XPEL (XPEL) Q1 2025 earnings summary

Executive summary

• Revenue grew 15.2% year-over-year to $103.8 million in Q1 2025, with strong product and service sales and net income up 28.8% to $8.6 million.

• EBITDA rose 23.2% to $14.4 million, with a margin of 13.9%–14%.

• EPS for the quarter was $0.31 per share, up from $0.24 in Q1 2024.

• Gross margin was 42.3%, slightly up from 42.0% in Q1 2024.

• $50 million share repurchase plan was authorized by the board.

Financial highlights

• Product revenue grew 17.7% year-over-year, representing about 75.8%–75.9% of total revenue; service revenue increased 7.9%.

• Window film product line grew 28.1% year-over-year, with windshield protection film contributing significantly.

• Automotive window tint revenue increased 16.2%, and architectural window film grew 9.6% year-over-year.

• Operating income rose 20.5% to $11.1 million, with operating expenses up 14.4% year-over-year.

• Cash flow from operations was $3.2 million, reversing a $5.0 million outflow in Q1 2024.

Outlook and guidance

• Q2 2025 revenue expected in the $117 million–$119 million range, but guidance is cautious due to tariff and market uncertainties.

• No full-year guidance provided due to unpredictability in tariffs and auto market dynamics.

• Management expects sufficient liquidity to support operations, capital expenditures, and acquisitions for at least the next 12 months.

• Effective tax rate expected to normalize at 21% in future quarters.

• Focus remains on expanding direct sales in top global car markets and leveraging positive operating cash flow.