XPEL (XPEL) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached a record $125.4 million, up 11.1% year-over-year, with strong US and EU growth and notable expansion in Asia; nine-month revenue totaled $353.9 million, up 13.1%.

• Net income for Q3 2025 was $13.1 million, down 11.8% year-over-year; nine-month net income rose 3.7% to $37.9 million.

• EBITDA for Q3 2025 was $19.9 million (15.9% margin), down 8.1% year-over-year; nine-month EBITDA increased 4.6% to $57.8 million.

• Completed acquisition of a Chinese distributor, expanding direct distribution in APAC; integration of acquisitions in China, Japan, Thailand, and India progressing well.

• Product line expansion, especially colored and window films, showing strong early adoption and growth potential.

Financial highlights

• US revenue grew 11.1% to $71.7 million; EU revenue up 28.8% to $16.5 million; Asia Pacific revenue increased 21.0%.

• Window film product line grew 22.2%; total insulation revenue up over 21%; installation revenue up 21.3%.

• Gross margin for Q3 2025 was $52.4 million (41.8% of revenue), with nine-month gross margin at 42.3%.

• EBITDA margin was 15.9% in Q3 2025, down from 19.2% in Q3 2024; operating margin was 13.4%.

• EPS for Q3 2025 was $0.47; nine-month EPS $1.37.

Outlook and guidance

• Q4 2025 revenue expected in the $123–$125 million range, with 13–14% annual growth targeted for 2025.

• Gross margin expected to improve in Q4 and reach record levels in Q1 and Q2 2026 as China integration completes.

• Strategic investments of $75–$150 million planned over two years to boost gross margin to 52–54% and operating margin to mid-high 20% by 2028.

• Continued low double-digit organic revenue growth expected mid-term.

• Management expects sufficient liquidity to support operations, capital expenditures, and acquisitions for at least the next 12 months.