CarParts.com's Q4 loss was better than expected, but revenue fell short

LootboxPhobia · 2026-03-05T22:34:24+00:00

CarParts.com reports Q4 earnings, with a loss of $0.17 per share, better than expectations, but revenue was $120.4 million, below the expected $135.86 million, a 10% year-over-year decline. Despite an improvement in gross margin, full-year net sales decreased by 7%. The company stated that the improvement in free cash flow depends on margin enhancement and cost reduction.

LootboxPhobia

2026-03-05 22:34:24

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Los Angeles - CarParts.com, Inc. (NASDAQ:PRTS) reports a smaller-than-expected loss for Q4, but the auto parts retailer’s revenue fell short amid ongoing restructuring.

The company posted a Q4 loss of $0.17 per share, better than the analyst consensus of a $0.24 loss per share. However, revenue of $120.4 million missed the $135.86 million estimate, down 10% year-over-year from $133.5 million. This quarter included 14 weeks, compared to 13 weeks in the same period last year.

After the earnings release, the stock price showed little movement.

Gross margin expanded 70 basis points from 32.5% last year to 33.2%. Adjusted EBITDA improved from a negative $6.8 million in Q4 2024 to a negative $2.2 million, nearly $5 million better year-over-year.

CEO David Meniane stated, “Q4 has always been our weakest quarter, but it performed better than Q3 — marking four consecutive quarters of improvement in contribution margin, fixed operating expenses, and adjusted EBITDA. Our path to free cash flow does not rely on demand rebound but is driven by higher contribution margins, significantly reduced fixed cost base, and increased capital efficiency through partnerships.”

The full fiscal year 2025 includes 53 weeks, with net sales declining 7% from $588.8 million to $547.5 million. The company reported a net loss of $0.82 per share, compared to a $0.71 loss in FY 2024. Adjusted EBITDA was negative $14 million, versus negative $7.1 million last year.

During the year, the company completed strategic investments of $35.7 million from A-Premium, ZongTeng Group, and CDH Investments. As of January 3, 2026, CarParts.com has $25.8 million in cash and $95.2 million in inventory.

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