CarParts.com, Inc.
0.6714-0.01 (-1.48%)
Oct 29, 4:00:01 PM EDT · NasdaqGS · PRTS · USD
Key Stats
Market Cap
37.10MP/E (TTM)
-Basic EPS (TTM)
-0.91Dividend Yield
0%Recent Filings
8-K
Board shrinks post-investment
CarParts.com's board shrank from eight to six directors as Henry Maier and James Barnes stepped down effective October 7, 2025, tied to the recent strategic investment from ZongTeng Group, A-Premium, and CDH Investments announced September 9. The investors appointed Thomas Yunlong Man and Na 'Mina' He as board observers, bringing M&A and investment expertise to guide cross-border growth. Board transitions smooth. This aligns investor influence with expansion goals, yet no integration risks disclosed.
8-K
CarParts.com announces $35.7M strategic investment from ZongTeng Group, A-Premium, and CDH Investments. The deal includes 10.3M common shares at $1.04 (18% premium) and $25M convertible notes at $1.20 conversion. This concludes the March 2025 strategic review, providing growth capital and partnerships for product expansion and logistics enhancement in the $300B U.S. auto parts market.
{"filing":{"event":"CarParts.com secures $35.7 million strategic investment from ZongTeng Group, A-Premium, and CDH Investments, involving issuance of 10.3 million common shares at $1.04 each and $25 million in convertible notes at $1.20 conversion price. This concludes the strategic alternatives review process announced in March 2025.","company":"CarParts.com, Inc. (NASDAQ: PRTS)","date":"September 9, 2025"},"transaction":{"type":"Strategic Investment","investors":["ZongTeng Group","A-Premium","CDH Investments"],"amount":"$35.7 million","structure":{"equity":"10.3 million common shares at $1.04 per share (18% premium to 90-day VWAP)","debt":"$25 million convertible notes (3-year term, 2% interest, $1.20 conversion price)"},"purpose":"Strengthen balance sheet, fund growth, expand product assortment, enhance customer experience, accelerate operational improvements","partnerships":{"A-Premium":"Long-term commercial partnership for 150,000+ additional products (kits and bundles)","ZongTeng Group":"Leverage distribution/logistics expertise for faster delivery, better inventory management, lower costs"},"strategic review":"Concludes March 2025 process evaluating sale/other alternatives; board determined this transaction best for shareholder value"},"company profile":{"business":"E-commerce provider of automotive parts/accessories","scale":"2.5M unique customers annually, 2-day delivery to 95% of U.S. via nationwide distribution centers","positioning":"One-stop destination for DIY customers and professional installers"},"investor details":{"ZongTeng Group":"Global e-commerce infrastructure services provider; logistics for 60,000+ cross-border sellers; 10,000+ employees, 4 B777F aircraft, 24M+ sq ft fulfillment space","A-Premium":"Global auto parts brand; 150,000+ SKUs in mechanical/performance parts; serves worldwide customers","CDH Investments":"Asia-focused alternative asset manager; $20B AUM; invested in 350+ companies, 100+ IPOs"},"quotes":{"David Meniane (CEO, CarParts.com)":"Inflection point; right partners for next stage; premium valuation, retained upside, transformational sourcing/operations","Leon Chen (ZongTeng Group)":"Superior fulfillment/customer reach; undervalued competitive advantages","Aaron Gong (A-Premium)":"Ideal partner for U.S. expansion; 150,000 SKUs to tens of millions of customers","Chase Zheng (CDH Investments)":"Operational excellence, untapped potential; value-adding strategies for growth"},"advisors":{"CarParts.com":"Craig-Hallum Capital Group LLC (exclusive financial advisor), Wilson Sonsini Goodrich & Rosati (legal)","Investors":"White & Case (legal counsel)"},"forward-looking statements":"Includes risks; no undue reliance; qualified by cautionary language"}
10-Q
Q2 FY2025 results
CarParts.com posted Q2 net sales of $152M, up 5.3% y/y but down 3.6% YTD amid weather hits and marketplace softness, while gross margin slipped to 32.8% from 33.5% on product mix and tariffs. Operating expenses climbed 8.9% y/y to $62M, fueled by marketing and strategic exploration fees, widening the operating loss to $12.4M from $8.7M; net loss hit $12.7M or $(0.23) per diluted share on 55.9M shares, versus $(0.15) last year, with the gap to operating loss tied to interest expense and taxes. Cash drained to $19.8M from $36.4M year-start, with operating cash use of $20M and free cash flow of $(24.5M) (derived) after $4.4M capex, offset by $10M revolver draw under the $75M facility maturing 2027 at 6.43% SOFR; the Las Vegas center lease kicked off February 2024 for 87 months at escalating $186 monthly base rent. Yet losses persist. Marketplace access hangs by a thread.
8-K
Q2 sales rise, losses deepen
CarParts.com reported Q2 2025 net sales of $151.9 million, up 5% from last year, yet gross margin slipped to 32.8% amid product mix shifts and tariffs. Net loss widened to $12.7 million, or $0.23 per share, driven by higher marketing and strategic review costs, while Adjusted EBITDA hit ($3.1) million. The company advances on $10 million in expected annualized savings from AI and network tweaks. Strategic alternatives loom large, with no 2025 guidance issued.
8-K
Nasdaq bid price noncompliance
CarParts.com held its 2025 annual meeting on June 13, electing directors Jay K. Greyson, Jim Barnes, and Ana Dutra to three-year terms, ratifying RSM US LLP as auditors with strong support, and approving executive compensation on an advisory basis. Yet Nasdaq notified the company that day of noncompliance with the $1 minimum bid price rule after 30 consecutive business days below it. CarParts has until December 10, 2025, to lift its stock price above $1 for 10 straight days; failure risks delisting or a reverse split. No assurance of compliance.
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