XPEL(XPEL) - 2025 Q2 - Quarterly Results

Company Overview and Performance Highlights Second Quarter 2025 Performance Overview XPEL achieved record $124.7 million USD revenue in Q2 2025, a 13.5% year-over-year increase, with EBITDA and net income growing, especially after excluding one-time expenses Second Quarter 2025 Financial Performance (USD in millions) | Metric | Q2 2025 | Q2 2024 | YoY Growth | Notes | | :--- | :--- | :--- | :--- | :--- | | Revenue | $124.7 | $109.9 | 13.5% | Record revenue | | Gross Margin | 42.9% | 43.5% | -0.6% | | | EBITDA | $23.4 | $21.8 | 7.1% | 18.7% of revenue (19.9% in 2024) | | EBITDA (Normalized) | $25.0 | - | 14.7% | Excludes approximately $1.6 million one-time expenses | | Net Income | $16.2 | $15.0 | 7.8% | | | Basic and Diluted EPS | $0.59 | $0.54 | - | | | Net Income (Normalized) | $17.5 | - | 16.7% | Excludes one-time expenses | | Basic and Diluted EPS (Normalized) | $0.63 | - | - | Excludes one-time expenses | - The company incurred approximately $1.6 million USD in one-time expenses during the second quarter, primarily related to restructuring costs, legal and due diligence fees, and acquisition strategies[2] First Six Months 2025 Performance Overview For the first six months of 2025, XPEL's revenue grew 14.2% to $228.5 million USD, with EBITDA and net income also achieving double-digit growth, indicating strong first-half momentum First Six Months 2025 Financial Performance (USD in millions) | Metric | First Six Months 2025 | First Six Months 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Revenue | $228.5 | $200.0 | 14.2% | | Gross Margin | 42.6% | 42.9% | -0.3% | | EBITDA | $37.8 | $33.5 | 12.9% | | Net Income | $24.8 | $21.7 | 14.3% | | Basic and Diluted EPS | $0.90 | $0.79 | - | - President and CEO Ryan Pape expressed satisfaction with the first-half results and anticipates continued growth momentum in the second half of the year[1] Detailed Financial Analysis Consolidated Financial Highlights for Q2 2025 This section presents unaudited consolidated financial highlights for Q2 2025 and Q2 2024, detailing key financial metrics and their year-over-year changes Consolidated Financial Summary (USD in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $124,713 | $109,917 | 13.5 | | Gross Profit | $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 | | EBITDA | $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 | Revenue Summary by Geographical Region In Q2 2025, XPEL achieved significant revenue growth across multiple regions, with China showing the strongest increase at 75.1%, and record revenues in the US, Europe, and the Middle East Geographical Revenue Breakdown (USD in thousands) | Region | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change | 2025 Share of Total Revenue | 2024 Share of Total Revenue | | :--- | :--- | :--- | :--- | :--- | :--- | | 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% | | Rest of Asia | $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% | - The company achieved record revenues in the United States, Europe, and the Middle East[6] Revenue by Product and Service Type In Q2 2025, XPEL's product and service revenues both grew, with window film revenue increasing most significantly at 27.0%, and product revenue remaining the primary component - Total product revenue increased by 13.9% year-over-year, accounting for 76.0% of total revenue[6] - Total window film revenue increased by 27.0% year-over-year, representing 22.4% of total revenue[6] - Total service revenue increased by 12.0% year-over-year, comprising 24.0% of total revenue[6] - Total installation revenue (combining labor and products) increased by 17.9% year-over-year[6] - Adjusted product revenue (combining cutbank credit revenue and product revenue) increased by 12.9% year-over-year[6] Operating Expenses and Margins In Q2 2025, the company's gross margin slightly decreased, while both selling and marketing expenses and general and administrative expenses saw double-digit increases - Gross margin was 42.9% in Q2 2025, compared to 43.5% in the same period of 2024[6] - Selling and marketing expenses increased by 15.4% year-over-year[6] - General and administrative expenses increased by 21.5% year-over-year[6] Cash Flows from Operating Activities In Q2 2025, the company generated $27.9 million USD in cash flow from operating activities - Cash flow provided by operating activities was $27.9 million USD in Q2 2025[7] Business Outlook Third Quarter 2025 Outlook The company projects Q3 2025 revenue to be between $117 million and $119 million USD - The company expects Q3 2025 revenue to be approximately $117 million to $119 million USD[8] Corporate Information and Disclosures About XPEL, Inc. XPEL is a leading provider of protective films and coatings, offering high-quality products and customer service through a global network and proprietary software - 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[11] - The company boasts a global presence, a network of trained installers, and proprietary DAP software, committed to delivering high-quality products, leading customer service, expert technical support, and world-class training