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CarParts.com Q3 2025 Financial Report Overview

In a recent announcement, CarParts.com, Inc. (NASDAQ: PRTS), a prominent player in the eCommerce automotive sector, detailed its financial performance for the third quarter ending September 27, 2025. This comes against a backdrop of strategic investments aimed at revitalizing growth and enhancing market position.

Key Financial Metrics

The third quarter revealed a 12% decline in net sales, totaling $127.8 million, down from $144.8 million in the same period last year. This reduction is attributed to efforts focused on improving profitability through marketing spend rationalization.

Despite this decrease, gross profit marked at $42.3 million, down from $51.0 million, registering a gross margin of 33.1%. Net losses amounted to $10.9 million, reflecting a loss of $0.19 per share, which worsened slightly from a previous net loss of $10.0 million or $0.17 per share. The adjusted EBITDA also saw deterioration, posting ($2.2 million) compared to ($1.2 million) from the prior year.

The company maintained a cash reserve of $36.0 million and an inventory value of $94.3 million, critical for operational flexibility.

Management Insights

CEO David Meniane provided insights into the company’s strategic maneuvers, announcing the closure of a major $35.7 million investment deal with partners A-Premium, ZongTeng Group, and CDH Investments. This collaboration is expected to substantially enhance logistics capabilities, optimize inventory management, and improve product offerings, thus targeting higher customer satisfaction through faster service delivery.

ZongTeng’s global logistics network, which features over 24 million square feet of fulfillment space, will provide access to more than 50 U.S.-based facilities. This partnership is poised to streamline operations while minimizing substantial capital expenditures. Meanwhile, A-Premium’s introduction of over 100,000 new SKUs aims to significantly broaden CarParts.com’s product range, creating opportunities for increased revenue generation potentially exceeding $100 million as integration progresses.

CDH also brings strategic operational acumen alongside its funding, poised to reinforce CarParts.com's ambitions for future scalability and growth in the automotive market.

Future Directions

Looking forward, CarParts.com is committed to enhancing operational efficiency and profitability, focusing on every critical factor affecting its profit and loss. Management outlined a clear execution plan focused on disciplined growth strategies. They aim to achieve positive free cash flow by 2026, underscoring their confidence in the effectiveness of the partnerships and strategies employed.

As the company navigates through these financial challenges, it remains resolute in achieving long-term profitability by capitalizing on its extensive product offerings and leveraging new technological advancements in eCommerce.

Conclusion

CarParts.com’s recent quarter prompts reflections on both challenges and opportunities. The strategic investments and operational adjustments aim to solidify its market presence and enhance customer experiences in a competitive landscape. With a strong infrastructure and commitment to profitable growth, the company is setting the stage for potential recovery and sustained success in the automotive parts industry.