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 Data and Key Metrics Changes - In Q2 2025, the company reported revenue of $151.9 million, a 5% increase from $144.3 million in the previous year, driven by growth in both e-commerce and offline channels, despite softness in the marketplaces channel [15] - Gross profit for the quarter was $49.8 million, up 3% year-over-year, while gross margin decreased to 32.8% from 33.5% due to product mix and tariff impacts [15][16] - The GAAP net loss for the quarter was $12.7 million, compared to a loss of $8.7 million in the prior year, influenced by lower gross margins and higher marketing costs [16] - Adjusted EBITDA loss was $3.1 million, down from an adjusted EBITDA of $0.1 million in the prior year [16] - The company ended the quarter with $19.8 million in cash and drew on its revolver for additional financial flexibility [17] Business Line Data and Key Metrics Changes - E-commerce revenue and mobile app engagement reached record levels, with the mobile app accounting for 12% of e-commerce revenues and having over 1 million users [8] - The CarParts Plus membership program surpassed 7,000 paid members, indicating improved customer retention and engagement [8] - High-margin fee income continued to grow, supported by increased adoption of services like product and shipping protection [8] Market Data and Key Metrics Changes - The company is facing challenges in its marketplaces segment due to the influx of non-compliant products from China, which distorts the competitive landscape [10] - Tariffs and inflation are impacting consumer demand, particularly in discretionary categories, leading to a cautious approach to pricing [11] Company Strategy and Development Direction - The company is exploring strategic alternatives to maximize shareholder value, including a potential sale and strategic investments [4] - Focus areas include expanding product offerings, monetizing website traffic, scaling B2B offerings, and growing the mobile app business [19] - The company is realigning its cost structure and closing its Virginia facility to manage operational fixed costs [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing tariff impacts and pricing volatility, emphasizing a disciplined approach to protect gross margins and reduce operating expenses [14] - The company is committed to navigating near-term headwinds while focusing on long-term growth and profitability [14][20] - Investments in AI and automation are expected to enhance operational efficiency and financial performance over time [20] Other Important Information - The company has proactively invested in inventory to improve supply chain continuity ahead of tariffs, resulting in an inventory balance of $94 million at year-end [17] - The company is leveraging machine learning for search algorithms to strengthen its competitive edge [9] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.

Financial Data and Key Metrics Changes - For the full year 2024, revenues were $589 million, down 13% from $675.7 million in 2023, which was the highest revenue number in company history [21][22] - Gross profit for the year was $197 million, with a gross profit margin of 33.4%, down from 33.9% in 2023 [11][24] - GAAP net loss for the year was $40.6 million, compared to a loss of $8.2 million in 2023 [24] - Adjusted EBITDA loss for the full year was $7.1 million, improved from a loss of $19.7 million in 2023 [25] Business Line Data and Key Metrics Changes - The lighting and mirror business faced significant pressure due to low-cost, non-compliant parts flooding the market [9] - The company expanded its product offering and repriced products to target higher margin sales, contributing to a gross profit margin near the upper end of guidance [10][11] Market Data and Key Metrics Changes - The economic environment in 2024 was challenging for lower-income consumers, leading to a significant pullback in spending on auto repairs [9] - The company is the second largest importer of aftermarket collision parts in the U.S., with collision parts primarily sourced from Taiwan [16] Company Strategy and Development Direction - The company is focused on three key elements: driving growth and net margin, accelerating efficiency, and achieving sustainable growth with strong long-term free cash flow [8] - Priorities for 2025 include expanding product offerings, monetizing website visits, scaling B2B offerings, growing the mobile app business, and maintaining a strong balance sheet [28][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in 2024 but emphasized significant progress in key areas that position the company well for future growth [20] - The company is confident that improvements made throughout 2024 have set a path to achieve long-term sustainable positive adjusted EBITDA [28] Other Important Information - The company ended the year with $36.4 million in cash and no revolver debt, with an inventory balance of $90.4 million at year-end [26] - The company is currently evaluating various strategic alternatives in response to inbound interest and is not providing guidance for 2025 [27] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating that the call may have been focused on prepared remarks without a Q&A segment.