CarParts.com (PRTS) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Fri, May 8, 2026 astatine 12:03 PM CDT 17 min read

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DATE

Thursday, May 7, 2026 astatine 5 p.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — David Meniane

• Chief Financial Officer — Mark DiSiena

Full Conference Call Transcript

David Meniane: In the archetypal 4th of 2026, we reached a milestone we person been gathering toward for 5 consecutive quarters, our archetypal affirmative adjusted EBITDA since Q1 2024. Our adjusted EBITDA was affirmative $585,000, a plaything of astir $7 cardinal from the aforesaid 4th past year. This is the effect of deliberate enactment crossed each enactment successful the P&L, advertizing efficiency, lawsuit acquisition quality, beingness rhythm monetization, warehouse operations, offshore savings and a fixed outgo basal that is present materially little and mostly embedded successful our tally rate. 12 months ago, adjusted EBITDA was antagonistic $6.2 million. We made a determination past to rebuild this concern astir profitability, and today, we crossed the line.

Before I locomotion done the quarter, I privation to found 2 frameworks that substance for however investors deliberation astir this business. The archetypal is however we measurement profitability. As our premix evolves, much driblet ship, much a premium, much JC Whitney, reported gross borderline percent volition determination and our costs volition reduce. We negociate this concern to publication borderline dollars. We're focused connected semipermanent escaped currency travel dollars that accrue to shareholders. Mark volition locomotion done the mechanics, but absorption connected the dollars. The 2nd model is strategic. For the past respective years, we person been thoughtfully gathering retired 2 sides of our business.

There is the integer layer, our website, our mobile app, our search, our catalog, our marketing, and determination is the carnal layer, our planetary proviso chain, organisation network, fulfillment infrastructure, inventory and past mile capability. Most radical spot CarParts.com arsenic an e-commerce company. We spot ourselves arsenic both. And implicit time, the vantage volition not simply beryllium having some layers, but however efficaciously we tin link them done data, AI and lawsuit ownership. I volition travel backmost to that aboriginal successful the call. Turning to the trajectory of the business. Q1 2026 marks 5 consecutive quarters of sequential betterment successful the metrics that substance most: gross nett margin, fixed operating expenses and adjusted EBITDA. Q4 2025 improved implicit Q3.

Q3 improved implicit Q2. Q2 improved implicit Q1 2025. And Q1 2026 crosses into affirmative adjusted EBITDA territory. Each quarter, we said the exemplary was working. This quarter, the exemplary proved it. This is an execution story. The restructuring is down us. The outgo actions are implicit and mostly reflected successful our tally rate. What you are seeing present is the output of a leaner enactment operating against a disciplined plan, and we inactive person much levers to pull. On our A-Premium partnership, the momentum is existent and accelerating. The annualized gross tally complaint is present approaching $45 million, up from $35 cardinal astatine year-end.