XPEL XPEL, Inc.

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XPEL Reports Revenue Growth of 13.1% to $117.4 million, EBITDA Growth of 17.8% to $17.0 million in First Quarter 2026

Wednesday, May 6, 2026 · 8:30 AM ET Business Wire

SAN ANTONIO--(BUSINESS WIRE)--XPEL, Inc. (Nasdaq: XPEL) (the "Company"), a global provider of protective films and coatings, announced consolidated results1 for the first quarter ended March 31, 2026.

First Quarter 2026 Overview:

  • Revenue increased 13.1% to $117.4 million in the first quarter of 2026 compared to $103.8 million in the first quarter of 2025.
  • Gross margin of 43.7% in the first quarter of 2026 compared to 42.3% in the first quarter last year.
  • Net income attributable to stockholders of the company increased 20.5% to $10.3 million, or $0.37 per basic and $0.37 per diluted share, respectively, versus net income attributable to stockholders of the company of $8.6 million, or $0.31 per basic and diluted share in the first quarter of 2025.
  • EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased 17.8% to $17.0 million, or 14.5% of revenue, compared to $14.4 million, or 13.9% of revenue in the first quarter of 2025.

Ryan Pape, President and Chief Executive Officer of XPEL, commented, "We delivered solid top and bottom line performance in the first quarter and we are off to a good start for the year. As we continue through 2026, we remain focused on executing on our strategic initiatives and continuing to drive operating leverage."

Financial Highlights for the First Quarter 2026:

Summary consolidated financial information for the first quarter ended March 31, 2026 and 2025 (unaudited, dollars in thousands):

 

Three Months Ended March 31,

% Change

 

2026

 

%
of Total
Revenue

 

2025

 

%
of Total
Revenue

 

2026 vs.
2025

Total revenue

$

117,354

 

100.0

%

 

$

103,805

 

100.0

%

 

13.1

%

Gross margin

 

51,230

 

43.7

%

 

 

43,896

 

42.3

%

 

16.7

%

Operating Expenses

 

38,219

 

32.6

%

 

 

32,776

 

31.6

%

 

16.6

%

Net income attributable to stockholders of the Company

 

10,345

 

8.8

%

 

 

8,586

 

8.3

%

 

20.5

%

EBITDA2

 

16,973

 

14.5

%

 

 

14,411

 

13.9

%

 

17.8

%

Net cash provided by operating activities

$

7,379

 

6.3

%

 

$

3,228

 

3.1

%

 

128.6

%

Geographical Revenue Summary

 

 

Three Months Ended

March 31,

 

% Change

 

% of Total
Revenue

 

2026

 

2025

 

Inc (Dec)

 

2026

 

2025

United States

$

63,842

 

$

58,073

 

9.9

%

 

54.4

%

 

56.0

%

Canada

 

8,400

 

 

9,426

 

(10.9

)%

 

7.2

%

 

9.1

%

North America

 

72,242

 

 

67,499

 

7.0

%

 

61.6

%

 

65.1

%

China

 

11,709

 

 

8,107

 

44.4

%

 

10.0

%

 

7.8

%

Asia Other

 

5,693

 

 

4,550

 

25.1

%

 

4.8

%

 

4.3

%

Asia Pacific

 

17,402

 

 

12,657

 

37.5

%

 

14.8

%

 

12.1

%

EU, UK, and Africa

 

17,857

 

 

15,010

 

19.0

%

 

15.2

%

 

14.4

%

India and Middle East

 

6,767

 

 

6,077

 

11.4

%

 

5.8

%

 

5.9

%

Latin America

 

3,086

 

 

2,562

 

20.5

%

 

2.6

%

 

2.5

%

Total

$

117,354

 

$

103,805

 

13.1

%

 

100.0

%

 

100.0

%

Overall Revenue

  • Total revenue grew 13.1% compared to first quarter 2025 ("YoY").
  • US revenue increased 9.9%YoY.

Product and Service Revenue

  • Adjusted product revenue (combining cutbank credits revenue and product revenue) increased 10.2% YoY.
  • Total window film revenue increased 24.8% YoY and represented 19.8% of total revenue.
  • Total service revenue increased 14.1% YoY.
  • Total installation revenue (labor and product combined) grew 24.3% YoY.

Other Financial Information

  • Gross margin was 43.7% and 42.3% in the first quarter of 2026 and 2025, respectively.
  • Total operating expenses increased 16.6% YoY.
  • Sales and marketing expenses increased 27.7% YoY and represented 12.9% of revenue.
  • General and administrative expenses increased 10.3% YoY and represented 19.6% of revenue.

Cash Flows from Operations

  • Cash flows provided by operations were $7.4 million in the first quarter 2026 compared to $3.2 million in the first quarter of 2025.

2026 Second Quarter Outlook

  • The Company expects second quarter 2026 revenue of approximately $135 - $137 million.

Please see the information under "Forward-looking Statements" below regarding certain cautionary statements relating to our 2026 Second Quarter Outlook.

Conference Call Information

The Company will host a conference call and webcast today, May 6, 2026 at 11:00 a.m. Eastern Time to discuss the Company’s first quarter 2026 results.

To access the live webcast, please visit the XPEL, Inc. website at www.xpel.com/events-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: 801750.

A replay of the teleconference will be available until June 6, 2026 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 53842.

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 2026 are preliminary and unaudited. As the Company completes its quarter-end financial close processes and finalizes its financial statements for the first quarter of 2026, 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 2026 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 8, 2026.

 

 

 

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,

 

 

2026

 

2025

Revenue

 

 

 

 

Product revenue

 

$

88,714

 

 

$

78,712

 

Service revenue

 

 

28,640

 

 

 

25,093

 

Total revenue

 

 

117,354

 

 

 

103,805

 

 

 

 

 

 

Cost of Sales

 

 

 

 

Cost of product sales

 

 

52,365

 

 

 

48,439

 

Cost of service

 

 

13,759

 

 

 

11,470

 

Total cost of sales

 

 

66,124

 

 

 

59,909

 

Gross Margin

 

 

51,230

 

 

 

43,896

 

 

 

 

 

 

Operating Expenses

 

 

 

 

Sales and marketing

 

 

15,163

 

 

 

11,875

 

General and administrative

 

 

23,056

 

 

 

20,901

 

Total operating expenses

 

 

38,219

 

 

 

32,776

 

 

 

 

 

 

Operating Income

 

 

13,011

 

 

 

11,120

 

 

 

 

 

 

Interest expense

 

 

4

 

 

 

75

 

Foreign exchange gain

 

 

(280

)

 

 

(235

)

 

 

 

 

 

Income before income taxes

 

 

13,287

 

 

 

11,280

 

Income tax expense

 

 

2,782

 

 

 

2,694

 

Net Income

 

$

10,505

 

 

$

8,586

 

Net income attributed to non-controlling interest

 

 

160

 

 

 

—

 

Net income attributable to stockholders of the Company

 

$

10,345

 

 

$

8,586

 

 

 

 

 

 

Earnings per share attributable to stockholders of the Company

 

 

 

 

Basic

 

$

0.37

 

 

$

0.31

 

Diluted

 

$

0.37

 

 

$

0.31

 

Weighted Average Number of Common Shares Outstanding

 

 

 

 

Basic

 

 

27,589

 

 

 

27,655

 

Diluted

 

 

27,666

 

 

 

27,676

 

XPEL, Inc.

Consolidated Balance Sheets

(In thousands except share and per share data)

 

 

(Unaudited)
March 31, 2026

 

(Audited)
December 31, 2025

Assets

 

 

 

Current

 

 

 

Cash and cash equivalents

$

45,106

 

 

$

50,864

 

Accounts receivable, net

 

53,515

 

 

 

49,846

 

Inventory

 

131,575

 

 

 

122,755

 

Prepaid expenses and other current assets

 

7,002

 

 

 

6,651

 

Income tax receivable

 

—

 

 

 

581

 

Total current assets

 

237,198

 

 

 

230,697

 

Property and equipment, net

 

24,102

 

 

 

15,797

 

Right-of-use lease assets

 

19,656

 

 

 

21,561

 

Intangible assets, net

 

48,446

 

 

 

49,620

 

Deferred tax asset, net

 

625

 

 

 

—

 

Other non-current assets

 

7,020

 

 

 

5,574

 

Goodwill

 

57,400

 

 

 

59,277

 

Total assets

$

394,447

 

 

$

382,526

 

Liabilities

 

 

 

Current

 

 

 

Current portion of notes payable

$

—

 

 

$

59

 

Current portion of lease liabilities

 

5,741

 

 

 

6,094

 

Accounts payable and accrued liabilities

 

61,365

 

 

 

54,289

 

Income tax payable

 

1,389

 

 

 

—

 

Other short-term liabilities

 

8,728

 

 

 

10,558

 

Total current liabilities

 

77,223

 

 

 

71,000

 

Deferred tax liability, net

 

—

 

 

 

120

 

Other long-term liabilities

 

9,553

 

 

 

9,511

 

Non-current portion of lease liabilities

 

15,081

 

 

 

16,710

 

Total liabilities

 

101,857

 

 

 

97,341

 

Stockholders’ equity

 

 

 

Preferred stock, $0.001 par value; authorized 10,000,000; none issued and outstanding

 

—

 

 

 

—

 

Capital stock, $0.001 par value; 100,000,000 shares authorized; 27,705,220 and 27,682,807, issued, respectively

 

28

 

 

 

28

 

Additional paid-in-capital

 

18,680

 

 

 

18,049

 

Accumulated other comprehensive loss

 

(944

)

 

 

(135

)

Retained earnings

 

275,685

 

 

 

265,339

 

Treasury stock, 147,645 and 78,624 shares at cost, respectively

 

(5,938

)

 

 

(2,999

)

Stockholders’ equity

 

287,511

 

 

 

280,282

 

Non-controlling interest

 

5,079

 

 

 

4,903

 

Total stockholders’ equity

 

292,590

 

 

 

285,185

 

Total liabilities and stockholders’ equity

$

394,447

 

 

$

382,526

 

XPEL, Inc.

Consolidated Statements of Cash Flows (Unaudited)

(In thousands)

 

 

Three Months Ended
March 31,

 

(Unaudited)

 

(Unaudited)

 

2026

 

2025

Cash flows from operating activities

 

 

 

Net income

$

10,505

 

 

$

8,586

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation of property, plant and equipment

 

1,623

 

 

 

1,535

 

Amortization of intangible assets

 

2,059

 

 

 

1,521

 

Gain on sale of property and equipment

 

(10

)

 

 

—

 

Stock compensation

 

934

 

 

 

679

 

Provision for credit losses

 

343

 

 

 

73

 

Deferred income tax

 

(442

)

 

 

(766

)

 

 

 

 

Changes in assets and liabilities:

 

 

 

Accounts receivable, net

 

(4,267

)

 

 

(3,915

)

Inventory

 

(8,959

)

 

 

(4,188

)

Prepaid expenses and other current assets

 

(1,492

)

 

 

(551

)

Income taxes receivable and payable

 

1,493

 

 

 

2,954

 

Accounts payable and accrued liabilities

 

5,592

 

 

 

(2,700

)

Net cash provided by operating activities

 

7,379

 

 

 

3,228

 

Cash flows used in investing activities

 

 

 

Purchases of property, plant and equipment

 

(9,715

)

 

 

(1,003

)

Proceeds from sale of property and equipment

 

40

 

 

 

2

 

Acquisition of businesses, net of cash acquired

 

—

 

 

 

(42

)

Development of intangible assets

 

(218

)

 

 

(513

)

Net cash used in investing activities

 

(9,893

)

 

 

(1,556

)

Cash flows from financing activities

 

 

 

Restricted stock withholding taxes paid in lieu of issued shares

 

(303

)

 

 

(93

)

Repayments of notes payable

 

(59

)

 

 

(77

)

Payments of deferred acquisition consideration

 

(270

)

 

 

—

 

Purchases of treasury shares

 

(2,939

)

 

 

—

 

Net cash used in financing activities

 

(3,571

)

 

 

(170

)

Net change in cash and cash equivalents

 

(6,085

)

 

 

1,502

 

Foreign exchange impact on cash and cash equivalents

 

327

 

 

 

(48

)

(Decrease) increase in cash and cash equivalents during the period

 

(5,758

)

 

 

1,454

 

Cash and cash equivalents at beginning of period

 

50,864

 

 

 

22,087

 

Cash and cash equivalents at end of period

$

45,106

 

 

$

23,541

 

 

 

 

 

Supplemental schedule of non-cash activities

 

 

 

Non-cash lease financing

$

158

 

 

$

832

 

Issuance of Common Stock for vested restricted stock units

$

1,227

 

 

$

190

 

Non-cash minority interest contribution

$

16

 

 

$

—

 

 

 

 

 

Supplemental cash flow information

 

 

 

Cash paid for income taxes

$

1,273

 

 

$

519

 

Cash paid for interest

$

—

 

 

$

89

 

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)

 

 

Three Months Ended March 31,

 

(Unaudited)

 

(Unaudited)

 

2026

 

2025

Net Income

$

10,505

 

$

8,586

Interest

 

4

 

 

75

Taxes

 

2,782

 

 

2,694

Depreciation

 

1,623

 

 

1,535

Amortization

 

2,059

 

 

1,521

EBITDA

$

16,973

 

$

14,411

 

For more information, contact:

Investor Relations:
John Nesbett/Jennifer Belodeau
IMS Investor Relations
Phone: (203) 972-9200
Email: xpel@imsinvestorrelations.com

Source: XPEL, Inc.

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