XPEL (XPEL) Q1 2026 earnings summary

Executive summary

• Revenue grew 13.1% year-over-year to $117.4 million in Q1 2026, led by strong U.S., China, and APAC performance, with net income up 22.4% to $10.5 million and EBITDA rising 17.8% to $17.0 million.

• U.S. revenue increased nearly 10% to $63.8 million, with independent installer channel up 12%.

• Global dealership services install revenue rose 27%, with the U.S. as the largest contributor.

• OEM channel revenue reached a record, just under 7% of total revenue.

• Growth was led by increased demand in China, Asia-Pacific, and EU/UK/Africa regions, offsetting a decline in Canada.

Financial highlights

• Gross margin improved to 43.7% from 42.3% year-over-year, with product margin at 41.0% and service margin at 52.0%.

• EBITDA margin reached 14.5% (up from 13.9%), and operating income increased 17% to $13.0 million.

• Product revenue grew 12.7% to $88.7 million; service revenue increased 14.1% to $28.6 million.

• Window film product line grew 24.8% to $23.3 million, 19.8% of total revenue.

• Cash flow from operations was $7.4 million, up from $3.2 million in Q1 2025.

Outlook and guidance

• Q2 2026 revenue is expected in the $135–$137 million range, assuming normal seasonal ramp.

• Guidance reflects downside risk from Middle East vehicle shortages and delayed dealership deal flow.

• Gross margin expected to improve in Q2, but not at previously anticipated magnitude.

• SG&A growth rates expected to moderate through the year.

• Management expects sufficient liquidity for at least the next 12 months, supported by strong cash flow and $128.2 million in available credit.