xpel-20250930

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 September 30, 2025


☐			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 incorporation or organization)

(I.R.S. Employer Identification No.)

711 Broadway St., Suite 320

San Antonio

Texas

78215

(Address of Principal Executive Offices)

(Zip Code)

Registrant's telephone number, including area code: (210) 678-3700

Securities registered pursuant to Section 12(b) of the Act:



Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $0.001 per share	XPEL	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days. Yes x No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.:



Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

The registrant had 27,678,601 shares of common stock outstanding as of November 7, 2025.

TABLE OF CONTENTS


			Page
Part I - Financial Information
Item 1. Condensed Consolidated Financial Statements (Unaudited)
Condensed Consolidated Balance Sheets			1
Condensed Consolidated Statements of Income			2
Condensed Consolidated Statements of Comprehensive Income			3
Condensed Consolidated Statement of Changes in Equity			4
Condensed Consolidated Statement of Cash Flows			5
Notes to Condensed Consolidated Financial Statements			6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			19
Item 3. Quantitative and Qualitative Disclosures About Market Risk			30
Item 4. Controls and Procedures			31

Part II - Other Information
Item 1. Legal Proceedings			32
Item 1A. Risk Factors			32
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			40
Item 3. Defaults Upon Senior Securities			40
Item 4. Mine Safety Disclosures			40
Item 5. Other Information			41
Item 6. Exhibits			42

Signatures			42

Part I. Financial Information

Item 1. Financial Statements

XPEL, INC.

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data)


	(Unaudited)		(Audited)
	September 30, 2025		December 31, 2024
Assets
Current
Cash and cash equivalents	$	64,497	$	22,087
Accounts receivable, net	36,882		29,146
Inventory, net	128,715		110,904
Prepaid expenses and other current assets	4,438		5,314
Income tax receivable	—		893
Total current assets	234,532		168,344
Property and equipment, net	16,229		17,735
Right-of-use lease assets	21,497		19,490
Intangible assets, net	56,267		34,562
Deferred tax asset, net	2,117		—
Other non-current assets	4,761		1,350
Goodwill	52,292		44,126
Total assets	$	387,695	$	285,607
Liabilities
Current
Current portion of notes payable	$	69	$	63
Current portion lease liabilities	6,487		4,666
Accounts payable and accrued liabilities	52,226		36,138
Income tax payable	2,121		—
Other short-term liabilities	23,442		651
Total current liabilities	84,345		41,518
Deferred tax liability, net	—		469
Other long-term liabilities	12,628		1,810

Non-current portion of lease liabilities	16,752		16,126
Non-current portion of notes payable	116		229
Total liabilities	113,841		60,152
Commitments and Contingencies (Note 12)
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; 27,678,601 and 27,651,773 issued and outstanding, respectively	28		28
Additional paid-in-capital	18,165		15,550
Accumulated other comprehensive loss	(843)		(4,236)
Retained earnings	251,929		214,113
Stockholders' equity	269,279		225,455
Non-controlling interest	4,575		—
Total stockholders’ equity	273,854		225,455
Total liabilities and stockholders’ equity	$	387,695	$	285,607

See notes to condensed consolidated financial statements.

XPEL, INC.

Condensed Consolidated Statements of Income (Unaudited)

(In thousands, except per share data)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Revenue
Product revenue	$	95,459	$	86,950	$	268,966	$	237,002
Service revenue	29,956		25,902		84,967		75,871
Total revenue	125,415		112,852		353,933		312,873

Cost of Sales
Cost of product sales	59,838		53,967		166,468		147,376
Cost of service	13,153		10,969		37,629		31,840
Total cost of sales	72,991		64,936		204,097		179,216
Gross Margin	52,424		47,916		149,836		133,657

Operating Expenses
Sales and marketing	13,794		10,637		37,531		31,308
General and administrative	21,879		18,892		65,136		55,547
Total operating expenses	35,673		29,529		102,667		86,855

Operating Income	16,751		18,387		47,169		46,802

Interest expense	1		97		83		962
Foreign currency exchange loss/(gain)	110		(332)		(1,164)		216

Income before income taxes	16,640		18,622		48,250		45,624
Income tax expense	3,505		3,730		10,321		9,033
Net income	13,135		14,892		37,929		36,591
Net income attributed to non-controlling interest	195		—		113		—
Net income attributable to stockholders of the Company	$	12,940	$	14,892	$	37,816	$	36,591

Earnings per share attributable to stockholders of the Company
Basic	$	0.47	$	0.54	$	1.37	$	1.32
Diluted	$	0.47	$	0.54	$	1.37	$	1.32
Weighted Average Number of Common Shares
Basic	27,675		27,642		27,665		27,636
Diluted	27,701		27,644		27,683		27,639

See notes to condensed consolidated financial statements.

XPEL, INC.

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

(In thousands)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Other comprehensive income
Net income	$	13,135	$	14,892	$	37,929	$	36,591
Foreign currency translation	(481)		1,150		3,393		(7)
Total Comprehensive income	12,654		16,042		41,322		36,584
Total Comprehensive income attributable to:
Stockholders of the Company	12,459		16,042		41,209		36,584
Non-controlling interest	195		—		113		—
Total comprehensive income	$	12,654	$	16,042	$	41,322	$	36,584

See notes to condensed consolidated financial statements.

XPEL, INC.

Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)

(In thousands)


Stockholders' Equity - Three Months Ended September 30,
	Common Stock			Additional Paid-in-Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Equity attributable to Stockholders of the Company		Non-Controlling Interest		Total Stockholders’ Equity
	Shares	Amount
Balance as of June 30, 2024	27,638	$	28	$	13,926	$	190,323	$	(2,366)	$	201,911	$	—	$	201,911
Net income	—	—		—		14,892		—		14,892		—		14,892
Foreign currency translation	—	—		—		—		1,150		1,150		—		1,150
Stock-based compensation	9	—		774		—		—		774				774
Balance as of September 30, 2024	27,647	28		14,700		205,215		(1,216)		218,727		—		218,727

Balance as of June 30, 2025	27,670	28		17,085		238,989		(362)		255,740		(82)		255,658
Net income	—	—		—		12,940		—		12,940		195		13,135
Foreign currency translation	—	—		—		—		(481)		(481)		—		(481)
Stock-based compensation	9	—		1,080		—		—		1,080		—

SEC Form 10-Q filed by XPEL Inc.