Craig Kennison

Adair gave few specifics ('we are on it') but pointed to cost focus plus volume leverage to lower per-car cost.

Adair cited training, dedicated ACV facility areas, and continued technology investment.

Jeff shared survey data showing 1 in 6 policyholders reduced coverage, with carriers echoing soft claims frequency. He noted these trends are cyclical historically and discussed AI deployment as a key industry catalyst.

Leah confirmed broad-based international growth with U.K. leading, followed by Germany and Canada. Germany specifically showing meaningful progress with carriers open to the Copart total loss model.

Leah noted far stronger land position than a decade ago after hundreds of millions per year in investment. Jeff added context of 2016 20/20/20 initiative and shift from leasing to ownership. Still investing for 10-year positioning.

Jeff cited physical storage, global buyer base, recognized auction platform, and 50-state regulatory knowledge as moats. No specific threat on horizon but appropriately paranoid about disruption and committed to deploying AI first.

Jeff provided comprehensive historical context: accident frequency has declined steadily for 40 years but was always dwarfed by the 5.5x increase in total loss frequency. Fleet turnover takes decades, so no near-term ADAS disruption.

Jeff confirmed Cash for Cars platform acquires vehicles from uninsured consumers directly, but acknowledged it's a far less efficient pathway than institutional insurance relationships.

Jeff provided detailed tariff analysis: $220B parts industry largely imported from 6 countries, virtually all facing tariffs. Repair path becomes less attractive. Best analogy is 2021 semiconductor crisis.

Jeff defended Purple Wave performance noting tariff-driven industry paralysis. Both standalone investment thesis and strategic synergies with Copart remain intact.

Jeff confirmed cross-border equipment movement exists but is less prevalent than in Copart's core auto business. Leveraging buyer overlap between platforms.

Leah noted the first 2-3 months are training period before new hires build pipeline. Pleased with cohort performance and expects further growth over next several quarters.

Leah described two-pronged approach: densifying existing markets and targeting highest-volume transaction markets with seasoned professionals.

Asked whether the $20 million IEEPA refund sits inside HDMC guidance and when Sportster and Sprint ship. Root confirmed the refund is in the updated guide; Starrs confirmed 2027 for Sportster.

Root confirmed the recovery is a multi-year balance sheet rebuild rather than a margin lever, which sets a slow trajectory for HDFS earnings.

Root gave a concrete long-run anchor of roughly triple the guide midpoint over two and a half to three years, and named lower wholesale assets as the shortfall.

Starrs answered from his own rider journey and named brand tone, the lighter Sprint bike and price accessibility as the three levers.

Root explained the multiple is derived from the KKR and PIMCO equity proceeds over post-transaction book, and pointed to forthcoming Ks and Qs.

Root answered plainly that the goal is a market-based valuation mark, not exiting the business, and said a leak forced the disclosure.

Root laid out the transaction objectives but deferred all economics to next quarter, giving no valuation or structure detail.