FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-38858 XPEL, INC. (Exact name of registrant as specified in its charter) | Nevada | | 20-1117381 | | | --- | --- | --- | --- | | ( ...

XPEL, Inc. (NASDAQ:XPEL) Q1 2023 Earnings Conference Call May 9, 2023 11:00 AM ET Company Participants John Nesbett – IMS Investor Relations Ryan Pape – President and Chief Executive Officer Barry Wood – Senior Vice President and Chief Financial Officer Conference Call Participants Steve Dyer – Craig-Hallum Jeff Van Sinderen – B. Riley Tim Moore – EF Hutton Operator Greetings, and welcome to the XPEL, Inc. First Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode and a quest ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38858 XPEL, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organi ...

Financial Data and Key Metrics Changes - In Q4 2022, revenue grew 11.9% to $78.5 million, net income increased by 34.7%, and EBITDA rose by 32.4% [9][60] - For the full year 2022, revenue grew by 25%, net income increased by 31%, and EBITDA grew by 39% [7][9] - The gross margin for Q4 was 39.6%, up from 35.2% in Q4 2021, and the full year gross margin was 39.4% compared to 35.7% in 2021 [33][52] Business Line Data and Key Metrics Changes - Paint protection film (PPF) revenue was flat in Q4, but combined with cutbank revenue, it grew over 4% [55] - Window film revenue grew 33.7% quarter-over-quarter to $11.7 million, with a year-to-date growth of 41.7% [56] - Architectural window film revenue grew 95% in Q4 to $1.2 million, with a year-to-date growth of 98% [57] - Total installation revenue grew 27% in Q4 and 77% year-to-date, representing 17.4% of total revenue in Q4 [58] Market Data and Key Metrics Changes - The U.S. market showed exceptional performance with a 31.6% growth in Q4, contributing $47.6 million to revenue [8][19] - Canada, Europe, and the U.K. regions continued to grow, although at a lower percentage than in Q3 [21] - Latin America had a strong quarter, and the Middle East saw a slight decline due to timing of orders [22][23] Company Strategy and Development Direction - The company plans to expand its corporate team in China to better support distributors and enhance market intelligence [16] - There is a focus on acquisitions in international distribution and dealership services to enhance growth [71][72] - The company aims for 20% to 25% organic revenue growth in 2023, with expectations of a 200-basis-point improvement in gross margin [51][52] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the China market despite recent challenges, anticipating a positive outlook for 2023 [15][49] - The company is seeing strong momentum in the U.S. market and expects continued growth despite economic uncertainties [25][49] - Management highlighted the importance of maintaining vendor relationships to manage inventory effectively [39][41] Other Important Information - The company incurred one-time expenses related to severance and compensation, but these are expected to be behind them moving forward [35][76] - Cash flow from operations for Q4 was $2.4 million, with expectations for strong long-term cash flow generation [62] Q&A Session Summary Question: Insights on dealer business performance - Management noted strong performance in the dealership business, with increased dealer additions and higher product attach rates [64][66] Question: Future acquisition plans - The company plans to focus on international distribution and dealership services for future acquisitions [69][71] Question: One-time items in financials - Management confirmed that one-time items are likely behind them, with a clean P&L expected in upcoming quarters [76] Question: Growth expectations for PPF and other products - Growth in PPF is heavily dependent on the China market, with expectations for overall growth across all product lines [78][82] Question: Pricing strategies and market coverage - Management indicated that pricing adjustments have been implemented in less than 50% of markets, leaving room for future pricing power [92][95] Question: Update on Rivian relationship and European OEM projects - The Rivian program is ramping up successfully, and there is ongoing interest in expanding European OEM projects [96][100]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-38858 XPEL, INC. (Exact name of registrant as specified in its charter) Nevada 20-1117381 (State or other jurisdiction of incorporati ...

XPEL, Inc. (NASDAQ:XPEL) Q3 2022 Earnings Conference Call November 9, 2022 11:00 AM ET Company Participants Jen Belodeau - Investor Relations Ryan Pape - President and Chief Executive Officer Barry Wood - Senior Vice President and Chief Financial Officer Conference Call Participants Steve Dyer - Craig-Hallum Jeff Van Sinderen - B. Riley Tim Moore - EF Hutton Operator Good day ladies and gentlemen, and welcome to the XPEL’s Third Quarter 2022 Earnings Conference Call. At this time, all participants have been ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the quarterly period ended September 30, 2022 FORM 10-Q OR (Mark One) ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-38858 XPEL, INC. (Exact name of registrant as specified in its charter) | Nevada | | 20-1117381 | | | --- | --- | --- | --- ...

Financial Data and Key Metrics Changes - Revenue for Q2 2022 grew 22% to $83.9 million, with a record gross margin of 39.3% and an EBITDA margin of 20.5%, the highest in company history [7][17][34] - Net income increased 16.8% year-over-year to $11.9 million, reflecting a net income margin of 14.2% [37] - Year-to-date net income grew 15.7%, with an EPS of $0.21 per share [39] Business Line Data and Key Metrics Changes - Product revenue grew approximately 14.3% to $67 million, while service revenue increased 67.3% to $16.9 million, representing 20.1% of total revenue [31] - Total installation revenue, combining product and labor, increased over 106% [33] - The window film business grew 42% for the quarter, reaching $60 million, while the architectural film business remains small but is growing [23] Market Data and Key Metrics Changes - U.S. revenue grew 43.4% to a record $49.2 million, despite challenges in new car sales and lockdowns in China [8][12] - Canada, Europe, U.K., and Latin America also saw record revenues, with strong demand continuing in Canada [10] - The company faced a negative impact of approximately $6.5 million on overall revenue due to the strengthening U.S. dollar and COVID-related lockdowns in China [13][11] Company Strategy and Development Direction - The company aims to reach a 40% gross margin run rate by the end of the year, focusing on managing expenses and improving gross margins [16] - A partnership with Rivian was announced to be the exclusive supplier of their factory direct paint protection film program, enhancing the company's OEM program [24] - The company is actively pursuing acquisitions to enhance its software offerings and expand its market presence [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in revenue growth, estimating 2022 annual revenue growth to be in the 25% to 28% range, slightly lower than previous guidance due to China impacts and currency strength [19] - There is optimism regarding new car production recovery in the second half of the year, which could benefit the company [20] - Management expects Q3 revenue in the $85 million range, with improvements anticipated in China [21] Other Important Information - The company finished the quarter with approximately $74 million in inventory, indicating a stabilization after a significant build earlier in the year [26] - Cash flow from operations returned to $1.8 million as inventory build moderated, with plans to utilize cash flow for acquisitions [39] Q&A Session Summary Question: What are the biggest drivers of growth in the U.S.? - Management attributed growth to increasing attach rates for paint protection film, more product per vehicle, and the expansion of service offerings [44][46] Question: How many franchise dealers are selling paint protection film? - Management indicated there are several thousand new car dealerships connected to the company, with significant opportunities for growth in dealership offerings [47][49] Question: Is the deal with Rivian the only OEM partnership? - Management confirmed there are opportunities for further OEM partnerships, emphasizing the potential for increased market reach [55][57] Question: What is the outlook for inventory recovery? - Management noted that while inventory has improved, a full recovery is expected to take multiple quarters [61] Question: What about the software acquisition? - Management stated they are looking to integrate the acquired software into their DAP platform and are open to further acquisitions to enhance their technology offerings [66][68]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to | Title of each class | Trading Symbol | Name of each exchange on which registered | | --- | --- | --- | | Common Stock, par value $0.001 per share | XPEL | ...

XPEL, Inc. (NASDAQ:XPEL) Q1 2022 Results Conference Call May 10, 2022 11:00 AM ET Company Participants John Nesbett - Investor Relations Ryan Pape - President and Chief Executive Officer Barry Wood - Senior Vice President and Chief Financial Officer Conference Call Participants Ryan Sigdahl - Craig-Hallum Jeff Van Sinderen - B. Riley Operator Good day, ladies and gentlemen, and welcome to the XPEL Inc.’s First Quarter 2022 Earnings Call. [Operator Instructions] It is now my pleasure to turn the floor over t ...