CarParts.com, Inc.

Net sales were $132.0 million, down approximately 10% from $147.4 million in Q1 2025. Gross profit was $42.9 million, and gross margin was 32.5%, up about 40 basis points from 32.1% a year ago. GAAP net loss improved to $1.9 million from a $15.3 million loss in Q1 2025. Adjusted EBITDA was positive $585,000 versus a loss of approximately $6.2 million last year. Total operating expense declined to $46.0 million from $62.5 million, down about $16.5 million or 26%. The company ended the quarter with $38 million in cash, no revolver debt, and inventory of about $91 million. For outlook, management said it still expects to reach free cash flow positive in 2026, with A-Premium revenue run rate approaching $45 million, a near-term target of $50 million, and a long-term path that could exceed $100 million.

David Meniane framed the quarter as proof that the company’s restructuring and profitability-focused reset is working, citing five consecutive quarters of sequential improvement and the first positive adjusted EBITDA since Q1 2024. He emphasized that CarParts.com is building both a digital layer and a physical infrastructure layer, with AI, supply chain, and last-mile capabilities intended to create a durable moat. His tone was confident but measured: positive EBITDA was called a checkpoint, not the destination, and he stressed that sustained execution is still required.

Mark DiSiena focused on the mechanics of margin improvement and cost discipline. He said gross margin rose to 32.5% on $132.0 million of sales, operating expenses fell to $46.0 million, and the year-over-year operating expense improvement was driven by lower advertising, warehouse efficiency, and headcount reductions; he also flagged a $2.3 million noncash gain tied to the Manila sale. On the balance sheet, he highlighted $38 million in cash, no revolver debt, inventory down to about $91 million from $95 million at year-end, and 3,786,000 treasury shares. He also noted up to $4.3 million in outstanding IEEPA tariff claims, while cautioning the company is not basing its plan on that recovery.

There was no analyst Q&A included in the transcript; the call ended after management remarks. As a result, no external concerns or follow-up questions were raised on the line. Management did, however, proactively address likely investor topics such as tariffs, freight inflation, capital allocation, share count, and the conversion price on the company’s notes.