PRTS

LONG BEACH, Calif., Aug. 6, 2026 /PRNewswire/ -- CarParts.com, Inc. (NASDAQ: PRTS), a leading eCommerce provider of automotive parts and accessories, and a premier destination for vehicle repair and maintenance needs, is reporting results for the second quarter ended July 4, 2026. Second Quarter 2026 Summary vs. Year-Ago Quarter Net sales decreased 10.7% to $135.6 million. Gross profit of $45.1 million vs. $49.8 million, with gross margin of 33.2%. Net loss was ($3.2) million, or ($0.43) per share, compared to a net loss of ($12.7) million, or ($2.27) per share. Adjusted EBITDA of $1.8 million vs. $(3.1) million. Highest since Q3 2023. Cash of $38.2 million and inventory of $83.9 million as of July 4, 2026. Entered into a new $25 million revolving credit facility with First Business Bank maturing in March 2028, undrawn as of quarter end. Our mobile app has cumulative net downloads of 1.6 million. A-Premium partnership annualized revenue run rate approaching $50 million. 10-to-1 reverse stock split and regained Nasdaq compliance. Last mile network delivered over 3,000 packages in the quarter, more than double the first quarter, with next day delivery running out of two of our four distribution centers. Management Commentary David Meniane, Chief Executive Officer, commented: "In the second quarter of 2026, we delivered our highest adjusted EBITDA since the third quarter of 2023. Adjusted EBITDA was positive $1.8 million, an improvement of $4.9 million from the same quarter last year, and our sixth consecutive quarter of improvement in the metrics that matter most: efficiently acquiring customers, improving operational execution, and maintaining disciplined cost control. These gains are not the result of simply spending less. They reflect a structurally stronger business, and they came in a quarter that experienced meaningful headwinds in the overall health of our customers as well as the business environment. We are far from declaring victory. Six quarters of improvement is evidence the plan works, not proof the job is done. What gives us confidence is the underlying execution. A-Premium is approaching $50 million in annualized run rate revenue, with a longer-term path that we believe will eventually exceed $100 million. Fee income from the CarParts.com Mastercard, CarParts+ membership, and our warranty products is now running closer to $5 million annualized run rate. Our last mile network delivered over 3,000 packages in the quarter, more than double the first quarter, running next day delivery out of two of our four distribution centers, as we build toward 300,000 packages annually, which we believe would represent approximately 5% of our outbound volume. Alongside that progress, gross margin expanded to 33.2%, up 40 basis points year over year and 70 basis points sequentially. We have been thoughtfully building two sides of one business: a digital layer and a physical layer of global supply chain, distribution network, fulfillment infrastructure, inventory, and last mile capability. In a world where AI is commoditizing digital execution, the advantage is not simply having both layers, it is how effectively we connect them through data, AI, and customer ownership. A new entrant can rent a frontier model tomorrow. It cannot rent three decades of fitment data, purchase and return history, and catalog depth built on hundreds of supplier relationships. Digital tools are becoming replicable. The system we have built around them is not. That is where we are investing." Second Quarter 2026 Financial Results Net sales in the second quarter of 2026 were $135.6 million, down 10.7% from $151.9 million in the year-ago quarter. The decrease was primarily attributable to our initiatives to improve profitability, including the rationalization of marketing spend through reduced investment in lower-margin customers and customers with lower lifetime values Gross profit was $45.1 million in the second quarter compared to $49.8 million in the year-ago quarter, with gross margin increasing 40 basis points to 33.2%. The increase was primarily driven by product mix and favorable freight costs. Total operating expenses in the second quarter were $48.3 million compared to $62.2 million in the year-ago quarter. The decrease was primarily driven by favorable marketing spend, favorable payroll costs due to headcount reductions, and warehouse productivity. Net loss in the second quarter was ($3.2) million compared to a net loss of ($12.7) million in the year-ago quarter, primarily driven by lower operating expenses and the increase in gross margin. Adjusted EBITDA in the second quarter was $1.8 million compared to ($3.1) million in the year-ago quarter. On July 4, 2026, the Company had a cash balance of $38.2 million, $25.4 million of convertible notes payable balance and no revolver loan balance, compared to a $25.8 million cash balance, $25.2 million of convertible notes payable balance and no revolver loan balance at prior fiscal year-end January 3, 2026. Conference Call CarParts.com CEO David Meniane and Interim CFO Mark DiSiena will host a conference call today to discuss the results. Date: Thursday, August 6, 2026Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time) Webcast: www.carparts.com/investor/news-events To listen to the live call, please click the link above to access the webcast. A replay of the audio webcast will be archived on the Company's website at www.carparts.com/investor. About CarParts.com, Inc. CarParts.com, Inc. is a technology-led ecommerce company offering over 1.5 million quality automotive parts and accessories. Operating for over 30 years, CarParts.com has established itself as a premier destination for drivers seeking repair, maintenance, and upgrade solutions. Taking a customer-first approach, we deliver a seamless, mobile-friendly shopping experience across our website and app. With a commitment to delivering exceptional value backed by our nationwide, company-operated distribution network, fast shipping and experienced customer service team, CarParts.com aims to eliminate the uncertainty and stress often associated with vehicle maintenance and repair. The company operates CarParts.com and a portfolio of private-label and marketplace brands, including CarParts Wholesale, JC Whitney, Garage-Pro, Evan Fischer, and more. For more information, visit CarParts.com. CarParts.com is headquartered in Long Beach, California. Non-GAAP Financial Measures Regulation G, and other provisions of the Securities Exchange Act of 1934, as amended, define and prescribe the conditions for use of certain non-GAAP financial information. We provide "Adjusted EBITDA" in this earnings release and on today's scheduled conference call, which are non-GAAP financial measures. Adjusted EBITDA consist of net loss before (a) interest expense, net; (b) income tax provision; (c) depreciation and amortization expense; (d) amortization of intangible assets; (e) share-based compensation expense; (f) workforce transition costs; (g) gain on sale of subsidiary; and (h) strategic alternatives exploration costs. A reconciliation of Adjusted EBITDA to net loss is provided below. The Company believes that these non-GAAP financial measures provide important supplemental information to management and investors. These non-GAAP financial measures reflect an additional way of viewing aspects of the Company's operations that, when viewed with the GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provides a more complete understanding of factors and trends affecting the Company's business and results of operations. Management uses Adjusted EBITDA as measures of the Company's operating performance because it assists in comparing the Company's operating performance on a consistent basis by removing the impact of stock compensation expense as well as other items that we do not believe are representative of our ongoing operating performance. Internally, these non-GAAP measures are also used by management for planning purposes, including the preparation of internal budgets; for allocating resources to enhance financial performance; and for evaluating the effectiveness of operational strategies. The Company also believes that analysts and investors use these non-GAAP measures as supplemental measures to evaluate the ongoing operations of companies in our industry. These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Management strongly encourages investors to review the Company's consolidated financial statements in their entirety and to not rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. In addition, the Company expects to continue to incur expenses similar to the non-GAAP adjustments described above, and exclusion of these items from the Company's non-GAAP measures should not be construed as an inference that these costs are all unusual, infrequent or non-recurring. Safe Harbor Statement This press release contains statements which are based on management's current expectations, estimates and projections about the Company's business and its industry, as well as certain assumptions made by the Company. These statements are forward looking statements for the purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended and Section 27A of the Securities Act of 1933, as amended. Words such as "anticipates," "could," "expects," "intends," "plans," "potential," "believes," "predicts," "projects," "seeks," "estimates," "may," "will," "would," "will likely continue" and variations of these words or similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements regarding our future operating results and financial condition, our potential growth, our ability to innovate, our ability to gain market share, and our ability to expand and improve our product offerings. We undertake no obligation to revise or update publicly any forward-looking statements for any reason. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors. Important factors that may cause such a difference include, but are not limited to, competitive pressures, our dependence on search engines to attract customers, demand for the Company's products, the online market and channel mix for aftermarket auto parts, the economy in general, increases in commodity and component pricing that would increase the Company's product costs, the operating restrictions in its credit agreement, the weather and any other factors discussed in the Company's filings with the Securities and Exchange Commission (the "SEC"), including the Risk Factors contained in the Company's Annual Report on Form 10–K and Quarterly Reports on Form 10–Q, which are available at www.carparts.com/investor and the SEC's website at www.sec.gov. You are urged to consider these factors carefully in evaluating the forward-looking statements in this release and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. Unless otherwise required by law, the Company expressly disclaims any obligation to update publicly any forward-looking statements, whether as result of new information, future events or otherwise. Investor Relations: [email protected] Summarized information for the periods presented is as follows (in millions): The table below reconciles net loss to Adjusted EBITDA for the periods presented (in thousands): View original content to download multimedia:https://www.prnewswire.com/news-releases/carpartscom-reports-second-quarter-2026-results-302844623.html

Interested in CarParts.com, Inc.? Here are five stocks we like better. CarParts.com posted its first positive adjusted EBITDA since early 2024, reaching $585,000 in Q1 fiscal 2026 as cost cuts, tighter ad spending and operational improvements began to pay off. Revenue fell about 10% to $132 million, but management said the decline was intentional because the company reduced lower-return advertising; gross margin improved slightly and operating expenses dropped 26% year over year. The company highlighted growth initiatives including the A-Premium partnership, the new JC Whitney product line, and capital-efficient channels like its mobile app, last-mile delivery network and fee-income programs as it targets positive free cash flow in 2026. 3 more tax-loss selling buy opportunities CarParts.com (NASDAQ:PRTS) reported its first positive adjusted EBITDA since the first quarter of 2024, as executives said cost reductions, advertising discipline and operational changes helped offset lower revenue in the first quarter of fiscal 2026. The online auto parts retailer posted adjusted EBITDA of $585,000 for the quarter, compared with an adjusted EBITDA loss of about $6.2 million in the same period last year. Chief Executive Officer David Meniane called the result “a milestone” after five consecutive quarters of sequential improvement in key profitability metrics. → Insider Sales: Top AST SpaceMobile Insider Cuts Postion Over 30% “Twelve months ago, adjusted EBITDA was -$6.2 million. We made a decision then to rebuild this business around profitability, and today we crossed the line,” Meniane said on the company’s earnings call. Net sales declined to $132.0 million from $147.4 million in the first quarter of 2025, a decrease of about 10%. Interim Chief Financial Officer Mark DiSiena said the decline was primarily driven by the company’s deliberate reduction and optimization of advertising spend toward higher-return customers. Growth in A-Premium and the company’s own channels partially offset the decline. → Light Speed Returns: Corning Cashes In on NVIDIA Growth Gross profit was $42.9 million, while gross margin improved to 32.5% from 32.1% a year earlier. DiSiena said the improvement reflected pricing discipline, favorable product mix and freight costs, while the lower gross profit dollars were tied to lower volume rather than margin deterioration. GAAP net loss narrowed to $1.9 million, compared with a net loss of $15.3 million in the prior-year quarter. Total operating expenses fell to $46.0 million from $62.5 million, a reduction of about $16.5 million, or 26%. The company said the decrease was driven by lower advertising spend, improved warehouse efficiency and headcount reductions. DiSiena noted that the quarter included a $2.3 million non-cash gain tied to the completion of the sale of the company’s Manila operations; excluding that item, underlying operating expenses still declined by about $14.2 million year over year. → Years in the Making, AMD’s Upside Movement Has Just Begun Executives repeatedly emphasized that they are managing the business around contribution margin dollars rather than reported gross margin percentage. Meniane said reported gross margin could move as the company shifts its mix toward more drop ship sales, A-Premium products and JC Whitney products, but that fulfillment costs may also fall. DiSiena said the company’s product and channel mix continued to evolve during the quarter. Private label represented about 81% of revenue, down from 83% in the prior-year period. Collision and replacement products accounted for about 67% of revenue, up from 65% a year earlier. Own channels, including the company’s e-commerce site, mobile app and commercial channels, represented about 69% of revenue, up from 64% in the prior-year quarter. Retention channels also grew as a share of sales. Email, SMS and push notifications represented about 10% of e-commerce revenue, up from 7.5% a year earlier. Mobile app revenue was about 14% of e-commerce revenue, compared with 10% in the first quarter of 2025. DiSiena said app customers convert at higher rates, have larger basket sizes and come with lower acquisition costs. Meniane said the company’s A-Premium partnership is gaining momentum, with annualized revenue run rate approaching $45 million, up from about $35 million at year-end. Management said it sees a path to $50 million in the near term and potentially more than $100 million over the longer term. The company said the partnership is capital efficient because it does not require CarParts.com to carry the inventory or working capital. The company also highlighted progress on JC Whitney. In March, CarParts.com launched a JC Whitney branded product line in partnership with A-Premium, with 30,000 SKUs planned. Meniane said the initial 7,000 JC Whitney SKUs are live on Amazon and generating sales, with the remaining catalog expected to scale during the year. To support the JC Whitney inventory investment and strengthen the balance sheet, the company completed an $8 million private placement with strategic investors. DiSiena said the transaction included 10 million shares issued at $0.80 per share. As of April 30, the company had 80,570,054 shares of common stock outstanding and held 3,786,000 treasury shares. CarParts.com ended the quarter with $38 million in cash and no revolving debt outstanding. Inventory was approximately $91 million, down from $95 million at year-end, reflecting lower owned inventory needs as drop ship volume grows and the company shifts toward what management described as a more capital-efficient mix. The company’s convertible notes stood at $25.3 million, with a conversion price of $1.20 per share. DiSiena also said the company estimates up to $4.3 million in outstanding EAPA tariff claims and is pursuing recovery through a formal U.S. Customs and Border Protection process, though he said the company is not building its forward plan around that outcome. On sourcing, management said approximately 70% of purchases come from Taiwan, about 20% from China and the remainder from other countries. Meniane said the company recently opened a branch office in Taipei to deepen supplier relationships, improve lead times and support more efficient sourcing coordination. Management framed the company as having both a digital layer and a physical infrastructure layer. Meniane said CarParts.com is investing in warehouses, fulfillment, last mile delivery and supplier relationships that he believes cannot be easily replicated as artificial intelligence changes e-commerce. The company said it has delivered more than 2,000 packages through its last mile network since the beginning of the year and is running next-day delivery for its own channels out of two of four warehouses within a defined radius. Its target is to deliver 300,000 packages through the last mile network over the next 12 to 24 months, focused on big and bulky, non-conveyable parts. CarParts.com also has two AI systems in production. Spark is a customer-facing shopping assistant on CarParts.com that uses the company’s fitment catalog to help customers find parts. Zap is an internal tool automating returns, cancellations and warranty claims. The company also launched the CarParts.com Mastercard, issued by the Bank of Missouri in partnership with Concora. Cardholders earn 3% cash back on CarParts.com purchases and 1% on other purchases. Meniane said more than 1,000 Mastercards have been activated. The card joins the CarParts+ membership program and warranty products as part of a fee-income platform that management said generates more than $4 million annually. Looking ahead, Meniane said the company remains focused on reaching positive free cash flow in 2026 through contribution margin growth, fixed cost discipline and improved capital efficiency. He cautioned that positive adjusted EBITDA is “only one checkpoint, not the destination,” adding that the company still has more work to do to generate cash after all obligations. CarParts.com, Inc operates as a leading online retailer of aftermarket automotive parts and accessories in the United States. Through its flagship website CarParts.com and affiliated e-commerce platforms, the company offers replacement components, performance upgrades, maintenance items and collision repair parts for a wide range of domestic and import vehicles. Its product catalog includes engine parts, exterior and interior accessories, lighting, braking systems and powertrain components, supported by an extensive inventory and proprietary order management system. Founded in 1995 by George Chamoun and headquartered in Torrance, California, CarParts.com has grown from a regional auto parts supplier into a national e-commerce platform. The article "CarParts.com Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

LONG BEACH, Calif., May 7, 2026 /PRNewswire/ -- CarParts.com, Inc. (NASDAQ: PRTS), a leading eCommerce provider of automotive parts and accessories, and a premier destination for vehicle repair and maintenance needs, is reporting results for the first quarter ended April 4, 2026. First Quarter 2026 Summary vs. Year-Ago Quarter Closed $8.0 million strategic investment. Net sales decreased 10% to $132.0 million. Gross profit of $42.9 million vs. $47.3 million, with gross margin of 32.5%. Net loss was ($1.9) million, or ($0.03) per share, compared to a net loss of ($15.3) million, or ($0.27) per share. Adjusted EBITDA of $0.6 million vs. $(6.2) million. Cash of $37.9 million and inventory of $91.0 million as of April 4, 2026. Our mobile app has cumulative net downloads of 1.4 million. Management Commentary David Meniane, Chief Executive Officer, commented: "In the first quarter of 2026, we reached a milestone we have been building toward for five consecutive quarters: our first positive adjusted EBITDA since Q1 2024. Adjusted EBITDA was positive $585,000, a swing of nearly $7 million from the same quarter last year, driven by deliberate action across every line item in the P&L: advertising efficiency, customer acquisition quality, lifecycle monetization, warehouse operations, offshore savings, and a fixed cost base that is now mostly embedded in our run rate. The work is not done. But the evidence is in the results, and the momentum is real. The initiatives are executing. A-Premium is approaching $45 million in annualized run rate revenue, up from $35 million at year-end. The initial 7,000 JC Whitney SKUs are live on Amazon and generating sales, with revenue growing week over week. We launched the CarParts.com Mastercard. We opened a branch office in Taipei to deepen three decades of supplier relationships that represent approximately 70% of our purchases. Spark and Zaap, our AI systems for customer experience and internal operations, are live. And we are running next day delivery out of 2 of our 4 warehouses today, with a target of 300,000 packages through our last mile network over the next 12 to 24 months. We have always been two companies in one: a digital layer and a physical asset base. In a world where AI is commoditizing digital execution, the physical infrastructure (our distribution network, our last mile capability, and our global supply chain) becomes the moat. That is where we are investing. We ended the quarter with $38 million in cash and no revolver debt. The path to sustained free cash flow runs through levers we control, and we are executing against them today." First Quarter 2026 Financial Results Net sales in the first quarter of 2026 were $132.0 million, down 10% from $147.4 million in the year-ago quarter. The decrease was primarily driven by the Company's efforts to increase profitability by rationalizing marketing spend. Gross profit was $42.9 million in the first quarter compared to $47.3 million in the year-ago quarter, with gross margin increasing 40 basis points to 32.5%. The increase was primarily driven by product mix and favorable freight costs. Total operating expenses in the first quarter were $46.0 million compared to $62.5 million in the year-ago quarter. The decrease was primarily driven by favorable payroll costs due to headcount reductions, favorable marketing spend and a gain on sale of our Philippines subsidiary. Net loss in the first quarter was ($1.9) million compared to a net loss of ($15.3) million in the year-ago quarter, primarily driven by lower operating expenses and the increase in gross margin. Adjusted EBITDA in the first quarter was $0.6 million compared to ($6.2) million in the year-ago quarter. On April 4, 2026, the Company had a cash balance of $37.9 million, $25.3 million of convertible notes payable balance and no revolver loan balance, compared to a $25.8 million cash balance, $25.2 million of convertible notes payable balance and no revolver loan balance at prior fiscal year-end January 3, 2026. Conference Call CarParts.com CEO David Meniane and Interim CFO Mark DiSiena will host a conference call today to discuss the results. Date: Thursday, May 7, 2026 Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time) Webcast: www.carparts.com/investor/news-events To listen to the live call, please click the link above to access the webcast. A replay of the audio webcast will be archived on the Company's website at www.carparts.com/investor. About CarParts.com, Inc. CarParts.com, Inc. is a technology-led ecommerce company offering over 1.5 million quality automotive parts and accessories. Operating for over 30 years, CarParts.com has established itself as a premier destination for drivers seeking repair, maintenance, and upgrade solutions. Taking a customer-first approach, we deliver a seamless, mobile-friendly shopping experience across our website and app. With a commitment to delivering exceptional value backed by our nationwide, company-operated distribution network, fast shipping and experienced customer service team, CarParts.com aims to eliminate the uncertainty and stress often associated with vehicle maintenance and repair. The company operates CarParts.com and a portfolio of private-label and marketplace brands, including CarParts Wholesale, JC Whitney, Garage-Pro, Evan Fischer, and more. For more information, visit CarParts.com. CarParts.com is headquartered in Long Beach, California. Non-GAAP Financial Measures Regulation G, and other provisions of the Securities Exchange Act of 1934, as amended, define and prescribe the conditions for use of certain non-GAAP financial information. We provide "Adjusted EBITDA" in this earnings release and on today's scheduled conference call, which are non-GAAP financial measures. Adjusted EBITDA consist of net loss before (a) interest expense (income), net; (b) income tax provision; (c) depreciation and amortization expense; (d) amortization of intangible assets; (e) share-based compensation expense; (f) gain on sale of subsidiary; and (g) strategic alternatives exploration costs. A reconciliation of Adjusted EBITDA to net loss is provided below. The Company believes that these non-GAAP financial measures provide important supplemental information to management and investors. These non-GAAP financial measures reflect an additional way of viewing aspects of the Company's operations that, when viewed with the GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provides a more complete understanding of factors and trends affecting the Company's business and results of operations. Management uses Adjusted EBITDA as measures of the Company's operating performance because it assists in comparing the Company's operating performance on a consistent basis by removing the impact of stock compensation expense as well as other items that we do not believe are representative of our ongoing operating performance. Internally, these non-GAAP measures are also used by management for planning purposes, including the preparation of internal budgets; for allocating resources to enhance financial performance; and for evaluating the effectiveness of operational strategies. The Company also believes that analysts and investors use these non-GAAP measures as supplemental measures to evaluate the ongoing operations of companies in our industry. These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Management strongly encourages investors to review the Company's consolidated financial statements in their entirety and to not rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. In addition, the Company expects to continue to incur expenses similar to the non-GAAP adjustments described above, and exclusion of these items from the Company's non-GAAP measures should not be construed as an inference that these costs are all unusual, infrequent or non-recurring. Safe Harbor Statement This press release contains statements which are based on management's current expectations, estimates and projections about the Company's business and its industry, as well as certain assumptions made by the Company. These statements are forward looking statements for the purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended and Section 27A of the Securities Act of 1933, as amended. Words such as "anticipates," "could," "expects," "intends," "plans," "potential," "believes," "predicts," "projects," "seeks," "estimates," "may," "will," "would," "will likely continue" and variations of these words or similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements regarding our future operating results and financial condition, our potential growth, our ability to innovate, our ability to gain market share, and our ability to expand and improve our product offerings. We undertake no obligation to revise or update publicly any forward-looking statements for any reason. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors. Important factors that may cause such a difference include, but are not limited to, competitive pressures, our dependence on search engines to attract customers, demand for the Company's products, the online market and channel mix for aftermarket auto parts, the economy in general, increases in commodity and component pricing that would increase the Company's product costs, the operating restrictions in its credit agreement, the weather and any other factors discussed in the Company's filings with the Securities and Exchange Commission (the "SEC"), including the Risk Factors contained in the Company's Annual Report on Form 10–K and Quarterly Reports on Form 10–Q, which are available at www.carparts.com/investor and the SEC's website at www.sec.gov. You are urged to consider these factors carefully in evaluating the forward-looking statements in this release and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. Unless otherwise required by law, the Company expressly disclaims any obligation to update publicly any forward-looking statements, whether as result of new information, future events or otherwise. Investor Relations: [email protected] Summarized information for the periods presented is as follows (in millions): The table below reconciles net loss to Adjusted EBITDA for the periods presented (in thousands): View original content to download multimedia:https://www.prnewswire.com/news-releases/carpartscom-reports-first-quarter-2026-results-302766019.html

LOS ANGELES, March 5, 2026 /PRNewswire/ -- CarParts.com, Inc. (NASDAQ: PRTS), a leading eCommerce provider of automotive parts and accessories, and a premier destination for vehicle repair and maintenance needs, is reporting results for the fourth quarter and fiscal year ended January 3, 2026. Fiscal Year 2025 (53 weeks) Summary vs. Fiscal Year 2024 (52 weeks) Closed $35.7 million strategic investment from A-Premium, ZongTeng Group, and CDH Investments. Net sales decreased 7% to $547.5 million. Gross profit of $179.3 million vs. $196.7 million, with gross margin of 32.8%. Net loss was ($50.4) million, or ($0.82) per share, compared to a net loss of ($40.6) million, or ($0.71) per share. Adjusted EBITDA of ($14.0) million vs. $(7.1) million. Cash of $25.8 million and inventory of $95.2 million as of January 3, 2026. Our mobile app has cumulative net downloads of 1.3 million. Fourth Quarter 2025 (14 weeks) Summary vs. Year-Ago Quarter (13 weeks) Net sales decreased to $120.4 million, down 10% year-over-year. Gross profit of $39.9 million vs. $43.4 million, with gross margin of 33.2% vs. 32.5%. Net loss was ($11.6) million, or ($0.17) per share, compared to a net loss of ($15.4) million, or ($0.27) per share. Adjusted EBITDA of ($2.2) million vs. ($6.8) million. Management Commentary David Meniane, Chief Executive Officer, commented: "In 2025, we closed a $35.7 million strategic investment, completed a full cost structure reset, and built an operating model delivering results every quarter. Our A-Premium partnership is at a $35 million annual revenue run rate — with a clear path to $50 million near-term and eventually exceeding $100 million at attractive contribution margins — without requiring us to carry the inventory or working capital. The evidence is in the results. Q4, historically our weakest quarter, was stronger than Q3 — marking four consecutive quarters of improvement in contribution margin, fixed operating expenses, and adjusted EBITDA. In Q4, adjusted EBITDA improved nearly $5 million year over year and gross margin expanded 70 basis points to 33.2%. Marketing efficiency improved close to 300 basis points between Q1 and Q4. Retention channel revenue, such as email and SMS, increased from 6.7% to over 10% of ecommerce revenue, and our mobile app represented over 13%, up from 7.8% in the prior-year period. On costs, we consolidated our Virginia warehouse operations into our four remaining facilities, leveraged our ZongTeng partnership, and transitioned our Manila operations to Lean Solutions Group. Those actions are complete, and the company today is leaner, more focused, and built for our current revenue scale. Our path to free cash flow is not dependent on a demand rebound. It's driven by higher contribution margins, a materially lower fixed cost base, and improving capital efficiency through our partnerships. This is an execution story, not a turnaround narrative." Fiscal Year 2025 Financial Results Fiscal year 2025 included 53 weeks compared to 52 weeks in fiscal year 2024. Net sales in fiscal year 2025 were $547.5 million, down 7% from $588.8 million in fiscal year 2024. The decrease was primarily driven by the Company's efforts to increase profitability by rationalizing marketing spend. Gross profit was $179.3 million in fiscal year 2025 compared to $196.7 million in fiscal year 2024, with gross margin decreasing 60 basis points to 32.8%. The decrease was primarily driven by product mix and the impact of tariffs, partially offset by pricing increases. Total operating expenses in fiscal year 2025 were $228.2 million compared to $237.4 million in fiscal year 2024. The decrease was primarily driven by favorable payroll costs due to headcount reductions and favorable marketing spend, partially offset by the impairment loss on long-lived assets. Net loss in fiscal year 2025 was ($50.4) million compared to a net loss of ($40.6) million in fiscal year 2024, primarily driven by lower net sales and an impairment loss on long-lived assets, partially offset by lower operating expenses, including favorable payroll costs and marketing spend. Adjusted EBITDA in fiscal year 2025 was ($14.0) million compared to ($7.1) million in fiscal year 2024. On January 3, 2026, the Company had a cash balance of $25.8 million, $25.2 million convertible notes payable balance and no revolver loan balance, compared to a $36.4 million cash balance, no revolver loan balance and no convertible notes payable balances at prior fiscal year-end December 28, 2024. Fourth Quarter 2025 Financial Results Fourth quarter 2025 included 14 weeks compared to 13 weeks in the fourth quarter of 2024. Net sales in the fourth quarter of 2025 were $120.4 million, down 10% from the year-ago quarter. Gross profit in the fourth quarter was $39.9 million compared to $43.4 million, with gross margin increasing 70 basis points to 33.2%. Total operating expenses in the fourth quarter were $51.2 million compared to $58.9 million in the year-ago quarter. Net loss in the fourth quarter was ($11.6) million compared to a net loss of ($15.4) million in the year-ago quarter. Adjusted EBITDA in the fourth quarter was ($2.2) million compared to ($6.8) million in the year-ago quarter. Conference Call CarParts.com CEO David Meniane and Interim CFO Mark DiSiena will host a conference call today to discuss the results. Date: Thursday, March 5, 2026 Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time) Webcast: www.carparts.com/investor/news-events To listen to the live call, please click the link above to access the webcast. A replay of the audio webcast will be archived on the Company's website at www.carparts.com/investor. About CarParts.com, Inc. CarParts.com, Inc. is a technology-led ecommerce company offering over 1.5 million quality automotive parts and accessories. Operating for over 30 years, CarParts.com has established itself as a premier destination for drivers seeking repair, maintenance, and upgrade solutions. Taking a customer-first approach, we deliver a seamless, mobile-friendly shopping experience across our website and app. With a commitment to delivering exceptional value backed by our nationwide, company-operated distribution network, fast shipping and experienced customer service team, CarParts.com aims to eliminate the uncertainty and stress often associated with vehicle maintenance and repair. The company operates CarParts.com and a portfolio of private-label and marketplace brands, including CarParts Wholesale, JC Whitney, Garage-Pro, Evan Fischer, and more. For more information, visit CarParts.com. CarParts.com is headquartered in Torrance, California. Non-GAAP Financial Measures Regulation G, and other provisions of the Securities Exchange Act of 1934, as amended, define and prescribe the conditions for use of certain non-GAAP financial information. We provide "Adjusted EBITDA" in this earnings release and on today's scheduled conference call, which are non-GAAP financial measures. Adjusted EBITDA consist of net loss before (a) interest expense (income), net; (b) income tax provision; (c) depreciation and amortization expense; (d) amortization of intangible assets; (e) impairment of long-lived assets; (f) share-based compensation expense; (g) workforce transition costs; (h) distribution center costs; and (i) strategic alternatives exploration costs. A reconciliation of Adjusted EBITDA to net loss is provided below. The Company believes that these non-GAAP financial measures provide important supplemental information to management and investors. These non-GAAP financial measures reflect an additional way of viewing aspects of the Company's operations that, when viewed with the GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provides a more complete understanding of factors and trends affecting the Company's business and results of operations. Management uses Adjusted EBITDA as measures of the Company's operating performance because it assists in comparing the Company's operating performance on a consistent basis by removing the impact of stock compensation expense as well as other items that we do not believe are representative of our ongoing operating performance. Internally, these non-GAAP measures are also used by management for planning purposes, including the preparation of internal budgets; for allocating resources to enhance financial performance; and for evaluating the effectiveness of operational strategies. The Company also believes that analysts and investors use these non-GAAP measures as supplemental measures to evaluate the ongoing operations of companies in our industry. These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Management strongly encourages investors to review the Company's consolidated financial statements in their entirety and to not rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. In addition, the Company expects to continue to incur expenses similar to the non-GAAP adjustments described above, and exclusion of these items from the Company's non-GAAP measures should not be construed as an inference that these costs are all unusual, infrequent or non-recurring. Safe Harbor Statement This press release contains statements which are based on management's current expectations, estimates and projections about the Company's business and its industry, as well as certain assumptions made by the Company. These statements are forward looking statements for the purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended and Section 27A of the Securities Act of 1933, as amended. Words such as "anticipates," "could," "expects," "intends," "plans," "potential," "believes," "predicts," "projects," "seeks," "estimates," "may," "will," "would," "will likely continue" and variations of these words or similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements regarding our future operating results and financial condition, our potential growth, our ability to innovate, our ability to gain market share, and our ability to expand and improve our product offerings. We undertake no obligation to revise or update publicly any forward-looking statements for any reason. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors. Important factors that may cause such a difference include, but are not limited to, competitive pressures, our dependence on search engines to attract customers, demand for the Company's products, the online market and channel mix for aftermarket auto parts, the economy in general, increases in commodity and component pricing that would increase the Company's product costs, the operating restrictions in its credit agreement, the weather and any other factors discussed in the Company's filings with the Securities and Exchange Commission (the "SEC"), including the Risk Factors contained in the Company's Annual Report on Form 10–K and Quarterly Reports on Form 10–Q, which are available at www.carparts.com/investor and the SEC's website at www.sec.gov. You are urged to consider these factors carefully in evaluating the forward-looking statements in this release and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. Unless otherwise required by law, the Company expressly disclaims any obligation to update publicly any forward-looking statements, whether as result of new information, future events or otherwise. Investor Relations: [email protected] Summarized information for the periods presented is as follows (in millions): The table below reconciles net loss to Adjusted EBITDA for the periods presented (in thousands): View original content to download multimedia:https://www.prnewswire.com/news-releases/carpartscom-reports-fourth-quarter-and-fiscal-year-2025-results-302704995.html

Management says a full cost‑structure reset and revamped operating model are "delivering results every quarter," with four consecutive quarters of improvement in contribution margin, fixed operating expenses and adjusted EBITDA, and a target of free cash flow positive in 2026. The A‑Premium partnership is a central, capital‑efficient growth lever—already at a roughly $35 million annual run rate with a clear path to $50 million and the potential to exceed $100 million—by expanding mechanical parts selection without CarParts.com carrying the inventory or working capital burden. Financially, Q4 net sales fell 10% to $120.4 million (FY down 7%), but Q4 gross margin rose to 33.2% and adjusted EBITDA loss narrowed to $2.2 million, driven by warehouse consolidation, a shift to third‑party BPO, and nearly 300 basis points of marketing efficiency improvement plus higher app and retention revenue. Interested in CarParts.com, Inc.? Here are five stocks we like better. 3 more tax-loss selling buy opportunities CarParts.com (NASDAQ:PRTS) executives used the company’s fourth quarter fiscal 2025 earnings call to emphasize progress from a revamped operating model, highlighting cost reductions, improved marketing efficiency, and the growing contribution of an asset-light mechanical parts partnership. Chief Executive Officer David Meniane said 2025 included a “full cost structure reset” and the completion of a $35.7 million strategic investment. He described the company’s operating model as one that is now “delivering results every quarter,” citing four consecutive quarters of improvement in the metrics he said matter most: contribution margin, fixed operating expenses, and adjusted EBITDA. → Uber and Joby Aviation Team Up: Game Changer or Hype? Meniane said the fourth quarter—typically the company’s seasonally weakest—came in stronger than the third quarter and showed significant year-over-year improvement. He framed the company’s path to free cash flow as driven by higher contribution margins, a materially lower fixed operating expense base, and improved capital efficiency, rather than relying on a sharp rebound in demand. Meniane pointed to the company’s partnership with A-Premium as a central element of its strategy, saying it is already at a $35 million annual revenue run rate with a “clear path” to $50 million in the short term. He added that management believes the partnership will eventually exceed $100 million at “attractive contribution margins,” while not requiring CarParts.com to carry the inventory or working capital associated with that business. → BigBear.ai Stock Is Down Big, But Smart Money Is Quietly Buying He contrasted the company’s historical focus on collision parts—where inventory turns have been roughly three times annually—with mechanical parts, which he described as having slower turns (typically 1 to 1.5 times annually), higher minimum order quantities, and greater working capital needs when owned directly. According to Meniane, the A-Premium partnership provides access to a significantly expanded mechanical catalog through a capital-efficient model, with lower minimum order quantities and without the same working capital burden. He said the A-Premium catalog is five times larger than the company’s prior mechanical offering and is growing. Meniane said the company made “decisive operational action” in 2025 to change its cost structure and margin profile, noting that prior costs and advertising levels had been built for revenue levels that no longer existed. He said the company chose to rebuild around profitability and cash generation rather than pursue “unprofitable volume.” → Archer Aviation Stock Tanks—The Real Story Is What Wall Street Overlooked On the operational side, Meniane said CarParts.com consolidated operations and reduced fixed overhead, including completing the consolidation of its Virginia warehouse operations in the fourth quarter. The company centralized logistics into its four other warehouses and leveraged its partnership with ZongTeng Group, which he said eliminates redundant overhead and improves variable economics while maintaining service levels. He also said the company completed the transition of its Manila-based captive operations to Lean Solutions Group, a third-party business process outsourcing provider, in January. Meniane said the move simplifies and reduces cost structure, shifts the model to a more flexible variable approach, and allows internal resources to focus on U.S. distribution, supply chain, technology, and customer experience. Meniane said the company “significantly improved” advertising efficiency in 2025, stating that overall marketing efficiency improved by close to 300 basis points between the first and fourth quarters. He said CarParts.com reduced spending aimed at unprofitable, one-time transactions and refocused on high-intent customers. Management highlighted a shift toward retention channels and mobile app usage: Retention channels: Revenue from email and SMS rose from 6.7% of e-commerce revenue in fourth quarter 2024 to over 10% in fourth quarter 2025. Mobile app: App-driven revenue represented over 13% of e-commerce revenue in fourth quarter 2025, up from 7.8% in the year-ago quarter and 0% at launch in third quarter 2023. Meniane said app customers convert at higher rates, purchase more frequently, have larger basket sizes, and come with lower customer acquisition costs. He also said the company’s ads, services, and paid membership offerings now generate nearly $4 million in annual high-margin fee income with “virtually no capital required.” Interim Chief Financial Officer Mark DiSiena noted that the fourth quarter included 14 weeks and fiscal 2025 was a 53-week year, which he said had a modest impact on year-over-year comparisons. For the fourth quarter, CarParts.com reported net sales of $120.4 million, down 10% from $133.5 million a year earlier. For the full year, net sales were $547.5 million, down 7% from $588.8 million in fiscal 2024. DiSiena attributed the decline primarily to the company’s efforts to improve returns by optimizing advertising spend. Gross profit in the quarter was $39.9 million, down 8% year-over-year, while gross margin expanded 70 basis points to 33.2%. For the full year, gross profit was $179.3 million, down 9%, and gross margin was 32.8%, down 60 basis points from 2024. DiSiena said the full-year margin decline was driven primarily by product mix and the impact of tariffs, partially offset by pricing increases. GAAP net loss for the quarter improved to $11.6 million from $15.4 million in the prior-year period. For the full year, GAAP net loss was $50.4 million versus $40.6 million in 2024, which DiSiena said was primarily driven by lower net sales and an impairment loss on long-lived assets, partially offset by lower operating costs including payroll and marketing. Adjusted EBITDA loss narrowed to $2.2 million in the fourth quarter from $6.8 million in the prior-year quarter. DiSiena said the fourth-quarter adjusted EBITDA included about $200,000 of non-cash impact from the reversal of previously recorded severance expense. For the full year, adjusted EBITDA loss was $14 million, compared with a $7.1 million loss in 2024. Total operating expenses were $51.2 million in the fourth quarter, down from $58.9 million a year earlier. Full-year operating expenses were $228.2 million, down from $237.4 million. The company also recorded a $3.7 million non-cash impairment charge to long-lived assets during the fourth quarter after an impairment test was triggered by market capitalization relative to book value; DiSiena said the charge had no impact on operations or cash flow. Excluding the impairment charge, he said underlying operating expenses decreased by about $12.8 million year-over-year, driven by lower warehouse spend, lower stock-based compensation, and reduced payroll and consulting costs from headcount actions. On the balance sheet, DiSiena said the company ended the year with $25.8 million of cash and no revolver debt, and had $25.2 million in convertible notes payable. Inventory was $95.2 million at year-end, compared to $90.4 million at the end of 2024. He also said that as of February 28, 2026, the company had about 70.5 million shares outstanding, including 10.3 million shares issued in connection with the September 2025 strategic investment priced at $1.04 per share. The company’s convertible notes carry a conversion price of $1.20 per share. DiSiena said the company is targeting free cash flow positive results in 2026, driven by contribution margin expansion, partnership scale, and the full-year benefit of cost actions. He also discussed tariffs, noting that while a recent Supreme Court decision invalidated tariffs imposed under IEEPA, other tariffs around auto parts remain in effect, and the administration has introduced temporary measures under Section 122. DiSiena said the company is monitoring developments and evaluating litigation action, but is not building plans around regulatory relief. He added that about 20% of sourcing is from China, with the remainder from Taiwan and other countries, and that tariffs paid last year classified under IEEPA totaled about $3.6 million. Finally, DiSiena provided mix trends: private label products represented about 83% of fourth-quarter revenue (17% third-party branded), and collision and replacement represented about 68% of fourth-quarter revenue. Owned channels (including e-commerce, mobile app, and commercial) represented about 68% of fourth-quarter revenue versus 32% from marketplaces; for the full year, owned channels were about 67% of revenue. Management said it expects mix to continue shifting toward higher contribution margin revenue streams with lower working capital requirements. CarParts.com, Inc operates as a leading online retailer of aftermarket automotive parts and accessories in the United States. Through its flagship website CarParts.com and affiliated e-commerce platforms, the company offers replacement components, performance upgrades, maintenance items and collision repair parts for a wide range of domestic and import vehicles. Its product catalog includes engine parts, exterior and interior accessories, lighting, braking systems and powertrain components, supported by an extensive inventory and proprietary order management system. Founded in 1995 by George Chamoun and headquartered in Torrance, California, CarParts.com has grown from a regional auto parts supplier into a national e-commerce platform. The article "CarParts.com Q4 Earnings Call Highlights" was originally published by MarketBeat.

This article first appeared on GuruFocus. Release Date: March 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. CarParts.com Inc (NASDAQ:PRTS) closed a $35.7 million strategic investment, enhancing its financial position. The company achieved four consecutive quarters of improvement in key metrics such as contribution margin and adjusted EBITDA. The A premium partnership is projected to significantly increase revenue without requiring additional inventory or working capital. Operational actions in 2025 led to a leaner, more focused organization with a reduced fixed cost base. Marketing efficiency improved by 300 basis points, with a focus on high intent customers and increased revenue from retention channels. Net sales for the fourth quarter decreased by 10% year-over-year, reflecting challenges in revenue generation. The company reported a GAAP net loss of $11.6 million for the quarter, indicating ongoing financial struggles. Gross profit and gross margin for the full year declined, impacted by product mix and tariffs. The company incurred a $3.7 million non-cash impairment charge on long-lived assets. Despite improvements, the company still faces a challenging environment with tariffs and evolving market conditions. Warning! GuruFocus has detected 4 Warning Signs with PRTS. Is PRTS fairly valued? Test your thesis with our free DCF calculator. Q: Can you elaborate on the strategic importance of the A Premium partnership for CarParts.com? A: David Meon, CEO: The A Premium partnership is crucial as it allows us to access a world-class mechanical catalog without the need to carry inventory or working capital. This partnership addresses the challenges of slower inventory turns and higher minimum order quantities associated with mechanical parts. It expands our assortment, improves coverage, and preserves contribution margins, providing a durable competitive advantage in fitment-specific parts. Q: How has CarParts.com adjusted its cost structure to improve profitability? A: David Meon, CEO: In 2025, we made deliberate choices to rebuild the business around profitability and cash generation. We adjusted advertising spend, right-sized the organization, and reduced our fixed cost base. We consolidated operations, centralized logistics, and transitioned our Manila-based operations to a third-party BPO company, Lean Solutions Group, to simplify and reduce our cost structure. Q: What were the key financial highlights for CarParts.com in Q4 2025? A: Mark Di Sienna, Interim CFO: In Q4 2025, we reported net sales of $120.4 million, down 10% year-over-year. Gross margin expanded by 70 basis points to 33.2%. Adjusted EBITDA loss narrowed to $2.2 million from $6.8 million in the prior year. Operating expenses decreased, and we ended the year with $25.8 million in cash and no revolver debt. Q: How has CarParts.com improved its marketing efficiency? A: David Meon, CEO: We improved marketing efficiency by nearly 300 basis points between Q1 and Q4 2025. We stopped pursuing unprofitable transactions and focused on high-intent customers. Revenue from retention channels like email and SMS increased significantly, and mobile app adoption grew, contributing to higher conversion rates and lower customer acquisition costs. Q: What is CarParts.com's outlook for 2026? A: Mark Di Sienna, Interim CFO: We are targeting free cash flow positive results in 2026, driven by contribution margin expansion, partnership scale, and the full-year benefit of our cost actions. Our strategy focuses on operational resilience, diversified sourcing, pricing discipline, and asset-light partnerships, with a path to consistent cash generation. For the complete transcript of the earnings call, please refer to the full earnings call transcript.