XPEL Reports 13.5% Revenue Growth to $124.7 Million in Q2 2025

XPEL, Inc. reported significant financial performance for the second quarter of 2025, with total revenue reaching $124.7 million, a 13.5% increase from $109.9 million in the same period of 2024. For the first half of 2025, revenue totaled $228.5 million, up 14.2% from $200.0 million year-over-year. The company’s net income for the second quarter was $16.2 million, reflecting a 7.8% increase from $15.0 million in the prior year, while net income for the first half rose 14.3% to $24.8 million from $21.7 million. Earnings per share for the second quarter were $0.59, compared to $0.54 in the same quarter of 2024.

The company experienced notable growth in both product and service revenue. Product revenue for the second quarter increased by 13.9% to $94.8 million, driven by a 9.3% rise in paint protection film sales and a 27.0% increase in window film sales. Service revenue also grew by 12.0% to $29.9 million, with installation labor revenue rising 15.4%. The overall gross margin for the second quarter was 42.9%, slightly down from 43.5% in the previous year, attributed to a higher mix of dealership-related installations affecting service margins.

XPEL's operational metrics indicate a strong market presence, with cash and cash equivalents increasing to $49.6 million as of June 30, 2025, up from $22.1 million at the end of 2024. The company reported a total of 27.7 million shares outstanding, with a slight increase in employee headcount to support its growth initiatives. Geographically, XPEL saw substantial growth in China, with revenue from that region increasing by 75.1% year-over-year, reflecting a recovery from prior inventory excesses.

Strategically, XPEL has focused on expanding its product offerings and market reach. The company launched its windshield protection film in late 2024, contributing to increased sales in the window film category. Additionally, XPEL has restructured its reporting to include geographically segmented business units, enhancing its operational oversight. The company remains committed to leveraging its strong cash position and credit facilities, which total $128.3 million available for future investments and acquisitions.

Looking ahead, XPEL anticipates continued growth driven by increased demand for its products and services, particularly in international markets. The company is focused on maintaining its operational efficiency and expanding its market share, particularly in the automotive sector. However, it acknowledges potential risks, including reliance on the automotive industry and fluctuations in market conditions, which could impact future performance.