XPEL, Inc. reported its financial results for the third quarter of 2025, revealing a total revenue of $125.4 million, an increase of 11.1% compared to $112.9 million in the same period last year. For the nine months ended September 30, 2025, revenue reached $353.9 million, up 13.1% from $312.9 million in the prior year. The company's net income for the third quarter was $13.1 million, a decrease of 11.8% from $14.9 million in the previous year, while net income for the nine-month period increased by 3.7% to $37.9 million.
The financial performance reflects significant growth in both product and service revenues. Product revenue for the third quarter was $95.5 million, a 9.8% increase year-over-year, while service revenue rose 15.7% to $30.0 million. Notably, the window film product line saw a 22.2% increase in revenue, driven by heightened demand across various regions. The company also reported a gross margin of 41.8% for the third quarter, slightly down from 42.5% in the prior year, attributed to rising product costs.
XPEL has made strategic moves to enhance its market position, including the acquisition of assets from its exclusive distributor in China, which has expanded its operational footprint in that region. The company has also focused on increasing its manufacturing capabilities to improve cost efficiency and control over production. As of September 30, 2025, XPEL's total assets stood at $387.7 million, up from $285.6 million at the end of 2024, with cash and cash equivalents increasing to $64.5 million.
Operationally, XPEL has seen growth in customer engagement, with a notable increase in the number of subscribers to its DAP software, contributing to service revenue growth. The company reported a significant rise in installation labor revenue, reflecting increased demand from its dealership services and OEM networks. Geographically, XPEL experienced growth in most regions, particularly in Asia and Europe, while revenue from Canada declined due to economic instability.
Looking ahead, XPEL remains optimistic about its growth trajectory, supported by its strategic acquisitions and expansion efforts. The company expects to continue generating positive operating cash flow to fund its operational and capital investment initiatives. With a strong liquidity position and access to credit facilities, XPEL is well-positioned to meet its short-term and long-term funding needs while navigating the challenges of the competitive automotive aftermarket industry.
About XPEL, Inc.
XPEL, Inc. specializes in manufacturing and distributing protective films, coatings, and related services primarily for the automotive aftermarket, OEMs, and architectural applications. Its core products include paint protection films, window tints, windshield protection, and architectural films. The company leverages proprietary software, installation services, and a global distribution network to serve independent installers, dealerships, and OEMs, emphasizing brand strength, innovation, and strategic expansion.
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