XPEL Reports 13.1% Revenue Growth to $117.4 Million in Q1 2026

XPEL, Inc. reported a significant increase in financial performance for the first quarter of 2026, with total revenue reaching $117.4 million, a 13.1% increase from $103.8 million in the same period of 2025. The growth was driven by both product and service revenues, which rose to $88.7 million and $28.6 million, respectively. The company’s net income also saw a notable increase of 22.4%, amounting to $10.5 million compared to $8.6 million in the prior year. This resulted in earnings per share of $0.37, up from $0.31 in the previous year.

In terms of operational metrics, XPEL's gross margin improved to 43.7% from 42.3% year-over-year, reflecting better cost management and product mix. The cost of sales increased by 10.4% to $66.1 million, but the growth in revenue outpaced this rise, contributing to the improved gross margin. Operating expenses also rose, totaling $38.2 million, which was a 16.6% increase compared to the previous year, primarily due to higher sales and marketing costs as the company expanded its market presence.

XPEL's strategic initiatives included a focus on geographic expansion, particularly in China, where revenue surged by 44.4% due to increased demand and the completion of an acquisition of a local distributor. The company also reported a 24.8% increase in window film sales, driven by heightened adoption in various regions. However, revenue from Canada declined by 10.9%, attributed to timing issues with distributor sales, although normalizing for this would indicate a growth of 5.7%.

The company’s balance sheet as of March 31, 2026, showed total assets of $394.4 million, up from $382.5 million at the end of 2025. Cash and cash equivalents decreased to $45.1 million from $50.9 million, while accounts receivable increased to $53.5 million, indicating strong sales performance. XPEL maintained a healthy liquidity position with $128.2 million available under its credit facilities, which are expected to support ongoing operational and capital needs.

Looking ahead, XPEL remains optimistic about its growth trajectory, emphasizing its commitment to expanding its manufacturing capabilities and enhancing its supply chain. The company plans to continue investing in marketing and product development to capture a larger share of the automotive aftermarket and related sectors. Management believes that the current operational strategies and market conditions will enable sustained revenue growth and profitability in the upcoming quarters.