0001378950-26-000035
SEC filingCarParts.com reported net sales of $547.5 million for fiscal year 2025, ending January 3, 2026. The company recorded a net loss of $50.4 million, with a loss from operations of $48.9 million. Gross profit was $179.3 million, resulting in a gross margin of 32.7%. Operating expenses of $228.2 million significantly exceeded gross profit. The company generated negative operating cash flow of $34.1 million, partially offset by $31.4 million in net cash from financing activities, primarily from convertible notes and common stock issuance. Total assets were $184.9 million, with current assets of $135.1 million and total liabilities of $131.4 million. The company's strategic initiatives included launching an AI-powered shopping assistant, expanding fulfillment capabilities, and securing strategic investments to support growth in mechanical and performance parts.
CarParts.com reported net sales of $547.5 million for fiscal year 2025, ending January 3, 2026. The company incurred a net loss of $50.4 million, representing a significant deterioration from prior periods. Loss from operations was $48.9 million, with operating expenses of $228.2 million exceeding gross profit of $179.3 million. Other income, net contributed $493,000, while interest expense was $1.7 million, resulting in total other expense of $1.2 million. The company recorded an income tax provision of $362,000. Comprehensive loss was $50.3 million, slightly lower than net loss due to other comprehensive gain of $168,000. Basic and diluted net loss per share were both $1.00, calculated using 61.2 million weighted-average shares.
The company's revenue of $547.5 million was generated through multiple sales channels. Third-party marketplace sales, including eBay and Amazon, represented 33.5% of total sales for the fiscal year. The company operates through both online and offline channels, serving individual consumers, professional installers, and wholesale customers. Online sales are generated through the flagship website www.carparts.com, mobile app, and third-party marketplaces. Offline sales occur through the wholesale website and direct sales relationships. The company offers over 1.5 million products across replacement parts, hard parts, and performance accessories, with house brands including JC Whitney, Evan Fischer, and Garage-Pro.
Gross profit was $179.3 million, representing a gross margin of 32.7%. The cost of sales was $368.2 million. Operating expenses of $228.2 million included significant non-cash charges, including $8.1 million in share-based compensation expense and $3.7 million in impairment of long-lived assets. Depreciation and amortization expense totaled $20.6 million. The operating loss margin was -8.9%. The company's profitability was negatively impacted by high operating expenses relative to gross profit, with operating expenses consuming 127% of gross profit. The net loss margin was -9.2%.
Operating activities used $34.1 million in cash, primarily due to the net loss of $50.4 million, partially offset by non-cash adjustments including depreciation and amortization of $20.6 million. Investing activities used $7.9 million for additions to property and equipment and intangible assets. Financing activities provided $31.4 million, including $25.0 million from convertible notes payable and $10.7 million from common stock issuance. The net change in cash was a decrease of $10.6 million. Total assets were $184.9 million, including $25.8 million in cash and cash equivalents, $95.2 million in inventory, and $20.2 million in property and equipment. Total liabilities were $131.4 million, including $25.2 million in convertible notes payable. Stockholders' equity was $53.5 million.
The company faces significant operational risks, including dependence on suppliers in Taiwan and China, reliance on third-party delivery services, and intense competition in the automotive aftermarket industry. Management noted that net losses may continue in the future, which could impact liquidity and require additional financing. Strategic initiatives include expanding product offerings, enhancing fulfillment capabilities through a new Las Vegas distribution center, and leveraging AI technology with the Spark shopping assistant. The company secured strategic investments from ZongTeng Group, A-Premium, and CDH Investments to support growth. However, the company's ability to execute its strategy depends on maintaining access to third-party marketplaces, controlling costs, and adapting to shifting consumer behavior toward mobile and marketplace shopping.