CarParts.com (PRTS) Q4 2025 earnings summary

Executive summary

• Closed a $35.7 million strategic investment, reset the cost structure for 2025, and consolidated operations, driving quarterly improvements in contribution margin, fixed operating expenses, and adjusted EBITDA.

• Achieved four consecutive quarters of improvement in contribution margin, fixed operating expenses, and adjusted EBITDA.

• Q4, typically the weakest quarter, showed sequential and year-over-year improvement, with adjusted EBITDA loss narrowing to $2.2 million from $6.8 million, and net loss improving to $11.6 million from $15.4 million.

• Fiscal year 2025 net sales decreased 7% to $547.5 million, with net loss widening to $50.4 million from $40.6 million.

Financial highlights

• Q4 net sales were $120.4 million, down 10% year-over-year; full-year net sales were $547.5 million, down 7%.

• Q4 gross profit was $39.9 million, down 8% year-over-year; gross margin expanded 70 bps to 33.2%.

• Q4 GAAP net loss was $11.6 million, improved from $15.4 million loss last year; full-year GAAP net loss was $50.4 million, up from $40.6 million.

• Q4 adjusted EBITDA loss was $2.2 million, improved from $6.8 million loss; full-year adjusted EBITDA loss was $14 million, compared to $7.1 million.

• Q4 operating expenses were $51.2 million, down from $58.9 million; full-year operating expenses were $228.2 million, down from $237.4 million.

Outlook and guidance

• Targeting free cash flow positive results in 2026, driven by contribution margin expansion, partnership scale, and cost actions, not dependent on a sharp rebound in demand.

• Management expects continued improvement in contribution margin and fixed operating expenses.

• A-Premium partnership is at a $35 million annual revenue run rate, targeting $50 million short-term and long-term potential to exceed $100 million.