CarParts.com narrows Q4 EBITDA loss to $2.2M as gross margin rises to 33.2%
CarParts.com’s A-Premium partnership has a $35 million run rate, targeting $50 million soon and over $100 million eventually without inventory burden. Q4 net sales fell 10% to $120.4 million, while gross margin rose to 33.2% and adjusted EBITDA loss narrowed to $2.2 million after cost cuts and warehouse consolidation.
1. A-Premium Partnership Growth
CarParts.com’s partnership with A-Premium is at a $35 million annual run rate, targeting $50 million in the short term and over $100 million eventually by expanding mechanical parts selection without carrying inventory or working capital.
2. Q4 Financial Performance
In Q4, CarParts.com reported net sales of $120.4 million, down 10%, but gross margin improved to 33.2% and adjusted EBITDA loss narrowed to $2.2 million driven by efficiency gains and operational improvements.
3. Cost Structure Reset
The company implemented a full cost structure reset in 2025, consolidating its Virginia warehouse into four facilities, transitioning Manila operations to a third-party BPO provider, and reducing fixed operating expenses to improve capital efficiency.
4. Operating Model Improvements
Marketing efficiency improved by nearly 300 basis points between Q1 and Q4, while email, SMS, and mobile app revenues rose to over 10% and 13% of e-commerce sales respectively, supporting four consecutive quarters of margin and EBITDA improvement and aiming for free cash flow positivity in 2026.