XPEL (XPEL) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of $109.9 million, up 7.5% year-over-year, with U.S. revenue growing 9.7% to $64.9 million and dealership business up over 30%.

• Net income was $15.0 million ($0.54 per share), down 4.5% year-over-year, while EBITDA reached $21.8 million (19.9% margin), a 2.7% decline.

• Gross margin improved to 43.5%, and operating cash flow was strong at $26.9 million, slightly above last year's record.

• China revenue declined 45.7% to $4.4 million, but new mid-tier product line increased unit volume; rest of world revenue grew 16.1%.

• Closed acquisitions in California (PFS) and India, with plans for further distributor acquisitions in Asia and Latin America.

Financial highlights

• Total revenue for the first six months was $200.0 million, up 6.4% year-over-year.

• Service revenue up 25.2% and product revenue up 2.8% year-over-year in Q2; window film revenue grew 8.4% to $20 million.

• Operating income for Q2 2024 was $19.2 million (17.5% margin), down from $20.2 million a year ago.

• Cash and cash equivalents were $15.0 million as of June 30, 2024, with $117.3 million available under credit facilities.

• Installation revenue up 33.9%, about 21% of total revenue.

Outlook and guidance

• Maintains 2024 revenue growth guidance of 8%-10%.

• Q3 revenue expected at $112–$114 million, with U.S. and China both projected to improve sequentially.

• Management expects available cash, internally generated funds, and credit facilities to be sufficient for at least the next 12 months.