CarParts.com Reports Second Quarter 2025 Results
CarParts.com (NASDAQ: PRTS) reported mixed Q2 2025 results with net sales increasing 5% to $151.9 million, while posting a wider net loss of ($12.7) million compared to ($8.7) million in the year-ago quarter. The company's gross profit reached $49.8 million with a gross margin of 32.8%, down 70 basis points year-over-year.
The company is actively exploring strategic alternatives, including a potential sale, and reports being in the final stages of this process. Management highlighted positive Adjusted EBITDA achievement in June and implementation of cost-saving initiatives expected to generate $10 million in annualized savings. The company's financial position shows $19.8 million in cash and has drawn $10.0 million from its revolver loan.
Due to the ongoing strategic alternatives evaluation, CarParts.com is not providing guidance for 2025.CarParts.com (NASDAQ: PRTS) ha riportato risultati misti nel secondo trimestre 2025 con le vendite nette in aumento del 5% a $151,9 milioni, ma con una perdita netta più ampia di $12,7 milioni rispetto a $8,7 milioni nello stesso trimestre dell'anno precedente. Il richiamo del margine lordo ha raggiunto $49,8 milioni con una marginalità del 32,8%, in calo di 70 punti base su base annua.
L'azienda sta esplorando attivamente alternative strategiche, inclusa una possibile vendita, e riferisce di essere nelle fasi finali di tale processo. La direzione ha sottolineato il raggiungimento di un EBITDA rettificato positivo a giugno e l'implementazione di iniziative di contenimento dei costi che dovrebbero generare $10 milioni di risparmi annualizzati. La situazione finanziaria mostra $19,8 milioni in cassa e un prelievo di $10,0 milioni dalla linea di credito revolving.
A causa della valutazione in corso delle alternative strategiche, CarParts.com non fornisce indicazioni per il 2025.
CarParts.com (NASDAQ: PRTS) informó resultados mixtos en el 2T 2025 con las ventas netas subiendo un 5% hasta $151,9 millones, mientras registraba una pérdida neta mayor de $12,7 millones frente a $8,7 millones en el mismo trimestre del año anterior. El beneficio bruto fue de $49,8 millones con un margen bruto del 32,8%, 70 puntos básicos menos interanual.
La compañía está explorando activamente alternativas estratégicas, incluida una posible venta, y afirma estar en las etapas finales de ese proceso. La dirección destacó la consecución de un EBITDA ajustado positivo en junio y la implementación de medidas de ahorro que deberían generar $10 millones en ahorros anualizados. La posición financiera muestra $19,8 millones en efectivo y se ha dispuesto $10,0 millones de su línea revolvente.
Debido a la evaluación en curso de alternativas estratégicas, CarParts.com no ofrece previsiones para 2025.
CarParts.com (NASDAQ: PRTS)는 2025년 2분기 실적이 엇갈렸습니다. 순매출은 5% 증가한 1억5,190만 달러를 기록했지만, 전년 동기 870만 달러의 손실에서 확대되어 1,270만 달러의 순손실을 기록했습니다. 회사의 총이익은 4,980만 달러이며 총마진은 32.8%로 전년 대비 70bp 하락했습니다.
회사는 잠재적 매각을 포함한 전략적 대안을 적극적으로 검토 중이며 이 절차가 최종 단계에 있다고 보고했습니다. 경영진은 6월에 조정 EBITDA가 흑자를 달성한 점을 강조했으며, 연간 1,000만 달러의 비용 절감을 기대하는 비용 절감 조치도 시행하고 있습니다. 재무 상태는 1,980만 달러의 현금을 보유하고 있으며 회전 대출에서 1,000만 달러를 차입했습니다.
전략적 대안 검토가 진행 중이므로 CarParts.com은 2025년 가이던스를 제시하지 않습니다.
CarParts.com (NASDAQ: PRTS) a publié des résultats mitigés pour le 2e trimestre 2025 avec des ventes nettes en hausse de 5% à $151,9 millions, tout en affichant une perte nette plus importante de $12,7 millions contre $8,7 millions au trimestre précédent. Le bénéfice brut s'est établi à $49,8 millions avec une marge brute de 32,8%, en baisse de 70 points de base en glissement annuel.
La société étudie activement des alternatives stratégiques, y compris une éventuelle cession, et indique être dans les phases finales de ce processus. La direction a souligné l'obtention d'un EBITDA ajusté positif en juin et la mise en place d'initiatives de réduction des coûts qui devraient générer $10 millions d'économies annualisées. La position financière montre $19,8 millions de trésorerie et un tirage de $10,0 millions sur sa ligne de crédit renouvelable.
En raison de l'évaluation en cours des alternatives stratégiques, CarParts.com ne fournit pas de perspectives pour 2025.
CarParts.com (NASDAQ: PRTS) meldete gemischte Ergebnisse für das 2. Quartal 2025 mit einem Anstieg der Nettoumsätze um 5% auf $151,9 Millionen, verzeichnete jedoch einen höheren Nettoverlust von $12,7 Millionen gegenüber $8,7 Millionen im Vorjahresquartal. Der Bruttogewinn belief sich auf $49,8 Millionen bei einer Bruttomarge von 32,8%, ein Rückgang um 70 Basispunkte gegenüber dem Vorjahr.
Das Unternehmen prüft aktiv strategische Alternativen, einschließlich eines möglichen Verkaufs, und berichtet, sich in den Endphasen dieses Prozesses zu befinden. Das Management hob ein positives bereinigtes EBITDA im Juni hervor und die Umsetzung von Kostensenkungsmaßnahmen, die voraussichtlich $10 Millionen an jährlichen Einsparungen bringen werden. Die Finanzlage zeigt $19,8 Millionen in bar und eine Inanspruchnahme von $10,0 Millionen aus der revolvierenden Kreditlinie.
Aufgrund der laufenden Prüfung strategischer Alternativen gibt CarParts.com keine Prognose für 2025 ab.
- Net sales grew 5% year-over-year to $151.9 million
- Achieved positive Adjusted EBITDA in June 2025
- Strategic cost-saving initiatives expected to generate $10 million in annualized savings
- Mobile app reached 1 million cumulative downloads
- Membership program grew to over 7,000 CarParts+ and Roadside Assistance members
- Net loss widened to ($12.7) million from ($8.7) million year-over-year
- Gross margin decreased 70 basis points to 32.8%
- Operating expenses increased to 40.9% of net sales, up 1.3%
- Cash position declined to $19.8 million from $36.4 million at year-end 2024
- Drew $10.0 million from revolver loan compared to no debt at year-end
Insights
CarParts.com reports worsening losses despite 5% revenue growth; exploring potential sale amid deteriorating performance.
CarParts.com's Q2 2025 results paint a concerning picture despite the company's attempt to highlight positive developments. Revenue increased by a modest
Particularly worrying is the company's cash position, which has declined precipitously from
The deterioration in Adjusted EBITDA from
Management's commentary appears to be setting the stage for a potential sale of the company, noting they are "evaluating several different transaction structures, including a potential sale" and that the process is "nearing completion." This strategic alternatives exploration, combined with the implementation of cost-cutting measures aimed at generating
While management highlighted June's positive Adjusted EBITDA as a milestone, this single month of performance is overshadowed by the quarter's overall negative results. The company's decision to withhold guidance for 2025 due to the ongoing strategic alternatives process further indicates uncertainty about its standalone future.
Second Quarter 2025 Summary vs. Year-Ago Quarter
- Net sales increased
5% to .$151.9 million - Gross profit of
vs.$49.8 million , with gross margin of$48.4 million 32.8% . - Net loss was
( , or ($12.7) million ) per share, compared to a net loss of$0.23 ( , or ($8.7) million ) per share.$0.15 - Adjusted EBITDA of
( vs.$3.1) million ( .$0.1) million - Cash of
and inventory of$19.8 million .$94.0 million - Our mobile app has cumulative net downloads of approximately 1,000,000.
- Over 7,000 CarParts+ and Roadside Assistance Memberships.
Management Commentary
"We remain fully engaged in our process to explore strategic alternatives to maximize shareholder value and are highly confident that this process is nearing completion. We are currently evaluating several different transaction structures, including a potential sale of the company and strategic investments that we believe have the potential to strengthen our capabilities and unlock new growth. In all of this, our board is committed to continuing to operate in a manner that delivers value to our shareholders. That said, there can be no assurance that we will reach a transaction.
During the second quarter, showed measurable sequential progress across the business with results improving over our first quarter. While the full impact of our strategic initiatives isn't reflected in our quarterly numbers, the month of June was a milestone – we achieved positive Adjusted EBITDA, underscoring that our efforts are beginning to deliver tangible results. A lot of the work is happening behind the scenes—from realigning our fulfillment network to investing in AI and automation—and we expect these efforts to generate approximately
Second Quarter 2025 Financial Results
Net sales in the second quarter of 2025 were
Gross profit was
Total operating expenses in the second quarter were
Net loss in the second quarter was
Adjusted EBITDA in the second quarter was
On June 28, 2025, the Company had a cash balance of
2025 Outlook
The company is currently evaluating various strategic alternatives in response to inbound interest. As a result, we are not providing guidance for 2025.
Conference Call
CarParts.com CEO David Meniane and CFO Ryan Lockwood will host a conference call today to discuss the results.
Date: Tuesday, August 12, 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
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 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.
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:
Ryan Lockwood, CFA
IR@carparts.com
Summarized information for the periods presented is as follows (in millions):
Thirteen Weeks Ended | Thirteen Weeks Ended | Twenty-Six Weeks Ended | Twenty-Six Weeks Ended | ||||||||||
June 28, 2025 | June 29, 2024 | June 28, 2025 | June 29, 2024 | ||||||||||
Net sales | $ | 151.95 | $ | 144.27 | $ | 299.33 | $ | 310.56 | |||||
Gross profit | $ | 49.78 | $ | 48.39 | $ | 97.13 | $ | 102.31 | |||||
32.8 | % | 33.5 | % | 32.4 | % | 32.9 | % | ||||||
Operating expense | $ | 62.20 | $ | 57.12 | $ | 124.69 | $ | 117.56 | |||||
40.9 | % | 39.6 | % | 41.7 | % | 37.9 | % | ||||||
Net loss | $ | (12.71) | $ | (8.69) | $ | (27.99) | $ | (15.17) | |||||
(8.4) | % | (6.0) | % | (9.4) | % | (4.9) | % | ||||||
Adjusted EBITDA | $ | (3.12) | $ | (0.12) | $ | (9.34) | $ | 0.93 | |||||
(2.1) | % | (0.1) | % | (3.1) | % | 0.3 | % |
The table below reconciles net loss to Adjusted EBITDA for the periods presented (in thousands):
Thirteen Weeks Ended | Thirteen Weeks Ended | Twenty-Six Weeks Ended | Twenty-Six Weeks Ended | |||||||||
June 28, 2025 | June 29, 2024 | June 28, 2025 | June 29, 2024 | |||||||||
Net loss | $ | (12,711) | $ | (8,687) | $ | (27,994) | $ | (15,165) | ||||
Depreciation & amortization | 4,978 | 4,455 | 10,460 | 8,480 | ||||||||
Amortization of intangible assets | 14 | 13 | 27 | 21 | ||||||||
Interest income, net | 204 | (68) | 201 | (205) | ||||||||
Income tax provision | 90 | 27 | 230 | 125 | ||||||||
EBITDA | $ | (7,425) | $ | (4,260) | $ | (17,076) | $ | (6,744) | ||||
Stock compensation expense | $ | 2,273 | $ | 3,328 | $ | 5,145 | $ | 5,910 | ||||
Workforce transition costs(1) | 1,657 | 108 | 1,657 | 591 | ||||||||
Distribution center costs(2) | — | 706 | — | 1,177 | ||||||||
Strategic alternatives exploration costs(3) | 379 | — | 929 | — | ||||||||
Adjusted EBITDA | $ | (3,116) | $ | (118) | $ | (9,345) | $ | 934 |
(1) | We incurred workforce transition costs, primarily related to severance, mainly as part of our recent workforce reductions in the fiscal year ended December 28, 2024 and recently in the second quarter of 2025. | ||
(2) | We incurred certain non-recurring costs, primarily overlapping rent expense, attributable to moving to our new | ||
(3) | We incurred certain costs, primarily legal and advisor costs, attributable to our ongoing exploration of strategic alternatives. |
CARPARTS.COM, INC. AND SUBSIDIARIES | ||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE OPERATIONS (Unaudited, In Thousands, Except Per Share Data) | ||||||||||||
Thirteen Weeks Ended | Twenty-Six Weeks Ended | |||||||||||
June 28, | June 29, | June 28, | June 29, | |||||||||
2025 | 2024 | 2025 | 2024 | |||||||||
Net sales | $ | 151,949 | $ | 144,270 | $ | 299,327 | $ | 310,559 | ||||
Cost of sales (1) | 102,170 | 95,877 | 202,201 | 208,247 | ||||||||
Gross profit | 49,779 | 48,393 | 97,126 | 102,312 | ||||||||
Operating expense | 62,196 | 57,121 | 124,689 | 117,557 | ||||||||
Loss from operations | (12,417) | (8,728) | (27,563) | (15,245) | ||||||||
Other income (expense): | ||||||||||||
Other income, net | 181 | 354 | 441 | 791 | ||||||||
Interest expense | (385) | (286) | (642) | (586) | ||||||||
Total other (loss) income, net | (204) | 68 | (201) | 205 | ||||||||
Loss before income taxes | (12,621) | (8,660) | (27,764) | (15,040) | ||||||||
Income tax provision | 90 | 27 | 230 | 125 | ||||||||
Net loss | (12,711) | (8,687) | (27,994) | (15,165) | ||||||||
Other comprehensive gain: | ||||||||||||
Foreign currency adjustments | — | — | — | 87 | ||||||||
Total other comprehensive gain | — | — | — | 87 | ||||||||
Comprehensive loss | $ | (12,711) | $ | (8,687) | $ | (27,994) | $ | (15,078) | ||||
Net loss per share: | ||||||||||||
Basic and diluted net loss per share | $ | (0.23) | $ | (0.15) | $ | (0.47) | $ | (0.27) | ||||
Weighted-average common shares outstanding: | ||||||||||||
Shares used in computation of basic and diluted net loss per share | 55,894 | 56,851 | 60,176 | 56,677 |
(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) | ||||||
June 28, | December 28, | |||||
2025 | 2024 | |||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 19,774 | $ | 36,397 | ||
Accounts receivable, net | 7,536 | 6,098 | ||||
Inventory, net | 94,010 | 90,353 | ||||
Other current assets | 5,098 | 6,020 | ||||
Total current assets | 126,418 | 138,868 | ||||
Property and equipment, net | 28,437 | 32,206 | ||||
Right-of-use - assets - operating leases, net | 23,887 | 26,682 | ||||
Right-of-use - assets - finance leases, net | 8,950 | 10,765 | ||||
Other non-current assets | 1,892 | 2,053 | ||||
Total assets | $ | 189,584 | $ | 210,574 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 51,501 | $ | 60,365 | ||
Accrued expenses | 20,263 | 16,083 | ||||
Right-of-use - obligation - operating, current | 5,756 | 5,810 | ||||
Right-of-use - obligation - finance, current | 3,148 | 3,471 | ||||
Other current liabilities | 5,484 | 4,694 | ||||
Total current liabilities | 86,152 | 90,423 | ||||
Revolving loan payable | 10,000 | — | ||||
Right-of-use - obligation - operating, non-current | 20,459 | 23,203 | ||||
Right-of-use - obligation - finance, non-current | 7,366 | 8,842 | ||||
Other non-current liabilities | 3,161 | 2,931 | ||||
Total liabilities | 127,138 | 125,399 | ||||
Commitments and contingencies (Note 6) | ||||||
Stockholders' equity: | ||||||
Common stock, | 63 | 61 | ||||
Treasury stock | (11,912) | (11,912) | ||||
Additional paid-in capital | 330,809 | 325,546 | ||||
Accumulated other comprehensive income | 1,055 | 1,055 | ||||
Accumulated deficit | (257,569) | (229,575) | ||||
Total stockholders' equity | 62,446 | 85,175 | ||||
Total liabilities and stockholders' equity | $ | 189,584 | $ | 210,574 |
CARPARTS.COM, INC. AND SUBSIDIARIES | ||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, In Thousands) | ||||||
Twenty-Six Weeks Ended | ||||||
June 28, | June 29, | |||||
2025 | 2024 | |||||
Operating activities | ||||||
Net loss | $ | (27,994) | $ | (15,165) | ||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||||
Depreciation and amortization expense | 10,460 | 8,480 | ||||
Amortization of intangible assets | 27 | 21 | ||||
Share-based compensation expense | 5,145 | 5,910 | ||||
Stock awards issued for non-employee director service | 25 | 19 | ||||
Stock awards related to officers and directors stock purchase plan from payroll deferral | — | 4 | ||||
Amortization of deferred financing costs | 32 | 32 | ||||
Changes in operating assets and liabilities: | ||||||
Accounts receivable | (1,437) | 1,217 | ||||
Inventory | (3,656) | 19,613 | ||||
Other current assets | 921 | (2,032) | ||||
Other non-current assets | 102 | 15 | ||||
Accounts payable and accrued expenses | (4,701) | (17,802) | ||||
Other current liabilities | 789 | (566) | ||||
Right-of-use obligation - operating leases - current | (25) | 1,169 | ||||
Right-of-use obligation - operating leases - long-term | 22 | (790) | ||||
Other non-current liabilities | 230 | (107) | ||||
Net cash (used in) provided by operating activities | (20,060) | 18 | ||||
Investing activities | ||||||
Additions to property and equipment | (4,408) | (14,567) | ||||
Payments for intangible assets | — | (40) | ||||
Net cash used in investing activities | (4,408) | (14,607) | ||||
Financing activities | ||||||
Borrowings from revolving loan payable | 10,213 | 127 | ||||
Payments made on revolving loan payable | (213) | (127) | ||||
Payments on finance leases | (1,786) | (2,157) | ||||
Net proceeds from issuance of common stock for ESPP | 96 | 202 | ||||
Statutory tax withholding payment for share-based compensation | (465) | (429) | ||||
Net cash provided by (used in) financing activities | 7,845 | (2,384) | ||||
Effect of exchange rate changes on cash | — | 87 | ||||
Net change in cash and cash equivalents | (16,623) | (16,886) | ||||
Cash and cash equivalents, beginning of period | 36,397 | 50,951 | ||||
Cash and cash equivalents, end of period | $ | 19,774 | $ | 34,065 | ||
Supplemental disclosure of non-cash investing and financing activities: | ||||||
Right-of-use operating asset acquired | $ | — | $ | 12,857 | ||
Accrued asset purchases | $ | 469 | $ | 888 | ||
Share-based compensation expense capitalized in property and equipment | $ | 502 | $ | 431 | ||
Supplemental disclosure of cash flow information: | ||||||
Cash paid during the period for income taxes | $ | 129 | $ | 48 | ||
Cash paid during the period for interest | $ | 642 | $ | 586 | ||
Cash received during the period for interest | $ | 441 | $ | 791 |
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SOURCE CarParts.com, Inc.