CarParts.com (PRTS) investor relations material

Executive summary

• Net sales for Q2 2025 increased 5.3% year-over-year to $151.9M, driven by higher consumer demand on the primary ecommerce channel, partially offset by softness in marketplace sales.

• Net loss widened to $12.7M in Q2 2025 from $8.7M in Q2 2024; Adjusted EBITDA was ($3.1)M versus ($0.1)M a year ago, reflecting higher marketing spend and one-time strategic alternatives costs.

• Gross profit rose to $49.8M, but gross margin declined to 32.8% from 33.5% due to product mix and tariffs.

• Strategic alternatives, including a potential sale or investment, are being actively explored to maximize shareholder value.

• Board remains committed to delivering value and will only update on the process if a definitive agreement is reached.

Financial highlights

• Q2 2025 net sales: $151.9M (up 5.3% year-over-year); YTD net sales: $299.3M (down 3.6% year-over-year).

• Q2 2025 gross profit: $49.8M (up 2.9% year-over-year); gross margin: 32.8% (down from 33.5%).

• Q2 2025 net loss: $12.7M; YTD net loss: $28.0M.

• Operating expenses as a percent of net sales increased to 40.9% in Q2 2025 from 39.6% in Q2 2024, mainly from higher marketing spend and one-time costs.

• Cash and cash equivalents at quarter-end: $19.8M (down from $36.4M at year-end 2024); inventory: $94M.

Outlook and guidance

• No formal 2025 guidance provided due to ongoing evaluation of strategic alternatives.

• Management expects existing cash, investments, and available debt financing to be sufficient for operational needs through at least the next twelve months.

• Priorities include expanding product offerings, monetizing website traffic, scaling B2B, growing the mobile app, and protecting the balance sheet.

• Transformation is expected to be a multi-year effort, with margin and efficiency gains preceding earnings growth.

• Management expects $10M in annualized cost savings from fulfillment network realignment and automation investments.