CarParts.com (NASDAQ:PRTS) Posts Earnings Results, Beats Expectations By $0.07 EPS

CarParts.com (NASDAQ:PRTS) released its quarterly earnings results on Thursday. The specialty retailer reported ($0.17) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.24) by $0.07, Zacks reports. CarParts.com had a negative return on equity of 75.90% and a negative net margin of 9.21%.The business had revenue of $120.43 million during the quarter, compared to analysts’ expectations of $118.91 million.

Here are the key takeaways from CarParts.com’s conference call:

• A-Premium partnership is already at a ~$35 million annual revenue run rate with a near-term path to $50 million and a stated long-term potential above $100 million, delivering access to a mechanical catalog five times larger on a capital‑light basis.
• The company completed a full cost-structure reset—consolidating warehouses, transitioning Manila operations to a BPO, and rightsizing the organization—which management says materially reduced fixed OpEx and improved operating flexibility.
• Marketing and retention metrics improved meaningfully (marketing efficiency up ~300 bps); mobile app revenue rose to >13% of e‑commerce and retention channels exceeded 10%, while high‑margin fee income now approaches $4 million annually.
• Top-line pressure remains: Q4 net sales were $120.4M (down 10% YoY) and full‑year sales declined 7%, GAAP net loss widened to $50.4M for the year, and year‑end cash was $25.8M with $25.2M of convertible notes outstanding.
• Profitability trajectory shows progress—Q4 Adjusted EBITDA loss narrowed to $2.2M from $6.8M a year ago—and management is targeting free‑cash‑flow positivity in 2026 driven by higher contribution margins and partnership scale.

CarParts.com Stock Down 3.1%

Shares of CarParts.com stock traded down $0.02 during trading hours on Friday, reaching $0.75. 1,281,100 shares of the company were exchanged, compared to its average volume of 921,509. The firm has a market cap of $52.08 million, a PE ratio of -0.87 and a beta of 0.84. The company has a debt-to-equity ratio of 0.49, a quick ratio of 0.59 and a current ratio of 1.71. CarParts.com has a 1 year low of $0.37 and a 1 year high of $1.36. The stock’s fifty day moving average is $0.58 and its 200 day moving average is $0.62.

Analyst Ratings Changes

Several equities analysts have weighed in on the company. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of CarParts.com in a research report on Wednesday, January 21st. Royal Bank Of Canada lowered their price objective on shares of CarParts.com from $0.60 to $0.50 and set a “sector perform” rating for the company in a research note on Friday. One equities research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Reduce” and a consensus price target of $0.50.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of PRTS. Mackenzie Financial Corp increased its holdings in CarParts.com by 18.5% during the 4th quarter. Mackenzie Financial Corp now owns 1,779,674 shares of the specialty retailer’s stock worth $880,000 after purchasing an additional 277,807 shares during the period. Citadel Advisors LLC raised its stake in CarParts.com by 171.5% during the 3rd quarter. Citadel Advisors LLC now owns 148,771 shares of the specialty retailer’s stock worth $106,000 after acquiring an additional 93,971 shares in the last quarter. Private Management Group Inc. purchased a new stake in shares of CarParts.com in the 3rd quarter valued at about $65,000. Geode Capital Management LLC boosted its holdings in shares of CarParts.com by 14.9% in the fourth quarter. Geode Capital Management LLC now owns 649,984 shares of the specialty retailer’s stock valued at $325,000 after acquiring an additional 84,064 shares during the period. Finally, Vanguard Group Inc. boosted its stake in CarParts.com by 2.3% during the 3rd quarter. Vanguard Group Inc. now owns 2,554,101 shares of the specialty retailer’s stock worth $1,816,000 after purchasing an additional 56,857 shares during the period. 75.30% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting CarParts.com

Here are the key news stories impacting CarParts.com this week:

• Positive Sentiment: Earnings: Q4 EPS beat consensus (reported ($0.17) vs. ($0.24) est.) and reported revenue of $120.4M (roughly in line to slightly above some estimates), which many investors view as a modest execution signal despite continued losses. PR Newswire: CarParts.com Reports Fourth Quarter and Fiscal Year 2025 Results
• Positive Sentiment: Partnership / growth target: Management said it is targeting a $50M revenue run‑rate from its “A‑Premium” partnership and is advancing a cost‑structure reset — a potential medium‑term positive if execution reduces cash burn and lifts margins. Seeking Alpha: CarParts.com targets $50M revenue run rate
• Neutral Sentiment: Earnings materials & commentary: The prepared remarks and full call transcript are available for detail on initiatives and outlook — useful for investors who want management color on cadence and cost plans. Seeking Alpha: Q4 2025 Earnings Call Prepared Remarks Transcript
• Neutral Sentiment: Market perception / data: Market summaries and the company press release provide the full metrics (negative net margin ~9.7%, negative ROE ~76%), underscoring the turnaround required despite the EPS beat. MarketBeat: CarParts.com earnings summary
• Negative Sentiment: Analyst action: RBC cut its price target from $0.60 to $0.50 and set a “sector perform” rating — the new PT implies a sizable downside from current levels and likely contributed to selling pressure. TickerReport / Benzinga: RBC lowers price target on CarParts.com Benzinga coverage
• Negative Sentiment: Conflicting revenue take: Some outlets framed Q4 as “misses on revenue” while others show a slight beat — mixed press can amplify short‑term volatility and sell‑side skepticism. Investing.com: Q4 loss narrower but revenue miss
• Neutral Sentiment: Short‑interest data reported appears anomalous (0 shares / NaN changes) and provides no clear directional signal. Monitor official short‑interest filings if you track short pressure.

About CarParts.com

CarParts.com, Inc operates as a leading online retailer of aftermarket automotive parts and accessories in the United States. Through its flagship website CarParts.com and affiliated e-commerce platforms, the company offers replacement components, performance upgrades, maintenance items and collision repair parts for a wide range of domestic and import vehicles. Its product catalog includes engine parts, exterior and interior accessories, lighting, braking systems and powertrain components, supported by an extensive inventory and proprietary order management system.

Founded in 1995 by George Chamoun and headquartered in Torrance, California, CarParts.com has grown from a regional auto parts supplier into a national e-commerce platform.