XPEL (XPEL) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 13.1% year-over-year to $117.4 million, led by strong U.S., China, and APAC performance, with net income rising up to 22.4% to $10.5 million and EBITDA up 17.8% to $17.0 million.

• U.S. revenue increased nearly 10% to $63.8 million, with independent installer channel up 12%.

• Growth was driven by increased demand in China (up 44.4%), APAC, and EU/UK/Africa, offsetting a decline in Canada.

• OEM channel revenue reached its highest ever, just under 7% of total revenue.

• APAC and Latin America showed outsized growth; Middle East remained stable despite regional conflict.

Financial highlights

• Product revenue grew 12.7% to $88.7 million; service revenue increased 14.1% to $28.6 million.

• Window film product line grew 24.8% to $23.3 million, 19.8% of total revenue.

• Gross margin improved to 43.7% from 42.3% year-over-year.

• EBITDA margin was 14.5%; operating income rose 17% to $13.0 million; net income margin reached 8.8%.

• SG&A expenses rose 16.6% to $38.2 million (32.6% of revenue), including $1.2 million for the annual dealer conference and $2 million from the China acquisition.

Outlook and guidance

• Q2 2026 revenue is expected to be approximately $135–$137 million, assuming normal seasonal ramp.

• Guidance reflects downside risk from Middle East vehicle shortages and delayed dealership deal flow.

• Gross margin expected to improve in Q2, but magnitude may be less than previously anticipated due to pricing pressures.

• Multi-year verticalization and supply chain initiatives underway, with milestones to be communicated as achieved.

• Management expects sufficient liquidity for at least the next 12 months, supported by strong cash flow and $128.2 million in available credit.