CarParts.com Reports Q4 Progress on Revamped Operating Model

Highlights include cost reductions, improved marketing efficiency, and growth of asset-light mechanical parts partnership.

Published on Mar. 6, 2026

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CarParts.com executives used the company's fourth quarter fiscal 2025 earnings call to emphasize progress from a revamped operating model, highlighting cost reductions, improved marketing efficiency, and the growing contribution of an asset-light mechanical parts partnership with A-Premium.

Why it matters

The updates from CarParts.com provide insight into how the company is navigating a challenging retail environment by focusing on profitability and cash generation rather than pursuing 'unprofitable volume.' The progress on the A-Premium partnership and operational changes like warehouse consolidation and outsourcing also demonstrate CarParts.com's efforts to improve its cost structure and capital efficiency.

The details

CEO David Meniane said the company's operating model is 'delivering results every quarter,' citing four consecutive quarters of improvement in key metrics like contribution margin, fixed operating expenses, and adjusted EBITDA. The A-Premium partnership is already at a $35 million annual revenue run rate and has a 'clear path' to $50 million, providing access to a significantly expanded mechanical parts catalog through a capital-efficient model. CarParts.com also consolidated operations, reduced fixed overhead, and transitioned its Manila-based captive operations to a third-party BPO provider to simplify and reduce its cost structure.

  • The fourth quarter of fiscal 2025 included 14 weeks, and fiscal 2025 was a 53-week year.
  • CarParts.com completed the consolidation of its Virginia warehouse operations in the fourth quarter of 2025.
  • The company transitioned its Manila-based captive operations to Lean Solutions Group, a third-party BPO provider, in January 2026.

The players

David Meniane

Chief Executive Officer of CarParts.com.

Mark DiSiena

Interim Chief Financial Officer of CarParts.com.

A-Premium

A mechanical parts partnership that is a central element of CarParts.com's strategy, already at a $35 million annual revenue run rate with a 'clear path' to $50 million.

ZongTeng Group

A partner that CarParts.com leveraged to eliminate redundant overhead and improve variable economics while maintaining service levels.

Lean Solutions Group

A third-party business process outsourcing provider that CarParts.com transitioned its Manila-based captive operations to, simplifying and reducing its cost structure.

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What they’re saying

“2025 included a 'full cost structure reset' and the completion of a $35.7 million strategic investment.”

— David Meniane, Chief Executive Officer (CarParts.com earnings call)

“The A-Premium partnership provides access to a significantly expanded mechanical catalog through a capital-efficient model, with lower minimum order quantities and without the same working capital burden.”

— David Meniane, Chief Executive Officer (CarParts.com earnings call)

“We chose to rebuild around profitability and cash generation rather than pursue 'unprofitable volume.'”

— David Meniane, Chief Executive Officer (CarParts.com earnings call)

What’s next

CarParts.com is targeting free cash flow positive results in 2026, driven by contribution margin expansion, partnership scale, and the full-year benefit of cost actions.

The takeaway

CarParts.com's focus on improving its operating model, reducing costs, and growing capital-efficient partnerships like A-Premium highlights its efforts to navigate a challenging retail environment and position the company for long-term profitability and cash generation.