XPEL, Inc. reported a total revenue of $420.4 million for the fiscal year ending December 31, 2024, marking a 6.1% increase from $396.3 million in 2023. The company's net income decreased by 13.8% to $45.5 million, down from $52.8 million in the previous year. This decline in profitability was attributed to increased operating expenses, which rose by 23.9% to $118.2 million, driven primarily by higher sales and marketing costs and general administrative expenses. The gross margin improved to 42.2%, up from 41.0% in 2023, reflecting a favorable product mix and improved operating leverage.
In terms of product performance, revenue from paint protection film, which constitutes a significant portion of XPEL's sales, decreased by 1.4% to $226.7 million, primarily due to reduced sales in China as the distributor worked through excess inventory. Conversely, revenue from window film products increased by 14.3% to $77.7 million, supported by strong demand and increased product adoption across various regions. The company also experienced growth in service revenue, which rose by 19.6% to $101.6 million, driven by a surge in installation labor revenue.
XPEL has been actively pursuing strategic growth through acquisitions, completing five acquisitions in 2024 for a total purchase price of $12.5 million. These acquisitions are part of the company's strategy to expand its geographic footprint and enhance its service offerings. The company continues to focus on increasing brand awareness and market penetration, particularly in emerging markets, while also enhancing its product offerings to meet evolving customer needs.
Operationally, XPEL employed approximately 1,143 individuals as of December 31, 2024, with a significant portion of its revenue—approximately 63.8%—generated through independent installers. The company reported a notable increase in installation labor revenue, which grew by 27.4% year-over-year, reflecting strong demand across its dealership service and OEM businesses. Despite challenges in the Chinese market, XPEL saw growth in other regions, including a 7.0% increase in the U.S. market, indicating a positive trend in product awareness and adoption.
Looking ahead, XPEL anticipates continued growth driven by its strategic initiatives and market expansion efforts. The company remains focused on enhancing its operational capabilities and product offerings while navigating potential challenges in the automotive industry and global economic conditions. The management expressed confidence in maintaining sufficient liquidity to support ongoing operations and capital investments, with cash and cash equivalents totaling $22.1 million as of year-end 2024.
About XPEL, Inc.
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