CarParts.com Reports Third Quarter 2025 Results (Form 8-K)

CarParts.com Reports Third Quarter 2025 Results

TORRANCE, Calif. - November 10^th, 2025 - 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 third quarter ended September 27, 2025.

Third Quarter 2025 Summary vs. Year-Ago Quarter

Management Commentary

"Earlier this year, we began exploring strategic alternatives to maximize shareholder value. That process has now concluded, and I'm pleased to announce that in early September, Carparts.com closed on a $35.7 million strategic investment from A-Premium, ZongTeng Group, and CDH Investments.

ZongTeng provides a global logistics network with over 24 million sq. ft. of fulfillment space, giving us access to 50+ U.S. facilities. This partnership enhances speed, efficiency, and cost savings without major capital investment, complementing our network by handling smaller, automated orders.

A-Premium expands our product range by adding 100,000+ new SKUs and boosting mechanical parts coverage with minimal capital. The partnership is already generating about $20 million annually and could grow to over $100 million as integration progresses.

CDH, managing $20 billion across 350+ investments and 100+ IPOs, contributes not just funding but strategic, operational, and governance expertise that strengthens our ability to scale and pursue growth.

Turning to the business, we're tackling every critical lever of the P&L; gross margin, variable costs, operational efficiency, and fixed expenses; with the goal of driving sustained free cash flow generation. Our plan is clear: disciplined execution, profitable growth, and operational efficiency working together to drive sustained free cash flow.

Every part of the business is moving in the same direction, and the results we're seeing each quarter reinforce that the model is working. We're confident that this approach, supported by the foundation we've built and the partnerships established through the strategic review, positions CarParts.com for long-term profitability. We expect to be free cash flow positive in 2026." said David Meniane, CEO.

Third Quarter 2025 Financial Results

Net sales in the third quarter of 2025 were $127.8 million, down 12% from $144.8 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 $42.3 million in the third quarter compared to $51.0 million in the year-ago quarter, with gross margin decreasing 210 basis points to 33.1%. The decrease was primarily driven by product mix and the impact of tariffs, partially offset by pricing increases.

Total operating expenses in the third quarter were $52.3 million compared to $60.9 million in the year-ago quarter. The decrease was primarily driven by favorable marketing spend and favorable payroll costs due to headcount reductions.

Net loss in the third quarter was ($10.9) million compared to a net loss of ($10.0) million in the year-ago quarter, primarily driven by lower net sales, partially offset by lower operating expenses, including favorable marketing spend.

Adjusted EBITDA in the third quarter was ($2.2) million compared to ($1.2) million in the year-ago quarter.

On September 27, 2025, the Company had a cash balance of $36.0 million, $25.0 million convertible notes payable balance and no revolver loan balance, compared to a $36.4 million cash balance, no revolver debt or convertible notes payable balances at prior fiscal year-end December 28, 2024.

Conference Call

CarParts.com CEO David Meniane and CFO Ryan Lockwood will host a conference call today to discuss the results.

Date: Monday, November 10, 2025

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 million quality automotive parts and accessories. Operating for over 25 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) share-based compensation expense; (f) workforce transition costs; (g) distribution center costs; 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.