CarParts.com Reports Q2 2025 Results: Strategic Revisions Underway
In its recent quarterly report, CarParts.com, Inc. (NASDAQ: PRTS), a prominent player in the eCommerce sector for automotive parts and accessories, shared its performance analysis for the second quarter of 2025 which concluded on June 28, 2025. This period saw the company generate net sales of $151.9 million, reflecting a 5% growth compared to the same timeframe last year when sales were at $144.3 million.
Despite the sales upturn, the gross profit margin slightly declined; CarParts.com reported a gross profit of $49.8 million, down from $48.4 million the year before, leading to a gross margin that dipped by 70 basis points to 32.8%. Factors contributing to this margin reduction included changes in product mix and tariffs affecting costs.
However, alongside these positive sales metrics, CarParts.com faced a net loss of $12.7 million, or $0.23 per share, worsening from a loss of $8.7 million or $0.15 per share during the same quarter of the prior year. Adjusted EBITDA reflected the company's ongoing challenges, sitting at ($3.1 million), a deterioration from the ($0.1 million) reported in 2024.
As the company navigates through these financial dynamics, it holds a cash reserve of $19.8 million along with an inventory totaling $94 million. Additionally, the company's commitment to enhancing its service and offerings is evident through its mobile app, which has achieved approximately 1 million downloads, along with over 7,000 memberships in both the CarParts+ and Roadside Assistance programs.
CEO David Meniane remarked that the company is actively exploring strategic alternatives to maximize shareholder value, with prospects of possibly selling the business or securing strategic investments. Meniane expressed optimism, noting that while the current numbers may not completely reflect their strategic efforts, signs of positive adjustments are noticeable as they move forward.
He further highlighted that June marked a milestone for CarParts.com, as they recorded their first positive Adjusted EBITDA, suggesting that steps taken towards aligning fulfillment operations and investing in AI and automation are beginning to pay off. The improvements are expected to yield around $10 million in annualized cost savings, setting the stage for better margins and enhanced earnings growth in the future.
On the operational front, the company revealed that its total operating expenses increased to $62.2 million, up from $57.1 million compared to the previous year. The increase, attributed to heightened marketing spending and additional one-time fees associated with exploring these strategic alternatives, raises questions about the company's future trajectory and how effectively it can balance costs with growth aspirations.
For those interested, CarParts.com invites participants to discuss these results in detail during a conference call hosted by CEO Meniane and CFO Ryan Lockwood at 5:00 PM Eastern Time today. To join the conversation, one can access the call via their webcast link.
Having been operational for over 25 years, CarParts.com has established a reputable position in the automotive parts sector, offering more than 1 million products designed for vehicle repair and maintenance needs. With a focus on customer satisfaction, they are dedicated to providing a seamless shopping experience through their website and mobile app. Their extensive inventory includes private-label and marketplace brands, catering to the diverse automotive needs of consumers nationwide. For additional insights about their offerings, please visit CarParts.com.
Despite the sales upturn, the gross profit margin slightly declined; CarParts.com reported a gross profit of $49.8 million, down from $48.4 million the year before, leading to a gross margin that dipped by 70 basis points to 32.8%. Factors contributing to this margin reduction included changes in product mix and tariffs affecting costs.
However, alongside these positive sales metrics, CarParts.com faced a net loss of $12.7 million, or $0.23 per share, worsening from a loss of $8.7 million or $0.15 per share during the same quarter of the prior year. Adjusted EBITDA reflected the company's ongoing challenges, sitting at ($3.1 million), a deterioration from the ($0.1 million) reported in 2024.
As the company navigates through these financial dynamics, it holds a cash reserve of $19.8 million along with an inventory totaling $94 million. Additionally, the company's commitment to enhancing its service and offerings is evident through its mobile app, which has achieved approximately 1 million downloads, along with over 7,000 memberships in both the CarParts+ and Roadside Assistance programs.
CEO David Meniane remarked that the company is actively exploring strategic alternatives to maximize shareholder value, with prospects of possibly selling the business or securing strategic investments. Meniane expressed optimism, noting that while the current numbers may not completely reflect their strategic efforts, signs of positive adjustments are noticeable as they move forward.
He further highlighted that June marked a milestone for CarParts.com, as they recorded their first positive Adjusted EBITDA, suggesting that steps taken towards aligning fulfillment operations and investing in AI and automation are beginning to pay off. The improvements are expected to yield around $10 million in annualized cost savings, setting the stage for better margins and enhanced earnings growth in the future.
On the operational front, the company revealed that its total operating expenses increased to $62.2 million, up from $57.1 million compared to the previous year. The increase, attributed to heightened marketing spending and additional one-time fees associated with exploring these strategic alternatives, raises questions about the company's future trajectory and how effectively it can balance costs with growth aspirations.
For those interested, CarParts.com invites participants to discuss these results in detail during a conference call hosted by CEO Meniane and CFO Ryan Lockwood at 5:00 PM Eastern Time today. To join the conversation, one can access the call via their webcast link.
Having been operational for over 25 years, CarParts.com has established a reputable position in the automotive parts sector, offering more than 1 million products designed for vehicle repair and maintenance needs. With a focus on customer satisfaction, they are dedicated to providing a seamless shopping experience through their website and mobile app. Their extensive inventory includes private-label and marketplace brands, catering to the diverse automotive needs of consumers nationwide. For additional insights about their offerings, please visit CarParts.com.
Topics Consumer Products & Retail）
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