MPAA reported revenue of $208.2 million for the fiscal 2025 second quarter (Q2), marking a 5.9% year-over-year increase, and delivered a record gross profit of $41.3 million with a gross margin of 19.8%. However, net income declined to a net loss of $3.0 million (EPS -0.15) due to non-cash items and one-time expenses that pressured margins in the quarter. The company generated $22.9 million of operating cash flow and reduced net bank debt by $22 million, underscoring meaningful cash generation even as GAAP results show ongoing profitability headwinds. Management attributes the near-term margin dynamics to non-cash core amortization, onboarding and transition costs related to strategic relocations, and foreign exchange mark-to-market effects tied to Mexican leases and peso-denominated contracts. The ramp of break-related products and ongoing expansion of diagnostic testing are highlighted as key growth pillars, alongside a strategic plan to introduce at least 800 new part numbers per year and to scale diagnostic equipment revenue toward a $100 million target over the next three years. Management also signaled a more favorable outlook for interest rates, which they expect to improve profitability going forward. Overall, MPAA maintains an optimistic long-term growth trajectory anchored by non-discretionary aftermarket parts, a broad product portfolio, and geographic expansion, but near-term profitability remains challenged by FX and non-cash accounting items. Esteemed management commentary points to margin accretion from higher mix in non-discretionary segments and ongoing cost-reduction initiatives as catalysts for improvement in H2 FY2025 and beyond.