CarParts.com Reports First Quarter 2025 Results

CarParts.com, a leading eCommerce provider of automotive parts and accessories, has released its financial results for the first quarter ended March 29, 2025. The company, headquartered in Torrance, California, has been a premier destination for vehicle repair and maintenance needs for over 25 years.

Financial Highlights

For the first quarter of 2025, CarParts.com reported a net sales decrease of 11% to $147.4 million compared to $166.3 million in the same period last year. The gross profit was $47.3 million, down from $53.9 million, with a gross margin of 32.1%. The company experienced a net loss of $15.3 million, or $0.27 per share, compared to a net loss of $6.5 million, or $0.11 per share, in the year-ago quarter. Adjusted EBITDA was reported at ($6.2) million, a significant decline from $1.1 million in the previous year.

Business and Operational Highlights

Despite the financial challenges, CarParts.com reported several operational milestones. The company's mobile app has reached approximately 900,000 cumulative net downloads. Additionally, over 5,000 CarParts+ and Roadside Assistance Memberships were sold year to date. The company also maintained a cash balance of $38.5 million with no revolver debt.

Strategic Initiatives and Corporate Developments

CarParts.com is focusing on upgrading its customer base to higher income and less price-sensitive customers, diversifying its acquisition mix, and realigning its business around higher-margin products. The company is also exploring strategic alternatives in response to inbound interest, although no specific guidance for 2025 has been provided.

Management's Perspective

CEO David Meniane commented on the results, highlighting the pressure on profitability due to gross margin compression and advertising spend. He emphasized the importance of targeting higher-margin sales, growing customer lifetime value through the mobile app, and increasing focus on wholesale and commercial opportunities. Meniane noted that early results in the second quarter show double-digit revenue growth year-over-year with lower marketing spend, indicating positive trends in repeat customers, mobile app traffic, and high-margin fee income.

Future Outlook

While the company is not providing specific guidance for 2025, it is actively evaluating strategic alternatives and remains focused on transforming its customer acquisition mix and margin profile to enhance profitability.

SEC Filing: CarParts.com, Inc. [ PRTS ] - 8-K - May. 13, 2025