XPEL, Inc. Reports 15.2% Revenue Growth to $103.8 Million in Q1 2025

XPEL, Inc. reported a significant increase in financial performance for the first quarter of 2025, with total revenue reaching $103.8 million, a 15.2% increase from $90.1 million in the same period of 2024. The company's product revenue rose by 17.7% to $78.7 million, driven primarily by a 15.2% increase in sales of paint protection film, which accounted for 54.4% of total revenue. Service revenue also saw a 7.9% increase, totaling $25.1 million, with notable growth in installation labor and software services. Net income for the quarter was $8.6 million, reflecting a 28.8% increase compared to $6.7 million in the prior year, resulting in earnings per share of $0.31, up from $0.24.

The company experienced notable changes in its operational metrics, including a rise in gross margin to 42.3%, up from 42.0% in the previous year. This improvement was attributed to better cost management and increased sales volume. Operating expenses increased by 14.4% to $32.8 million, primarily due to higher sales and marketing costs and general administrative expenses. XPEL's cash and cash equivalents also improved, totaling $23.5 million as of March 31, 2025, compared to $22.1 million at the end of 2024.

In terms of strategic developments, XPEL has focused on expanding its geographic reach, particularly in China, where revenue surged by 459.1% to $8.1 million, reflecting the normalization of inventory levels at its distributor. The company continues to enhance its product offerings, including the recent launch of windshield protection film, which contributed to the growth in the window film segment. The total number of shares outstanding as of May 9, 2025, was 27,664,765.

XPEL's operational indicators also showed positive trends, with increased customer engagement and product adoption rates. The company reported a significant rise in the number of customers subscribing to its software services, contributing to the overall growth in service revenue. The company remains committed to its strategic goal of direct sales in major global markets, which is expected to further enhance its market share and operational efficiency.

Looking ahead, XPEL anticipates continued growth driven by strong demand for its products and services, particularly in the automotive sector. The company is focused on maintaining its liquidity and capital resources, with sufficient access to cash and credit facilities to support ongoing operations and potential acquisitions. Management expressed confidence in the company's ability to navigate market challenges and capitalize on emerging opportunities, reinforcing its commitment to delivering value to shareholders.