CarParts.com Reports First Quarter 2026 Results
Rhea-AI Summary
CarParts.com (NASDAQ: PRTS) reported first quarter 2026 results for the period ended April 4, 2026. Net sales were $132.0 million, down 10% year-over-year. Gross profit was $42.9 million (32.5% margin). Net loss was $1.9 million; Adjusted EBITDA was positive $0.6 million. Cash was $37.9 million, inventory $91.0 million, and convertible notes payable $25.3 million. Management cited operational improvements, A-Premium growth, app downloads of 1.4 million, new Mastercard launch, and expanded supply-chain initiatives.
Positive
- Adjusted EBITDA positive $0.6M vs $(6.2)M year-ago
- Net loss narrowed to $1.9M from $15.3M year-ago
- Cash balance of $37.9M with no revolver debt
- A-Premium approaching $45M annualized run rate
- Mobile app cumulative net downloads of 1.4M
Negative
- Net sales declined by 10% to $132.0M
- Inventory balance of $91.0M at quarter end
- Outstanding convertible notes payable of $25.3M
Market Reaction – PRTS
Following this news, PRTS has gained 8.53%, reflecting a notable positive market reaction. Our momentum scanner has triggered 8 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $0.92. This price movement has added approximately $5M to the company's valuation.
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Key Figures
Market Reality Check
Peers on Argus
PRTS is down 2.58% with elevated volume, while key peers show mixed but mostly negative moves (e.g., SYPR -2.03%, WPRT -1.98%, REE -7.03%, GTEC +0.26%). Scanner data does not flag a coordinated sector move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 05 | FY25 earnings | Negative | -3.1% | Fiscal 2025 net sales decline and widened net loss with Adjusted EBITDA loss. |
| Nov 10 | Q3 2025 earnings | Negative | -11.8% | Q3 2025 net sales down 12% and significant net loss despite cost actions. |
| Aug 12 | Q2 2025 earnings | Neutral | -15.8% | Mixed Q2 2025 with higher sales but wider loss and noted strategic review. |
| May 13 | Q1 2025 earnings | Negative | -13.2% | Q1 2025 double‑digit sales decline and larger net loss with margin pressure. |
| Mar 25 | FY24 earnings | Negative | -2.0% | FY24 double‑digit sales drop and substantial net loss with soft demand. |
Earnings releases have typically been received negatively, with most past reports followed by single‑ to mid‑teens percentage declines.
Across the last five earnings-tagged releases from Mar 2025 through Mar 2026, CarParts.com has reported declining or pressured net sales, persistent net losses, and mixed gross margin trends. Stock reactions were negative after each of those events, with several double‑digit drops following quarterly updates that highlighted falling revenue and widened losses. Against this backdrop, the latest Q1 2026 report shows continued top‑line pressure but a sharp improvement in net loss and a return to positive Adjusted EBITDA, marking a shift toward profitability versus prior periods.
Historical Comparison
Over the last five earnings releases, PRTS moved an average of -9.18%. The current -2.58% move ahead of Q1 2026 results is milder than its typical post‑earnings reaction.
Earnings updates from FY 2024 through FY 2025 showed recurring sales declines and sizable losses. The Q1 2026 report contrasts this trend by maintaining pressured revenue but significantly narrowing the net loss and returning to positive Adjusted EBITDA, indicating operational progress versus prior earnings cycles focused on restructuring and cost actions.
Regulatory & Risk Context
An effective Form S-3 filed on Jan 14, 2026 registers 32,458,060 shares of common stock for resale by existing investors, including PIPE and convertible note holders. The company will not receive proceeds from these resales but covers registration costs. The prospectus notes that resale of these shares and future equity issuances could pressure the stock price and be dilutive to existing holders.
Market Pulse Summary
This announcement highlights Q1 2026 results where net sales declined 10% to $132.0M, but profitability metrics improved, with gross margin at 32.5%, net loss reduced to $1.9M, and Adjusted EBITDA turning positive at $0.6M. Cash increased to $37.9M with no revolver borrowings. Compared with prior earnings releases that featured larger losses and consistent revenue pressure, this report underscores a shift toward cost discipline. Investors may watch future quarters for sustained positive EBITDA, revenue stabilization, and any impact from registered resale shares under the existing S‑3.
Key Terms
adjusted ebitda financial
convertible notes financial
revolver loan financial
basis points financial
AI-generated analysis. Not financial advice.
First Quarter 2026 Summary vs. Year-Ago Quarter
- Closed
$8.0 million - Net sales decreased
10% to$132.0 million - Gross profit of
$42.9 million $47.3 million 32.5% . - Net loss was
( , or ($1.9) million $0.03 ( , or ($15.3) million $0.27 - Adjusted EBITDA of
$0.6 million $(6.2) million - Cash of
$37.9 million $91.0 million - 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
The initiatives are executing. A-Premium is approaching
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
First Quarter 2026 Financial Results
Net sales in the first quarter of 2026 were
Gross profit was
Total operating expenses in the first quarter were
Net loss in the first quarter was
Adjusted EBITDA in the first quarter was
On April 4, 2026, the Company had a cash balance of
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
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:
Summarized information for the periods presented is as follows (in millions):
Thirteen Weeks | Thirteen Weeks | ||||||
April 4, 2026 | March 29, 2025 | ||||||
Net sales | $ | 131.96 | $ | 147.38 | |||
Gross profit | $ | 42.94 | $ | 47.35 | |||
32.5 | % | 32.1 | % | ||||
Operating expense | $ | 46.00 | $ | 62.49 | |||
34.9 | % | 42.4 | % | ||||
Net loss | $ | (1.94) | $ | (15.28) | |||
(1.5) | % | (10.4) | % | ||||
Adjusted EBITDA | $ | 0.59 | $ | (6.23) | |||
0.4 | % | (4.2) | % | ||||
The table below reconciles net loss to Adjusted EBITDA for the periods presented (in thousands):
Thirteen Weeks | Thirteen Weeks | |||||
April 4, 2026 | March 29, 2025 | |||||
Net loss | $ | (1,940) | $ | (15,283) | ||
Depreciation and amortization | 4,265 | 5,482 | ||||
Amortization of intangible assets | 8 | 13 | ||||
Interest expense (income), net | 279 | (3) | ||||
Income tax (benefit) provision | (1,391) | 140 | ||||
EBITDA | $ | 1,221 | $ | (9,651) | ||
Stock compensation expense | $ | 1,656 | $ | 2,872 | ||
Gain on sale of subsidiary(1) | (2,292) | — | ||||
Strategic alternatives exploration costs(2) | — | 550 | ||||
Adjusted EBITDA | $ | 585 | $ | (6,229) | ||
(1) | On January 27, 2026, | |||
(2) | We incurred certain costs, primarily legal and advisor costs, attributable to our exploration of strategic alternatives in 2025. | |||
CARPARTS.COM, INC. AND SUBSIDIARIES | ||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE OPERATIONS | ||||||
(Unaudited, In Thousands, Except Per Share Data) | ||||||
Thirteen Weeks Ended | ||||||
April 4, | March 29, | |||||
2026 | 2025 | |||||
Net sales | $ | 131,961 | $ | 147,378 | ||
Cost of sales (1) | 89,019 | 100,031 | ||||
Gross profit | 42,942 | 47,347 | ||||
Operating expense | 45,995 | 62,493 | ||||
Loss from operations | (3,053) | (15,146) | ||||
Other income (expense): | ||||||
Other income, net | 157 | 260 | ||||
Interest expense | (435) | (257) | ||||
Total other (expense) income, net | (278) | 3 | ||||
Loss before income taxes | (3,331) | (15,143) | ||||
Income tax (benefit) provision | (1,391) | 140 | ||||
Net loss | (1,940) | (15,283) | ||||
Net loss per share: | ||||||
Basic and diluted net loss per share | $ | (0.03) | $ | (0.27) | ||
Weighted-average common shares outstanding: | ||||||
Shares used in computation of basic and diluted net loss per share | 68,554 | 57,343 | ||||
(1) Excludes depreciation and amortization expense which is included in operating expense. | |||
CARPARTS.COM, INC. AND SUBSIDIARIES | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
(Unaudited, In Thousands, Except Par Value Data) | ||||||
April 4, | January 3, | |||||
2026 | 2026 | |||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 37,856 | $ | 25,821 | ||
Accounts receivable, net | 8,333 | 7,061 | ||||
Inventory, net | 91,042 | 95,180 | ||||
Other current assets | 7,327 | 6,996 | ||||
Total current assets | 144,558 | 135,058 | ||||
Property and equipment, net | 18,523 | 20,191 | ||||
Right-of-use - assets - operating leases, net | 17,672 | 18,586 | ||||
Right-of-use - assets - finance leases, net | 6,536 | 7,233 | ||||
Other non-current assets | 4,273 | 3,788 | ||||
Total assets | $ | 191,562 | $ | 184,856 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 46,378 | $ | 44,884 | ||
Accrued expenses | 28,227 | 24,642 | ||||
Right-of-use - obligation - operating, current | 4,716 | 4,858 | ||||
Right-of-use - obligation - finance, current | 2,594 | 2,767 | ||||
Other current liabilities | 4,516 | 4,090 | ||||
Total current liabilities | 86,431 | 81,241 | ||||
Convertible notes payable | 25,288 | 25,161 | ||||
Right-of-use - obligation - operating, non-current | 14,699 | 15,771 | ||||
Right-of-use - obligation - finance, non-current | 5,530 | 6,082 | ||||
Other non-current liabilities | 7 | 3,125 | ||||
Total liabilities | 131,955 | 131,380 | ||||
Commitments and contingencies (Note 6) | ||||||
Stockholders' equity: | ||||||
Common stock, | 75 | 65 | ||||
Treasury stock | (11,912) | (11,912) | ||||
Additional paid-in capital | 353,402 | 344,118 | ||||
Accumulated other comprehensive income | 0 | 1,223 | ||||
Accumulated deficit | (281,958) | (280,018) | ||||
Total stockholders' equity | 59,607 | 53,476 | ||||
Total liabilities and stockholders' equity | $ | 191,562 | $ | 184,856 | ||
CARPARTS.COM, INC. AND SUBSIDIARIES | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited, In Thousands) | |||||||
Thirteen Weeks Ended | |||||||
April 4, | March 29, | ||||||
2026 | 2025 | ||||||
Operating activities | |||||||
Net loss | $ | (1,940) | $ | (15,283) | |||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation and amortization expense | 4,265 | 5,482 | |||||
Amortization of intangible assets | 8 | 13 | |||||
Noncash interest expense | 127 | — | |||||
Share-based compensation expense | 1,656 | 2,872 | |||||
Stock awards issued for non-employee director service | 12 | 11 | |||||
Gain on sale of subsidiary | (2,292) | — | |||||
Amortization of deferred financing costs | 122 | 16 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (1,271) | (4,112) | |||||
Inventory | 4,138 | (3,853) | |||||
Other current assets | (582) | (269) | |||||
Other non-current assets | (904) | 35 | |||||
Accounts payable and accrued expenses | 5,102 | 19,975 | |||||
Other current liabilities | 425 | 488 | |||||
Right-of-use obligation - operating leases - current | 364 | 189 | |||||
Right-of-use obligation - operating leases - long-term | (541) | (186) | |||||
Other non-current liabilities | (1,428) | 124 | |||||
Net cash provided by operating activities | 7,261 | 5,505 | |||||
Investing activities | |||||||
Additions to property and equipment | (2,099) | (2,116) | |||||
Proceeds from sale of subsidiary | 300 | — | |||||
Net cash used in investing activities | (1,799) | (2,116) | |||||
Financing activities | |||||||
Borrowings from revolving loan payable | 73 | 68 | |||||
Payments made on revolving loan payable | (73) | (68) | |||||
Payments on finance leases | (720) | (954) | |||||
Net proceeds from issuance of common stock for ESPP | — | 96 | |||||
Proceeds from issuance of common stock | 8,000 | — | |||||
Payment of issuance costs - common stock | (36) | — | |||||
Statutory tax withholding payment for share-based compensation | (77) | (396) | |||||
Net cash provided by (used in) financing activities | 7,167 | (1,254) | |||||
Effect of exchange rate changes on cash | (594) | — | |||||
Net change in cash and cash equivalents | 12,035 | 2,135 | |||||
Cash and cash equivalents, beginning of period | 25,821 | 36,397 | |||||
Cash and cash equivalents, end of period | $ | 37,856 | $ | 38,532 | |||
Supplemental disclosure of non-cash investing and financing activities: | |||||||
Right-of-use operating asset acquired | $ | 2,407 | $ | — | |||
Accrued asset purchases | $ | 435 | $ | 526 | |||
Share-based compensation expense capitalized in property and equipment | $ | 93 | $ | 294 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash received during the period for income taxes | $ | 8 | $ | — | |||
Cash paid during the period for interest | $ | — | $ | 256 | |||
Cash received during the period for interest | $ | 156 | $ | 259 | |||
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SOURCE CarParts.com, Inc.