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CarParts.com Inc (PRTS)
NASDAQ:PRTS

CarParts.com Inc (PRTS) AI Stock Analysis

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PRTS

CarParts.com Inc

(NASDAQ:PRTS)

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Neutral 50 (OpenAI - 5.2)
Rating:50Neutral
Price Target:
$0.83
▲(7.79% Upside)
Action:ReiteratedDate:03/25/26
The score is held back primarily by deteriorating financial performance (declining revenue, widening losses, and recent cash burn with a shrinking equity base). Technical indicators are a key offset, showing improving momentum with price above major moving averages and a positive MACD. Corporate events add modest support via new funding and partnership expansion, while valuation remains constrained by loss-making results and no dividend.
Positive Factors
Strategic partnership and inventory funding
The A-Premium collaboration and $8M raise fund a large, multi-quarter SKU rollout into higher-value mechanical parts under JC Whitney. This materially broadens product assortment, leverages third-party sourcing/fulfillment, and structurally expands addressable market and revenue mix over the coming year.
Negative Factors
Declining revenue trend
Sustained top-line decline reduces scale benefits and pressures fixed-cost absorption in logistics and distribution. Without reversing revenue trends or successful SKU monetization, margin gains from cost cuts may be offset by lower volume and slower customer acquisition, hampering durable recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Strategic partnership and inventory funding
The A-Premium collaboration and $8M raise fund a large, multi-quarter SKU rollout into higher-value mechanical parts under JC Whitney. This materially broadens product assortment, leverages third-party sourcing/fulfillment, and structurally expands addressable market and revenue mix over the coming year.
Read all positive factors

CarParts.com Inc (PRTS) vs. SPDR S&P 500 ETF (SPY)

CarParts.com Inc Business Overview & Revenue Model

Company Description
CarParts.com, Inc., together with its subsidiaries, operates as an online provider of aftermarket auto parts and accessories in the United States and the Philippines. It offers replacement parts, such as parts for the exterior of an automobile; mi...
How the Company Makes Money
CarParts.com makes money primarily by selling automotive aftermarket products directly to consumers through its e-commerce channels. Revenue is generated at the point of sale when customers purchase replacement parts, accessories, and related item...

CarParts.com Inc Earnings Call Summary

Earnings Call Date:Aug 12, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted several positive developments, including positive adjusted EBITDA, record mobile app engagement, and revenue growth. However, these were offset by continued net losses, gross margin declines, and ongoing challenges in the marketplace segment due to tariffs and inflation. While there are promising cost optimization initiatives in place, significant challenges remain.
Positive Updates
Positive Adjusted EBITDA Achieved
In June, CarParts.com achieved positive adjusted EBITDA, indicating that strategic initiatives are beginning to deliver tangible results.
Negative Updates
Continued Net Loss
GAAP net loss for the quarter was $12.7 million, compared to a loss of $8.7 million in the prior year period, driven by lower gross margin and higher marketing costs.
Read all updates
Q2-2025 Updates
Negative
Positive Adjusted EBITDA Achieved
In June, CarParts.com achieved positive adjusted EBITDA, indicating that strategic initiatives are beginning to deliver tangible results.
Read all positive updates
Company Guidance
During the CarParts.com second quarter of 2025 conference call, the company provided guidance on several key metrics. The company reported a revenue increase to $151.9 million, up 5% from the previous year's $144.3 million, driven by growth in their e-commerce and offline channels. However, gross margin declined to 32.8% from 33.5% the prior year, primarily due to product mix and tariff impacts. The GAAP net loss was $12.7 million, compared to a $8.7 million loss the previous year, with the adjusted EBITDA loss at $3.1 million. The company highlighted its strategic focus on enhancing customer engagement, with their mobile app reaching over 1 million users and accounting for 12% of e-commerce revenues. To manage tariff impacts, they are exploring domestic sourcing and various cost mitigation strategies. Additionally, CarParts.com emphasized its ongoing strategic review process, aimed at maximizing shareholder value, and its initiatives to strengthen the business through AI and automation, with expected cost savings of approximately $10 million annually.

CarParts.com Inc Financial Statement Overview

Summary
Weak fundamentals: revenue is shrinking, operating and net losses have widened, and recent periods show cash burn and negative free cash flow. Balance sheet leverage is manageable, but the equity base has compressed materially, reducing financial flexibility.
Income Statement
28
Negative
Balance Sheet
46
Neutral
Cash Flow
32
Negative
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue547.52M588.85M675.73M661.60M582.44M
Gross Profit158.68M196.74M229.41M230.89M197.28M
EBITDA-24.51M-20.07M10.04M14.83M1.13M
Net Income-50.44M-40.60M-8.22M-951.00K-10.34M
Balance Sheet
Total Assets184.86M210.57M257.86M238.40M235.34M
Cash, Cash Equivalents and Short-Term Investments25.82M36.40M50.95M18.77M18.14M
Total Debt54.64M41.33M38.13M46.65M46.39M
Total Liabilities131.38M125.40M145.02M128.33M139.77M
Stockholders Equity53.48M85.17M112.83M110.07M95.57M
Cash Flow
Free Cash Flow-42.04M-10.23M38.01M2.78M-18.57M
Operating Cash Flow-34.08M10.34M50.00M15.37M-6.99M
Investing Cash Flow-7.90M-20.56M-11.90M-12.52M-11.55M
Financing Cash Flow31.40M-4.42M-5.92M-2.15M902.00K

CarParts.com Inc Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.77
Price Trends
50DMA
0.71
Positive
100DMA
0.59
Positive
200DMA
0.68
Positive
Market Momentum
MACD
0.02
Positive
RSI
49.74
Neutral
STOCH
25.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRTS, the sentiment is Neutral. The current price of 0.77 is below the 20-day moving average (MA) of 0.80, above the 50-day MA of 0.71, and above the 200-day MA of 0.68, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 49.74 is Neutral, neither overbought nor oversold. The STOCH value of 25.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PRTS.

CarParts.com Inc Risk Analysis

CarParts.com Inc disclosed 52 risk factors in its most recent earnings report. CarParts.com Inc reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

CarParts.com Inc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$74.23B41.2862.85%45.55%5776.52%
63
Neutral
$14.78B259.071.44%3.33%3.26%-25.41%
62
Neutral
$78.03B30.60-239.04%6.19%6.98%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
55
Neutral
$57.09B33.35-72.31%3.81%-4.26%
50
Neutral
$54.33M-0.66-67.30%-8.35%-74.31%
50
Neutral
$3.17B52.942.00%2.53%-19.41%-957.94%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PRTS
CarParts.com Inc
0.77
-0.10
-11.49%
AAP
Advance Auto Parts
54.50
21.79
66.61%
AZO
AutoZone
3,464.93
-110.19
-3.08%
GPC
Genuine Parts Company
107.41
-2.92
-2.64%
ORLY
O'Reilly Auto
93.06
3.16
3.52%
CVNA
Carvana Co
338.81
118.37
53.70%

CarParts.com Inc Corporate Events

Business Operations and StrategyExecutive/Board ChangesPrivate Placements and FinancingProduct-Related Announcements
CarParts.com Raises Capital, Expands JC Whitney Partnership
Positive
Mar 25, 2026
On March 21, 2026, CarParts.com agreed to sell 10 million shares of common stock at $0.80 per share in a private placement to raise $8 million, with closing subject to customary conditions. The investors accepted a six-month lockup with voting com...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Mar 25, 2026