CarParts.com, Inc. (PRTS) SEC Filings & Earnings Calls

Revenue decline from marketing rationalization

“Net sales decreased $16,309, or 10.7%, for the second quarter of 2026 compared to the same period in 2025.” · word for word

Dependence on foreign suppliers

“We acquire a majority of our products from manufacturers and distributors located in Taiwan and China.” · word for word

Convertible note dilution risk

“Conversion of the Convertible Notes would dilute the ownership interest of existing stockholders and may adversely affect the price of our common stock.” · word for word

Revenue decline persists despite profitability improvement

“Net sales decreased 10.7% to $135.6 million, driven by marketing rationalization and customer headwinds”

Customer and business environment headwinds noted by management

“CEO cited 'meaningful headwinds in the overall health of our customers as well as the business environment'”

New debt increases financial leverage and interest obligations.

“Loan and Security Agreement creates a direct financial obligation.”

Delisting risk removed; previously non-compliant with bid price rule.

“Company had been at risk of delisting due to bid price below $1.00; now resolved.”

Supply Chain Concentration

“We acquire a majority of our products from manufacturers and distributors located in Taiwan and China.” · word for word

Tariff Exposure

“In February 2025, the U.S. administration announced increased tariff on imports from China, where generally around 20% of our private label products are sourced.” · word for word

Nasdaq Delisting Risk

“We are required to maintain a minimum bid price for our listed common stock of $1.00 per share.” · word for word

Convertible Note Dilution

“The conversion of some or all of the Convertible Notes that we issued on September 8, 2025 would dilute the ownership interests of our existing stockholders.” · word for word

Revenue decline due to marketing rationalization may limit growth if not offset by other channels.

“Net sales decreased 10%... driven by rationalizing marketing spend.”

Dependence on supplier relationships in Taiwan (70% of purchases) exposes to geopolitical risk.

“Opened a branch office in Taipei to deepen three decades of supplier relationships that represent approximately 70% of our purchases.” · word for word

Nasdaq Delisting Risk

“As previously disclosed, on June 13, 2025, the Company received notice from Nasdaq that the closing bid price of the Company's shares had been below $1.00 per share for 30 consecutive business days.” · word for word

Strategic Alternatives / Sale Risk

“the Board had formed a Strategic Committee in October 2024 to oversee a comprehensive review of strategic alternatives, including potential sale transactions” · word for word

Management Retention Risk

“the Compensation Committee considered heightened retention concerns for certain NEOs in light of continued macroeconomic volatility and the resulting pressure on Company performance and equity valuation” · word for word

Shareholder Dilution Risk

“Total potential dilution 16% from proposed 2026 Plan”

Tariff / Trade Policy Risk

“uncertainty regarding trade policy and potential tariff-related impacts (including uncertainty relating to proposed U.S. tariffs)” · word for word

Revenue decline and net loss widening indicate ongoing demand and profitability challenges.

“Net sales down 7% to $547.5M; net loss increased to ($50.4M) from ($40.6M).”

Tariff impact on gross margin and product mix pressure.

“Gross margin decrease driven by product mix and the impact of tariffs.”

Convertible debt of $25.2M adds financial leverage risk.

“$25.2 million convertible notes payable balance.” · word for word

Geographic Supply Concentration

“We acquire a majority of our products from manufacturers and distributors located in Taiwan and China.” · word for word

Net Losses and Liquidity Risk

“Net loss (9.2) % (6.9) %” · word for word

Restrictive Credit Agreement

“The First Amendment provides for the revolving commitment in an aggregate principal amount of $25,000 (formerly $75,000)... The Amended Credit Facility now matures on September 8, 2026 (formerly June 17, 2027).” · word for word

Tariff Exposure

“The decrease in gross margin was primarily driven by product mix and the impact from tariffs, partially offset by our pricing increases.” · word for word

Marketplace Dependency

“Our sales on third-party marketplaces (including eBay and Amazon) represented a combined 33.5% of total sales in the fiscal year ended January 3, 2026.” · word for word

Tariff exposure on Chinese imports

“In February 2025, the U.S. administration announced increased tariff on imports from China, where approximately 20% of our private label products are sourced.” · word for word

Supplier concentration risk

“Our top ten suppliers represented approximately 49% of our total product purchases during the thirty-nine weeks ended September 27, 2025.” · word for word

Net loss and liquidity risk

“During the third quarter of 2025, we recorded a net loss, and it is possible that net losses could continue in the future.” · word for word

Dependence on third-party marketplaces

“Our sales on third-party marketplaces (including eBay and Amazon) represented a combined 33.9% of total sales in the thirty-nine weeks ended September 27, 2025.” · word for word

Competition from suppliers selling directly

“We have experienced significant competitive pressure from certain of our suppliers who are now selling their products directly to customers.” · word for word

Tariff impact on gross margin and product costs.

“The decrease was primarily driven by product mix and the impact of tariffs, partially offset by pricing increases.” · word for word

Convertible notes payable of $25M, new debt compared to prior year-end.

“$25.0 million convertible notes payable balance and no revolver loan balance, compared to a $36.4 million cash balance, no revolver debt or convertible notes payable balances at prior fiscal year-end” · word for word