Third Quarter 2026
Filed Oct 29, 2026CarParts.com Reports Third Quarter 2026 Results
Net sales increased 1.2%, gross margin increased 30 basis points to 33.4%, operating expenses declined, net loss narrowed and Adjusted EBITDA was positive for the third consecutive quarter. The release did not provide forward guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, thirteen weeks ended October 3, 2026GAAP | $129.3M | – | 1.2% |
| Gross profit, thirteen weeks ended October 3, 2026GAAP | $43.2M | – | – |
| Gross margin, thirteen weeks ended October 3, 2026GAAP | 33.4% | – | up 30 basis points |
| Operating expense, thirteen weeks ended October 3, 2026GAAP | $47M | – | – |
| Operating expense as a percentage of net sales, thirteen weeks ended October 3, 2026GAAP | 36.3% | – | – |
| Loss from operations, thirteen weeks ended October 3, 2026GAAP | −$3.77M | – | – |
| Net loss, thirteen weeks ended October 3, 2026GAAP | ($4.1) million | – | – |
| Net loss margin, thirteen weeks ended October 3, 2026GAAP | (3.2)% | – | – |
| Basic and diluted net loss per share, thirteen weeks ended October 3, 2026GAAP | $(0.53) | – | – |
| Shares used in computation of basic and diluted net loss per share, thirteen weeks ended October 3, 2026GAAP | 7,697 | – | – |
| Adjusted EBITDA, thirteen weeks ended October 3, 2026non-GAAP | $1M | – | – |
| Adjusted EBITDA margin, thirteen weeks ended October 3, 2026non-GAAP | 0.8% | – | – |
| Net sales, thirty-nine weeks ended October 3, 2026GAAP | $396.9M | – | – |
| Gross profit, thirty-nine weeks ended October 3, 2026GAAP | $131.2M | – | – |
| Gross margin, thirty-nine weeks ended October 3, 2026GAAP | 33.0% | – | – |
| Operating expense, thirty-nine weeks ended October 3, 2026GAAP | $141.2M | – | – |
| Operating expense as a percentage of net sales, thirty-nine weeks ended October 3, 2026GAAP | 35.6% | – | – |
| Loss from operations, thirty-nine weeks ended October 3, 2026GAAP | −$10.05M | – | – |
| Net loss, thirty-nine weeks ended October 3, 2026GAAP | −$9.27M | – | – |
| Net loss margin, thirty-nine weeks ended October 3, 2026GAAP | (2.3)% | – | – |
| Basic and diluted net loss per share, thirty-nine weeks ended October 3, 2026GAAP | $(1.23) | – | – |
| Adjusted EBITDA, thirty-nine weeks ended October 3, 2026non-GAAP | $3.39M | – | – |
| Adjusted EBITDA margin, thirty-nine weeks ended October 3, 2026non-GAAP | 0.9% | – | – |
| Cash and cash equivalents as of October 3, 2026GAAP | $33.8M | – | – |
| Inventory, net, as of October 3, 2026GAAP | $76.9M | – | – |
| Convertible notes payable as of October 3, 2026GAAP | $25.5M | – | – |
| Revolver loan balance as of October 3, 2026GAAP | no revolver loan balance | – | – |
| Net cash provided by operating activities, thirty-nine weeks ended October 3, 2026GAAP | $10.04M | – | – |
| Additions to property and equipment, thirty-nine weeks ended October 3, 2026GAAP | −$7.55M | – | – |
| Net cash used in investing activities, thirty-nine weeks ended October 3, 2026GAAP | −$7.25M | – | – |
| Net cash provided by financing activities, thirty-nine weeks ended October 3, 2026GAAP | $5.76M | – | – |
| Net change in cash and cash equivalents, thirty-nine weeks ended October 3, 2026GAAP | $7.96M | – | – |
| A-Premium annualized revenue run rateother | approximately $55 million | – | – |
| JC Whitney annualized revenue run rateother | approximately $3 million | – | – |
| Mobile app share of eCommerce revenueother | 14.5% | – | – |
| Mobile app cumulative downloadsother | 1.7M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
What drove it
- The increase in third-quarter net sales was primarily attributable to an increase in consumer demand while maintaining a focus on advertising spend optimization.
- The increase in gross margin was primarily driven by lower freight costs.
- The decrease in operating expenses was primarily driven by distribution center consolidation, advertising spend efficiency gains and lower payroll costs due to headcount reductions.
- A-Premium surpassed its $50 million marker and exited the quarter at an annualized revenue run rate of approximately $55 million.
- Next-day delivery was live from three of four distribution centers through the last mile network.
- CarParts+ Rewards had more than 200,000 members enrolled since the September soft launch.
Concerns
- Net loss remained ($4.1) million in the third quarter and $(9.27) million for the thirty-nine weeks ended October 3, 2026.
- Thirty-nine-week net sales were $396.93 million compared with $427.10 million in the prior-year period.
- The Company had $25.5 million of convertible notes payable as of October 3, 2026.
- The filing provided no forward financial guidance.
What to watch
- Whether the increase in consumer demand and advertising spend optimization continue to support net sales growth.
- Whether lower freight costs, distribution center consolidation and lower payroll costs continue to support gross margin and operating expense improvement.
- Progress in scaling A-Premium, JC Whitney, next-day last mile delivery and CarParts+ Rewards.
- Cash, inventory and convertible notes payable following the reported cash increase and inventory reduction.
Balance sheet and cash flow
- Cash and cash equivalents were $33.8 million as of October 3, 2026, compared to $25.8 million at prior fiscal year-end January 3, 2026.
- Inventory was $76.9 million as of October 3, 2026, compared to $95.2 million as of January 3, 2026.
- Convertible notes payable were $25.5 million as of October 3, 2026, compared to $25.2 million at prior fiscal year-end January 3, 2026.
- The Company reported no revolver loan balance as of October 3, 2026 and no revolver loan balance at prior fiscal year-end January 3, 2026.
- Net cash provided by operating activities was $10,043 for the thirty-nine weeks ended October 3, 2026, compared to net cash used in operating activities of $(26,477) for the thirty-nine weeks ended September 27, 2025.
- Additions to property and equipment were $(7,553) for the thirty-nine weeks ended October 3, 2026, compared to $(6,281) for the thirty-nine weeks ended September 27, 2025.
- Net cash provided by financing activities was $5,761 for the thirty-nine weeks ended October 3, 2026, compared to $32,372 for the thirty-nine weeks ended September 27, 2025.
Analysis
CarParts.com reported a modest return to year-over-year top-line growth in the third quarter. Net sales increased 1.2% to $129.3 million from $127.8 million, which the company attributed primarily to increased consumer demand while maintaining advertising-spend optimization. The result contrasts with thirty-nine-week net sales of $396.93 million, compared with $427.10 million in the prior-year period.
Profitability improved materially year over year. Gross profit was $43.2 million versus $42.3 million, and gross margin increased 30 basis points to 33.4%, primarily from lower freight costs. Operating expenses declined to $47.0 million from $52.3 million, with distribution center consolidation, advertising efficiency gains and lower payroll costs cited as drivers. Loss from operations was $(3,773), compared with $(10,038), and net loss narrowed to ($4.1) million from ($10.9) million.
Adjusted EBITDA was $1.0 million, compared with ($2.5) million in the year-ago quarter, and management described this as the third consecutive quarter of positive Adjusted EBITDA. For the thirty-nine-week period, Adjusted EBITDA was $3.39 million versus ($11.84) million, while the net loss narrowed to $(9.27) million from $(38.88) million. The company also reported a 33.4% quarterly gross margin, 36.3% operating expense as a percentage of sales and a (3.2)% net loss margin.
Liquidity improved relative to the January 3, 2026 fiscal year-end balance sheet. Cash was $33.8 million versus $25.8 million, inventory was $76.9 million versus $95.2 million, and there were no revolver borrowings at either date. Convertible notes payable were $25.5 million, compared with $25.2 million. For the thirty-nine weeks, operating activities provided $10,043 of cash, compared with $(26,477) used in the prior-year period; additions to property and equipment were $(7,553).
Management highlighted partnership and fulfillment initiatives alongside the financial results. A-Premium exited the quarter at approximately $55 million in annualized revenue run rate, JC Whitney reached approximately $3 million, and next-day delivery was live from three of four distribution centers. The mobile app represented 14.5% of eCommerce revenue, up from 12.9% a year ago, while CarParts+ Rewards had enrolled more than 200,000 members since the September soft launch. The release included no financial outlook, so the next reported period will be important for assessing whether these initiatives extend the quarter's sales growth and positive Adjusted EBITDA trend.
Management, verbatim
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.
David Meniane, Chief Executive Officer
We delivered on the markers we set for the quarter.
David Meniane, Chief Executive Officer
With our restructuring largely complete, the next phase is about growth.
David Meniane, Chief Executive Officer
Not in the filing
stated, not guessed- Forward revenue, gross margin, operating expense, tax-rate and other financial guidance were not provided.
- A prior outlook section was not provided, so comparison of actual results with prior guidance is unavailable.
- Segment revenue and segment profitability were not provided.
- Capital returns, including share repurchases and dividends, were not reported.
- Free cash flow was not reported.
- Quarterly operating cash flow was not reported; cash-flow statement results were provided only for the thirty-nine weeks ended October 3, 2026.
- Prior-quarter comparisons for quarterly financial results were not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.