{
  "ticker": "CPRT",
  "company": "Copart Inc.",
  "filing_type": "10-K",
  "year_current": "2026",
  "year_prior": "2025",
  "summary": {
    "added": 73,
    "removed": 3,
    "modified": 11,
    "unchanged": 20,
    "total_current": 104,
    "total_prior": 34
  },
  "source": "SEC EDGAR",
  "url": "https://riskdiff.com/cprt/2026-vs-2025/",
  "markdown_url": "https://riskdiff.com/cprt/2026-vs-2025/index.md",
  "json_url": "https://riskdiff.com/cprt/2026-vs-2025/index.json",
  "access": "public_preview",
  "source_filings": [
    {
      "label": "2026 10-K filing on SEC EDGAR",
      "url": "https://www.sec.gov/Archives/edgar/data/900075/000119312526405731/0001193125-26-405731-index.htm"
    },
    {
      "label": "2025 10-K filing on SEC EDGAR",
      "url": "https://www.sec.gov/Archives/edgar/data/900075/000162828025042946/0001628280-25-042946-index.htm"
    }
  ],
  "generated": "2026-09-29",
  "ai_summary": "New disclosures broaden risks around debt obligations, weather-driven salvage supply, and AI use, increasing attention to financing and operational uncertainty.",
  "ai_brief": {
    "executive_summary": "New disclosures broaden risks around debt obligations, weather-driven salvage supply, and AI use, increasing attention to financing and operational uncertainty.",
    "direction": "more_concerning",
    "top_themes": [
      "Artificial Intelligence",
      "Debt obligations",
      "Weather-driven salvage supply"
    ]
  },
  "risks": [
    {
      "status": "ADDED",
      "current_title": "We may incur substantial indebtedness and any failure to meet our debt obligations may adversely affect our business, financial condition, and results of operations.",
      "prior_title": null,
      "severity": {
        "deterministic": 10,
        "ai_bump": 0,
        "total": 10,
        "tier": "high",
        "signal_hits": [
          "tariffs",
          "china",
          "rates"
        ]
      },
      "current_body": "We have entered into, and may continue to enter into, arrangements pursuant to which we may incur significant indebtedness, including the 2026 Credit Agreement, which provides for an unsecured revolving credit in an aggregate principal amount of up to $1,250 million maturing on January 23, 2031. If we incur indebtedness and cannot service it, we may have to 19 19 Table of Contents Table of Contents Table of Contents take actions such as utilizing available capital, selling assets, or reducing or delaying capital expenditures, strategic transactions, and investments, any of which may impede the implementation of our business strategy, prevent us from entering into transactions that would otherwise benefit our business, and may adversely affect our business, financial condition, and results of operations. The 2026 Credit Agreement contains restrictive covenants, including a maximum consolidated total net leverage ratio and other customary covenants that limit our and our subsidiaries’ operating and financial flexibility, subject to certain exceptions. If we fail to comply, the lenders could terminate their commitments and accelerate any outstanding borrowings, and because the facility is guaranteed by certain of our subsidiaries, they could be required to satisfy those obligations. If we incur indebtedness under the 2026 Credit Agreement, we will be subject to variable interest rate risk, because borrowings bear interest at a margin over a benchmark rate or a base rate. A substantial increase in interest rates could impair our ability to service our indebtedness. Any refinancing of our debt could be at higher interest rates and could require us to comply with more onerous covenants, which could further restrict our business operations. We also may not be able to refinance indebtedness on commercially reasonable terms, or at all.Risks Related to Regulatory Compliance and Legal MattersOur business activities and public policy interests expose us to political, regulatory, economic, and reputational risks.Our business activities, facilities expansions, and civic and public policy interests may be unpopular in certain communities, exposing us to reputational and political risk. For example, public opposition in some communities to different aspects of our business operations has impacted our ability to obtain required business use permits. Additionally, our interests in legislative and regulatory processes at different levels of government in the geographies in which we operate have been opposed by competitors and other interest groups. Although we believe we generally enjoy positive community relationships and political support in our range of operations, shifting public opinion sentiments and sociopolitical dynamics could have an adverse effect on our business and reputation.Our operations and acquisitions in the U.S. and certain foreign areas expose us to political, regulatory, economic, and reputational risks.We are required to comply with applicable export control and economic sanctions laws and regulations, including the Export Administration Regulations administered by the U.S. Department of Commerce and trade controls administered by the U.S. Treasury Department’s Office of Foreign Assets Control. We may be required to obtain authorization from the U.S. government to engage in the export of certain items, and obtaining licenses may be time consuming and may result in the delay or loss of sales opportunities. Although we have implemented policies, procedures, and training designed to ensure compliance with anti-bribery laws, trade controls and economic sanctions, and similar regulations, our employees, business partners, or agents may take actions in violation of our policies or of applicable anti-bribery, trade controls, and economic sanctions. We may incur costs or other penalties, including loss of import and export privileges and increased government scrutiny, in the event that any such violations occur, which could have an adverse effect on our business and reputation. Our efforts to comply with applicable export control, sanctions, and similar laws and regulations could be costly or time-consuming, and changes in policy could have a material adverse effect on our products or business operations.In some cases, the enforcement practices of governmental regulators in certain foreign areas and the procedural and substantive rights and remedies available to us may vary significantly from those in the U.S., which could have an adverse effect on our business.Although we face risks associated with international expansion in each of the non-U.S. markets where we operate, recent regulatory proposals in Brazil heighten the risks we face relating to our Brazil operations.In addition, some of our recent acquisitions have required us to integrate non-U.S. companies which had not previously been subject to U.S. law. In many countries outside of the U.S., particularly in those with developing economies, it may be common for persons to engage in business practices prohibited by laws and regulations applicable to us, such as the U.S. Foreign Corrupt Practices Act, the U.K. Bribery Act, Brazil Clean Companies Act, India’s Prevention of Corruption Act, 1988 or similar local anti-bribery laws. These laws generally prohibit companies from authorizing, offering, or providing, directly or indirectly, improper payments for the purpose of obtaining or retaining business. We, our employees, agents, representatives, business partners and third-party intermediaries may have direct or indirect interactions with officials and employees of government agencies or state-owned or affiliated entities and we may be held liable for the corrupt or other illegal activities of these employees, agents, representatives, business partners or third-party intermediaries even if we do not explicitly authorize those activities. These laws also require that we keep accurate books and records and maintain internal controls and compliance procedures designed to prevent any such actions. While we have policies and procedures to address compliance with those laws, we cannot assure you that none of our employees, agents, representatives, business partners or third-party intermediaries take actions such as utilizing available capital, selling assets, or reducing or delaying capital expenditures, strategic transactions, and investments, any of which may impede the implementation of our business strategy, prevent us from entering into transactions that would otherwise benefit our business, and may adversely affect our business, financial condition, and results of operations. The 2026 Credit Agreement contains restrictive covenants, including a maximum consolidated total net leverage ratio and other customary covenants that limit our and our subsidiaries’ operating and financial flexibility, subject to certain exceptions. If we fail to comply, the lenders could terminate their commitments and accelerate any outstanding borrowings, and because the facility is guaranteed by certain of our subsidiaries, they could be required to satisfy those obligations. If we incur indebtedness under the 2026 Credit Agreement, we will be subject to variable interest rate risk, because borrowings bear interest at a margin over a benchmark rate or a base rate. A substantial increase in interest rates could impair our ability to service our indebtedness. Any refinancing of our debt could be at higher interest rates and could require us to comply with more onerous covenants, which could further restrict our business operations. We also may not be able to refinance indebtedness on commercially reasonable terms, or at all."
    }
  ],
  "full_url": "https://riskdiff.com/cprt/2026-vs-2025/full/"
}