CarParts.com — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales increased 1.2% year-over-year to $129.3 million for the quarter ended October 3, 2026, compared to $127.8 million in the prior year period.
• Gross profit was $43.2 million, up from $42.3 million in the prior year, with gross margin expanding 30 basis points to 33.4%.
• Net loss narrowed to $4.1 million ($0.53 per share) from a net loss of $10.9 million ($1.87 per share) in the prior year.
• Adjusted EBITDA turned positive at $1.0 million, a significant improvement from a loss of $2.5 million in the prior year; this marks the third consecutive quarter of positive Adjusted EBITDA.
• Total operating expenses decreased to $47.0 million from $52.3 million in the prior year, driven by distribution center consolidation, advertising efficiency, and headcount reductions.
• Cash balance increased to $33.8 million as of October 3, 2026, from $25.8 million at the prior fiscal year-end.
• Inventory decreased to $76.9 million from $95.2 million at the prior fiscal year-end.
• Convertible notes payable balance was $25.5 million as of October 3, 2026, compared to $25.2 million at the prior fiscal year-end.
• The company had no revolver borrowings as of the reporting date.

Business Segments and Product Lines:

• The A-Premium partnership surpassed the $50 million revenue marker, exiting the quarter with an annualized revenue run rate of approximately $55 million.
• JC Whitney's annualized revenue run rate increased to approximately $3 million, up from $2.5 million in the second quarter.
• The mobile app accounted for 14.5% of eCommerce revenue, an increase from 12.9% a year ago, with 1.7 million cumulative downloads.
• The last mile network delivered over 6,000 packages in the quarter, roughly double the volume of the second quarter.
• Next-day delivery is now live from three of four distribution centers.

Other Key Points:

• Launched CarParts+ Rewards, a points-based loyalty program, on October 13, 2026, with over 200,000 members enrolled since the soft launch in September.
• Partnered with Klarna to offer buy-now-pay-later financing at checkout.
• Deconsolidated a Philippines subsidiary on January 27, 2026, resulting in a gain on sale of subsidiary recorded in operating expenses.
• Completed a 10-to-1 reverse stock split in May 2026.
• Hosted a conference call on October 29, 2026, with CEO David Meniane and Interim CFO Mark DiSiena.