XPEL(US:XPEL)2025-11-07 14:05Financial Performance - Total revenue for the three months ended September 30, 2025, was $125.415 million, a 11.0% increase from $112.852 million in the same period of 2024 [49]. - Service revenue for the three months ended September 30, 2025, was $29.956 million, representing a 15.8% increase from $25.902 million in 2024 [49]. - The company’s total sales in the United States for the three months ended September 30, 2025, were $71.725 million, a 11.8% increase from $64.565 million in 2024 [51]. - Net income attributable to stockholders for Q3 2025 was $12,940,000, a decrease of 13.0% from $14,892,000 in Q3 2024 [74]. - Total revenue for Q3 2025 increased to $125,415,000, up 11.3% from $112,852,000 in Q3 2024 [77]. - Basic earnings per share for Q3 2025 was $0.47, down from $0.54 in Q3 2024 [74]. - Gross margin for Q3 2025 was $52,424,000, representing a gross margin percentage of 41.8%, compared to 42.4% in Q3 2024 [77]. - The unaudited pro forma revenue for the nine months ended September 30, 2025, including acquisitions, was $363,057,000, compared to $333,360,000 for the same period in 2024 [80]. Assets and Liabilities - Total property, plant, and equipment decreased from $17.735 million as of December 31, 2024, to $16.229 million as of September 30, 2025 [31]. - Goodwill increased from $44.126 million as of December 31, 2024, to $52.292 million as of September 30, 2025 [31]. - Intangible assets rose significantly from $34.562 million as of December 31, 2024, to $56.267 million as of September 30, 2025 [31]. - Finished goods inventory increased to $112.292 million as of September 30, 2025, compared to $89.556 million at the end of 2024, reflecting a 25.4% rise [56]. - Warranty liabilities increased from $0.7 million as of December 31, 2024, to $0.8 million as of September 30, 2025 [32]. - Contract liabilities increased to $5.009 million as of September 30, 2025, from $821,000 as of December 31, 2024 [48]. - The company reported a contingent liability of $25.103 million as of September 30, 2025, significantly up from $1.816 million at the end of 2024 [72]. Acquisitions and Investments - The company acquired a 76% interest in an entity conducting business in China on September 9, 2025 [40]. - The company completed acquisitions in 2025 for an aggregate purchase price of $48.7 million to expand its geographical footprint [78]. Compliance and Regulations - The company had no outstanding balances under its $125 million Credit Agreement as of September 30, 2025, and maintained compliance with all debt covenants [61]. - The company adopted ASU 2025-07 as of September 30, 2025, with no material impact on financial statements [33]. - The company is evaluating the impact of the One Big Beautiful Bill Act, expected to primarily affect deferred tax items [39]. Costs and Expenses - Personnel costs for Q3 2025 were $16,232,000, an increase of 23.6% from $13,153,000 in Q3 2024 [77]. Financial Risks - The company does not currently hedge its exposure to foreign currency translation adjustments, which may impact financial results [139]. - A hypothetical 200 basis point increase in variable interest rates could materially impact the company's financial statements [141]. Impairment and Allowances - As of September 30, 2025, accounts receivable allowances for expected credit losses were $0.1 million, down from $0.2 million as of December 31, 2024 [30]. - The company recognized no goodwill impairment during the three and nine months ended September 30, 2025 [28].