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XPEL Reports Revenue Growth of 15.2%; Net Income Growth of 28.8% in First Quarter 2025; Announces $50 million Stock Repurchase Program
SAN ANTONIO, Texas--(BUSINESS WIRE)-- XPEL, Inc. (Nasdaq: XPEL) (the "Company"), a global provider of protective films and coatings, announced consolidated
About this update from Xpel, Inc.
SAN ANTONIO, Texas --(BUSINESS WIRE)-- XPEL, Inc. (Nasdaq: XPEL) (the "Company"), a global provider of protective films and coatings, announced consolidated results1 for the first quarter of 2025. First Quarter 2025 Overview: Revenue increased 15.2% to $103.8 million in the first quarter of 2025. Gross margin of 42.3% in the first quarter of 2025. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased 23.2% to $14.4 million , or 13.9% of revenue, compared to $11.7 million , or 13.0% of revenue in the first quarter of 2024.2 Net income increased 28.8% to $8.6 million , or $0.31 per basic and diluted share, versus net income of $6.7 million , or $0.24 per basic and diluted share in the first quarter of 2024. Ryan Pape , President and Chief Executive Officer of XPEL, commented, "We are off to a good start in 2025 with both solid top line and bottom line performance. We will remain focused on delivering outstanding products and services to our customers as we navigate the ongoing tariff uncertainty." Stock Repurchase Program The Company's Board of Directors has authorized the Company to repurchase up to $50 million of the Company's common stock. The timing and amount of shares repurchased will depend on the stock price, business and market conditions, corporate and regulatory requirements, alternative investment opportunities, acquisition opportunities and other factors. The repurchase program may be suspended or discontinued at any time. Financial Highlights for the First Quarter 2025: Summary consolidated financial information for the first quarter 2025 and 2024 (unaudited, dollars in thousands): Three Months Ended March 31 , % Change 2025 % of Total Revenue 2024 % of Total Revenue 2025 vs. 2024 Total revenue $ 103,805 100.0 % $ 90,104 100.0 % 15.2 % Gross margin 43,896 42.3 % 37,876 42.0 % 15.9 % Operating Expenses 32,776 31.6 % 28,647 31.8 % 14.4 % Net income 8,586 8.3 % 6,666 7.4 % 28.8 % EBITDA2 14,411 13.9 % 11,700 13.0 % 23.2 % Net cash provided by (used in) operating activities $ 3,228 3.1 % $ (4,959 ) n/a n/a Geographical Revenue Summary Three Months Ended March 31 , % Change % of Total Revenue 2025 2024 Inc (Dec) 2025 2024 United States $ 58,073 $ 52,048 11.6 % 56.0 % 57.8 % Continental Europe 11,148 10,216 9.1 % 10.7 % 11.3 % Canada 9,426 11,080 (14.9 )% 9.1 % 12.3 % China 8,107 1,450 459.1 % 7.8 % 1.6 % Middle East / Africa 5,910 5,143 14.9 % 5.7 % 5.7 % Asia Pacific 5,000 3,750 33.3 % 4.8 % 4.2 % United Kingdom 3,579 3,486 2.7 % 3.4 % 3.9 % Latin America 2,562 2,931 (12.6 )% 2.5 % 3.2 % Total $ 103,805 $ 90,104 15.2 % 100.0 % 100.0 % Overall Revenue Total revenue grew 15.2% compared to first quarter of 2024 ("YoY"). US revenue increased 11.6% YoY. Middle East / Africa region had a record revenue quarter. Product and Service Revenue Total product revenue increased 17.7% YoY and represented 75.8% of total revenue. Total window film revenue increased 28.1% YoY and represented 18.0% of total revenue. Total service revenue increased 7.9% YoY and represented 24.2% of total revenue. Total installation revenue (labor and product combined) grew 11.6% YoY. Adjusted product revenue (combining cutbank credits revenue and product revenue) increased 16.2% YoY. Other Financial Information Gross margin percentage was 42.3% and 42.0% in the first quarter of 2025 and 2024, respectively. Sales and marketing expense increased 14.3% YoY. General and administrative expense increased 14.5% YoY. Net income increased $1.9 million or 28.8% YoY. EBITDA increased 23.2% YoY2. Cash Flows from Operations Cash flows provided by operations were $3.2 million in the first quarter 2025. 2025 Second Quarter Outlook The Company expects second 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 Second Quarter Outlook. Conference Call Information The Company will host a conference call and webcast today, May 6, 2025 at 11:00 a.m. Eastern Time to discuss the Company’s first 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: 154157. A replay of the teleconference will be available until June 5, 2025 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 52324. 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 first 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 first 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 May 9, 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 March 31 , 2025 2024 Revenue Product revenue $ 78,712 $ 66,852 Service revenue 25,093 23,252 Total revenue 103,805 90,104 Cost of Sales Cost of product sales 48,439 42,135 Cost of service 11,470 10,093 Total cost of sales 59,909 52,228 Gross Margin 43,896 37,876 Operating Expenses Sales and marketing 11,875 10,391 General and administrative 20,901 18,256 Total operating expenses 32,776 28,647 Operating Income 11,120 9,229 Interest expense 75 473 Foreign currency exchange (gain) loss (235 ) 272 Income before income taxes 11,280 8,484 Income tax expense 2,694 1,818 Net income $ 8,586 $ 6,666 Earnings per share Basic $ 0.31 $ 0.24 Diluted $ 0.31 $ 0.24 Weighted Average Number of Common Shares Basic 27,655 27,630 Diluted 27,676 27,637 XPEL, Inc. Consolidated Balance Sheets (In thousands except share and per share data) (Unaudited) (Audited) March 31, 2025 December 31, 2024 Assets Current Cash and cash equivalents $ 23,541 $ 22,087 Accounts receivable, net 33,359 29,146 Inventory, net 115,306 110,904 Prepaid expenses and other current assets 6,093 5,314 Income tax receivable — 893 Total current assets 178,299 168,344 Property and equipment, net 17,254 17,735 Right-of-use lease assets 19,240 19,490 Intangible assets, net 33,795 34,562 Deferred tax asset, net 235 — Other non-current assets 1,555 1,350 Goodwill 44,444 44,126 Total assets $ 294,822 $ 285,607 Liabilities Current Current portion of notes payable $ 65 $ 63 Current portion lease liabilities 5,075 4,666 Accounts payable and accrued liabilities 34,377 36,789 Income tax payable 2,065 — Total current liabilities 41,582 41,518 Deferred tax liability, net — 469 Other long-term liabilities 1,826 1,810 Non-current portion of lease liabilities 15,809 16,126 Non-current portion of notes payable 151 229 Total liabilities 59,368 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; 27,661,587 and 27,651,773 issued and outstanding, respectively 28 28 Additional paid-in-capital 16,136 15,550 Accumulated other comprehensive loss (3,409 ) (4,236 ) Retained earnings 222,699 214,113 Total stockholders’ equity 235,454 225,455 Total liabilities and stockholders’ equity $ 294,822 $ 285,607 XPEL, Inc. Consolidated Statements of Cash Flows (Unaudited) (In thousands) Three Months Ended March 31 , 2025 2024 Cash flows from operating activities Net income $ 8,586 $ 6,666 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation of property, plant and equipment 1,535 1,333 Amortization of intangible assets 1,521 1,410 Gain on sale of property and equipment — (18 ) Stock compensation 679 630 Provision for credit losses 73 89 Deferred income tax (766 ) (157 ) Changes in assets and liabilities: Accounts receivable (3,915 ) (4,763 ) Inventory, net (4,188 ) (3,878 ) Prepaid expenses and other current assets (551 ) (2,325 ) Income taxes receivable and payable 2,954 904 Accounts payable and accrued liabilities (2,700 ) (4,850 ) Net cash provided by (used in) operating activities 3,228 (4,959 ) Cash flows used in investing activities Purchase of property, plant and equipment (1,003 ) (2,017 ) Proceeds from sale of property and equipment 2 — Acquisition of a business, net of cash acquired (42 ) (757 ) Development of intangible assets (513 ) (340 ) Net cash used in investing activities (1,556 ) (3,114 ) Cash flows from financing activities Net borrowings on revolving credit agreement — 5,000 Restricted stock withholding taxes paid in lieu of issued shares (93 ) — Repayments of notes payable (77 ) (15 ) Net cash (used in) provided by financing activities (170 ) 4,985 Net change in cash and cash equivalents 1,502 (3,088 ) Foreign exchange impact on cash and cash equivalents (48 ) 93 Increase (Decrease) in cash and cash equivalents during the period 1,454 (2,995 ) Cash and cash equivalents at beginning of period 22,087 11,609 Cash and cash equivalents at end of period $ 23,541 $ 8,614 Supplemental schedule of non-cash activities Non-cash lease financing $ 832 $ 952 Issuance of common stock for vested restricted stock units $ 190 $ 57 Supplemental cash flow information Cash paid for income taxes $ 519 $ 1,152 Cash paid for interest $ 89 $ 430 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) Three Months Ended March 31 , 2025 2024 Net Income $ 8,586 $ 6,666 Interest 75 473 Taxes 2,694 1,818 Depreciation 1,535 1,333 Amortization 1,521 1,410 EBITDA $ 14,411 $ 11,700 View source version on businesswire.com : https://www.businesswire.com/news/home/20250506168528/en/ For more information, contact: Investor Relations: John Nesbett / Jennifer Belodeau IMS Investor Relations Phone: (203) 972-9200 Email: [email protected] Source: XPEL, Inc.