法？

Yeah. Over the course of my 10 years, I think over the course of the Copart 40 to something in your history. We use a range of different tools, including open market purchases as we've recently executed all the way to more structured to Dutch tenders and the like. We always evaluate the full range of tools, by which to execute the strategy. I think on the margin, I think that's ultimately more rounding error than it's not.

是的。在我過去的十年裡，我認為 Copart 40 已經成為你歷史上的一件大事。我們使用各種不同的工具，包括我們最近執行的公開市場採購，以及更結構化的荷蘭招標等。我們總是會評估所有可用於執行該戰略的工具。我認為從邊際效應來看，這最終更多的是四捨五入的誤差，而不是真正的誤差。

I think you've seen us conclude is that it made sense to buy Copart shares back as a way to distribute capital back to shareholders to distribute some of the cash flow we have generated over the years back to shareholders as an opportunistic time to do so. And this is the mechanism we chose to use in the moment. As you might imagine, the calculus, the various inputs into that concession can change as to the magnitude of the form and the buybacks that it might take. I think it's difficult to predict in a vacuum what that means as we look forward.

我認為你們已經看到，我們的結論是，回購 Copart 股票是合理的，這樣可以將資本返還給股東，將我們多年來產生的部分現金流返還給股東，這是一個難得的機會。這就是我們當時選擇使用的機制。可以想像，這種讓步的各種投入，以及讓步的形式和回購規模，都會隨著讓步方式的規模而改變。我認為，在不考慮其他因素的情況下，很難預測這對我們未來意味著什麼。

Thank you.

謝謝。

Jeff Lick, Stephens Inc.

Jeff Lick，Stephens 公司

Good afternoon, thanks for taking the question. Jeff, I know you're always thinking about long-term stuff. I was wondering if we just think about the next year that's in front of us here to things that are changing. Obviously, you've got an insurance cycle, rates are coming down and marketing dollars going up. So they'll be more focused on profitability and a lease returns that will be ramping up potentially a lot of those lease returns will be EVs.

下午好，感謝您回答這個問題。傑夫，我知道你總是在考慮長遠的事情。我想知道，我們是否應該只考慮擺在我們面前的下一個一年，以及正在發生的變化。很明顯，保險業存在週期性波動，保費下降，行銷投入增加。因此，他們將更加重視獲利能力和租賃回報，而這些租賃回報中可能會有很多是電動車。

And then obviously, we've talked about the interesting kind of transition where you'll have some autonomous in the hands of a select view. I'm just curious, if any of these things you view affecting your business in some kind of non-linear way? And then just as a follow-up, I'm just curious, since you guys did make the decision to buy back shares, and you're very deliberate in how you do everything, why did you view now is the time to do it?

然後，很顯然，我們也討論過一種有趣的過渡方式，即某些自主權將掌握在特定視圖手中。我只是好奇，您認為這些因素中是否有任何一項會以某種非線性的方式影響您的業務？然後，作為後續問題，我很好奇，既然你們已經決定回購股票，而且你們做事一向深思熟慮，為什麼你們認為現在是回購股票的好時機呢？

Sure. To tackle those questions separately, I don't know that the catalysts you described, whether it's a mix of technologies, weeks returns, and so forth. It could have an effect on the business and the trajectory of the business in the near and medium term.

當然。要分別回答這些問題，我不知道你所描述的催化劑，無論是技術的組合、幾週的回報等等。這可能會對公司業務及其近期和中期的發展軌跡產生影響。

From our vantage point, it doesn't change the trajectory over a 5- or 10-year term. Insofar as that would inform how we choose to invest in physical capacity technology, our people, business process, artificial intelligence. It doesn't per se change what we do day to day, right? I think we are always most key focused on the metrics and the forward indicators that would guide decision-making, right, as opposed to what might guide near term what might influence near term right? It's more of the decision making that we're focused on day to day.

從我們的角度來看，這不會改變未來 5 年或 10 年的發展軌跡。這會影響我們如何選擇投資於實體產能技術、我們的員工、業務流程和人工智慧。這本身並不會改變我們日常所做的事情，對吧？我認為我們始終最關注的是能夠指導決策的指標和前瞻指標，對吧？而不是那些可能指導近期決策或可能影響近期決策的因素，對吧？我們日常工作更注重的是決策。

As for your question about the share buybacks, there's no particular which craft or anything magical to it. I think it's a function of what general valuation multiples are and where interest rates are our own views of the Copart's relative valuation in comparison, and also the general long-term perspective that we return capital to shareholders via buybacks, right?

至於你問到的股票回購問題，這其中並沒有什麼特別的技巧或神奇之處。我認為這取決於一般的估值倍數和利率，以及我們對 Copart 相對估值的看法，還有我們透過股票回購向股東返還資本的長期視角，對吧？

So the fact that we're doing them is, in some respects, inevitable. I think we plus or minus said that in the past. The fact that we're doing them right now is a function of all of the aforementioned, so there's nothing unusual, no aspects of that decision that you would find particularly creative, right? It's the ordinary calculus that would go into a decision like that.

所以，從某種程度上來說，我們做這些事是不可避免的。我想我們過去大概也說過類似的話。我們現在這樣做是上述所有因素共同作用的結果，所以沒有什麼不尋常的，這個決定也沒有什麼特別有創意的地方，對吧？這是做出這類決定時通常會用到的普通計算方法。

And then just one last quick follow-up. As you think about units inflecting positive, is there any particular catalyst that you look for? Or will it just be the law of negative numbers getting less negative? Is there anything that you're looking for that says, hey, this might drive an inflection back to positive unit growth?

最後還有一個簡短的後續問題。當你考慮價格上漲的趨勢時，你會關注哪些特定的催化劑？或者，這只是負數越來越不為負的規律？你是否在尋找某種跡象，表明「嘿，這可能會推動銷量轉正成長」？

Yeah, I think the question is probably almost too general, right, meaning we have so many different geographies and businesses, and we continue to drive growth in BluCar segment. You heard [the] color about the rental car universe having a slightly different approach this quarter. There's cyclicality that's not necessarily tied to the macro economy when it comes rental car dispositions. And the same is true frankly for repossessions from the financial industry or fleet management from corporate clients and such. But nonetheless, taking a step back, our growth in the noninsurance world has continued.

是的，我認為這個問題可能太籠統了，對吧？這意味著我們有許多不同的地域和業務，而且我們仍在不斷推動 BluCar 業務的成長。你聽說過本季租車產業將採取略有不同的策略嗎？租車需求有週期性波動，但這不一定與宏觀經濟相關。坦白說，金融業的資產回收或企業客戶的車隊管理等情況也是如此。但即便如此，從整體來看，我們在非保險領域的成長仍在持續。

In the insurance universe, I think you've heard us describe the underinsurance or insurance -- the insurance purchasing behavior of consumers as a cyclical matter, we believe that's true -- historical numbers. We back that up. As for the shift of policies among different carriers, we believe that, to some extent, that's cyclical as well, right, that we do see growth ebb and flow across carrier, we may be in a uniquely, or unusually cohort, adverse moment in time in that perspective, right, that some of the carriers that we are strong with have not grown as much, of course, the past 12 or 24 months. But over the long haul, we view those trends as often more cyclical than they are secular.

在保險領域，我想你們都聽我們描述過保險不足或保險——消費者的保險購買行為——是一個週期性問題，我們認為這是真的——歷史數據。我們同意這一點。至於不同保險公司之間的政策轉變，我們認為，在某種程度上，這也是週期性的，對吧？我們確實看到各保險公司的成長有起有落，從這個角度來看，我們可能正處於一個獨特或不尋常的不利時期，對吧？當然，在過去的 12 或 24 個月裡，我們一些實力較強的保險公司並沒有成長那麼多。但從長遠來看，我們認為這些趨勢往往是週期性的，而不是長期性的。

Thank you very much for taking my question. And best of luck next quarter.

非常感謝您回答我的問題。祝你下個季度一切順利。

(Operator Instructions) Jash Patwa, JPMorgan.

（操作員說明）Jash Patwa，摩根大通。

Hi, good evening and thanks for taking my questions. Just wanted to start with a question on the headwind from rising mix of uninsured customers. Jeff, as you have noted previously, these vehicles are still getting into accidents, but maybe flowing through alternate channels. With Copart having de-emphasized the low-value units from some of these channels, has this led to an additional pressure on Copart's overall volume growth relative to the broader salvage industry, including the noninsurance channel? And I have a follow-up.

您好，晚上好，感謝您回答我的問題。首先我想問一個關於無保險客戶比例上升帶來的不利影響的問題。傑夫，正如你之前指出的那樣，這些車輛仍然會發生事故，但或許會通過其他途徑行駛。由於 Copart 已從某些管道中減少了低價值單元的銷售，這是否導致 Copart 相對於更廣泛的殘值回收行業（包括非保險管道）的整體銷售增長面臨額外壓力？我還有一個後續問題。

Yeah, I'll take that. I don't think so. Most of the number value units are units that are less than $1,000 in preaccident values. So they are very old non-drivable what the industry would consider jump units. I think that the units that we are seeing flow through on the uninsured or underinsured side are likely ending up in impound yards, they're likely ending up retained with the driver, but they then need to find a way to either get it repaired or dispose of the vehicle.

好的，我接受。我不這麼認為。大多數數值單位的事故前價值都低於 1000 美元。所以它們是非常老舊、無法行駛的，在業界會被認為是啟動裝置。我認為我們看到的那些未投保或投保不足的車輛最終可能會被扣押在停車場，或者被扣留在車主手中，但他們需要想辦法修理車輛或處置車輛。

So ultimately, some of those vehicles end up at our cash recourse business. Some of them may end up being auctioned or sold through an impound yard. So there are other avenues in which those vehicles could be disposed of. It just so happens, it's a highly fragmented market, given that it's the consumer's decision to determine where that ultimate vehicle goes, if it's not going through the insurance channel.

所以最終，其中一些車輛會落入我們的現金追償業務部門。其中一些最終可能會被拍賣或透過扣押場出售。因此，還有其他途徑可以處置這些車輛。恰好，這是一個高度分散的市場，因為如果不通過保險管道，最終決定車輛去向的是消費者。

Understood. That's helpful. And then I just appreciate your perspective on the heavy equipment expansion. How has this initiative performed relative to your internal expectations a couple of years ago when Purple Wave was integrated while the industry cycle has been challenging, curious like what areas do you see as a room for improvement. And given the significant consolidation opportunity in the sector, what has kept Copart in the sidelines from pursuing more M&A activity over the past couple of years?

明白了。那很有幫助。我非常欣賞您對重型設備擴張的看法。幾年前，Purple Wave被整合進來時，產業週期充滿挑戰，但與你們的內部預期相比，這項措施的執行情況如何？您認為哪些方面還有進步的空間？鑑於該行業存在巨大的整合機會，是什麼原因使得 Copart 在過去幾年中一直袖手旁觀，沒有進行更多的併購活動？

Just a fair question. I'd say that the -- at the time we made the investment in our Purple Wave platform, I think we had not fully appreciated the disruption that the tariff complex to the industry and the uncertainty that it would inject into the industry for heavy equipment, right? It has caused something of a medium-term paralysis as folks didn't know if they should be selling prices might go up, they should be buying because prices might go down, it has introduced some friction into an industry that had previously been more liquid. And I think we've seen that from other providers in the space, publicly traded and otherwise.

問得好。我想說的是——在我們投資 Purple Wave 平台的時候，我們還沒有充分意識到關稅體系對該行業的衝擊，以及它將給重型設備行業帶來的不確定性，對吧？這造成了某種程度的中期市場癱瘓，因為人們不知道該賣出（價格可能會上漲），還是應該買入（價格可能會下跌），這給原本流動性較強的行業帶來了一些摩擦。我認為我們已經從該領域的其他供應商（包括上市公司和非上市公司）身上看到了這一點。

On your question of how to grow the business, we have invested in our platform organically in the form of hiring more sales talent, again, investing in the tech platform investing on the product side as well. And we've grown that business well, growing that business at a rate that outpaces the industry generally. M&A is always a lever available to companies like ours, of course, with our capitalization and capabilities. It's not our general inclination, right?

關於您提出的如何發展業務的問題，我們已經透過招募更多銷售人才、投資技術平台以及在產品方面進行投資等方式，對我們的平台進行了有機成長。而且我們發展這項業務非常順利，其發展速度超過了行業平均水平。當然，對於像我們這樣擁有雄厚資本和強大能力的公司來說，併購始終是一種可以利用的槓桿。這並非我們的普遍傾向，對吧？

We have been long-term company builders and have built Copart with the exception of one very meaningful M&A transaction some decades ago in the form of New England recovery would by and large grow the business organically, that is certainly the most durable way to create value for our shareholders long term. The fastest way to grow territory is, of course, to acquire companies, but we're most interested in building durable value as opposed to simply building terrain. So I think that's our approach by default if they arise compelling M&A opportunities in heavy equipment, or otherwise, we certainly would pursue them, but you probably know from having followed us followed us over the years at our bar is very high, right?

我們一直致力於長期打造公司，除了幾十年前新英格蘭經濟復甦時期進行的一次意義重大的併購交易外，Copart 一直由我們自主發展。我們認為，隨著經濟復甦，公司將主要依靠自身力量實現有機成長，這無疑是為股東創造長期價值的最持久方式。當然，擴張領土最快的方法是收購公司，但我們最感興趣的是創造持久價值，而不是只擴張版圖。所以我認為，如果重型設備或其他領域出現令人信服的併購機會，這自然是我們默認的做法，我們當然會追求這些機會，但您可能從多年來關注我們的情況中了解到，我們的標準非常高，對吧？

In the 10 years I've been here, we've only done a tiny handful of acquisitions collectively representing a very tiny percentage of enterprise value. that hurdle will always behind, which is not to say we wouldn't do it. But I just want you to understand the cultural bias, which is to grow and to grow organically.

在我任職的這十年裡，我們只進行了寥寥幾筆收購，加起來只佔企業價值的一小部分。這個障礙始終存在，但這並不代表我們不會去做。但我只是想讓你們理解這種文化偏見，那就是發展，而且是有機地發展。

Understood. That's very helpful color. And if I could sneak one more in here. Could you double-click on the sequential moderation in service revenue gross margin in the quarter? And whether there were any one-time factors that may have impacted it during the quarter?

明白了。那是一個非常有用的顏色。如果我能再偷偷加一個就好了。請您雙擊查看本季服務收入毛利率的季減？該季度是否存在任何可能對其產生影響的一次性因素？

Sure, Josh. I had mentioned in my prepared remarks that there was a $6.8 million one-time tax accrual in the International segment. If you look at the ex-CAT margins, I think you'll see that year over year, on a gross margin basis, we performed quite well. And then on the international side, there was that one-time item.

當然可以，喬許。我在事先準備好的發言稿中提到，國際事業部有一筆 680 萬美元的一次性稅金提列。如果看一下剔除CAT影響後的利潤率，我認為你會發現，以毛利率計算，我們比去年同期表現相當不錯。此外，在國際方面，還有那件一次性的事情。

Thank you.

謝謝。

There are no further questions at this time. I'd like to turn the call back to Jeff Liaw for closing remarks.

目前沒有其他問題了。現在我把電話轉回給 Jeff Liaw，請他做總結發言。

Thank you for joining us, and we'll talk to you next quarter. Have a good afternoon.

感謝您的參與，我們下季再見。午安.

Thank you. This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation. Thank you.

謝謝。今天的會議到此結束。現在您可以斷開線路了，感謝您的配合。謝謝。