CarParts.com(US:PRTS)2025-11-10 21:04Financial 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]