CarParts.com, Inc. reported a decline in financial performance for the third quarter of 2025, with net sales of $127.8 million, down 11.7% from $144.8 million in the same period last year. The company also recorded a net loss of $10.9 million, compared to a loss of $10.0 million in the prior year. For the first nine months of 2025, net sales totaled $427.1 million, a decrease of 6.2% from $455.3 million in 2024. The gross profit for the quarter was $42.3 million, reflecting a gross margin of 33.1%, down from 35.2% in the previous year, primarily due to product mix and tariff impacts.
In terms of operational changes, CarParts.com has focused on optimizing its marketing spend to enhance profitability, which contributed to the decline in sales. The company has also made strategic investments, including the opening of a new fulfillment center in Las Vegas, which is expected to improve logistics and reduce transportation costs. Additionally, the company issued $25 million in convertible notes and raised $10.7 million through the sale of common stock to bolster its financial position.
The company’s customer engagement metrics showed a slight increase in user activity, with a total of 69.7 million shares outstanding as of September 27, 2025. However, the overall customer count and engagement levels were not disclosed in the filing. The company continues to face challenges in maintaining inventory levels and managing supplier relationships, which are critical for meeting customer demand.
Looking ahead, CarParts.com expressed cautious optimism about its ability to navigate market conditions and improve profitability. The company plans to continue refining its eCommerce strategy and enhancing its product offerings to capture a larger market share. However, it acknowledged potential risks, including economic fluctuations, competition, and the impact of tariffs on its supply chain. The management believes that existing cash reserves and financing options will be sufficient to support operations for at least the next twelve months.
About CarParts.com, Inc.
CarParts.com, Inc. is an eCommerce retailer specializing in aftermarket automotive parts and accessories. It offers over 1 million SKUs through its website and mobile app, serving individual consumers and wholesale distributors. The company emphasizes a seamless online shopping experience, proprietary product database, and efficient fulfillment centers. Its competitive advantages include broad product selection, direct supplier relationships, and innovative digital marketing in the automotive aftermarket industry.
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