CarParts.com (PRTS) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2025 increased 5.3% year-over-year to $151.9M, driven by higher consumer demand on the primary ecommerce channel, while marketplace sales remained soft.

• Net loss widened to $12.7M, or $0.23 per share, compared to $8.7M, or $0.15 per share, in the prior year, impacted by lower gross margin and higher marketing and one-time strategic costs.

• Gross profit rose to $49.8M, with gross margin declining to 32.8% from 33.5% due to product mix and tariffs.

• Adjusted EBITDA was ($3.1M), reflecting higher non-recurring and marketing expenses.

• Strategic alternatives, including a potential sale or investment, are being actively explored to maximize shareholder value.

Financial highlights

• Q2 2025 net sales: $151.9M (up 5.3% year-over-year); YTD net sales: $299.3M (down 3.6% year-over-year).

• Gross profit: $49.8M (Q2 2025); gross margin: 32.8% (down from 33.5%).

• Net loss: $12.7M (Q2 2025); YTD net loss: $28.0M.

• Adjusted EBITDA: ($3.1M) (Q2 2025) vs. $0.1M (Q2 2024).

• Cash and cash equivalents at quarter-end: $19.8M, down from $36.4M at year-end; inventory: $94.0M.

Outlook and guidance

• No formal 2025 guidance provided due to ongoing evaluation of strategic alternatives.

• Management expects existing cash, investments, and available debt financing to be sufficient for operational needs through at least the next twelve months.

• Priorities include expanding product offerings, monetizing website traffic, scaling B2B, growing the mobile app, and protecting the balance sheet.

• Transformation is expected to be a multi-year effort, with margin and efficiency gains anticipated before earnings growth.

• $10M in annualized cost savings expected from fulfillment network realignment and automation investments.