Nasdaq:XPEL
XPEL, Inc.
XPEL offers premium vehicle protection films and accessories that defend against environmental damage and enhance automotive aesthetics for a growing global customer base.
Key Metrics
Investment Thesis
Bull Case
The shift toward vehicle customization and protection among EV owners creates a compelling long-term growth trajectory for XPEL's core PPF business. Strong cash flow generation of $66.9M from operations provides ample liquidity for strategic acquisitions and share repurchases, reinforcing the balance sheet with $50.9M in cash equivalents.
Bear Case
Valuation multiples may appear stretched relative to peers if growth rates decelerate as the aftermarket market matures or faces increased competition from lower-cost generic brands. High inventory levels of $122.8M coupled with significant capital expenditures of $4.0M suggest ongoing heavy investment requirements that could pressure free cash flow in the near term.
About XPEL, Inc.
XPEL, Inc. is a leading global provider of advanced exterior vehicle protection films and automotive accessories serving the retail aftermarket and original equipment markets. The company specializes in high-performance polyurethane films that protect vehicles from scratches, UV rays, and chemical stains while enhancing aesthetic appeal across North America and international regions.
Analysis
Management Discussion
Management successfully navigated a challenging revenue environment by delivering $476.2M in total revenue for 2025, representing solid year-over-year growth from the prior year's $420.4M. Operating profitability remained resilient with operating income of $62.6M, supported by disciplined cost management despite elevated general and administrative expenses of $87.2M.
Industry Overview
The automotive protection film industry is experiencing robust expansion driven by rising vehicle values, increased awareness of paint preservation, and the popularity of customized aesthetics among new car buyers. This sector remains relatively fragmented with XPEL commanding a dominant market share through innovation and installer education programs that create high switching costs for competitors.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $324.0M | $396.3M | $420.4M | $476.2M |
| Cost of Revenue | $196.5M | $233.9M | $243.0M | $275.2M |
| Gross Profit | $127.5M | $162.4M | $177.4M | $201.0M |
| Operating Expenses | $73.6M | $95.4M | $118.2M | $138.4M |
| Operating Income | $53.9M | $67.0M | $59.1M | $62.6M |
| R&D | $400.0K | $2.9M | $2.9M | $2.9M |
| G&A | $48.2M | $63.7M | $75.4M | $87.2M |
| Marketing | $25.4M | $31.8M | $42.8M | $51.1M |
| Stock-Based Comp | $522.0K | $1.6M | $3.2M | $2.8M |
| Depreciation | $3.4M | $4.5M | $5.8M | $6.3M |
| Amortization | $4.4M | $5.1M | $5.9M | $7.0M |
| Other OpEx | $-400.0K | $-2.9M | $-2.9M | $-2.9M |
| Non-Operating Income | $-2.0M | $-941.0K | $-2.4M | $1.4M |
| Interest Expense | $1.4M | $1.2M | — | — |
| Pre-Tax Income | $52.0M | $66.0M | $56.8M | $64.1M |
| Income Tax | $10.6M | $13.2M | $11.3M | $12.5M |
| Continuing Ops | $41.4M | $52.8M | $45.5M | $51.6M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $41.4M | $52.8M | $45.5M | $51.6M |
| Minority Interest | $0 | $0 | $0 | $363.0K |
| Net to Common | $41.4M | $52.8M | $45.5M | $51.2M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $106.8M | $146.5M | $168.3M | $230.7M |
| Cash & Equivalents | $8.1M | $11.6M | $22.1M | $50.9M |
| Accounts Receivable | $14.7M | $24.1M | $29.1M | $49.8M |
| Inventory | $80.6M | $106.5M | $110.9M | $122.8M |
| Prepaid Expenses | $3.5M | $3.5M | $5.3M | $6.7M |
| Other Current Assets | $0 | $696.0K | $893.0K | $581.0K |
| Long-Term Assets | $86.5M | $105.6M | $117.3M | $151.8M |
| PP&E (Net) | $14.2M | $17.0M | $17.7M | $15.8M |
| Goodwill | $26.8M | $37.5M | $44.1M | $59.3M |
| Operating Leases | $15.3M | $15.5M | $19.5M | $21.6M |
| Other LT Assets | $30.3M | $35.7M | $35.9M | $55.2M |
| Total Assets | $193.4M | $252.0M | $285.6M | $382.5M |
| Current Liabilities | $27.4M | $36.5M | $41.5M | $71.0M |
| Current Leases | $3.9M | $4.0M | $4.7M | $6.1M |
| Deferred Revenue | $261.0K | $761.0K | $821.0K | $4.8M |
| Taxes Payable | $470.0K | $0 | — | — |
| Other Current Liab | $22.8M | $31.7M | $36.0M | $60.1M |
| Long-Term Liabilities | $41.2M | $35.6M | $18.6M | $26.3M |
| LT Operating Leases | $12.1M | $12.7M | $16.1M | $16.7M |
| Other LT Liab | $29.1M | $22.9M | $2.5M | $9.6M |
| Total Liabilities | $68.6M | $72.1M | $60.2M | $97.3M |
| Shareholders' Equity | $124.7M | $180.0M | $225.5M | $285.2M |
| Paid-In Capital | $11.1M | $12.5M | $15.6M | $18.0M |
| Retained Earnings | $115.8M | $168.6M | $214.1M | $265.3M |
| AOCI | $-2.2M | $-1.2M | $-4.2M | $-135.0K |
| Total L&E | $193.4M | $252.0M | $285.6M | $382.5M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $41.4M | $52.8M | $45.5M | $51.6M |
| Non-Cash Adjustments | $-51.4M | $-52.6M | $-12.6M | $-9.1M |
| Working Capital Changes | $22.1M | $37.2M | $14.9M | $24.4M |
| Cash from Operations | $12.1M | $37.4M | $47.8M | $66.9M |
| Capital Expenditures | $7.9M | $6.4M | $6.7M | $4.0M |
| Cash from Investing | $-14.2M | $-26.4M | $-18.4M | $-33.8M |
| Share Buybacks | — | — | — | $3.0M |
| Cash from Financing | $602.0K | $-7.3M | $-19.3M | $-3.7M |
| FX Effect | $-91.0K | $-219.0K | $311.0K | $-726.0K |
| Net Change in Cash | $-1.6M | $3.6M | $10.5M | $28.8M |
| Beginning Cash | $9.6M | $8.1M | $11.6M | $22.1M |
| Ending Cash | $8.1M | $11.6M | $22.1M | $50.9M |
Frequently Asked Questions
How does XPEL, Inc. make money?
The company generates revenue primarily through the sale of its proprietary paint protection film (PPF) and window tinting products to independent retailers and fleet customers, alongside complementary automotive accessories like bedliners and trim kits. Revenue streams are further diversified by distribution partnerships with major OEMs for original equipment applications and direct-to-consumer sales channels that capture high-margin aftermarket demand.
What are the main risks for XPEL?
Rapidly increasing raw material costs for polyurethane resins could compress gross margins if the company cannot pass these expenses to consumers, given the competitive retail landscape. Fluctuations in global logistics and supply chain disruptions may delay product availability, impacting sales velocity and customer satisfaction scores. Regulatory changes regarding window tinting laws in various jurisdictions could restrict market access or require costly compliance updates.
What is XPEL's competitive advantage?
XPEL maintains a strong moat through proprietary film technologies that offer superior durability and self-healing properties compared to generic alternatives, fostering intense brand loyalty among professional installers. The company benefits from extensive distribution networks and exclusive OEM partnerships that provide first-mover advantage in emerging vehicle segments like electric vehicles.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.