CarParts.com Reports Fourth Quarter and Fiscal Year 2025 Results

Core Insights - CarParts.com reported a net loss of $50.4 million for fiscal year 2025, compared to a net loss of $40.6 million in fiscal year 2024, indicating a decline in financial performance [1][3] - The company experienced a 7% decrease in net sales, totaling $547.5 million in fiscal year 2025, down from $588.8 million in fiscal year 2024 [1][3] - Adjusted EBITDA for fiscal year 2025 was ($14.0) million, worsening from ($7.1) million in the previous year, reflecting ongoing operational challenges [1][3] Fiscal Year 2025 Summary - Net sales decreased by 7% to $547.5 million from $588.8 million in fiscal year 2024 [1][3] - Gross profit was $179.3 million, down from $196.7 million, with a gross margin of 32.8%, a decrease of 60 basis points [1][3] - Total operating expenses reduced to $228.2 million from $237.4 million, primarily due to lower payroll costs and marketing spend [1][3] Fourth Quarter 2025 Summary - Net sales for Q4 2025 were $120.4 million, a 10% decrease from the same quarter in the previous year [1][3] - Gross profit in Q4 was $39.9 million, with a gross margin of 33.2%, an increase of 70 basis points year-over-year [1][3] - Adjusted EBITDA improved to ($2.2) million in Q4 from ($6.8) million in the prior year, indicating operational improvements [1][3] Management Commentary - The CEO highlighted a strategic investment of $35.7 million and a reset of the cost structure, leading to improved operating results [1] - The partnership with A-Premium is projected to reach a $50 million annual revenue run rate, with potential to exceed $100 million [1] - The company emphasized that its path to free cash flow is driven by higher contribution margins and lower fixed costs, rather than a rebound in demand [1]