Speedwell Research's News Update and Weekly Recap
Copart Update, Constellation Software Recap, and Perimeter Solutions & Dream Finders Homes Dialogue
Welcome to Speedwell Research’s Newsletter. We write about business and investing. Our paid research product can be found at SpeedwellResearch.com. You can learn more about us here.
This is a weekly recap, where we summarize recent content you may have missed.
Table of Contents:
Speedwell Releases & Upcoming
Spotlight
Coverage Updates
Sharing Links
1. Speedwell Releases & Upcoming.
Research.
Constellation Software 1Q25 Business Recap.
Copart fell -11% on Friday after reporting earnings. For the first time they potentially lost market share. Learn more here: CPRT 3Q25 Business Update
In case you missed it, we’ve released several other business updates this earnigns season: Coupang, Airbnb, Meta, Evolution, and CoStar Group.
The Synopsis Podcast.
We released a dialogue episode discussing business recaps on Perimeter Solutions and Dream Finders Homes.
Upcoming.
Podcast
We will be recording our next company podcast on Airbnb! Look for that to drop in a couple weeks.
Research
We are now working on LVMH as our next in-depth research report!
Coverage
Etsy will be at the Bernstein Strategic Decisions Conference.
Become a Speedwell Member today to get access to all of our research updates and our in-depth research reports!
2. Spotlight.
Below are select quotes from our various writings and podcast.
Perimeter Solutions and Dream Finders Homes 1Q25 Dialogue.
PRM’s PCB IP Protection: “If you have this specific design for this niche market, it’s very unlikely that once you're incorporating that design in your product, you're going to go look somewhere else for a secondary supplier.”
(Share this quote on Twitter/X)
Investing in Cyclicals per DFH: “It just comes back to the valuation and the price you pay. At a low enough price, you should be willing to accept some lumpiness in earnings because that doesn’t change the ultimate valuation of the company, it just changes the timing of the cash flows.”
(Share this quote on Twitter/X)
CSU 1Q25 Business Recap.
Extending the Capital Deployment Runway: “Today they are moving more into software adjacent verticals like hybrid hardware/software businesses and data companies. On one hand this is a positve development as the wider universe means a longer capital deployment runway. On the other hand, it is indicative of the limits of investing in their core VMS market with ever growing amounts of capital.”
Read the full CSU business recap here
3. Coverage Updates.
CPRT 3Q25 Business Update Highlights
CPRT Road Bumps: “As Copart has sailed through the pandemic, the car part shortage, and the recent high inflationary environment unscathed, it does seem they are starting to hit some road bumps. They noted that inventories have declined -10% y/y, which CFO Leah Stearns explained is generally a prospective sales indicator. She attributed 3 reasons to the decline: lower assignments, faster cycle times, and the reduction in low-value unit aged inventory.”
Read the full CPRT business update here
4. Sharing Links.
Check out Speedwell Research’s Drew Cohen’s YouTube Channel. It is focused on general investing and business content.
Other Links.
A Letter a Day: Nick Chow of Altos Ventures on Why Nerds Should Train Like Professional Athletes (link)
Michael Mauboussin’s new report: Drawdowns and Recoveries-Base Rates for Bottoms and Bounces (link)
Polen Capital on Quality’s Performance Across the Business Cycle (link)
And a special thank you to Matthew Harbaugh for helping put this weekly recap together!
The Synopsis Podcast.
Follow our Podcast below. We have four episode formats: “company” episodes that breakdown in-depth each business we write a report on, “dialogue” episodes that cover various business and investing topics, “article” episodes where we read our weekly memos, and “interviews”.
Speedwell Research Reports.
Become a Speedwell Research Member to receive all of our in-depth research reports, shorter exploratory reports, updates, and Members Plus also receive Excels.
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