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CarParts.com Inc
(NASDAQ:PRTS)
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Rating:51Neutral
Price Target:
$6.00
▲(13.64% Upside)
Action:Reiterated
Date:08/07/26
PRTS scores slightly below average primarily due to weak financial performance—declining revenue, compressed margins, ongoing losses, and negative operating/free cash flow. The earnings call offsets some of this with evidence of cost-driven profitability improvement and reiterated 2026 free-cash-flow goals, but execution and top-line risks remain. Technicals are mixed with a short-term lift but a longer-term downtrend, while valuation is constrained by negative earnings and no dividend support.
Positive Factors
Operational profitability inflection
A near $7.0M YoY swing to positive adjusted EBITDA reflects durable operating leverage from lower fixed costs, improved advertising efficiency and warehouse gains. Sustained EBITDA recovery supports the company’s path to free-cash-flow positivity and reduces immediate refinancing pressure if maintained.
Negative Factors
Top-line weakness and declining sales
Persistent revenue decline reduces operating scale and hinders fixed-cost absorption, making margin gains harder to sustain. Continued top-line weakness lengthens the time needed to reach profitable scale and increases reliance on margin improvements or new channels to restore growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Operational profitability inflection
A near $7.0M YoY swing to positive adjusted EBITDA reflects durable operating leverage from lower fixed costs, improved advertising efficiency and warehouse gains. Sustained EBITDA recovery supports the company’s path to free-cash-flow positivity and reduces immediate refinancing pressure if maintained.
Read all positive factors
CarParts.com Inc (PRTS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$43.73M
Dividend YieldN/A
Average Volume (3M)996.54K
Price to Earnings (P/E)―
Beta (1Y)0.41
Revenue Growth-6.64%
EPS Growth29.96%
CountryUS
Employees1,186
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-4.33
Shares Outstanding8,098,751
10 Day Avg. Volume1,318,564
30 Day Avg. Volume996,539
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)0.57
Price to Sales (P/S)0.06
P/FCF Ratio-0.73
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$6.08Price Target Upside15.15% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)-3.15
Revenue Forecast (FY)$508.14M
CarParts.com Inc Business Overview & Revenue Model
Company Description
CarParts.com, Inc., and its associated enterprises, functions as a leading online distributor of aftermarket automotive components and accessories across both the United States and the Philippines. The company provides an extensive selection of ve...
How the Company Makes Money
CarParts.com primarily makes money by selling automotive aftermarket parts and accessories through direct-to-consumer (and related) e-commerce channels. Revenue is generated when customers purchase parts via the company’s owned-and-operated websit...
CarParts.com Inc Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call communicated a clear operational inflection: material cost reductions, improved advertising efficiency, and strategic partnerships drove adjusted EBITDA positive and meaningful year-over-year improvement in profitability metrics. Simultaneously, the company faces top-line pressure (≈10% sales decline), freight/fuel headwinds, early-stage execution risk on new initiatives and some balance-sheet considerations (convertible notes, recent equity issuance and tariff claims). Overall, the positive operational momentum, stronger liquidity and scalable partnership opportunities outweigh the top-line and execution risks conveyed, but the path to sustained free cash flow remains dependent on continued execution.Positive Updates
Positive Adjusted EBITDA Inflection
Adjusted EBITDA was positive $585,000 in Q1 2026 vs a loss of ~$6.2 million in Q1 2025, a swing of nearly $7.0 million year-over-year, marking the first positive adjusted EBITDA since Q1 2024.
Negative Updates
Net Sales Decline
Net sales were $132.0 million in Q1 2026 vs $147.4 million in Q1 2025, a decrease of approximately 10%, primarily due to deliberate advertising optimization toward higher-intent customers, pricing actions, and weather-related volume softness.
Read all updates
Q1-2026 Updates
Positive
Negative
Positive Adjusted EBITDA Inflection
Adjusted EBITDA was positive $585,000 in Q1 2026 vs a loss of ~$6.2 million in Q1 2025, a swing of nearly $7.0 million year-over-year, marking the first positive adjusted EBITDA since Q1 2024.
Read all positive updates
Company Guidance
The company reaffirmed its goal to be free‑cash‑flow positive in 2026 and outlined a clear path to get there—grow contribution margin dollars, keep fixed costs materially lower and embedded in the run rate, and improve capital efficiency as JC Whitney and A‑Premium scale—backed by specific targets and near‑term milestones: A‑Premium is at an annualized revenue run rate approaching $45.0M with a near‑term target of $50M and long‑term potential to exceed $100M; JC Whitney will scale a 30,000‑SKU catalog (7,000 SKUs live on Amazon today); and the last‑mile initiative targets 300,000 packages in 12–24 months. Q1 proof points cited include adjusted EBITDA of +$0.585M (vs −$6.2M YoY), net sales of $132.0M, gross profit $42.9M (32.5% gross margin, +40 bps YoY), operating expense $46.0M (−26% YoY), cash of $38M, inventory of ~$91M, annual fee income in excess of $4M, >1,000 CarParts.com Mastercards activated, convertible notes of $25.3M (conversion $1.20), and up to $4.3M in potential IEEPA tariff claims.CarParts.com Inc Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
46
Neutral
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 515.80M | 547.52M | 588.85M | 675.73M | 661.60M | 582.44M |
| Gross Profit | 149.55M | 158.68M | 196.74M | 229.41M | 230.89M | 197.28M |
| EBITDA | -12.29M | -27.71M | -20.07M | 10.04M | 14.83M | 1.13M |
| Net Income | -27.61M | -50.44M | -40.60M | -8.22M | -951.00K | -10.34M |
Balance Sheet | ||||||
| Total Assets | 183.97M | 184.86M | 210.57M | 257.86M | 238.40M | 235.34M |
| Cash, Cash Equivalents and Short-Term Investments | 38.17M | 25.82M | 36.40M | 50.95M | 18.77M | 18.14M |
| Total Debt | 25.42M | 54.64M | 41.33M | 38.13M | 46.65M | 46.39M |
| Total Liabilities | 127.18M | 131.38M | 125.40M | 145.02M | 128.33M | 139.77M |
| Stockholders Equity | 56.79M | 53.48M | 85.17M | 112.83M | 110.07M | 95.57M |
Cash Flow | ||||||
| Free Cash Flow | -6.93M | -42.04M | -10.23M | 38.01M | 2.78M | -18.57M |
| Operating Cash Flow | -3.37M | -34.08M | 10.34M | 50.00M | 15.37M | -6.99M |
| Investing Cash Flow | -7.59M | -7.90M | -20.56M | -11.90M | -12.52M | -11.55M |
| Financing Cash Flow | 29.96M | 31.40M | -4.42M | -5.92M | -2.15M | 902.00K |
CarParts.com Inc Technical Analysis
Positive
5.28
Price Trends
5.88
Positive
6.98
Negative
6.34
Positive
Market Momentum
-0.01
Negative
67.58
Neutral
87.06
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRTS, the sentiment is Positive. The current price of 5.28 is below the 20-day moving average (MA) of 5.38, below the 50-day MA of 5.88, and below the 200-day MA of 6.34, indicating a bullish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 67.58 is Neutral, neither overbought nor oversold. The STOCH value of 87.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $74.05B | 28.19 | -232.45% | ― | 8.47% | 12.39% | |
66 Neutral | $68.62B | 21.55 | 46.57% | ― | 53.98% | 159.43% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $49.24B | 20.22 | -80.35% | ― | 5.74% | -1.73% | |
58 Neutral | $3.35B | 75.74 | 2.00% | 1.79% | -8.26% | ― | |
55 Neutral | $17.15B | 478.35 | 0.72% | 3.37% | 5.47% | -95.54% | |
51 Neutral | $43.73M | -0.87 | -47.19% | ― | -6.64% | 29.96% |
* Consumer Cyclical Sector Average
PRTS
CarParts.com Inc
6.75
-2.05
-23.28%
AAP
Advance Auto Parts
57.80
-0.12
-0.20%
AZO
AutoZone
3,127.29
-907.87
-22.50%
GPC
Genuine Parts Company
135.63
7.14
5.56%
ORLY
O'Reilly Auto
93.53
-9.80
-9.48%
CVNA
Carvana Co
70.85
1.34
1.92%
CarParts.com Inc Corporate Events
Business Operations and StrategyPrivate Placements and Financing
CarParts.com Secures New $25 Million Credit Facility
Positive
Jun 16, 2026
On June 15, 2026, CarParts.com entered into a new asset-based revolving credit facility of up to $25 million with First Business Specialty Finance, secured by substantially all of its assets and guaranteed by certain subsidiaries. The borrowing ba...
Delistings and Listing ChangesRegulatory Filings and Compliance
CarParts.com Regains Nasdaq Compliance, Stabilizing Listing Status
Positive
Jun 9, 2026
On June 9, 2026, CarParts.com, Inc. announced that it had regained compliance with Nasdaq’s minimum bid price requirement, after its common stock closed at or above $1.00 per share for 10 consecutive business days from May 26 through June 8,...
Executive/Board Changes
CarParts.com Expands Board, Appoints New Independent Director
Neutral
Jun 8, 2026
On June 6, 2026, CarParts.com, Inc. expanded its Board of Directors from six to seven members and appointed Tim Nauss as a Class II independent director, with his term set to run until the 2029 Annual Meeting of Stockholders unless ended earlier b...
Shareholder MeetingsStock Split
CarParts.com Announces 1-for-10 Reverse Stock Split
Neutral
May 21, 2026
At its May 11, 2026 annual meeting, CarParts.com stockholders approved a reverse stock split, and the board set the ratio at 1-for-10, leading to the filing of an amendment in Delaware on May 21, 2026 that becomes effective at 11:59 p.m. Eastern T...
Business Operations and StrategyRegulatory Filings and Compliance
CarParts.com Ends Tax Benefits Preservation Rights Plan
Positive
May 11, 2026
On May 11, 2026, CarParts.com announced that its board approved an amendment to its Tax Benefits Preservation Plan, accelerating the plan’s expiration from April 5, 2027 to May 12, 2026. As a result, the associated rights under the plan expi...
Executive/Board ChangesShareholder MeetingsStock Split
CarParts.com Shareholders Approve New Director and Stock Plan
Positive
May 11, 2026
On May 21, 2026, CarParts.com Inc. held its Annual Meeting of Stockholders, where shareholders elected Nanxi Liu as a Class II director to serve until the 2029 annual meeting and ratified RSM US LLP as the independent auditor for fiscal year 2026....
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.