XPEL(XPEL) - 2025 Q3 - Quarterly Results

Revenue Performance - Revenue increased 11.1% to $125.4 million in the third quarter of 2025 compared to the same period in 2024[4] - Total revenue for the first nine months of 2025 increased 13.1% to $353.9 million[4] - Total revenue for Q3 2025 reached $125.415 million, a 11.4% increase from $112.852 million in Q3 2024[20] - Total product revenue increased 9.8% year-over-year, representing 76.1% of total revenue[7] - Product revenue increased to $95.459 million in Q3 2025, up from $86.950 million in Q3 2024, representing a growth of 9.3%[20] - Service revenue rose to $29.956 million in Q3 2025, compared to $25.902 million in Q3 2024, marking a 15.8% increase[20] - The company expects fourth quarter 2025 revenue of approximately $123 million to $125 million[9] Profitability Metrics - Gross margin was 41.8% in the third quarter of 2025, down from 42.5% in the third quarter of 2024[15] - EBITDA decreased 8.1% to $19.9 million, representing 15.9% of revenue in Q3 2025, compared to $21.7 million or 19.2% of revenue in Q3 2024[4] - Net income decreased 11.8% to $13.1 million, or $0.47 per share, compared to $14.9 million, or $0.54 per share in Q3 2024[4] - Operating income for Q3 2025 was $16.751 million, slightly down from $18.387 million in Q3 2024[20] - Net income for Q3 2025 was $13.135 million, a decrease from $14.892 million in Q3 2024, resulting in a net income margin of 10.5%[20] - EBITDA for Q3 2025 was $19.944 million, down from $21.698 million in Q3 2024[29] Cash Flow and Financial Position - Cash flows from operations were $33.2 million in Q3 2025, the highest quarter in the company's history[8] - The company reported a net cash provided by operating activities of $33.154 million in Q3 2025, compared to $19.559 million in Q3 2024, indicating strong operational cash flow[24] - Cash and cash equivalents increased to $64.497 million as of September 30, 2025, compared to $22.087 million at the end of 2024[22] - Total assets grew to $387.695 million as of September 30, 2025, up from $285.607 million at the end of 2024[22] Future Investments - The company plans to invest $75 million to $150 million in manufacturing and supply chain over the next two years to improve gross margin to 52%-54% by the end of 2028[3] Expenses - Sales and marketing expenses increased 29.7% year-over-year[15]