CarParts.com (PRTS) Q3 2026 earnings summary

Executive summary

• Q3 net sales rose 1.2% YoY to $129.3M; net loss narrowed to $4.1M from $10.9M, and Adjusted EBITDA was positive for a third consecutive quarter at $1.0M.

• Lower operating expenses, freight costs, and disciplined advertising and pricing supported results; with restructuring largely complete, the next phase prioritizes disciplined growth.

Financial highlights

• Q3 gross profit rose 2.1% to $43.2M from $42.3M; gross margin increased 30 bps YoY to 33.4%.

• Operating expenses declined 10.2% to $47.0M from $52.3M, driven by lower distribution center, advertising and payroll costs.

• Q3 operating loss was $3.8M versus $10.0M; diluted loss per share was $0.53 versus $1.87, with share data adjusted for the reverse split.

• 9M sales were $396.9M versus $427.1M; net loss was $9.3M versus $38.9M, and Adjusted EBITDA was $3.4M versus a loss of $11.8M.

Outlook and guidance

• Management said the next phase centers on growth, with investment guided by the operating discipline applied through the restructuring.

• Q4 markers include A-Premium above $55M annualized revenue, JC Whitney at or approaching $7.5M, and next-day delivery at all four distribution centers; Chicago delivery was targeted for Q4.

• Medium-term last-mile target is 300,000 packages annually, ~5% of outbound volume; Q4 focus is increasing network volume and delivery density.

• Current operating plan expects cash, operating cash flows and available debt financing to cover operational needs for at least 12 months; lower sales or margins and higher costs could change funding needs.