CarParts.com Reports Second Quarter 2025 Results

Core Insights - CarParts.com, Inc. reported a net sales increase of 5% to $151.9 million for the second quarter of 2025 compared to $144.3 million in the same quarter last year, driven by higher consumer demand through its primary eCommerce sales channel [5][11] - The company is actively exploring strategic alternatives to maximize shareholder value, including a potential sale and strategic investments, with management expressing confidence that this process is nearing completion [3][9] - The company achieved positive Adjusted EBITDA in June 2025, indicating that strategic initiatives are beginning to yield tangible results, with expected annualized cost savings of approximately $10 million from investments in AI and automation [4][11] Financial Performance - Gross profit for the second quarter was $49.8 million, up from $48.4 million year-over-year, but gross margin decreased by 70 basis points to 32.8% due to product mix and tariffs [6][11] - Total operating expenses rose to $62.2 million from $57.1 million in the prior year, with operating expenses as a percentage of net sales increasing to 40.9% [7][11] - The net loss for the quarter was $12.7 million, compared to a net loss of $8.7 million in the same quarter last year, primarily due to lower gross margin and higher marketing expenses [8][11] Cash and Balance Sheet - As of June 28, 2025, the company had a cash balance of $19.8 million and a revolving loan balance of $10 million, compared to no revolver debt and a cash balance of $36.4 million at the end of the previous fiscal year [8][25] - Inventory stood at $94 million, reflecting an increase from $90.4 million at the end of the previous fiscal year [25] - Total assets decreased to $189.6 million from $210.6 million, while total liabilities increased slightly to $127.1 million [25][26] Market Position and Strategy - CarParts.com operates over 1 million quality automotive parts and accessories, positioning itself as a leading eCommerce provider in the automotive sector [13] - The company is focused on enhancing its fulfillment network and investing in technology to improve operational efficiency and customer experience [4][11] - The mobile app has achieved approximately 1 million cumulative downloads, indicating a growing digital presence [11]