Key Highlights

● Adjusted EBITDA was US$1.8 million, against a loss of US$3.1 million.

● Net sales fell 10.7% to US$135.6 million.

● Net loss narrowed to US$3.2 million.

● Cash rose to US$38.2 million.

CarParts.com, Inc. (NASDAQ:PRTS) is attracting attention because its second-quarter 2026 report, issued on 6 August 2026, showed a much smaller loss and adjusted Earnings before interest, tax, Depreciation and Amortisation (EBITDA) of US$1.8 million, which management described as the highest since the third quarter of 2023. The improvement came even as net sales fell, so the result rests on cost and Margin gains rather than growth.

The online parts retailer

CarParts.com sells aftermarket car and truck parts to consumers and repairers online. Its shares trade on the Nasdaq market. The company has a Market Capitalisation of about US$69.3 million.

The company completed a one-for-ten Reverse Stock Split in May 2026 and said it regained compliance with Nasdaq listing requirements during the second quarter.

What the second quarter showed

For the quarter ended 4 July 2026, net sales were US$135.6 million, compared with US$151.9 million a year earlier, a decline of 10.7%. Gross margin improved to 33.2% from 32.8%. The net loss narrowed to US$3.2 million from US$12.7 million, or US$0.43 per share against US$2.27 per share, with the earlier per-share figure reflecting the share consolidation. Adjusted EBITDA, a non-GAAP measure, was US$1.8 million against a loss of US$3.1 million.

The Balance Sheet moved in a helpful direction. Cash stood at US$38.2 million at 4 July 2026, against US$25.8 million at 3 January 2026, while inventory fell to US$83.9 million from US$95.2 million. Operating Cash Flow for the 26 weeks was US$10.6 million. Debt consisted of US$25.4 million of convertible notes, alongside an undrawn US$25 million revolving Credit Facility with First Business Bank that matures in March 2028.

Strategy and management comments

Chief executive David Meniane said in the release that the company delivered its highest adjusted EBITDA since the third quarter of 2023. He also said that six quarters of improvement is evidence the plan works, not proof the Job is done, and that the company is far from declaring victory.

The company pointed to several initiatives. A Partnership with A-Premium is approaching US$50 million in annualised revenue, with a long-term path the company says could exceed US$100 million. Its last-mile delivery network handled more than 3,000 packages in the quarter, double the first quarter, with a target of 300,000 packages a year, roughly 5% of outbound volume. Fee income from a co-branded Mastercard, a membership programme and warranty products runs at around US$5 million annualised, and the mobile app has recorded 1.6 million cumulative net downloads.

Risks to keep in view

The Revenue decline is the most obvious concern, since profit improvement driven by cost control has limits if sales keep shrinking. The company's own risk language cites competitive pressures, dependence on search engines, Demand fluctuations, shifts in online channel mix, general economic conditions, rising Commodity and component prices, and restrictions in its credit agreement. The company is still loss-making on a net basis, and trailing twelve-month Net Income is negative US$27.6 million.

The release also names Mark DiSiena as interim chief financial officer, so a permanent appointment is a further item on which investors may seek clarity. No full-year guidance was included in the second-quarter release, which leaves the outlook to be judged from reported results and management commentary.

Cost Discipline Carries a Shrinking Top Line

The next earnings date is listed as 9 November 2026, which would cover the third quarter, though the company has not confirmed it. Investors will look for whether adjusted EBITDA stays positive, whether gross margin holds near current levels, and whether the A-Premium relationship and last-mile network scale as described. Cash and inventory trends will also matter given the convertible notes outstanding.