XPEL, Inc. (Nasdaq: XPEL) (the "Company"), a global provider of protective films and coatings, announced consolidated results¹

Fourth Quarter 2025 Overview:

Year End 2025 Overview:

Ryan Pape, President and Chief Executive Officer of XPEL, commented, "We saw good top and bottom line performance in the fourth quarter. In 2025, we largely completed the development of our international footprint and, going forward, we will focus on driving sales growth and operating leverage in all our regions."

Financial Highlights for the Fourth Quarter 2025:

Summary consolidated financial information for the fourth quarter ended December 31, 2025 and 2024 (unaudited, dollars in thousands):

Geographical Revenue Summary

Overall Revenue

Product and Service Revenue

Other Financial Information

Cash Flows from Operations

Financial Summary 2025:

Summary consolidated financial information for the years ended December 31, 2025 and 2024 (unaudited, dollars in thousands):

Geographical Revenue Summary

2026First Quarter Outlook

Please see the information under "Forward-looking Statements" below regarding certain cautionary statements relating to our 2026 First Quarter Outlook.

Conference Call Information

The Company will host a conference call and webcast today, February 25, 2026 at 11:00 a.m. Eastern Time to discuss the Company’s fourth quarter and annual 2025 results.

To access the live webcast, please visit the XPEL, Inc. website atwww.xpel.com/events-presentations

To participate in the call by phone, dial (888) 506-0062 approximately five minutes prior to the scheduled start time. International callers please dial (973) 528-0011. Callers should use access code: 101941.

A replay of the teleconference will be available until March 27, 2026 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 53542.

About XPEL, Inc.

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. With a global footprint, a network of trained installers and proprietary DAP software, XPEL is dedicated to exceeding customer expectations by providing high-quality products, leading customer service, expert technical support and world-class training. XPEL, Inc. is publicly traded on Nasdaq under the symbol “XPEL”.

Forward-looking Statements

This release includes forward-looking statements (within the meaning of Section 27A of the Securities act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended) regarding XPEL, Inc. and its business, which may include, but is not limited to, anticipated use of proceeds from capital transactions, expansion into new markets, execution of the company's growth strategy and outlook. Often, but not always, forward-looking statements can be identified by the use of words such as "plans," "is expected," "expects," "scheduled," "intends," "contemplates," "anticipates," "believes," "proposes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may," "could," "would," "might" or "will" be taken, occur or be achieved. Such statements are based on the current expectations and assumptions of the management of XPEL. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements expressed or implied by the forward-looking statements. These risks, uncertainties and other factors relate to, among others: competition, a prolonged or material contraction in automotive sales and production volumes, disruption in our supply chain, technology that could render our products obsolete, changes in the way vehicles are sold, damage to our brand and reputation, cyber events and other legal and regulatory developments. There are several risks, uncertainties, and other important factors, many of which are beyond the Company’s control, that could cause its actual results to differ materially from the forward-looking statements contained in this press release, including those described in the “Risk Factors” section of Annual Report on Form 10-K. Although XPEL has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and XPEL undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Non-GAAP Financial Measure

To aid in the understanding of XPEL's ongoing business performance, XPEL uses EBITDA, a non-GAAP financial measure. EBITDA is defined as net income (loss) plus interest expense, net, plus income tax expense plus depreciation and amortization expense. EBITDA should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. It is not a measurement of XPEL's financial performance under GAAP and should not be considered as an alternative to revenue or net income, as applicable, or any other performance measures derived in accordance with GAAP and may not be comparable to other similarly title measures. For a full reconciliation of EBITDA to comparable GAAP measure, refer to the reconciliation titled "Reconciliation of Non-GAAP Financial Measure."

Reconciliation of Non-GAAP Financial Measure

EBITDA is a non-GAAP financial measure. EBITDA is defined as net income (loss) plus interest expense, net, plus income tax expense plus depreciation expense and amortization expense. EBITDA should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. It is not a measurement of our financial performance under GAAP and should not be considered as alternatives to revenue or net income, as applicable, or any other performance measures derived in accordance with GAAP and may not be comparable to other similarly titled measures of other businesses. EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our operating results as reported under GAAP.

EBITDA does not reflect the impact of certain cash charges resulting from matters we consider not to be indicative of ongoing operations and other companies in our industry may calculate EBITDA differently than we do, limiting its usefulness as a comparative measure.

EBITDA Reconciliation (in thousands)

View source version on businesswire.com:https://www.businesswire.com/news/home/20260225281496/en/

	Three Months Ended December 31,								% Change
		2025	% of Total Revenue			2024	% of Total Revenue		2025 vs. 2024
Total revenue	$	122,267	100.0	%	$	107,527	100.0	%	13.7	%
Gross margin		51,183	41.9	%		43,703	40.6	%	17.1	%
Operating Expenses		35,703	29.2	%		31,358	29.2	%	13.9	%
Net income attributable to stockholders of the Company		13,410	11.0	%		8,898	8.3	%	50.7	%
EBITDA²		19,610	16.0	%		14,250	13.3	%	37.6	%
Net cash provided by operating activities	$	2,667	n/a		$	6,327	n/a		(57.8	)%

	Three Months Ended December 31,				% Change		% of Total Revenue
	2025		2024		Inc (Dec)		2025		2024
United States	$	65,571	$	59,054	11.0	%	53.6	%	54.9	%
Canada		12,889		13,370	(3.6	)%	10.5	%	12.4	%
North America		78,460		72,424	8.3	%	64.1	%	67.3	%
China		14,035		9,238	51.9	%	11.5	%	8.6	%
Asia Other		5,372		5,262	2.1	%	4.4	%	4.9	%
Asia Pacific		19,407		14,500	33.8	%	15.9	%	13.5	%
EU, UK, and Africa		15,196		11,981	26.8	%	12.4	%	11.1	%
India and Middle East		6,443		5,875	9.7	%	5.3	%	5.5	%
Latin America		2,761		2,747	0.5	%	2.3	%	2.6	%
Total	$	122,267	$	107,527	13.7	%	100.0	%	100.0	%

	Year Ended December 31,								% Change
	2025		% of Total Revenue		2024		% of Total Revenue		2025 vs. 2024
Total revenue	$	476,200	100.0	%	$	420,400	100.0	%	13.3	%
Gross margin		201,019	42.2	%		177,360	42.2	%	13.3	%
Operating Expenses		138,370	29.1	%		118,213	28.1	%	17.1	%
Net income attributable to stockholders of the Company		51,226	10.8	%		45,489	10.8	%	12.6	%
EBITDA²		77,398	16.3	%		69,471	16.5	%	11.4	%
Net cash provided by operating activities	$	66,938	n/a		$	47,824	n/a		40.0	%

	Year Ended December 31,				% Change		% of Total Revenue
	2025		2024		Inc (Dec)		2025		2024
United States	$	265,756	$	240,569	10.5	%	55.8	%	57.2	%
Canada		49,545		52,139	(5.0	)%	10.4	%	12.4	%
North America		315,301		292,708	7.7	%	66.2	%	69.6	%
China		39,921		24,148	65.3	%	8.4	%	5.7	%
Asia Other		20,895		16,825	24.2	%	4.4	%	4.0	%
Asia Pacific		60,816		40,973	48.4	%	12.8	%	9.7	%
EU, UK, and Africa		64,095		53,983	18.7	%	13.5	%	12.9	%
India and Middle East		24,984		21,072	18.6	%	5.2	%	5.0	%
Latin America		11,004		11,664	(5.7	)%	2.3	%	2.8	%
Total	$	476,200	$	420,400	13.3	%	100.0	%	100.0	%

The results summarized above for 2025 are preliminary and unaudited. As the Company completes its quarter-end financial close processes and finalizes its financial statements for the fourth quarter and year end of 2025, it is possible that the Company may identify items that require it to make adjustments to the preliminary information set forth above, and those adjustments could be material. Full year end 2025 financial information will be included in the filing of the Company’s Annual Report on Form 10-K with the Securities and Exchange Commission which is anticipated on or prior to March 2, 2026.¹

See "Non-GAAP Financial Measure" and "Reconciliation of Non-GAAP Financial Measure" below.²

XPEL, Inc.
Consolidated Statements of Income (Unaudited)
(In thousands except per share data)

	Three Months Ended December 31,					Year Ended December 31,
	(Unaudited)			(Unaudited)		(Unaudited)
	2025			2024		2025			2024
Revenue
Product revenue	$	90,889		$	81,847	$	359,855		$	318,849
Service revenue		31,378			25,680		116,345			101,551
Total revenue		122,267			107,527		476,200			420,400

Cost of Sales
Cost of product sales		57,499			52,415		223,967			199,791
Cost of service		13,585			11,409		51,214			43,249
Total cost of sales		71,084			63,824		275,181			243,040
Gross Margin		51,183			43,703		201,019			177,360

Operating Expenses
Sales and marketing		13,607			11,509		51,138			42,817
General and administrative		22,096			19,849		87,232			75,396
Total operating expenses		35,703			31,358		138,370			118,213

Operating Income		15,480			12,345		62,649			59,147

Interest expense		—			34		83			996
Foreign currency exchange (gain)/loss		(331	)		1,157		(1,495	)		1,373

Income before income taxes		15,811			11,154		64,061			56,778
Income tax expense		2,151			2,256		12,472			11,289
Net Income	$	13,660		$	8,898	$	51,589		$	45,489
Net income attributed to non-controlling interest		250			—		363			—
Net income attributable to stockholders of the Company	$	13,410		$	8,898	$	51,226		$	45,489

Earnings per share attributable to stockholders of the Company
Basic	$	0.49		$	0.32	$	1.85		$	1.65
Diluted	$	0.48		$	0.32	$	1.85		$	1.65
Weighted Average Number of Common Shares Outstanding
Basic		27,635			27,649		27,657			27,639
Diluted		27,684			27,656		27,683			27,643

XPEL, Inc.
Consolidated Balance Sheets
(In thousands except share and per share data)

	(Unaudited) December 31, 2025			December 31, 2024
Assets
Current
Cash and cash equivalents	$	50,864		$	22,087
Accounts receivable, net		49,846			29,146
Inventory, net		122,755			110,904
Prepaid expenses and other current assets		6,651			5,314
Income tax receivable		581			893
Total current assets		230,697			168,344
Property and equipment, net		15,797			17,735
Right-of-use lease assets		21,561			19,490
Intangible assets, net		49,620			34,562
Other non-current assets		5,574			1,350
Goodwill		59,277			44,126
Total assets	$	382,526		$	285,607
Liabilities
Current
Current portion of notes payable	$	59		$	63
Current portion of lease liabilities		6,094			4,666
Accounts payable and accrued liabilities		54,289			36,138
Other short-term liabilities		10,558			651
Total current liabilities		71,000			41,518
Deferred tax liability, net		120			469
Other long-term liabilities		9,511			1,810
Non-current portion of lease liabilities		16,710			16,126
Non-current portion of notes payable		—			229
Total liabilities		97,341			60,152
Stockholders’ equity
Preferred stock, $0.001 par value; authorized 10,000,000; none issued and outstanding		—			—
Common stock, $0.001 par value; 100,000,000 shares authorized; 27,682,807 and 27,651,773 issued, respectively		28			28
Additional paid-in-capital		18,049			15,550
Accumulated other comprehensive loss		(135	)		(4,236	)
Retained earnings		265,339			214,113
Treasury stock, 78,624 shares at cost		(2,999	)		—
Stockholders’ equity		280,282			225,455
Non-controlling interest		4,903			—
Total stockholders’ equity		285,185			225,455
Total liabilities and stockholders’ equity	$	382,526		$	285,607

XPEL, Inc.
Consolidated Statements of Cash Flows (Unaudited)
(In thousands)

	Three Months Ended December 31,						Year Ended December 31,
	(Unaudited)			(Unaudited)			(Unaudited)
	2025			2024			2025			2024
Cash flows from operating activities
Net income	$	13,660		$	8,898		$	51,589		$	45,489
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property, plant and equipment		1,531			1,512			6,264			5,820
Amortization of intangible assets		2,268			1,550			6,990			5,877
Gain on sale of property and equipment		(2	)		(14	)		(13	)		(49	)
Stock compensation		(23	)		868			2,753			3,197
Provision for credit losses		63			111			922			390
Deferred income tax		2,428			(1,367	)		(299	)		(2,745	)
Changes in assets and liabilities:
Accounts receivable, net		(13,058	)		(129	)		(20,444	)		(5,604	)
Inventory, net		6,281			(9,959	)		11,476			(4,785	)
Prepaid expenses and other current assets		(3,579	)		631			(3,887	)		(2,154	)
Income taxes receivable and payable		(2,705	)		(637	)		249			(267	)
Accounts payable and accrued liabilities		(4,197	)		4,863			11,338			2,655
Net cash provided by operating activities		2,667			6,327			66,938			47,824
Cash flows used in investing activities
Purchases of property, plant and equipment		(1,074	)		(1,628	)		(4,008	)		(6,713	)
Proceeds from sale of property and equipment		14			—			48			40
Acquisition of businesses, net of cash acquired		(11,003	)		(3,335	)		(26,168	)		(9,855	)
Purchases of long term investments		(415	)		—			(2,100	)		—
Development of intangible assets		(514	)		(455	)		(1,550	)		(1,876	)
Net cash used in investing activities		(12,992	)		(5,418	)		(33,778	)		(18,404	)
Cash flows from financing activities
Net payments on revolving line of credit		—			—			—			(19,000	)
Restricted stock withholding taxes paid in lieu of issued shares		(93	)		(18	)		(254	)		(193	)
Repayments of notes payable		(126	)		(16	)		(243	)		(60	)
Payments of deferred acquisition consideration		(14	)		—			(161	)		—
Purchases of treasury shares		(2,999	)		—			(2,999	)		—
Net cash used in financing activities		(3,232	)		(34	)		(3,657	)		(19,253	)
Net change in cash and cash equivalents		(13,557	)		875			29,503			10,167
Foreign exchange impact on cash and cash equivalents		(76	)		226			(726	)		311
(Decrease) increase in cash and cash equivalents during the period		(13,633	)		1,101			28,777			10,478
Cash and cash equivalents at beginning of period		64,497			20,986			22,087			11,609
Cash and cash equivalents at end of period	$	50,864		$	22,087		$	50,864		$	22,087

Supplemental schedule of non-cash activities
Non-cash acquisition consideration	$	—		$	1,600		$	24,094		$	1,600
Non-cash lease financing	$	2,235		$	2,491		$	6,631		$	8,701
Issuance of Common Stock for vested restricted stock units	$	323		$	210		$	1,171		$	1,110
Non-cash minority interest contribution	$	78		$	—		$	4,540		$	—

Supplemental cash flow information
Cash paid for income taxes	$	2,418		$	3,361		$	12,540		$	13,617
Cash paid for interest	$	—		$	31		$	89		$	1,026

	Three Months Ended December 31,				Year Ended December 31,
	(Unaudited)		(Unaudited)		(Unaudited)
	2025		2024		2025		2024
Net Income	$	13,660	$	8,898	$	51,589	$	45,489
Interest		—		34		83		996
Taxes		2,151		2,256		12,472		11,289
Depreciation		1,531		1,512		6,264		5,820
Amortization		2,268		1,550		6,990		5,877
EBITDA	$	19,610	$	14,250	$	77,398	$	69,471

Revenue increased 13.7% to $122.3 million in the fourth quarter of 2025 compared to $107.5 million in the fourth quarter of 2024.
Gross margin of 41.9% in the fourth quarter of 2025 compared to 40.6% in the same quarter last year.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased 37.6% to $19.6 million, or 16.0% of revenue, compared to $14.3 million, or 13.3% of revenue in the fourth quarter of 2024.
Net income attributable to stockholders of the company increased 50.7% to $13.4 million, or $0.49 per basic and $0.48 per diluted share, respectively, versus net income attributable to stockholders of the company of $8.9 million, or $0.32 per basic and diluted share in the fourth quarter of 2024.

Revenue increased 13.3% to $476.2 million compared to $420.4 million in the prior year.
Gross margin of 42.2% in 2025, consistent with 2024 gross margin.
Net income attributable to stockholders of the company of $51.2 million, or $1.85 per basic and diluted share, versus net income attributable to stockholders of the company of $45.5 million, or $1.65 per basic and diluted share in 2024.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of $77.4 million, or 16.3% of revenue, compared to $69.5 million, or 16.5% of revenue in 2024.²

Total revenue grew 13.7% compared to fourth quarter 2024 ("YoY"). Excluding China, total revenue increased 10.1% YoY.
US revenue increased 11.0%YoY.

Total product revenue grew 11.0% YoY.
Total window film revenue increased 10.0% YoY and represented 16.6% of total revenue.
Total service revenue increased 22.2% YoY.
Total installation revenue (labor and product combined) grew 17.2% YoY.
Adjusted product revenue (combining cutbank credits revenue and product revenue) increased 11.0% YoY.

Gross margin was 41.9% and 40.6% in the fourth quarter of 2025 and 2024, respectively.
Total operating expenses increased 13.9% YoY.
Sales and marketing expenses increased 18.2% YoY and represented 11.1% of revenue.
General and administrative expenses increased 11.3% YoY and represented 18.1% of revenue.
Net income increased 53.5% YoY.
EBITDA increased 37.6% YoY²

Cash flows provided by operations were $2.7 million in the fourth quarter 2025.
Cash flows provided by operations were $66.9 million in 2025.

The Company expects first quarter 2026 revenue of approximately $112 - $114 million.