CarParts.com Reports A-Premium Annualized Revenue Run Rate Near $55 Million in Q3
Key Facts
The A-Premium partnership with CarParts.com ended the third quarter at an annualized revenue run rate near $55 million, after exceeding its $50 million target during the quarter, according to the company’s earnings release. Management said its goal is to exceed $55 million by the end of the fourth quarter, while remaining on track for a long-term target of $100 million. CarParts.com recorded net sales of $129.3 million in the third quarter of 2026, up 1.2% from $127.8 million in the same period a year earlier. The company attributed sales growth primarily to higher consumer demand, alongside continued improvements in advertising spend. This follows a 10.7% decline in sales to $135.6 million in the second quarter, making the return to growth the most notable shift in the latest quarterly results.
The partnership has expanded since it was announced in September 2025, when CarParts.com said the commercial agreement would give customers access to more than 150,000 additional products, including exclusive kits and bundles. Management said on the earnings call that A-Premium’s offering is six times larger than the company’s previous private-label mechanical parts catalog, helping fill earlier gaps in parts compatibility. The broader catalog gives the company scope to increase its product offering through a partnership that combines supply and private-label branding. A-Premium, along with ZongTeng Group and CDH Investments, announced a total strategic investment of $35.7 million in CarParts.com in September 2025. The current figures place the partnership at the center of the company’s revenue growth efforts, as it moves from a broader product base to targeting a higher annualized run rate in the fourth quarter.
On delivery, the last-mile network delivered more than 6,000 packages in the third quarter, roughly double the number delivered in the second quarter, according to the company. Next-day delivery became available from three of four distribution centers. Expanding next-day delivery is part of the company’s efforts to reduce shipping costs, whose decline contributed to an improvement in gross margin. Gross profit was $43.2 million, compared with $42.3 million a year earlier, while the margin rose 30 basis points to 33.4%.
At the operating-profit level, the company generated adjusted EBITDA of $1.0 million, compared with an adjusted loss of $2.5 million in the third quarter of 2025, marking its third consecutive quarter of positive adjusted EBITDA. Net loss narrowed to $4.1 million, or $0.53 per share, from $10.9 million, or $1.87 per share, in the year-earlier period. Operating expenses also declined to $47.0 million from $52.3 million a year earlier. The company attributed the decrease to distribution-center consolidation, improved advertising-spend efficiency and lower payroll costs. The results point to improvement in losses and operating metrics, while the company continued to post a net loss for the quarter.
Business growth initiatives included the mobile app and loyalty program. The app’s share of e-commerce revenue rose to 14.5% from 12.9% a year earlier, while cumulative downloads reached 1.7 million. The company launched CarParts+ Rewards on October 13 and said more than 200,000 members had signed up since the pilot launch in September. These initiatives continue to broaden sales channels and customer retention alongside growth in the A-Premium partnership. As of October 3, cash stood at $33.8 million and inventory at $76.9 million, and the company had no balance drawn on its revolving credit facility.
PRTS shares closed at $8.62 on October 29, according to EL7 data. Investing.com reported that the stock rose 5.25% during the regular session before falling 8% after hours to $7.93 following the earnings announcement. The after-hours move therefore reversed the regular-session gains on the day the third-quarter results were released. The next operating milestone set by management is the end of the fourth quarter, when it targets an A-Premium partnership annualized revenue run rate above $55 million.