XPEL Third-Quarter Growth Slows After Record Second Quarter

The Tip Desk · November 11, 2026 · 3 min read

Revenue was $137.8 million, up 9.9% from a year earlier, as gross margin reached 44.6%, extending its expansion to a third straight quarter.

XPEL, Inc. (XPEL), a global provider of protective films and coatings, reported preliminary and unaudited third-quarter 2026 revenue of $137.8 million, up 9.9% from $125.4 million a year earlier. The company said the summarized 2026 results are preliminary and unaudited and that adjustments identified as it completes its quarter-end close could be material. That year-over-year pace slowed from 14.7% growth in the second quarter and 13.1% in the first quarter. Sequential sales were below the record $143.1 million posted in the second quarter.

Gross margin expanded to 44.6% from 41.8% a year earlier, the third consecutive quarter of expansion after 44.1% in the second quarter and 43.7% in the first. President and Chief Executive Officer Ryan Pape said the company delivered a solid third quarter in a challenging environment, growing revenue nearly 10% and expanding gross margin for the third consecutive quarter. He said manufacturing investments in San Antonio and China remain on track and that the company is confident they will drive meaningful margin expansion in the years ahead.

Net income attributable to stockholders rose 26.3% to $16.3 million, or $0.59 a share, from $12.9 million, or $0.47 a share, a year earlier. Adjusted net income attributable to stockholders increased 31.7% to $17.0 million, or $0.62 a share. Adjusted figures exclude costs related to the start-up and ramp-up of the San Antonio manufacturing facility incurred before full operational capacity. EBITDA increased 28.3% to $25.6 million, or 18.6% of revenue, from $19.9 million, or 15.9% of revenue, a year earlier. Adjusted EBITDA grew 30.7% to $26.1 million, or 18.9% of revenue.

The geographic mix shifted toward Asia. China revenue increased 52.4% to $15.4 million, lifting China’s share of total revenue to 11.1% from 8.0% a year earlier. Asia Pacific revenue increased 38.7% to $21.7 million, raising that region’s share to 15.7% from 12.3%. United States revenue increased 7.0% to $76.7 million, with the U.S. share of total revenue falling to 55.7% from 57.2%. EU, UK, and Africa revenue declined 2.1% to $16.2 million, and India and Middle East revenue declined 16.6% to $4.8 million.

Product mix also tilted toward film. Adjusted product revenue increased 10.0% year over year. Total window film revenue increased 11.8% and represented 22.4% of total revenue. Total installation revenue, combining labor and product, grew 4.5%, slower than overall revenue growth. Service revenue was $29.1 million, down from $30.0 million a year earlier, while product revenue was $108.7 million.

Operating expenses increased 13.3% year over year. Sales and marketing expenses increased 8.7% and represented 10.9% of revenue. General and administrative expenses increased 16.3% and represented 18.5% of revenue. Net cash provided by operating activities fell 36.4% to $21.1 million from $33.2 million a year earlier.

The company expects fourth-quarter 2026 revenue of approximately $125 million to $127 million.