"Transcript of CarParts.com, Inc.'s (PRTS) Second Quarter of 2025 Earnings Discussion"
CarParts.com Q2 2025 Earnings Conference Call Recap
CarParts.com, Inc. (NASDAQ: PRTS) is currently navigating a strategic review process aimed at enhancing shareholder value. The company is exploring several transaction structures, including a potential sale of the company, strategic investments, or partnerships. The process is nearing completion, but there is no assurance a transaction will occur.
The conference call, held at 4:30 AM ET on August 12, 2025, was recorded and hosted by Ryan Lockwood, Chief Financial Officer, and David Meniane, Chief Executive Officer.
During the call, both GAAP and non-GAAP financial measures were discussed, with a reconciliation of GAAP to non-GAAP financial measures provided in the press release issued earlier in the day.
In Q2 2025, CarParts.com reported a 5% increase in sales, reaching $151.9 million. Gross profit for the quarter was $49.8 million, with a gross margin of 32.8%. Despite positive adjusted EBITDA in June, linked to mobile app growth, the company reported a net loss of $12.7 million for the quarter. Cash reserves declined to $19.8 million, and a $10 million balance remains on its revolving credit line.
To mitigate tariff impacts, CarParts.com announced a $10 million annualized savings plan through facility closures and headcount reductions. Additional mitigations include vendor cost concessions, dynamic pricing, and supply chain optimization.
CEO David Meniane confirmed that the company is evaluating various transaction structures due to inbound interest, but withheld financial guidance for 2025 pending the review’s outcome. The company spent $0.38 million on legal and advisory services and $1.66 million on workforce transition related to this review.
Following the announcement of the strategic alternatives review and earnings release, CarParts.com shares fell approximately 12.9% after hours. The stock is down about 14.9% year-to-date.
Areas to watch going forward include the outcome of the strategic alternatives process, continued margin improvements, liquidity management, and progress in operational cost savings. The company emphasizes its commitment to actionable measures enhancing growth and profitability while navigating tariff volatility and competitive pressures.
Investors are advised to refer to CarParts.com's annual report on Form 10-K and quarterly reports on Form 10-Q for important factors affecting results.
In the strategic review process, CarParts.com is considering investing in potential partnerships or strategic investments.To improve liquidity, CarParts.com announced an investment of $10 million annually to mitigate tariff impacts through facility closures and headcount reductions.
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