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Sep 27, 2025
CarParts.com Q3 2025 Earnings Report
CarParts.com reported a net loss and decreased sales in Q3 2025 while improving operational efficiency and maintaining strong liquidity.
Key Takeaways
In Q3 2025, CarParts.com posted a net loss of $10.9 million as net sales declined by 12% year-over-year due to strategic reductions in marketing spend. Despite the decline in revenue, the company managed to reduce operating expenses and maintain a solid cash position. Management emphasized a focus on long-term profitability and free cash flow generation supported by new strategic partnerships.
Net sales fell to $127.8 million, down 12% YoY due to lower marketing spend.
Gross margin declined to 33.1% from 35.2% last year, impacted by product mix and tariffs.
Net loss widened slightly to $10.9 million, from $10.0 million in Q3 2024.
Company ended the quarter with $36.0 million in cash and no revolver debt.
Forward Guidance
CarParts.com expects to generate positive free cash flow in 2026, focusing on disciplined cost management and leveraging strategic partnerships for scalable growth.
Positive Outlook
- Expecting to be free cash flow positive in 2026.
- $35.7 million strategic investment secured in September 2025.
- New partnerships expected to drive over $100 million in incremental revenue.
- Operational cost structure improved with headcount and marketing reductions.
- Mobile app adoption continues to grow with over 1.1 million downloads.
Challenges Ahead
- Gross margin declined due to tariffs and product mix.
- Net sales fell 12% YoY amid lower marketing spend.
- Operating losses remain persistent.
- No updated EPS guidance provided.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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