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CarParts.com Inc (PRTS) Q3 2026 Earnings Report

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PRTS Q3 2026 EPS Results

Actual EPS
-$0.53
Consensus EPS
-$0.84
Beat/Miss
Beat by +$0.30
One Year Ago EPS
-$1.90

PRTS Q3 2026 Revenue Results

Actual Revenue
$129.33M
Expected Revenue
$124.04M
Beat/Miss
Beat by +$5.29M
YoY Revenue Growth
+1.22%

Earnings Announcement Details

Quarter
Q3 2026
Date
10/29/2026
Time
After Close
Conference Call
Thursday, October 29, 2026
PRTS Upcoming Earnings

CarParts.com Inc's next earnings date is estimated for March 11, 2027, based on past reporting schedules.

Q3 2026 Earnings Call Audio

PRTS Q3 2026 Earnings Call
0:00 / 0:00

Q3 2026 Earnings Slide Deck

No slide deck is available for this earnings event.

Q3 2026 Earnings Call Summary

Q3 2026
Earnings Call Date:Oct 29, 2026|% Change Since:-2.32%|
Earnings Call Sentiment|Positive

The call was predominantly positive. Management highlighted three consecutive quarters of positive adjusted EBITDA, a year-over-year revenue increase, lower operating expenses, improved cash and inventory levels, strong growth in A-Premium and JC Whitney, expanding loyalty and fee-income initiatives, and continued last-mile progress. The main challenges were the ongoing GAAP net loss, sequentially lower adjusted EBITDA, selective consumer spending, elevated freight costs, tariff complexity, and the fact that the fourth distribution center and broader last-mile scale-up remain in progress.

Company Guidance

Management said A-Premium’s trajectory toward the long-term $100 million target remains intact, with Q4 focused on running above $55 million annualized; JC Whitney is tracking toward its $7.5 million target, with Q4 expectations of at or approaching $7.5 million; the company’s medium-term target is 300,000 packages annually, approximately 5% of total outbound volume; and its year-end goal is next-day delivery from all four distribution centers, with Chicago expected to come online in Q4, while Q4 focus shifts from activation to volume.

  • Third Consecutive Quarter of Positive Adjusted EBITDAAdjusted EBITDA was $1 million in Q3 2026, marking the third consecutive quarter of positive adjusted EBITDA. This followed $585,000 in Q1 and $1.8 million in Q2, compared with an adjusted EBITDA loss of $2.5 million in Q3 2025.
  • Significant Improvement in GAAP Net LossGAAP net loss improved to $4.1 million in Q3 2026 from $10.9 million in Q3 2025, a $6.8 million year-over-year improvement.
  • First Year-over-Year Revenue Increase in Several QuartersNet sales were $129.3 million in Q3 2026, compared with $127.8 million in Q3 2025, an approximately 1.2% year-over-year increase. Management said this was the first year-over-year revenue increase in several quarters after deliberately walking away from unprofitable revenue.
  • Gross Margin ImprovementGross profit was $43.2 million, with gross margin of 33.4%, up approximately 30 basis points year-over-year and approximately 20 basis points sequentially. The increase was primarily driven by lower freight rates, carrier diversification, and progress on last-mile initiatives.
  • Operating Expense ReductionTotal operating expenses were $47 million, down $5.3 million, or approximately 10%, from $52.3 million in Q3 2025. The reduction was primarily driven by distribution center consolidation, advertising efficiency gains, and fixed-cost reductions from prior actions. Management reported no material non-recurring items in Q3 operating expenses.
  • Improved Cash and Inventory PositionThe company ended Q3 with approximately $33.8 million in cash, an undrawn $25 million revolver, and no near-term liquidity concerns. Inventory was approximately $77 million, down from $84 million in Q2 and $95 million in Q3 2025.
  • A-Premium Exceeded Annualized Revenue MilestoneA-Premium exited Q3 at approximately $55 million of annualized revenue, surpassing the $50 million Q3 marker. Its catalog is now six times larger than the legacy private-label mechanical catalog, contribution margin dollars are growing, and unit economics remain more than two times as profitable as the legacy private-label equivalent. The company remains on track toward its long-term $100 million target.
  • JC Whitney Expansion and Revenue GrowthJC Whitney exited Q3 with 7,000 SKUs live on Amazon and added more than 8,000 in early October, bringing the total to 15,000. Its annualized revenue run rate increased from $2.5 million in Q2 to approximately $3 million exiting Q3. The company also reported roughly $100,000 in weekly revenue last week, representing a $5 million annualized pace, and plans to launch JC Whitney products on CarParts.com soon.
  • Last-Mile Network Continued to ScaleThe company delivered more than 6,000 packages through its last-mile network in Q3, roughly doubling Q2's pace. Las Vegas, Dallas, and Jacksonville distribution centers were actively running next-day delivery at quarter-end, while Chicago is expected to come online in Q4.
  • Progress Toward 300,000 Annual Last-Mile PackagesThe last-mile network ramped from a few hundred packages in Q1 to over 3,000 in Q2 and over 6,000 in Q3. The medium-term target is 300,000 packages annually, approximately 5% of total outbound volume, and management said the ramp is tracking to plan.
  • CarParts+ Rewards Early EnrollmentCarParts+ Rewards officially launched on October 13 following a soft launch in early September, and more than 200,000 new members enrolled organically. The program includes free membership and a $79 annual Gold Membership with three times the points, free shipping on over 1 million parts, 24/7 roadside assistance, extended returns, and VIP customer support.
  • Loyalty and Payment-Flexibility InitiativesManagement said CarParts+ Rewards is deepening customer engagement, increasing repeat purchases, growing customer lifetime value, and improving marketing-investment efficiency over time. The company also partnered with Klarna to provide buy-now, pay-later financing at checkout, offering customers greater payment flexibility and creating opportunities to improve conversion and average order value.
  • Capital-Light Drop-Ship Model ExpansionThe company is scaling its drop-ship business through A-Premium on its own site, expanded assortment in adjacent categories, and JC Whitney across third-party channels. Management stated that the model requires less working capital, carries less inventory risk, eliminates carrying costs, fulfillment overhead, and obsolescence risk associated with a traditional stock model, and generates contribution margin dollars at attractive rates relative to capital deployed.
  • Fee Income Platform Approaching $5 Million Run RateThe capital-light revenue layer spanning the CarParts.com Mastercard, CarParts+ membership and loyalty, and warranty products approached a $5 million annualized run rate in Q3, up from roughly the $4 million range during the back half of 2025. The Mastercard continued to add cardholders, and warranty products remained a steady contributor.
  • Digital Catalog, Mobile App, and AI ProgressThe catalog now spans more than 1.5 million parts and accessories. The mobile app accounted for approximately 14.5% to nearly 15% of e-commerce revenue in Q3, up from 12.9% in the prior year. Management said AI is producing efficiency gains in search relevance and advertising optimization, with those gains appearing in operating expenses.
  • Improved Revenue Mix and Capital EfficiencyPrivate label represented approximately 73% of Q3 revenue, compared with approximately 83% in Q3 2025, reflecting an intentional shift toward A-Premium and other third-party premium brands. Collision and replacement parts represented approximately 60% of revenue, versus 65% in the prior year, while mechanical parts were growing faster in collision and changing the revenue composition in a way management described as favorable from a margin and working-capital perspective.
  • Growth in Owned-Channel and Retention EngagementOwned channels increased to approximately 73% of revenue in Q3. Retention channels, including email, SMS, and push notifications, accounted for 9.6% of e-commerce revenue, which management described as reflecting the growing A-Premium mix and healthy underlying retention engagement.
  • Tariff Claim RecoveryThe company received $4.8 million under its IEEPA tariff claims, representing substantially all of the amount it was pursuing through the formal CBP process. Of this amount, $1.4 million was recognized in Q3 and reinvested in targeted pricing and marketing investments.
  • Q4 Execution TargetsFor Q4, management is targeting A-Premium above $55 million annualized, JC Whitney at or approaching $7.5 million annualized, and all four distribution centers running next-day delivery. The company said the next phase will focus on increasing last-mile volume toward 300,000 packages annually.

PRTS Earnings History

PRTS earnings history
Report DateFiscal QuarterForecast / EPSLast Year's EPSEPS YoY ChangePress Release
Mar 11, 20272026 (Q4)-0.97--1.7――
Oct 29, 20262026 (Q3)-0.83-0.53-1.972.11% (+1.37)
Aug 06, 20262026 (Q2)-0.85-0.43-2.381.30% (+1.87)
May 07, 20262026 (Q1)-1.15-0.30-2.788.89% (+2.40)
Mar 05, 20262025 (Q4)-2.00-1.70-2.737.04% (+1.00)
Nov 10, 20252025 (Q3)-2.05-1.90-1.7-11.76% (-0.20)
Aug 12, 20252025 (Q2)-1.55-2.30-1.5-53.33% (-0.80)
May 13, 20252025 (Q1)-1.25-2.70-1.1-145.45% (-1.60)
Mar 25, 20252024 (Q4)-1.75-2.70-1.1-145.45% (-1.60)
Oct 29, 20242024 (Q3)-1.10-1.70-0.4-325.00% (-1.30)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat Missed