Wedgewood Partners Slams Copart's Recent Decline Amid Investor Concerns

Wedgewood Partners highlighted Copart, Inc. (NASDAQ:CPRT) in its third-quarter 2025 investor letter, citing concerns about the decline in unit volume from Copart's U.S. insurance customers and the stock underperforming despite a 12% growth in gross profit dollars and a 24% increase in earnings per share. The company's price per unit sold was up 6%, despite used car price indexes being mostly flat for the past year. Wedgewood expects the volume share loss to normalize as Copart continues to invest in auction liquidity.