XPEL (XPEL) Q4 2025 earnings summary

Executive summary

• Achieved significant milestones in 2025, including the China distribution acquisition and progress toward direct presence in major car markets.

• Q4 revenue grew 13.7% year-over-year to $122.3 million, with EBITDA up 37.6% to $19.6 million and strong momentum entering 2026.

• Full-year revenue rose 13.3% to $476.2 million; EBITDA up 11.4% to $77.4 million.

• Net income attributable to stockholders rose 50.7% to $13.4 million in Q4 and 12.6% to $51.2 million for the year.

• Gross margin improved to 41.9% in Q4 and remained steady at 42.2% for the year.

Financial highlights

• Q4 EPS was $0.49 basic and $0.48 diluted; full-year EPS reached $1.85.

• Cash flow from operations was $2.7 million in Q4 and $66.9 million for the year, up 40% year-over-year.

• Operating expenses increased 13.9% year-over-year in Q4 and 17.1% for the year.

• Q4 gross margin was 41.9%, flat sequentially; gross margin expected to improve through 2026.

• Q4 net income margin: 11%; full-year net income margin: 10.8%.

Outlook and guidance

• Q1 2026 revenue expected in the $112–$114 million range, factoring in ongoing U.S. trends, Canada softness, and Chinese New Year impacts.

• Gross margin headwinds from China inventory and pricing to abate by Q2, with margins expected at or above historical bests.

• Regional leaders are budgeted to grow operating leverage and margins in 2026.

• Optimism for 2026 driven by customer and team sentiment, new customer wins, and improved vehicle affordability.

• Focus will shift to driving sales growth and operating leverage across all regions.