XPEL (XPEL) Q4 2025 earnings summary

Executive summary

• Achieved significant milestones in 2025, including the China distribution acquisition and progress toward direct presence in major car markets.

• Revenue grew 13.7% year-over-year to $122.3 million in Q4 2025 and 13.3% to $476.2 million for the full year 2025.

• Net income attributable to stockholders rose 50.7% to $13.4 million in Q4 and 12.6% to $51.2 million for the year.

• EBITDA increased 37.6% to $19.6 million in Q4 and 11.4% to $77.4 million for the year.

• Focused product strategy shift to core offerings and adjacencies, with productivity gains from AI and tech improvements.

Financial highlights

• Q4 gross margin was 41.9%, flat sequentially and up from 40.6% year-over-year; full-year gross margin was 42.2%.

• Q4 EBITDA reached $19.6 million (16% margin), up 37.6% year-over-year; full-year EBITDA was $77.4 million (16.3% margin).

• Net income attributable to stockholders grew 50.7% in Q4 to $13.4 million (11% margin); full-year net income up 12.6% to $51.2 million (10.8% margin).

• EPS for Q4 was $0.49 basic and $0.48 diluted; full-year EPS was $1.85.

• Cash flow from operations was $2.7 million in Q4 and $66.9 million for the year, up 40% year-over-year.

Outlook and guidance

• Q1 2026 revenue expected in the $112–$114 million range, factoring in ongoing U.S. trends, Canada softness, and Chinese New Year impacts.

• Gross margin headwinds from acquired China inventory and pricing expected to abate after Q1, with margins improving in Q2 and beyond.

• Regional leaders are budgeted to grow operating leverage and margins in 2026.

• Optimism for 2026 driven by customer and team sentiment, new customer wins, and improved vehicle affordability.

• Focus will shift to driving sales growth and operating leverage across all regions.