LONG BEACH, Calif., Oct. 29, 2026 /PRNewswire/ -- CarParts.com, Inc. (NASDAQ: PRTS), a leading eCommerce provider of automotive parts and accessories, and a premier destination for vehicle repair and maintenance needs, is reporting results for the third quarter ended October 3, 2026.

Third Quarter 2026â¯Summary vs. Year-Ago Quarter

- Net sales increased 1.2% to $129.3 million.

- Gross profit of $43.2 million vs. $42.3 million, with gross margin up 30 basis points to 33.4%.

- Net loss was ($4.1) million, or ($0.53) per share, compared to a net loss of ($10.9) million, or ($1.87) per share.

- Adjusted EBITDA of $1.0 million vs. ($2.5) million, the third consecutive quarter of positive Adjusted EBITDA and the highest third quarter since Q3 2023.

- Cash of $33.8 million, no revolver borrowings, and inventory of $76.9 million as of October 3, 2026.

- A-Premium partnership surpassed its $50 million marker, exiting the quarter at an annualized revenue run rate of approximately $55 million.

- JC Whitney annualized revenue run rate increased to approximately $3 million, up from $2.5 million in Q2.

- Last mile network delivered over 6,000 packages in the quarter, roughly double Q2, with next day delivery live from three of four distribution centers.

- Mobile app reached 14.5% of eCommerce revenue, up from 12.9% a year ago, with 1.7 million cumulative downloads.

Recent Developments

- Launched CarParts+ Rewards, the Company's first points-based loyalty program on October 13, with more than 200,000 members enrolled since the September soft launch.

- Partnered with Klarna to offer buy-now-pay-later financing at checkout.

Management Commentary

David Meniane, Chief Executive Officer, commented: "Q3 marks our third consecutive quarter of positive Adjusted EBITDA, and we grew net sales year over year while maintaining the advertising and pricing discipline we have applied all year. These results reflect deliberate decisions on assortment, footprint, pricing, advertising efficiency, and partnerships, executed consistently over time. They are structural, not one-time. We also know we are early. $1 million of Adjusted EBITDA is a foundation, and our focus now is building on it.

"We delivered on the markers we set for the quarter. A-Premium surpassed $50 million and exited Q3 at approximately $55 million in annualized run rate revenue. JC Whitney continued to scale on Amazon, and three of our four distribution centers are now running next-day delivery through our last mile network. As our capital-light, drop-ship partnerships scale, we are carrying less inventory to support the same or greater revenue.

"With our restructuring largely complete, the next phase is about growth. We recently launched CarParts+ Rewards, which has already enrolled more than 200,000 members. The same discipline that drove this year's results will guide how we invest for growth."

Third Quarter 2026 Financial Results

Net sales in the third quarter of 2026â¯were $129.3 million, up 1.2% from $127.8 million in the year-ago quarter. The increase was primarily attributable to an increase in consumer demand, while still maintaining our focus on advertising spend optimization.

Gross profit was $43.2 million in the third quarter compared to $42.3 million in the year-ago quarter, with gross margin increasing 30 basis points toâ¯33.4%. The increase was primarily driven by lower freight costs.

Total operating expenses in the third quarter were $47.0 million compared to $52.3 million in the year-ago quarter. The decrease was primarily driven by distribution center consolidation, advertising spend efficiency gains and lower payroll costs due to headcount reductions.

Net loss in the third quarter was ($4.1) million compared toâ¯a net loss of ($10.9) million in the year-ago quarter, primarily driven by lower operating expenses and higher net sales.

Adjusted EBITDA in the third quarter was $1.0 million compared to ($2.5) million in the year-ago quarter.

On October 3, 2026, the Company had a cash balance of $33.8 million, $25.5 million of convertible notes payable balance and no revolver loan balance, compared to a $25.8â¯million cash balance, $25.2 million of convertible notes payable balance and no revolver loan balance atâ¯prior fiscal year-end January 3, 2026.

Conference Call

CarParts.com CEO David Meniane and Interim CFO Mark DiSiena will host a conference call today to discuss the results.

Date: Thursday, October 29, 2026

Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)

Webcast: https://ir.carparts.com/events-and-presentations/default.aspx

To listen to the live call, please click the link above to access the webcast. A replay of the audio webcast will be archived on the Company's website at https://ir.carparts.com/overview/default.aspx.

About CarParts.com, Inc.

CarParts.com, Inc. is a technology-ledâ¯ecommerce company offering over 1.5 million quality automotive parts and accessories. Operating for over 30 years, CarParts.com has established itself as a premier destination for drivers seeking repair, maintenance, and upgrade solutions. Taking a customer-first approach, we deliver a seamless, mobile-friendly shopping experience across our website and app. With a commitment to delivering exceptional value backed by our nationwide, company-operated distribution network, fast shipping and experienced customer service team, CarParts.com aims to eliminate the uncertainty and stress often associated with vehicle maintenance and repair. The company operates CarParts.com and a portfolio of private-label and marketplace brands, including CarParts Wholesale, JC Whitney, Garage-Pro, Evan Fischer, and more. For more information, visit CarParts.com.

CarParts.com is headquartered in Long Beach, California.

Non-GAAP Financial Measures

Regulation G, and other provisions of the Securities Exchange Act of 1934, as amended, define and prescribe the conditions for use of certain non-GAAP financial information. We provide "Adjusted EBITDA" in this earnings release and on today's scheduled conference call, which are non-GAAP financial measures. Adjusted EBITDA consist of net loss before (a) interest expense, net; (b) income tax provision; (c) depreciation and amortization expense; (d) amortization of intangible assets; (e) share-based compensation expense; (f) workforce transition costs; (g) gain on sale of subsidiary; (h) strategic alternatives exploration costs; and (i) distribution center costs. A reconciliation of Adjusted EBITDA to net loss is provided below.

The Company believes that these non-GAAP financial measures provide important supplemental information to management and investors. These non-GAAP financial measures reflect an additional way of viewing aspects of the Company's operations that, when viewed with the GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provides a more complete understanding of factors and trends affecting the Company's business and results of operations.

Management uses Adjusted EBITDA as measures of the Company's operating performance because it assists in comparing the Company's operating performance on a consistent basis by removing the impact of stock compensation expense as well as other items that we do not believe are representative of our ongoing operating performance. Internally, these non-GAAP measures are also used by management for planning purposes, including the preparation of internal budgets; for allocating resources to enhance financial performance; and for evaluating the effectiveness of operational strategies. The Company also believes that analysts and investors use these non-GAAP measures as supplemental measures to evaluate the ongoing operations of companies in our industry.

These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Management strongly encourages investors to review the Company's consolidated financial statements in their entirety and to not rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. In addition, the Company expects to continue to incur expenses similar to the non-GAAP adjustments described above, and exclusion of these items from the Company's non-GAAP measures should not be construed as an inference that these costs are all unusual, infrequent or non-recurring.

Safe Harbor Statement

This press release contains statements which are based on management's current expectations, estimates and projections about the Company's business and its industry, as well as certain assumptions made by the Company. These statements are forward looking statements for the purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended and Section 27A of the Securities Act of 1933, as amended. Words such as "anticipates," "could," "expects," "intends," "plans," "potential," "believes," "predicts," "projects," "seeks," "estimates," "may," "will," "would," "will likely continue" and variations of these words or similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements regarding our future operating results and financial condition, our potential growth, our ability to innovate, our ability to gain market share, and our ability to expand and improve our product offerings. We undertake no obligation to revise or update publicly any forward-looking statements for any reason. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict.