Q2 2026 Carparts.Com Inc Earnings Call Transcript
Key Points
- CarParts.com Inc (PRTS) delivered its highest adjusted EBITDA since Q3 2023, with a $4.9 million year-over-year improvement to $1.8 million, marking the sixth consecutive quarter of profitability gains.
- Gross margin expanded to 33.2%, up 70 basis points sequentially and 40 basis points year-over-year, driven by favorable product mix and freight optimization.
- The A-Premium partnership is approaching a $50 million annualized revenue run rate, with a path to exceed $100 million, offering more than twice the profitability of legacy owned mechanical revenue with virtually no inventory.
- J.C. Whitney is scaling rapidly, with 7,000 SKUs on Amazon generating a $2.5 million annualized run rate, expected to triple in the short term, and a medium-term path to $25 million in revenue.
- The company received $4.4 million in IEEPA tariff claims, with $2.2 million recognized in Q2, and continues to build a capital-light fee income business with a run rate near $5 million.
- Net sales declined 10.7% year-over-year to $135.6 million, reflecting intentional cuts in advertising spend and pricing actions that impacted demand.
- The company faced significant headwinds from inflation, oil prices, and tariffs, which increased product and freight costs during the quarter.
- GAAP net loss was $3.2 million in Q2, though improved from a $12.7 million loss in the prior year.
- The reverse stock split was necessary to regain Nasdaq compliance, indicating prior share price struggles.
- The last-mile delivery network is still in early stages, with only 2 of 4 distribution centers operational, and the company acknowledges it is 'deliberately constrained' while making adjustments.
Good afternoon. (Operator Instructions) Please note this call is being recorded. I would now like to turn the conference over to our host, Mark DiSiena, Interim Chief Financial Officer. Please go ahead.
Hello, everyone, thank you for joining us for the CarParts.com second-quarter 2026 conference call. Joining me today, David Meniane, Chief Executive Officer. Before I turn over to David, I have some important disclosures. Our remarks on this call could contain certain forward-looking statements related to our company and our strategic initiatives under the federal securities laws. Actual results may differ materially, and those contained herein are implied by the forward-looking statements due to various risks and uncertainties. For a discussion of the material risks and other important factors that could affect results, please refer to the CarParts.com annual report on Form 10-K and the quarterly reports on Form 10-Q, each as filed with the SEC, all of which can be found on our investor relations
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
