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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 51 (OpenAI - 5.2)
Rating:51Neutral
Price Target:
$0.48
▼(-5.29% Downside)
Overall score is held down primarily by weak financial performance (declining revenue, negative margins, negative operating/free cash flow, and higher leverage). Technical indicators are comparatively supportive in the near term, but valuation remains constrained by ongoing losses and no dividend support.
Positive Factors
Stable gross profit margin
A stable gross margin implies the company maintains pricing and sourcing effectiveness at the product level. That durability supports unit economics even amid revenue pressure, giving management a base to restore operating leverage and profitability if revenues stabilize or grow over the next several quarters.
Improving free cash flow
Material improvement in free cash flow signals progress converting operations into cash, easing near-term funding needs. Even if FCF is still negative, improvement enhances flexibility to reduce reliance on external capital, fund working capital, or invest in customer acquisition during a multi-quarter turnaround.
Stable equity ratio / asset structure
A stable equity ratio indicates the company’s asset base relative to equity hasn’t deteriorated, providing structural balance-sheet resilience. This stability improves capacity to absorb operating volatility, secure interim financing, or execute restructuring without immediate forced asset sales.
Negative Factors
Declining revenue growth
Sustained revenue decline erodes scale benefits and makes fixed-cost absorption harder, weakening long-term margins and cash generation. Without a credible revenue-stabilization plan, continued top-line contraction will constrain investment, pressure margins, and likely require external financing to bridge results.
Negative operating and net margins
Persistent negative EBIT and net margins mean operations do not generate profit even before financing costs. This structural unprofitability limits internal capital formation, raises dependence on external funding, and increases execution risk for scaling or marketing investments needed to regain market share.
Rising leverage
Increasing leverage raises refinancing and liquidity risk, especially alongside negative operating cash flow. Higher debt burdens reduce financial flexibility, elevate interest and covenant risk, and increase the likelihood of equity issuance or asset sales to shore up liquidity during a multi-quarter recovery.

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

CarParts.com Inc Business Overview & Revenue Model

Company DescriptionCarParts.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; mirror products; engine and chassis components, as well as other mechanical and electrical parts; and performance parts and accessories to individual consumers through its network of e-commerce websites and online marketplaces. The company also sells auto parts to collision repair shops; markets Kool-Vue products to auto parts wholesale distributors; and aftermarket catalytic converters under the Evan Fischer brand. Its flagship websites include www.carparts.com, www.jcwhitney.com, www.autopartswarehouse.com and www.usautoparts.com. The company was formerly known as U.S. Auto Parts Network, Inc. and changed its name to CarParts.com, Inc. in July 2020. CarParts.com, Inc. was incorporated in 1995 and is headquartered in Torrance, California.
How the Company Makes MoneyCarParts.com generates revenue primarily through the sale of automotive parts and accessories on its e-commerce platform. The company earns money by sourcing a wide variety of products from manufacturers and wholesalers, which it then sells directly to consumers. Key revenue streams include sales of replacement parts, aftermarket accessories, and performance parts. Additionally, CarParts.com may leverage partnerships with automotive brands and manufacturers for exclusive product offerings or promotional collaborations that can drive traffic and sales. Factors contributing to its earnings include effective online marketing strategies, customer loyalty programs, and a growing trend of consumers opting for online shopping for automotive needs.

CarParts.com Inc Earnings Call Summary

Earnings Call Date:Aug 12, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Mar 11, 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.
Q2-2025 Updates
Positive Updates
Positive Adjusted EBITDA Achieved
In June, CarParts.com achieved positive adjusted EBITDA, indicating that strategic initiatives are beginning to deliver tangible results.
Record Mobile App Engagement
The mobile app now has over 1 million users and accounts for 12% of e-commerce revenues, reflecting stronger engagement from loyal customers.
Revenue Growth
Revenue for the second quarter was $151.9 million, up 5% from $144.3 million last year, primarily driven by growth in the e-commerce and offline channels.
Cost Optimization Initiatives
Actions taken, including closing the Virginia facility and streamlining corporate headcount, are expected to generate approximately $10 million in annualized cost savings.
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.
Gross Margin Decline
Gross margin for the quarter was 32.8%, down from 33.5% in the prior year period, primarily due to product mix and tariff impacts.
Marketplace Segment Pressure
Challenges in the Marketplace segment persist due to noncompliant products imported from China, impacting the competitive landscape.
Tariff and Inflation Challenges
Tariffs and inflation continue to weigh on consumer demand, particularly in discretionary categories, affecting pricing strategies and market stability.
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 declining and profitability remains negative (net and EBIT margins). Cash generation is also negative (operating and free cash flow), while leverage has increased, raising financial risk despite a relatively stable asset/equity structure.
Income Statement
45
Neutral
CarParts.com Inc has experienced declining revenue growth, with a negative growth rate in the TTM period. The gross profit margin remains relatively stable, but the company is struggling with negative net profit and EBIT margins, indicating ongoing profitability challenges.
Balance Sheet
50
Neutral
The company's debt-to-equity ratio has increased in the TTM period, indicating higher leverage. Return on equity remains negative, reflecting profitability issues. However, the equity ratio is stable, suggesting a balanced asset structure.
Cash Flow
40
Negative
Operating cash flow and free cash flow are negative in the TTM period, although free cash flow has shown significant improvement. The free cash flow to net income ratio is positive, indicating some efficiency in cash flow management despite overall negative cash flow.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue560.63M588.85M675.73M661.60M582.44M443.88M
Gross Profit182.85M196.74M229.41M230.89M197.28M155.37M
EBITDA-30.90M-20.07M10.04M14.83M1.13M8.27M
Net Income-54.30M-40.60M-8.22M-951.00K-10.34M-1.51M
Balance Sheet
Total Assets200.28M210.57M257.86M238.40M235.34M186.97M
Cash, Cash Equivalents and Short-Term Investments36.01M36.40M50.95M18.77M18.14M35.80M
Total Debt25.02M41.33M38.13M46.65M46.39M31.58M
Total Liabilities136.12M125.40M145.02M128.33M139.77M103.48M
Stockholders Equity64.16M85.17M112.83M110.07M95.57M83.49M
Cash Flow
Free Cash Flow-33.39M-10.23M38.01M2.78M-18.57M-28.83M
Operating Cash Flow-24.68M10.34M50.00M15.37M-6.99M-19.07M
Investing Cash Flow-8.71M-20.56M-11.90M-12.52M-11.55M-9.76M
Financing Cash Flow31.30M-4.42M-5.92M-2.15M902.00K62.36M

CarParts.com Inc Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.51
Price Trends
50DMA
0.48
Positive
100DMA
0.59
Negative
200DMA
0.71
Negative
Market Momentum
MACD
<0.01
Positive
RSI
50.56
Neutral
STOCH
62.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRTS, the sentiment is Negative. The current price of 0.51 is below the 20-day moving average (MA) of 0.52, above the 50-day MA of 0.48, and below the 200-day MA of 0.71, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.56 is Neutral, neither overbought nor oversold. The STOCH value of 62.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
69
Neutral
$19.33B23.9417.05%3.33%3.26%-25.41%
66
Neutral
$83.07B34.096.19%6.98%
63
Neutral
$61.37B25.833.81%-4.26%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
61
Neutral
$87.26B91.3843.53%45.55%5776.52%
51
Neutral
$35.81M-0.53-67.30%-8.35%-74.31%
48
Neutral
$2.88B-7.61-23.85%2.53%-19.41%-957.94%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PRTS
CarParts.com Inc
0.51
-0.66
-56.15%
AAP
Advance Auto Parts
48.01
0.90
1.91%
AZO
AutoZone
3,704.29
272.09
7.93%
GPC
Genuine Parts Company
138.99
26.68
23.76%
ORLY
O'Reilly Auto
98.41
10.67
12.16%
CVNA
Carvana Co
401.11
149.48
59.40%

CarParts.com Inc Corporate Events

Delistings and Listing ChangesShareholder MeetingsStock Split
CarParts.com Inc Transfers Listing to Nasdaq Capital Market
Neutral
Dec 15, 2025

On December 15, 2025, CarParts.com Inc received approval from Nasdaq to transfer its stock listing from The Nasdaq Global Select Market to The Nasdaq Capital Market, effective December 16, 2025. This move grants the company an additional 180 days, until June 8, 2026, to comply with the minimum bid price requirement, as its shares had been trading below $1.00 for an extended period. The company plans to monitor its stock price closely and may consider a reverse stock split if necessary to meet compliance. Additionally, CarParts.com scheduled its 2026 annual stockholders meeting for May 11, 2026, with revised deadlines for stockholder proposals and director nominations due to the meeting’s earlier date compared to the previous year.

The most recent analyst rating on (PRTS) stock is a Hold with a $0.43 price target. To see the full list of analyst forecasts on CarParts.com Inc stock, see the PRTS Stock Forecast page.

Executive/Board Changes
CarParts.com Appoints Mark DiSiena as Interim CFO
Neutral
Nov 14, 2025

On November 11, 2025, CarParts.com, Inc. announced the appointment of Mark DiSiena as the Interim Chief Financial Officer, effective November 12, 2025. DiSiena, a seasoned CPA with extensive experience in financial leadership roles across various public companies, will be serving through a Consulting Services Agreement with Everest Advisors LLC. The agreement outlines his compensation and responsibilities, emphasizing his role as the principal financial and accounting officer, while excluding typical equity awards or bonuses for full-time executives.

The most recent analyst rating on (PRTS) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on CarParts.com Inc stock, see the PRTS Stock Forecast page.

Executive/Board Changes
CarParts.com CFO Ryan Lockwood Resigns Effective Nov 21
Neutral
Nov 7, 2025

CarParts.com, Inc. announced the resignation of its Chief Financial Officer, Ryan Lockwood, effective November 21, 2025. Lockwood is leaving to pursue another professional opportunity, and his departure is not due to any disagreements with the company. The company will begin searching for a new CFO, with the Board of Directors and senior finance team managing financial operations during the transition.

The most recent analyst rating on (PRTS) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on CarParts.com Inc stock, see the PRTS Stock Forecast page.

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: Jan 06, 2026