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

CarParts.com (NASDAQ:PRTS) posted its earnings results on Thursday. The specialty retailer reported ($0.17) EPS for the quarter, topping the consensus estimate of ($0.24) by $0.07, Zacks reports. The business had revenue of $120.43 million during the quarter, compared to the consensus estimate of $118.91 million. CarParts.com had a negative return on equity of 76.33% and a negative net margin of 9.69%.

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 Price Performance

NASDAQ:PRTS traded down $0.04 during mid-day trading on Friday, reaching $0.73. 1,222,546 shares of the company were exchanged, compared to its average volume of 915,098. The company has a quick ratio of 0.59, a current ratio of 1.71 and a debt-to-equity ratio of 0.49. The stock has a market cap of $51.05 million, a PE ratio of -0.76 and a beta of 0.84. CarParts.com has a 12 month low of $0.37 and a 12 month high of $1.36. The company has a fifty day moving average of $0.58 and a 200 day moving average of $0.62.

Institutional Trading of CarParts.com

Hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. raised its position in shares of CarParts.com by 2.3% in the 3rd quarter. Vanguard Group Inc. now owns 2,554,101 shares of the specialty retailer’s stock valued at $1,816,000 after acquiring an additional 56,857 shares during the period. Mackenzie Financial Corp increased its stake in CarParts.com by 18.5% in the fourth quarter. Mackenzie Financial Corp now owns 1,779,674 shares of the specialty retailer’s stock valued at $880,000 after purchasing an additional 277,807 shares in the last quarter. Renaissance Technologies LLC raised its holdings in CarParts.com by 2.7% in the fourth quarter. Renaissance Technologies LLC now owns 1,352,700 shares of the specialty retailer’s stock worth $676,000 after purchasing an additional 35,900 shares during the period. Geode Capital Management LLC grew its holdings in shares of CarParts.com by 14.9% in the 4th quarter. Geode Capital Management LLC now owns 649,984 shares of the specialty retailer’s stock valued at $325,000 after buying an additional 84,064 shares during the period. Finally, State Street Corp grew its stake in CarParts.com by 13.2% in the fourth quarter. State Street Corp now owns 237,938 shares of the specialty retailer’s stock valued at $119,000 after acquiring an additional 27,800 shares during the period. 75.30% of the stock is owned by institutional investors.

CarParts.com News Roundup

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

• Positive Sentiment: Q4 results beat EPS expectations: reported EPS of ($0.18) vs. consensus ($0.24) and revenue reported around $120.4M, which was roughly in line with/above some estimates — a sign the turnaround initiatives may be stabilizing near-term performance. MarketBeat: CarParts.com earnings
• Positive Sentiment: Management is advancing a cost-structure reset and a partnership (A‑Premium) that it says could target a $50M revenue run rate — a potential revenue-growth and margin catalyst if execution continues. Seeking Alpha: $50M revenue run rate / partnership
• Neutral Sentiment: Company filed its formal Q4 and FY2025 press release with financial details and commentary on operations — useful for investors reviewing guidance, cash position and segment trends. PR Newswire: CarParts.com Reports Fourth Quarter and Fiscal Year 2025 Results
• Neutral Sentiment: Prepared remarks/transcript from the Q4 earnings call are available for detail on management’s outlook and execution plans; these remarks will matter for near-term sentiment. Seeking Alpha: Q4 2025 earnings call transcript
• Neutral Sentiment: Reported short-interest entries show inconsistent/zero values in public feeds (likely a data artifact), so short‑interest signals are unreliable right now and shouldn’t be overinterpreted.
• Negative Sentiment: Royal Bank of Canada lowered its price target from $0.60 to $0.50 and kept a “sector perform” rating — the cut increases perceived downside and likely pressured the stock. Benzinga: RBC lowers price target

Analyst Ratings Changes

A number of brokerages have issued reports on PRTS. Weiss Ratings reissued a “sell (e+)” rating on shares of CarParts.com in a report on Wednesday, January 21st. Royal Bank Of Canada dropped 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 report on Friday. One investment analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Reduce” and an average price target of $0.50.

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.