CarParts.com, Inc.PRTS

CarParts.com, Inc. (PRTS) has been making headlines for all the wrong reasons. The latest SEC filings reveal a company struggling to balance its books while its executives are busy securing their own stock options. The company reported a net loss of $1.9 million on $132 million in revenue for the quarter ending April 4, 2026, a sign that the wheels might be coming off this particular vehicle.

CarParts.com operates as an online retailer of aftermarket auto parts and accessories. The company’s business model relies heavily on inventory management and efficient logistics. However, the latest financials suggest that the company is having trouble keeping its engine running smoothly. With operating income (loss) of $-3.1 million and net cash provided by operating activities of $7.3 million, it’s clear that the company is in a tight spot.

According to the latest 10-Q filing, CarParts.com’s assets stand at $191.6 million, with liabilities of $132.0 million. Stockholders' equity attributable to the parent is $59.6 million. The company’s inventory, net, is valued at $91.0 million, with a decrease of $4.1 million in the quarter. These figures paint a picture of a company that is struggling to manage its inventory effectively while trying to stay afloat financially.

The company’s credit agreement includes a fixed charge coverage ratio covenant, which requires the company to maintain a ratio of not less than 1.10 to 1.0 if its cash balance and availability under the credit facility fall below certain thresholds. This indicates that the company is operating under strict financial constraints and must carefully manage its cash flow to avoid breaching its covenants.

One of the key risks for CarParts.com is its ability to manage its inventory effectively. With $91 million worth of parts sitting in warehouses, the company must ensure that it can turn this inventory into cash flow. Failure to do so could lead to further financial strain and potential breaches of its credit agreement covenants.