Copart (CPRT) concentration risks

The company's concentration profile is defined by two high-share exposures that operate on different dimensions but reinforce each other. On the geographic side, the U.S. segment generates 83.0% of revenue, reflecting a domestic-first footprint with meaningful but minority international operations. This is a structural feature of where the business operates rather than a counterparty-specific dependency; it implies that domestic demand trends, regulatory conditions, and weather-related salvage dynamics are the primary macro levers. Layered on top is a high-share customer dependency: insurance company sellers accounted for 81% of total vehicles processed in fiscal 2025, consistent with 81% the prior year and 83% the year before. This is a dependency exposure, not structural — it reflects the business model's reliance on a specific category of counterparty whose behavior is governed by claims cycles, reinsurance markets, and total-loss thresholds, all of which can shift. A sustained reduction in insurance-declared total-loss rates or a shift in insurer auction routing would be the most direct channel through which this exposure could affect volumes. Together, the two exposures point to a business where the bulk of volume is domestic and insurance-sourced. Neither is easily diversified away given the operating model, and both are well-disclosed. Monitoring insurance total-loss frequency and any shift in insurer direct-remarketing initiatives are the most relevant forward indicators.

For the engine’s reasoning on CPRT’s current verdict — including which dimensions drove the score — see the per-dimension breakdown.

Concentration counts reflect items disclosed in each peer’s most recent 10-K; disclosed-size classification uses TrendMatrix’s internal 10-K extraction taxonomy.