CarParts.com Share Price Dives 12.70% on Q3 Earnings Miss, 12% Sales Drop, Net Loss

The share price dropped to a record low today, with an intraday decline of 12.70%. The selloff follows CarParts.com’s Q3 2025 financial results, which revealed a 12% year-over-year drop in net sales to $127.8 million, falling short of analyst estimates. The company attributed the shortfall to reduced marketing spend, a shift in product mix, ongoing tariff pressures, and logistical inefficiencies, all contributing to a quarterly net loss of $10.9 million and a negative adjusted EBITDA of $2.17 million.

Investors’ concerns were compounded by management’s strategic recalibration. While the firm announced a $35.7 million investment from ZongTeng Group, A-Premium, and CDH Investments in early September 2025, aimed at enhancing logistics and expanding its product catalog, the market remained skeptical. ZongTeng’s U.S. logistics network is expected to cut delivery times, while A-Premium’s addition of 100,000 SKUs seeks to boost customer retention. However, these initiatives have yet to offset immediate financial strain, with gross profit declining to $42.27 million amid cost pressures and margin compression.

CarParts.com’s CEO outlined a 2026 roadmap targeting free cash flow positivity through cost reductions and operational efficiency. Payroll cuts and operating expense trimming brought Q3 expenses to $52.3 million, down from $60.9 million in the prior year. Despite these measures, analysts note lingering risks, including integration complexities from new partnerships, tariff-driven inflation, and the pace of margin recovery. The stock’s 12-month price target of $1.10—44% above its current level—reflects cautious optimism, though execution challenges and liquidity constraints, including $25 million in convertible notes, remain critical watchpoints for investors.