CarParts.com Achieves Growth Despite Financial Challenges

CarParts.com Reports Second Quarter 2025 Financial Results

CarParts.com, Inc. (NASDAQ: PRTS), a prominent eCommerce provider for automotive parts and accessories, has unveiled its financial performance for the second quarter. The results reflect a 5% increase in net sales, reaching $151.9 million, compared to the $144.3 million achieved during the same period last year.

Performance Highlights

In this quarter, the gross profit also saw an upswing, amounting to $49.8 million versus $48.4 million from the year-ago quarter, although the gross margin declined slightly to 32.8%. This change was influenced by a shift in product mix and various economic factors impacting cost structures.

Net Loss and Adjusted EBITDA

Despite these improvements, the company reported a net loss of $12.7 million, or $0.23 per share. This is a jump from the $8.7 million loss, or $0.15 per share, reported in the same quarter last year. Adjusted EBITDA was also negative, totaling $(3.1) million, marking a decline from the $(0.1) million recorded in the prior year's quarter.

Cash Position and Operating Expenses

As of June 28, 2025, CarParts.com had a cash reserve of $19.8 million and inventory valued at $94.0 million. However, total operating expenses rose to $62.2 million, up from $57.1 million year over year, primarily due to increased marketing efforts and one-time expenses connected to ongoing strategic evaluations.

Strategies for Improvement

Management remains focused on exploring strategic alternatives to enhance shareholder value. CEO David Meniane expressed confidence in the strategic initiatives underway, noting that the efforts targeted towards realigning fulfillment networks and investing in AI technologies are expected to yield annual cost savings of around $10 million. Furthermore, the firm achieved positive Adjusted EBITDA performance in June, reinforcing the effectiveness of their strategic initiatives.

Market Place Dynamics

Even amidst favorable performance indicators, CarParts.com continues to face challenges in their marketplace sales channel. Nonetheless, the company's primary ecommerce platform remains robust, reflecting consumer demand for quality automotive parts.

Future Outlook

Looking ahead, the company currently refrains from providing guidance for the remainder of 2025 due to ongoing evaluations of various strategic alternatives. This prudent approach suggests a focus on stability as they navigate through these evaluations.

Conference Call Information

The management team, including David Meniane and CFO Ryan Lockwood, will engage investors in a conference call to discuss these results further. Stakeholders keen on understanding the ongoing strategies and future outlooks are encouraged to participate.

About CarParts.com, Inc.

CarParts.com, Inc. prides itself on being a technology-led ecommerce platform offering over 1 million automotive parts. With more than 25 years in the business, it serves as a go-to source for drivers seeking effective repair and maintenance solutions. The commitment to a seamless, mobile-friendly shopping experience, backed by a strong customer service team, positions CarParts.com favorably in the competitive landscape.

Frequently Asked Questions

What were the key financial figures for CarParts.com in Q2 2025?

Key figures include net sales of $151.9 million, gross profit of $49.8 million, and a net loss of $12.7 million.

How has CarParts.com's performance changed from the previous year?

In the second quarter of 2025, net sales increased by 5%. However, the net loss expanded compared to the previous year.

What strategies is CarParts.com implementing for growth?

CarParts.com is investing in AI and automation to streamline operations and achieve significant cost savings.

What measures are being taken regarding the company's strategic direction?

The company is actively exploring strategic alternatives to maximize shareholder value and is evaluating multiple transaction structures.

What is the company's cash position?

As of the end of June 2025, CarParts.com reported $19.8 million in cash reserves.

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