XPEL Reports Revenue Growth of 13.7% to $122.3 million, EBITDA Growth of 37.6% to $19.6 million in Fourth Quarter 2025

XPEL, Inc. (NASDAQ:XPEL) (the "Company"), a global provider of protective films and coatings, announced consolidated results¹ for the fourth quarter and year end 2025.

Fourth Quarter 2025 Overview:

• Revenue increased 13.7% to $122.3 million in the fourth quarter of 2025 compared to $107.5 million in the fourth quarter of 2024.
• Gross margin of 41.9% in the fourth quarter of 2025 compared to 40.6% in the same quarter last year.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased 37.6% to $19.6 million, or 16.0% of revenue, compared to $14.3 million, or 13.3% of revenue in the fourth quarter of 2024.
• Net income attributable to stockholders of the company increased 50.7% to $13.4 million, or $0.49 per basic and $0.48 per diluted share, respectively, versus net income attributable to stockholders of the company of $8.9 million, or $0.32 per basic and diluted share in the fourth quarter of 2024.

Year End 2025 Overview:

• Revenue increased 13.3% to $476.2 million compared to $420.4 million in the prior year.
• Gross margin of 42.2% in 2025, consistent with 2024 gross margin.
• Net income attributable to stockholders of the company of $51.2 million, or $1.85 per basic and diluted share, versus net income attributable to stockholders of the company of $45.5 million, or $1.65 per basic and diluted share in 2024.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of $77.4 million, or 16.3% of revenue, compared to $69.5 million, or 16.5% of revenue in 2024.²

Ryan Pape, President and Chief Executive Officer of XPEL, commented, "We saw good top and bottom line performance in the fourth quarter. In 2025, we largely completed the development of our international footprint and, going forward, we will focus on driving sales growth and operating leverage in all our regions."

Financial Highlights for the Fourth Quarter 2025:

Summary consolidated financial information for the fourth quarter ended December 31, 2025 and 2024 (unaudited, dollars in thousands):

Geographical Revenue Summary

Overall Revenue

• Total revenue grew 13.7% compared to fourth quarter 2024 ("YoY"). Excluding China, total revenue increased 10.1% YoY.
• US revenue increased 11.0%YoY.

Product and Service Revenue

• Total product revenue grew 11.0% YoY.
• Total window film revenue increased 10.0% YoY and represented 16.6% of total revenue.
• Total service revenue increased 22.2% YoY.
• Total installation revenue (labor and product combined) grew 17.2% YoY.
• Adjusted product revenue (combining cutbank credits revenue and product revenue) increased 11.0% YoY.

Other Financial Information

• Gross margin was 41.9% and 40.6% in the fourth quarter of 2025 and 2024, respectively.
• Total operating expenses increased 13.9% YoY.
• Sales and marketing expenses increased 18.2% YoY and represented 11.1% of revenue.
• General and administrative expenses increased 11.3% YoY and represented 18.1% of revenue.
• Net income increased 53.5% YoY.
• EBITDA increased 37.6% YoY².

Cash Flows from Operations

• Cash flows provided by operations were $2.7 million in the fourth quarter 2025.
• Cash flows provided by operations were $66.9 million in 2025.

Financial Summary 2025:

Summary consolidated financial information for the years ended December 31, 2025 and 2024 (unaudited, dollars in thousands):

Geographical Revenue Summary

2026 First Quarter Outlook

• The Company expects first quarter 2026 revenue of approximately $112 - $114 million.

Please see the information under "Forward-looking Statements" below regarding certain cautionary statements relating to our 2026 First Quarter Outlook.

Conference Call Information

The Company will host a conference call and webcast today, February 25, 2026 at 11:00 a.m. Eastern Time to discuss the Company's fourth quarter and annual 2025 results.

To access the live webcast, please visit the XPEL, Inc. website at www.xpel.com/events-presentations.

To participate in the call by phone, dial (888) 506-0062 approximately five minutes prior to the scheduled start time. International callers please dial (973) 528-0011. Callers should use access code: 101941.

A replay of the teleconference will be available until March 27, 2026 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 53542.

About XPEL, Inc.

XPEL is a leading provider of protective films and coatings, including automotive paint protection film, surface protection film, automotive and architectural window films, and ceramic coatings. With a global footprint, a network of trained installers and proprietary DAP software, XPEL is dedicated to exceeding customer expectations by providing high-quality products, leading customer service, expert technical support and world-class training. XPEL, Inc. is publicly traded on Nasdaq under the symbol "XPEL".

Forward-looking Statements

This release includes forward-looking statements (within the meaning of Section 27A of the Securities act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended) regarding XPEL, Inc. and its business, which may include, but is not limited to, anticipated use of proceeds from capital transactions, expansion into new markets, execution of the company's growth strategy and outlook. Often, but not always, forward-looking statements can be identified by the use of words such as "plans," "is expected," "expects," "scheduled," "intends," "contemplates," "anticipates," "believes," "proposes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may," "could," "would," "might" or "will" be taken, occur or be achieved. Such statements are based on the current expectations and assumptions of the management of XPEL. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements expressed or implied by the forward-looking statements. These risks, uncertainties and other factors relate to, among others: competition, a prolonged or material contraction in automotive sales and production volumes, disruption in our supply chain, technology that could render our products obsolete, changes in the way vehicles are sold, damage to our brand and reputation, cyber events and other legal and regulatory developments. There are several risks, uncertainties, and other important factors, many of which are beyond the Company's control, that could cause its actual results to differ materially from the forward-looking statements contained in this press release, including those described in the "Risk Factors" section of Annual Report on Form 10-K. Although XPEL has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and XPEL undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Non-GAAP Financial Measure

To aid in the understanding of XPEL's ongoing business performance, XPEL uses EBITDA, a non-GAAP financial measure. EBITDA is defined as net income (loss) plus interest expense, net, plus income tax expense plus depreciation and amortization expense. EBITDA should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. It is not a measurement of XPEL's financial performance under GAAP and should not be considered as an alternative to revenue or net income, as applicable, or any other performance measures derived in accordance with GAAP and may not be comparable to other similarly title measures. For a full reconciliation of EBITDA to comparable GAAP measure, refer to the reconciliation titled "Reconciliation of Non-GAAP Financial Measure."

Reconciliation of Non-GAAP Financial Measure

EBITDA is a non-GAAP financial measure. EBITDA is defined as net income (loss) plus interest expense, net, plus income tax expense plus depreciation expense and amortization expense. EBITDA should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. It is not a measurement of our financial performance under GAAP and should not be considered as alternatives to revenue or net income, as applicable, or any other performance measures derived in accordance with GAAP and may not be comparable to other similarly titled measures of other businesses. EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our operating results as reported under GAAP.

EBITDA does not reflect the impact of certain cash charges resulting from matters we consider not to be indicative of ongoing operations and other companies in our industry may calculate EBITDA differently than we do, limiting its usefulness as a comparative measure.

EBITDA Reconciliation (in thousands)

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Investor Relations:

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