MIAMI, Jan. 28, 2026 (GLOBE NEWSWIRE) -- Lean Solutions Group, a global leader in AI-enabled business services, today announced its selection by CarParts.com (NASDAQ: PRTS) to deliver advanced business operations for CarParts.com’s Manila-based teams. This win marks a milestone in Lean Solutions Group’s growth and expansion, demonstrating the momentum of the company’s business transformation solutions – all of which are powered by an optimum balance of AI with embedded experts. Under this multi-year agreeme ...

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Core Insights - The article discusses CarParts.com's strategic partnerships aimed at enhancing logistics and expanding product offerings, focusing on disciplined and profitable growth rather than just volume [1][3][6]. Strategic Partnerships - CarParts.com secured a $35.7 million investment from A-Premium, ZongTeng Group, and CDH Investments to support its strategic initiatives [3]. - The partnership with ZongTeng provides access to a U.S. logistics network with over 50 facilities, reducing delivery times and fulfillment costs through automation [4]. - A-Premium's collaboration adds over 100,000 SKUs, with sales from this catalog trending at a $20 million annualized run rate, potentially reaching $50 million soon and exceeding $100 million over time [5]. Consumer Spending and Market Conditions - Consumer demand is described as uneven due to inflation and tariffs impacting pricing and costs, with 20% of private-label products imported from China facing tariffs between 55% and 75% [7]. - The company is managing these challenges through vendor negotiations, dynamic pricing, and supply chain optimization [7][8]. CFO Commentary and Results - The third-quarter revenue reported was $127.8 million, a 12% decline from $144.8 million a year earlier, attributed to a strategic reduction in paid marketing to enhance profitability [9]. - Advertising costs decreased from 17.7% of gross sales in January to 12.5% by September, resulting in an increase in contribution margins by over 300 basis points [9][10]. Outlook and Focus Ahead - The company plans to continue expanding the A-Premium catalog and monetizing its 100 million annual website visits, with the mobile app now accounting for over 13% of eCommerce sales [11]. - The CarParts+ membership program has reached 8,000 members, generating an annualized fee-income run rate near $4 million [11]. - The transformation of CarParts.com is a multiyear effort focused on automation and AI-driven personalization, with a goal of achieving free cash flow break-even by 2026 [12].

Core Points - The conference call is hosted by Ryan Lockwood, the Chief Financial Officer of CarParts.com, with David Meniane, the Chief Executive Officer, also present [2][4] - The call includes forward-looking statements regarding the company's strategic initiatives, with a caution that actual results may differ due to various risks and uncertainties [3] - Both GAAP and non-GAAP financial measures will be discussed during the call, with reconciliations provided in the press release [4]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $128 million, down 12% year-over-year from $144.8 million in Q3 2024, primarily due to a strategic shift in consumer acquisition approach [9][21] - Gross profit for the quarter was $42.3 million, down 17% compared to the prior year, with gross margin decreasing from 35.2% to 33.1% [21] - GAAP net loss for the quarter was $11 million, compared to a loss of $10 million in the prior year [21] - Adjusted EBITDA loss was $2.2 million, down from a loss of $1.2 million in the prior year [22] - Cash balance at the end of the quarter was $36 million with no revolver debt [22] Business Line Data and Key Metrics Changes - Collision and replacement parts represent about 70% of the business, with mechanical parts historically being secondary [5] - The partnership with A Premium is expected to add over 100,000 SKUs, targeting $50 million in incremental revenue in the near term [6] - Mobile app revenue increased from under 9% of e-commerce sales at the beginning of the year to more than 13% by the end of Q3 [11] Market Data and Key Metrics Changes - Approximately 20% of private label products are imported from China, with tariffs ranging from 55% to 75% impacting gross margins [8] - Tariffs on automotive products sourced from Taiwan are currently at about 25% [8] - The company is actively managing the tariff environment through cost negotiations and dynamic pricing adjustments [8] Company Strategy and Development Direction - The company is focused on profitable growth, operational discipline, and sustained free cash flow generation [10][14] - Strategic partnerships with A Premium, Zongteng Group, and CDH Investments are aimed at enhancing product assortment, logistics capabilities, and capital positions [4][6][18] - The shift in e-commerce customer acquisition strategy emphasizes retention and mobile app channels over paid search [12][13] Management's Comments on Operating Environment and Future Outlook - The operating environment remains complex with tariff uncertainty, shifting consumer demand, and inflationary pressures [15] - The company expects to be free cash flow positive in 2026, despite ongoing challenges [14][26] - Management is confident in the strategic direction and believes the company is building a stronger competitive position for the long term [18][26] Other Important Information - The company closed a $35.7 million strategic investment from A Premium, Zongteng Group, and CDH Investments [4] - The Virginia facility was closed to align operational fixed costs with volume, reflecting a leaner and more efficient business model [10] Q&A Session Summary - There were no questions in the Q&A queue during the call [26]

Financial Performance - Net sales for Q3 2025 were $127.8 million, a decrease of 12% from $144.8 million in Q3 2024[9] - Gross profit was $42.3 million, down from $51.0 million, with a gross margin of 33.1%, a decrease of 210 basis points[10] - Net loss for the quarter was ($10.9) million, compared to a net loss of ($10.0) million in the prior year[11] - Adjusted EBITDA was ($2.2) million, worsening from ($1.2) million in Q3 2024[11] - Net sales for the thirteen weeks ended September 27, 2025, were $127.769 million, a decrease of 11.7% compared to $144.751 million for the same period in 2024[26] - Gross profit for the thirty-nine weeks ended September 27, 2025, was $139.401 million, down 9.0% from $153.294 million in the prior year[26] - The net loss for the thirty-nine weeks ended September 27, 2025, was $38.879 million, compared to a net loss of $25.183 million for the same period in 2024, representing a 54.4% increase in losses[30] - The company reported a basic and diluted net loss per share of $0.64 for the thirty-nine weeks ended September 27, 2025, compared to $0.44 for the same period in 2024[26] Cash and Assets - Cash balance as of September 27, 2025, was $36.0 million, with inventory at $94.3 million[12] - Total current assets increased to $143.871 million as of September 27, 2025, from $138.868 million as of December 28, 2024[28] - Cash and cash equivalents at the end of the period were $36.011 million, a slight decrease from $36.397 million at the beginning of the period[30] - Inventory increased to $94.283 million as of September 27, 2025, from $90.353 million as of December 28, 2024, reflecting a 4.3% rise[28] - The company had net cash used in operating activities of $26.477 million for the thirty-nine weeks ended September 27, 2025, compared to net cash provided of $8.542 million in the prior year[30] Operating Expenses - Total operating expenses decreased to $52.3 million from $60.9 million, primarily due to reduced marketing and payroll costs[10] - Operating expenses for the thirty-nine weeks ended September 27, 2025, were $177.002 million, nearly flat compared to $178.457 million in the previous year[26] Strategic Partnerships and Investments - The partnership with A-Premium is expected to generate approximately $20 million annually, potentially growing to over $100 million[5] - The strategic investment of $35.7 million from A-Premium, ZongTeng Group, and CDH Investments enhances growth potential and operational capabilities[3] - The company aims to be free cash flow positive in 2026, supported by strategic partnerships and operational efficiency[8] Mobile App Performance - The mobile app has achieved approximately 1,100,000 cumulative net downloads[7]

Core Insights - CarParts.com reported a net sales decrease of 12% year-over-year for Q3 2025, totaling $127.8 million compared to $144.8 million in Q3 2024 [6][10] - The company closed a strategic investment of $35.7 million from A-Premium, ZongTeng Group, and CDH Investments to enhance operational efficiency and product range [2][3] - The CEO expressed confidence in the company's strategy to achieve long-term profitability and expects to be free cash flow positive by 2026 [5] Financial Performance - Gross profit for Q3 2025 was $42.3 million, down from $51.0 million in the same quarter last year, with a gross margin decrease of 210 basis points to 33.1% [7][10] - Total operating expenses decreased to $52.3 million from $60.9 million year-over-year, primarily due to reduced marketing and payroll costs [7][10] - The net loss for Q3 2025 was $10.9 million, compared to a net loss of $10.0 million in Q3 2024, with adjusted EBITDA of ($2.2) million versus ($1.2) million [8][10] Strategic Developments - The partnership with ZongTeng Group provides access to a global logistics network, enhancing fulfillment capabilities across the U.S. [2][3] - A-Premium's collaboration adds over 100,000 new SKUs, potentially increasing annual revenue from this partnership to over $100 million as integration progresses [3] - CDH Investments contributes strategic and operational expertise, supporting the company's growth initiatives [3] Operational Focus - The company is focusing on improving gross margin, managing variable costs, and enhancing operational efficiency to drive sustained free cash flow [4] - The management is committed to disciplined execution and profitable growth, aligning all business segments towards these goals [5] Cash Position - As of September 27, 2025, CarParts.com had a cash balance of $36.0 million and inventory valued at $94.3 million [9][10]

Core Points - CarParts.com, Inc. has rescheduled its third quarter 2025 conference call to November 10, 2025, at 2:00 p.m. Pacific Time [1] - The conference call will be hosted by CEO David Meniane and CFO Ryan Lockwood, and will be available via live audio webcast [2] - CarParts.com is a technology-led e-commerce company offering over 1 million automotive parts and accessories, with a focus on customer experience and fast shipping [3] Company Overview - CarParts.com has been operating for over 25 years and aims to provide a seamless shopping experience for vehicle maintenance and repair [3] - The company operates a portfolio of brands including CarParts Wholesale, JC Whitney, Garage-Pro, and Evan Fischer [3] - CarParts.com is headquartered in Torrance, California [4]

Core Viewpoint - CarParts.com, Inc. will hold a conference call on November 11, 2025, to discuss its third-quarter financial results for the period ending September 27, 2025, with CEO David Meniane and CFO Ryan Lockwood hosting the call [1]. Group 1 - The conference call will take place at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) [1]. - Financial results will be reported in a press release prior to the conference call [1]. - The live webcast of the event can be accessed on the company's investor relations website [2]. Group 2 - CarParts.com, Inc. is a technology-led e-commerce company offering over 1 million automotive parts and accessories [3]. - The company has been operating for over 25 years and aims to provide a seamless, mobile-friendly shopping experience [3]. - CarParts.com operates a nationwide distribution network and offers a portfolio of private-label and marketplace brands [3].

Core Insights - CarParts.com, Inc. is participating in the 19th annual LD Micro Main Event from October 19-21, 2025, in San Diego, California, to connect with the investment community and showcase its innovations in the automotive aftermarket [1][4]. Company Overview - CarParts.com is a technology-led e-commerce company offering over 1 million quality automotive parts and accessories, operating for over 25 years [5]. - The company focuses on a customer-first approach, providing a seamless, mobile-friendly shopping experience through its website and app [5]. - CarParts.com operates a nationwide distribution network, ensuring fast shipping and experienced customer service to alleviate the stress of vehicle maintenance and repair [5]. - The company manages a portfolio of private-label and marketplace brands, including CarParts Wholesale, JC Whitney, Garage-Pro, and Evan Fischer [5]. Event Details - The LD Micro Main Event XIX is a significant gathering for small company investing, emphasizing the importance of community and connection within the investment sector [3]. - The event is described as a culmination of over 25 years of dedication to small company success, highlighting the commitment of LD Micro to support these businesses [3].