CarParts.com 2025 Q2 Earnings Widening Losses Despite Revenue Growth

Generated by AI AgentAinvest Earnings Report Digest
Wednesday, Aug 13, 2025 1:31 am ET1min read
Aime RobotAime Summary

- CarParts.com reported Q2 2025 revenue of $151.95M (+5.3% YoY) but widened net losses to $12.71M (-$0.23/share), driven by cost pressures.

- Stock rose 2.91% daily but post-earnings strategies underperformed with -89.42% 30-day returns and -53.95% CAGR, highlighting market skepticism.

- CEO David Meniane emphasized cost cuts ($10M annual savings), membership expansion, and B2B growth while navigating macroeconomic challenges and inventory optimization.

CarParts.com reported its Q2 2025 earnings on August 12, 2025. The company posted a 5.3% year-over-year revenue increase to $151.95 million, driven by higher demand and operational improvements. However, net losses widened significantly, with a per-share loss of $0.23 and a total net loss of $-12.71 million, reflecting ongoing cost pressures and margin challenges.

Revenue
CarParts.com generated $151.95 million in revenue during Q2 2025, representing a 5.3% year-over-year increase from $144.27 million in the same period last year. This growth was fueled by sequential improvements in business performance and June’s positive adjusted EBITDA.

Earnings/Net Income
Despite rising revenue, .com’s losses expanded in Q2 2025. The company reported a net loss of $-12.71 million, a 46.3% increase from the $-8.69 million loss in Q2 2024. On a per-share basis, the loss widened to $-0.23 from $-0.15, a 53.3% increase in the magnitude of the loss, underscoring ongoing financial strain.

Price Action
CarParts.com’s stock price rose 2.91% on the latest trading day, 8.13% during the most recent trading week, and surged 17.53% month-to-date.

Post-Earnings Price Action Review
The post-earnings trading strategy of buying shares in the wake of CarParts.com’s revenue growth and holding for 30 days ended with a return of -89.42%, significantly underperforming the benchmark by 135.75%. The strategy experienced a compound annual growth rate (CAGR) of -53.95% and a maximum drawdown of 0.00%. With a Sharpe ratio of -0.84 and volatility of 64.23%, the investment faced substantial risk and performance challenges.

CEO Commentary
CEO David Meniane highlighted Q2 as showing sequential progress, with June delivering positive adjusted EBITDA. He emphasized strategic priorities including expanding the CarParts+ membership program, addressing noncompliant imports, and optimizing costs through facility closures and workforce adjustments. Meniane also noted the importance of disciplined growth, pricing resilience, and navigating macroeconomic pressures.

Guidance
Looking ahead, Meniane outlined five key priorities for the remainder of 2025: expanding product offerings, monetizing high-traffic digital assets with fee income, scaling B2B services, growing the mobile app, and protecting the balance sheet. While no specific quantitative guidance was provided, the company highlighted annualized cost savings of approximately $10 million from operational and inventory management improvements.

Additional News
Recent news developments include China’s announcement of an expanded “double interest subsidy” policy to stimulate consumer spending, the U.S. Federal Reserve’s decision to maintain key interest rates unchanged, and the European Commission’s approval of a major green energy investment. In the corporate sector, announced plans to expand its Gigafactory in Berlin, while unveiled a new AI chip aimed at enterprise markets. Meanwhile, geopolitical tensions persisted as Russia and Ukraine exchanged artillery fire in the Donbas region.

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