XPEL, Inc.

What they do

XPEL began as a software company making cut-to-fit vehicle patterns and now sells self-adhesive paint and surface protection films, automotive window tint, windshield protection film, architectural window film under the VISION brand, ceramic coating, and related tools and accessories. It sells through a network of independent installers, new car dealerships and OEMs, and also provides installation services with over 640 trained technicians. Revenue is mostly automotive, with the remainder from non-automotive products such as architectural window film and marine and flat surface protection films.

Revenue drivers

• Surface and paint protection film — XPEL's flagship product line of clear and colored self-adhesive film for painted vehicle surfaces; represented approximately 52.4% of consolidated revenue for the year ended December 31, 2025.
• Automotive window film (tint) — Sold primarily under the XPEL PRIME brand in several performance and appearance lines; represented approximately 16.6% of consolidated revenue for the year ended December 31, 2025.
• Architectural window film — Sold under the VISION brand for commercial and residential buildings, including solar, safety and security, anti-graffiti, exterior and decorative films; XPEL describes it as its first fully non-automotive product set.
• International distribution and acquired markets — XPEL sells internationally through distributors and has acquired distributors in India, Thailand, Japan and, most recently, China; China revenue grew 106.7% to $15.9 million in Q2 2026.

Recent performance

Second quarter 2026 revenue rose 14.7% to a record $143.1 million from $124.7 million a year earlier. Gross margin improved to 44.1% from 42.9%, and net income attributable to stockholders increased 10.7% to $18.0 million, or $0.65 per basic and diluted share, from $16.3 million, or $0.59 per share. EBITDA grew 17.6% to $27.6 million, or 19.3% of revenue, and net cash provided by operating activities rose 10.4% to $30.8 million. For the first six months of 2026, revenue was $260.4 million, up 14.0%, with net income of $28.4 million, or $1.03 per basic and diluted share.

Strategy

XPEL's stated strategy is to serve and grow its independent installer network in the U.S. and Canada while building the XPEL brand, and to extend that service model to new car dealerships and OEMs. Internationally, it aims to sell directly in most of the top 25 car markets, using acquisitions of distributors as a key element; it has acquired distributors in India, Thailand, Japan and China. The company is also investing in manufacturing, including San Antonio and China facilities, with second quarter 2026 results excluding start-up and ramp-up costs for those investments from adjusted figures. Management said the first key objectives of the manufacturing expansion were accomplished in the first half of 2026.

Risks

• Supply chain and contract manufacturer dependence — XPEL relies on contract manufacturers and suppliers, and a disruption or inability to obtain sufficient product from alternate suppliers could prevent it from meeting customer demand or increase costs.
• Automotive industry concentration — XPEL states it is highly dependent on the automotive industry, and a prolonged or material contraction in automotive sales and production volumes could adversely affect results.
• China regulatory and repatriation risk — XPEL cites PRC government regulatory oversight and limitations on the ability of its PRC subsidiary to pay dividends or make distributions to fund cash and financing needs.
• Installer and dealership relationships — XPEL depends on independent installers and new car dealerships to sell and service its products, and any disruption in those relationships could harm sales.

Outlook

Management said second quarter 2026 delivered solid top and bottom line performance and that the company finished the first half with momentum. CEO Ryan Pape said the company accomplished the first key objectives of its manufacturing expansion and looks forward to continuing to execute its strategy through the remainder of the year. The earnings release provides no specific numerical guidance for future periods.