XPEL (XPEL) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 revenue of $112.9 million, up 9.9% year-over-year, with net income rising 9.1% to $14.9 million and EBITDA up 10% to $21.7 million (19.2% margin).

• U.S. revenue reached $64.6 million, up 9.4% YoY, while Canada posted 25.7% growth; all other regions (excluding US and China) grew 17.3% YoY.

• China revenue declined 11.6% YoY, but stabilized sequentially; strategic changes and supply chain adjustments are underway.

• Completed $8.0 million in acquisitions in India and Japan to expand installation and product reach.

• Nine-month revenue rose 7.6% to $312.9 million, but net income declined 10.4% to $36.6 million due to higher operating expenses.

Financial highlights

• Q3 gross margin improved to 42.5% from 40.4% YoY; operating margin was 16.3%; net margin 13.2%.

• EPS for Q3 was $0.54 (basic and diluted); year-to-date EPS $1.32.

• Window film revenue hit a record $22.6 million (+20.6% YoY), 20.1% of total revenue.

• Service revenue increased 20.2% YoY, with installation revenue up 27.4% YoY.

• Cash from operations for Q3 was $19.6 million; nine-month cash from operations was $41.5 million; cash balance at quarter-end: $21 million.

Outlook and guidance

• Q4 2024 revenue expected in the $105–$107 million range, with continued U.S. growth and lower China sales.

• Management expects sufficient liquidity for at least the next 12 months, supported by strong cash flow and $128.3 million in available credit.

• New product launches (windshield protection, color change films) expected to impact 2025 more than 2024.

• Predictable cadence in China anticipated, with year-over-year gains expected in the first half of next year.

• Focus remains on global expansion, product innovation, and increasing installation service capacity.