CarParts.com secures $35 million investment from global industry leaders

LOS ANGELES - CarParts.com, Inc. (NASDAQ:PRTS), which has seen its stock surge over 20% in the past week according to InvestingPro data, has secured a $35.7 million strategic investment from ZongTeng Group, A-Premium, and CDH Investments, the e-commerce automotive parts provider announced Tuesday.

The investment comes at a premium of 18% to CarParts.com’s 90-day volume-weighted average price, with approximately 10.3 million new common shares being issued at $1.04 per share. The transaction also includes convertible notes totaling $25 million with a three-year term, 2% annual interest rate, and a conversion price of $1.20 per share. With a current market capitalization of $62.5 million and a current ratio of 1.47, the company maintains sufficient liquid assets to meet its short-term obligations, though InvestingPro analysis indicates the company has been quickly burning through cash.

As part of the deal, CarParts.com and A-Premium have formed a commercial partnership that will expand CarParts.com’s product offerings by more than 150,000 additional automotive parts. The company will also work with ZongTeng Group to potentially leverage its logistics network to improve delivery times and reduce fulfillment costs.

"This investment marks an inflection point for CarParts.com," said David Meniane, CEO of CarParts.com, in the press release.

The transaction concludes the strategic alternatives review process that CarParts.com announced in March 2025. According to the company, its board unanimously determined this investment was the best option after evaluating various alternatives, including a potential sale of the company.

CarParts.com serves approximately 2.5 million unique customers annually and operates distribution centers providing two-day delivery coverage to 95% of the United States.

The transaction is expected to be completed in the coming days, with conversion of the convertible notes subject to shareholder approval as needed to comply with Nasdaq rules.

Craig-Hallum Capital Group LLC served as financial advisor to CarParts.com for the transaction. For investors seeking deeper insights into CarParts.com’s financial health and growth prospects, InvestingPro offers comprehensive analysis through its Pro Research Report, featuring detailed metrics, valuation analysis, and expert insights among its 12+ exclusive ProTips for this stock.

In other recent news, CarParts.com announced its second-quarter earnings for 2025, reporting a larger-than-expected loss per share while slightly surpassing revenue expectations. The company’s earnings per share (EPS) was reported at -$0.23, which fell short of the anticipated -$0.16. However, CarParts.com managed to slightly exceed revenue forecasts, reporting $151.9 million against the expected $150.61 million. These developments have drawn attention from investors and analysts alike. While there were no updates on mergers or acquisitions, the earnings report remains a focal point for stakeholders. Analyst firms have yet to provide updates on stock ratings following the earnings announcement. The company continues to navigate its financial performance amidst a challenging market environment.

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