Business
XPEL Reports Record Revenue of $124.7 Million; Revenue Growth of 13.5% in Second Quarter 2025
SAN ANTONIO--(BUSINESS WIRE)-- XPEL, Inc. (Nasdaq: XPEL) (the "Company"), a global provider of protective films and coatings, announced consolidated results1
About this update from Xpel, Inc.
SAN ANTONIO --(BUSINESS WIRE)-- XPEL, Inc. (Nasdaq: XPEL) (the "Company"), a global provider of protective films and coatings, announced consolidated results1 for the second quarter of 2025. Second Quarter 2025 Overview: Revenue increased 13.5% to $124.7 million in the second quarter of 2025. Gross margin of 42.9% in the second quarter of 2025. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased 7.1% to $23.4 million , or 18.7% of revenue, compared to $21.8 million , or 19.9% of revenue in the second quarter of 2024.2 The Company incurred approximately $1.6 million in one-time charges related to restructuring costs, legal and due diligence costs related to the Company's acquisition strategy and other costs. Normalizing for these costs, EBITDA would have increased 14.7% to $25.0 million , or 20.0% of revenue. Net income increased 7.8% to $16.2 million , or $0.59 per basic and diluted share, versus net income of $15.0 million , or $0.54 per basic and diluted share in the second quarter of 2024. Normalizing for the one-time charges, net income would have grown 16.7% to $17.5 million or $0.63 per basic and diluted share. First Six Months 2025 Overview: Revenue increased 14.2% to $228.5 million in the first six months of 2025. Gross margin of 42.6% in the first six months of 2025. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased 12.9% to $37.8 million , or 16.6% of revenue, compared to $33.5 million , or 16.8% of revenue in the first six months of 2024.2 Net income increased 14.3% to $24.8 million , or $0.90 per basic and diluted share, versus net income of $21.7 million , or $0.79 per basic and diluted share in the first six months of 2024. Ryan Pape , President and Chief Executive Officer of XPEL, commented, "We saw good revenue momentum in the first half of the year and I am pleased with our first half performance in this environment. We look forward to building on this momentum for the rest of the year." Financial Highlights for the Second Quarter 2025: Summary consolidated financial information for the three months ended June 30, 2025 and 2024 (unaudited, dollars in thousands): Three Months Ended June 30 , % Change 2025 % of Total Revenue 2024 % of Total Revenue 2025 vs. 2024 Total revenue $ 124,713 100.0 % $ 109,917 100.0 % 13.5 % Gross margin 53,517 42.9 % 47,865 43.5 % 11.8 % Operating Expenses 34,219 27.4 % 28,679 26.1 % 19.3 % Net income 16,208 13.0 % 15,033 13.7 % 7.8 % EBITDA2 23,369 18.7 % 21,824 19.9 % 7.1 % Net cash provided by operating activities $ 27,888 22.4 % $ 26,896 24.5 % 3.7 % Geographical Revenue Summary Three Months Ended June 30 , % Change % of Total Revenue 2025 2024 Inc (Dec) 2025 2024 United States $ 70,380 $ 64,902 8.4 % 56.4 % 59.0 % Canada 14,254 13,274 7.4 % 11.5 % 12.1 % North America 84,634 78,176 8.3 % 67.9 % 71.1 % China 7,705 4,401 75.1 % 6.2 % 4.0 % Asia Other 5,428 4,120 31.7 % 4.3 % 3.8 % Asia Pacific 13,133 8,521 54.1 % 10.5 % 7.8 % EU, UK , and Africa 17,360 15,261 13.8 % 13.9 % 13.9 % India and Middle East 6,746 4,800 40.5 % 5.4 % 4.4 % Latin America 2,840 3,159 (10.1 )% 2.3 % 2.8 % Total $ 124,713 $ 109,917 13.5 % 100.0 % 100.0 % Overall Revenue Total revenue grew 13.5% compared to second quarter of 2024 ("YoY"). We saw record revenue in US, Europe and the Middle East . Product and Service Revenue Total product revenue increased 13.9% YoY and represented 76.0% of total revenue. Total window film revenue increased 27.0% YoY and represented 22.4% of total revenue. Total service revenue increased 12.0% YoY and represented 24.0% of total revenue. Total installation revenue (labor and product combined) grew 17.9% YoY. Adjusted product revenue (combining cutbank credits revenue and product revenue) increased 12.9% YoY. Other Financial Information Gross margin percentage was 42.9% and 43.5% in the second quarter of 2025 and 2024, respectively. Sales and marketing expense increased 15.4% YoY. General and administrative expense increased 21.5% YoY. Cash Flows from Operations Cash flows provided by operations were $27.9 million in the second quarter 2025. 2025 Outlook The Company expects third quarter 2025 revenue of approximately $117 - $119 million . Please see the information under "Forward-looking Statements" below regarding certain cautionary statements relating to our 2025 Third Quarter Outlook. Conference Call Information The Company will host a conference call and webcast today, August 6, 2025 at 11:00 a.m. Eastern Time to discuss the Company’s second quarter 2025 results. To access the live webcast, please visit the XPEL, Inc. website at https://investor.xpel.com/events-and-presentations/ . To participate in the call by phone, dial (888) 506-0062 approximately five minutes prior to the scheduled start time. International callers please dial (973) 528-0011. Callers should use access code: 856599. A replay of the teleconference will be available until September 5, 2025 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 52679. About XPEL, Inc. XPEL is a leading provider of protective films and coatings, including automotive paint protection film, surface protection film, automotive and architectural window films, and ceramic coatings. With a global footprint, a network of trained installers and proprietary DAP software, XPEL is dedicated to exceeding customer expectations by providing high-quality products, leading customer service, expert technical support and world-class training. XPEL, Inc. is publicly traded on Nasdaq under the symbol “XPEL”. 1 The results summarized above for 2025 are preliminary and unaudited. As the Company completes its quarter-end financial close processes and finalizes its financial statements for the second quarter of 2025, it is possible that the Company may identify items that require it to make adjustments to the preliminary information set forth above, and those adjustments could be material. Full second quarter 2025 financial information will be included in the filing of the Company’s Quarterly Report on Form 10-Q with the Securities and Exchange Commission which is anticipated on or prior to August 8, 2025 . 2 See "Non-GAAP Financial Measure" and "Reconciliation of Non-GAAP Financial Measure" below. Forward-looking Statements This release includes forward-looking statements (within the meaning of Section 27A of the Securities act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended) regarding XPEL, Inc. and its business, which may include, but is not limited to, anticipated use of proceeds from capital transactions, expansion into new markets, execution of the company's growth strategy and outlook. Often, but not always, forward-looking statements can be identified by the use of words such as "plans," "is expected," "expects," "scheduled," "intends," "contemplates," "anticipates," "believes," "proposes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may," "could," "would," "might" or "will" be taken, occur or be achieved. Such statements are based on the current expectations and assumptions of the management of XPEL. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements expressed or implied by the forward-looking statements. These risks, uncertainties and other factors relate to, among others: competition, a prolonged or material contraction in automotive sales and production volumes, disruption in our supply chain, technology that could render our products obsolete, changes in the way vehicles are sold, damage to our brand and reputation, cyber events and other legal and regulatory developments. There are several risks, uncertainties, and other important factors, many of which are beyond the Company’s control, that could cause its actual results to differ materially from the forward-looking statements contained in this press release, including those described in the “Risk Factors” section of Annual Report on Form 10-K. Although XPEL has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and XPEL undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. Non-GAAP Financial Measure To aid in the understanding of XPEL's ongoing business performance, XPEL uses EBITDA, a non-GAAP financial measure. EBITDA is defined as net income (loss) plus interest expense, net, plus income tax expense plus depreciation and amortization expense. EBITDA should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. It is not a measurement of XPEL's financial performance under GAAP and should not be considered as an alternative to revenue or net income, as applicable, or any other performance measures derived in accordance with GAAP and may not be comparable to other similarly title measures. For a full reconciliation of EBITDA to comparable GAAP measure, refer to the reconciliation titled " Reconciliation of Non-GAAP Financial Measure." XPEL, Inc. Consolidated Statements of Income (Unaudited) (In thousands except per share data) Three Months Ended June 30 , Six Months Ended June 30 , 2025 2024 2025 2024 Revenue Product revenue $ 94,795 $ 83,200 $ 173,507 $ 150,052 Service revenue 29,918 26,717 . 55,011 49,969 Total revenue 124,713 109,917 . 228,518 200,021 . Cost of Sales . Cost of product sales 58,190 51,274 . 106,630 93,409 Cost of service 13,006 10,778 . 24,475 20,871 Total cost of sales 71,196 62,052 . 131,105 114,280 Gross Margin 53,517 47,865 . 97,413 85,741 . Operating Expenses . Sales and marketing 11,862 10,280 . 23,737 20,671 General and administrative 22,357 18,399 . 43,258 36,655 Total operating expenses 34,219 28,679 66,995 57,326 Operating Income 19,298 19,186 . 30,418 28,415 . Interest expense 7 392 . 83 865 Foreign currency exchange (gain)/loss (1,039 ) 275 . (1,275 ) 548 . Income before income taxes 20,330 18,519 . 31,610 27,002 Income tax expense 4,122 3,486 . 6,816 5,303 Net income 16,208 15,033 . 24,794 21,699 Net loss attributed to non-controlling interest (82 ) — . (82 ) — Net income attributable to stockholders of the Company $ 16,290 $ 15,033 . $ 24,876 $ 21,699 . Earnings per share attributable to stockholders of the Company . Basic $ 0.59 $ 0.54 . $ 0.90 $ 0.79 Diluted $ 0.59 $ 0.54 $ 0.90 $ 0.79 Weighted Average Number of Common Shares Basic 27,666 27,635 . 27,660 27,633 Diluted 27,673 27,637 . 27,675 27,637 XPEL, Inc. Consolidated Balance Sheets (In thousands except share and per share data) (Unaudited) (Audited) June 30, 2025 December 31, 2024 Assets Current Cash and cash equivalents $ 49,591 $ 22,087 Accounts receivable, net 38,122 29,146 Inventory, net 104,129 110,904 Prepaid expenses and other current assets 5,474 5,314 Income tax receivable — 893 Total current assets 197,316 168,344 Property and equipment, net 16,875 17,735 Right-of-use lease assets 20,138 19,490 Intangible assets, net 32,491 34,562 Deferred tax asset, net 1,257 — Other non-current assets 3,456 1,350 Goodwill 46,538 44,126 Total assets $ 318,071 $ 285,607 Liabilities Current Current portion of notes payable $ 69 $ 63 Current portion lease liabilities 5,396 4,666 Accounts payable and accrued liabilities 38,955 36,789 Income tax payable 205 — Total current liabilities 44,625 41,518 Deferred tax liability, net — 469 Other long-term liabilities 1,492 1,810 Non-current portion of lease liabilities 16,159 16,126 Non-current portion of notes payable 137 229 Total liabilities 62,413 60,152 Commitments and Contingencies (Note 11) Stockholders’ equity Preferred stock, $0.001 par value; authorized 10,000,000; none issued and outstanding — — Common stock, $0.001 par value; 100,000,000 shares authorized; 27,669,848 and 27,651,773 issued and outstanding, respectively 28 28 Additional paid-in-capital 17,085 15,550 Accumulated other comprehensive loss (362 ) (4,236 ) Retained earnings 238,989 214,113 255,740 225,455 Non-controlling interest (82 ) — Total stockholders’ equity 255,658 225,455 Total liabilities and stockholders’ equity $ 318,071 $ 285,607 XPEL, Inc. Consolidated Statements of Cash Flows (Unaudited) (In thousands) Three Months Ended June 30 , Six Months Ended June 30 , 2025 2024 2025 2024 Cash flows from operating activities Net income $ 16,290 $ 15,033 $ 24,876 $ 21,699 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation of property, plant and equipment 1,557 1,471 3,093 2,804 Amortization of intangible assets 1,538 1,442 3,059 2,852 Loss/(Gain) on sale of property and equipment 7 (10 ) 7 (28 ) Stock compensation 1,017 837 1,696 1,467 Provision for credit losses 109 100 181 189 Deferred income tax (1,136 ) (705 ) (1,902 ) (862 ) Changes in assets and liabilities: Accounts receivable, net (3,926 ) (991 ) (7,841 ) (5,754 ) Inventory, net 12,099 12,644 7,911 8,766 Prepaid expenses and other current assets (1,430 ) 1,016 (1,981 ) (1,309 ) Income taxes receivable and payable (1,902 ) (1,491 ) 1,052 (587 ) Accounts payable and accrued liabilities 3,665 (2,450 ) 966 (7,299 ) Net cash provided by operating activities 27,888 26,896 31,117 21,938 Cash flows used in investing activities Purchase of property, plant and equipment (943 ) (1,811 ) (1,946 ) (3,828 ) Proceeds from sale of property and equipment 14 — 15 — Acquisition of businesses, net of cash acquired (143 ) (5,171 ) (184 ) (5,928 ) Development of intangible assets (275 ) (501 ) (788 ) (841 ) Net cash used in investing activities (1,347 ) (7,483 ) (2,903 ) (10,597 ) Cash flows from financing activities Net payments on revolving line of credit — (13,000 ) — (8,000 ) Restricted stock withholding taxes paid in lieu of issued shares (68 ) (87 ) (161 ) (87 ) Repayments of notes payable (21 ) (16 ) (98 ) (31 ) Net cash used in financing activities (89 ) (13,103 ) (259 ) (8,118 ) Net change in cash and cash equivalents 26,452 6,310 27,955 3,223 Foreign exchange impact on cash and cash equivalents (402 ) 60 (451 ) 152 Increase in cash and cash equivalents during the period 26,050 6,370 27,504 3,375 Cash and cash equivalents at beginning of period 23,541 8,614 22,087 11,609 Cash and cash equivalents at end of period $ 49,591 $ 14,984 $ 49,591 $ 14,984 Supplemental schedule of non-cash activities Non-cash lease financing $ 2,009 $ 4,086 $ 2,840 $ 5,038 Issuance of common stock for vested restricted stock units $ 331 $ 405 $ 521 $ 462 Supplemental cash flow information Cash paid for income taxes $ 6,938 $ 5,646 $ 7,457 $ 6,798 Cash paid for interest $ — $ 414 $ 89 $ 844 Reconciliation of Non-GAAP Financial Measure EBITDA is a non-GAAP financial measure. EBITDA is defined as net income (loss) plus interest expense, net, plus income tax expense plus depreciation expense and amortization expense. EBITDA should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. It is not a measurement of our financial performance under GAAP and should not be considered as alternatives to revenue or net income, as applicable, or any other performance measures derived in accordance with GAAP and may not be comparable to other similarly titled measures of other businesses. EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our operating results as reported under GAAP. EBITDA does not reflect the impact of certain cash charges resulting from matters we consider not to be indicative of ongoing operations and other companies in our industry may calculate EBITDA differently than we do, limiting its usefulness as a comparative measure. EBITDA Reconciliation (in thousands) (Unaudited) (Unaudited) Three Months Ended June 30 , Six Months Ended June 30 , 2025 2024 2025 2024 Net Income $ 16,208 $ 15,033 $ 24,794 $ 21,699 Interest 7 392 83 865 Taxes 4,122 3,486 6,816 5,303 Depreciation 1,557 1,471 3,093 2,804 Amortization 1,475 1,442 3,059 2,852 EBITDA $ 23,369 $ 21,824 $ 37,845 $ 33,523 View source version on businesswire.com : https://www.businesswire.com/news/home/20250806366664/en/ For more information: Investor Relations: John Nesbett / Jennifer Belodeau IMS Investor Relations Phone: (203) 972-9200 Email: [email protected] Source: XPEL, Inc.