CarParts.com Reports Fourth Quarter and Fiscal Year 2025 Results (Form 8-K)

CarParts.com Reports Fourth Quarter and Fiscal Year 2025 Results

LOS ANGELES, Calif. - March 5^th, 2026 - 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)

Fourth Quarter 2025 (14 weeks) Summary vs. Year-Ago Quarter (13 weeks)

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.