XPEL (XPEL) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 revenue of $124.7 million, up 13.5% year-over-year, with strong growth across most regions and product lines, especially in China, Asia-Pacific, and the Middle East/India.

• Net income rose 7.8% to $16.2 million, or $0.59 per share; adjusted net income up 16.7% to $17.5 million, or $0.63 per share, excluding one-time charges.

• EBITDA increased 7.1% to $23.4 million (18.7% margin); adjusted EBITDA up 14.7% to $25.0 million (20.0% margin).

• Operating cash flow for the first half of 2025 was $31.1 million, with cash and equivalents at $49.6 million and no outstanding balance on the $125 million credit facility.

• Dealer service business and personalization platform investments are driving increased consumer engagement and installer network revenue.

Financial highlights

• Q2 2025 total revenue: $124.7 million (up 13.5% year-over-year); six months: $228.5 million (up 14.2%).

• Gross margin for Q2 2025 was 42.9%, slightly down from 43.5% in Q2 2024; gross profit reached $53.5 million.

• EBITDA margin was 18.7% in Q2 2025, down from 19.9% in Q2 2024; normalized EBITDA margin was 20%.

• Net income margin was 13% for Q2 2025; EPS was $0.59, or $0.63 normalized for one-time items.

• Cash flows from operations reached $27.9 million in Q2 2025; operating margin was 15.5%.

Outlook and guidance

• Q3 2025 revenue expected in the $117–$119 million range, with Q2 and Q3 trading off as peak quarters due to seasonality.

• Management expects continued growth driven by product adoption, international expansion, and increased demand in key regions.

• SG&A growth rate expected to moderate in the second half as acquisition-related costs are lapped.

• Gross margin expected to trend upward as initiatives progress; tariff impact anticipated to be minimal.

• Sufficient liquidity and borrowing capacity are expected to support ongoing operations, capital expenditures, and acquisitions for at least the next 12 months.