CarParts.com 2025 Q1 Earnings Misses Targets with Net Loss Widening by 135.9%

CarParts.com (PRTS) reported its fiscal 2025 Q1 earnings on May 13th, 2025. The company experienced a challenging first quarter, with an 11.4% decline in revenue to $147.38 million, missing market expectations. The net loss significantly widened to $15.28 million, or $0.27 per share, compared to the previous year's $6.48 million loss, primarily due to increased marketing costs and a drop in gross margin. Amid these results, the company has suspended its 2025 guidance while evaluating strategic alternatives in response to inbound interest.

Revenue

Earnings/Net Income

CarParts.com's losses deepened to $0.27 per share in 2025 Q1 from a loss of $0.11 per share in 2024 Q1, representing a 145.5% wider loss. The company's net loss widened to $-15.28 million in 2025 Q1, marking a 135.9% increase from the $-6.48 million loss recorded in 2024 Q1. The EPS results were notably disappointing.

Price Action

Post-Earnings Price Action Review

A strategy of buying PRTS stocks when revenue exceeds expectations and holding for 30 days has shown significant profitability in the past. Backtesting this approach, which involves purchasing shares at the market close on the earnings release day, indicates a 112% return. This approach outperformed the traditional buy-and-hold strategy, suggesting that responding promptly to positive earnings surprises can yield considerable short-term gains. However, investors should remain cautious as past performance does not guarantee future outcomes, and this strategy should be integrated with broader market analysis and risk management practices.

CEO Commentary

Guidance

Additional News

In recent weeks, CarParts.com has announced its exploration of strategic alternatives, engaging financial and legal advisors to evaluate potential opportunities, including a possible sale. The company also hosted a community service event, "Fix-It Day 2025," in partnership with Safe Parking LA, offering free car repairs to families in need in Los Angeles. Additionally, CarParts.com successfully regained compliance with Nasdaq's minimum bid price requirement, reflecting operational execution and potential market recognition. The firm continues to focus on long-term shareholder value through strategic initiatives and operational excellence.