false000176725800017672582025-02-262025-02-26

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
February 26, 2025
Date of Report (date of earliest event reported)
XPEL, INC.
(Exact name of registrant as specified in its charter)
Nevada001-3885820-1117381
(State or other jurisdiction of incorporation or organization)(Commission File Number)(I.R.S. Employer Identification No.)
711 Broadway, Suite 320
78215
San AntonioTexas
(Address of Principal Executive Offices)(Zip Code)
Registrant's telephone number, including area code: (210) 678-3700
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.001 per shareXPELThe Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐




Item 2.02 Results of Operations and Financial Condition
 
On February 26, 2025, XPEL, Inc. (“XPEL”) announced its consolidated financial results for the quarter and year ended December 31, 2024. A copy of the press release is attached as Exhibit 99.1 to this current report on Form 8-K, and the information set forth therein is incorporated herein by reference and constitutes a part of this report.

The information contained in Item 2.02 of this report and Exhibit 99.1 to this report shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and shall not be incorporated by reference into any filings made by XPEL under the Securities Act of 1933, as amended, or the Exchange Act, except as may be expressly set forth by specific reference in such filing.

  Item 9.01. Financial Statements and Exhibits
 
    (d) Exhibits

The following exhibit is to be filed as part of this Form 8-K:

EXHIBIT NO.IDENTIFICATION OF EXHIBIT
99.1
104Cover Page Interactive Data File (embedded within the Inline XBRL Document)
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
XPEL, Inc.
Dated: February 26, 2025By: /s/ Barry R. Wood
Barry R. Wood
Senior Vice President and Chief Financial Officer


Ex. 99.1
XPEL Reports Revenue of $107.5 million in Fourth Quarter 2024


San Antonio, TX – February 26, 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 2024.

Fourth Quarter 2024 Overview:

•Revenue increased 1.9% to $107.5 million in the fourth quarter of 2024. Excluding China impacts, revenue increased 10.5% in the fourth quarter 2024.

•Gross margin of 40.6% in the fourth quarter of 2024.

•Foreign exchange loss ("FX Loss") of $1.2 million incurred in the fourth quarter 2024 due to the strengthening of the US dollar.

•EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) decreased 19.3% to $14.3 million, or 13.3% of revenue, compared to $17.7 million, or 16.7% of revenue in the fourth quarter of 2023. Normalizing for the FX impact, EBITDA would have decreased 9.0% and EBITDA margin would have been 14.3%. 2

•Net income decreased 25.7% to $8.9 million, or $0.32 per basic and diluted share, versus net income of $12.0 million, or $0.43 per basic and diluted share in the fourth quarter of 2023. Normalizing for the FX impact, net income would have decreased 13.8% and EPS would have been $0.35 per share.


Year End 2024 Overview:

•Revenue increased 6.1% to $420.4 million compared to prior year.

•Gross margin of 42.2% in 2024.

•Net income of $45.5 million, or $1.65 per basic and diluted share, versus net income of $52.8 million, or $1.91 per basic and diluted share in 2023.

•EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of $69.5 million, or 16.5% of revenue, compared to $76.9 million, or 19.4% of revenue in 2023.2

Ryan Pape, President and Chief Executive Officer of XPEL, commented, "We saw solid top line performance in the fourth quarter and made great progress in many of our key initiatives during the year including increasing our focus on dealerships, refining our go-to-market strategy in China and executing on our acquisition strategy. The Company is well-positioned to continue to build on this momentum in 2025."















Financial Highlights for the Fourth Quarter 2024:

Summary consolidated financial information for the fourth quarter 2024 and 2023 (unaudited, dollars in thousands):

Three Months Ended December 31,% Change
2024%
of Total Revenue		2023%
of Total Revenue		2024 vs. 2023
Total revenue$107,527 100.0 %$105,538 100.0 %1.9 %
Gross margin43,703 40.6 %40,932 38.8 %6.8 %
Operating Expenses31,358 29.2 %26,708 25.3 %17.4 %
Net income8,898 8.3 %11,970 11.3 %(25.7)%
EBITDA2
14,250 13.3 %17,654 16.7 %(19.3)%
Net cash provided by (used in) operating activities$6,327 n/a$(1,117)n/an/a

Geographical Revenue Summary

Three Months Ended
December 31,		% Change% of Total Revenue
20242023Inc (Dec)20242023
United States$59,054 $55,611 6.2 %54.9 %52.7 %
Canada13,370 11,592 15.3 %12.4 %11.0 %
China9,238 16,584 (44.3)%8.6 %15.7 %
Continental Europe8,935 8,529 4.8 %8.3 %8.1 %
United Kingdom3,881 3,218 20.6 %3.6 %3.0 %
Middle East/Africa5,656 4,958 14.1 %5.3 %4.7 %
Asia Pacific4,646 2,751 68.9 %4.3 %2.6 %
Latin America2,747 2,120 29.6 %2.6 %2.0 %
Other— 175 (100.0)%0.0 %0.2 %
Total$107,527 $105,538 1.9 %100.0 %100.0 %

Overall Revenue
•Total revenue grew 1.9% compared to fourth quarter 2023 ("YoY"). Excluding China impacts, total revenue increased 10.5% YoY.
•US revenue increased 6.2%YoY.
•All other revenue (excluding US and China) grew 17.7% YoY.



Product and Service Revenue
•Total product revenue was flat YoY. Excluding China impacts, total product revenue increased 10.9% YoY.
•Total window film revenue increased 32.9% YoY and represented 17.2% of total revenue.
•Total service revenue increased 9.4% YoY.
•Total installation revenue (labor and product combined) grew 16.1% YoY. Organic total installation revenue grew 8.0% YoY.
•Adjusted product revenue (combining cutbank credits revenue and product revenue) declined 1.0% YoY. Excluding China, adjusted product revenue grew 9.3% YoY.



Other Financial Information
•Gross margin percentage was 40.6% and 38.8% in the fourth quarter of 2024 and 2023, respectively.
•Total operating expenses increased 17.4% YoY.
•Sales and marketing expenses increased 24.6% YoY and represented 10.7% of revenue.
•General and administrative expenses increased 13.6% YoY and represented 18.5% of revenue.
•Net income decreased 25.7% YoY.
•EBITDA decreased 19.3% YoY2.

Cash Flows from Operations
•Cash flows provided by operations were $6.3 million in the fourth quarter 2024.

2025 First Quarter Outlook

•The Company expects first quarter 2025 revenue of approximately $97 - $99 million.
•The Company recently completed a workforce reduction that is expected to yield approximately $2 million in annual run rate savings.

Please see the information under "Forward-looking Statements" below regarding certain cautionary statements relating to our 2025 First Quarter Outlook.

Conference Call Information

The Company will host a conference call and webcast today, February 26, 2025 at 11:00 a.m. Eastern Time to discuss the Company’s fourth quarter and annual 2024 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 (877) 545-0523 approximately five minutes prior to the scheduled start time. International callers please dial (973) 528-0016. Callers should use access code: 186072.

A replay of the teleconference will be available until March 28, 2025 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 51876.

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”.

1 The results summarized above for 2024 are preliminary and unaudited. As the Company completes its quarter-end financial close processes and finalizes its financial statements for the fourth quarter and year end of 2024, it is possible that the Company may identify items that require it to make adjustments to the preliminary information set forth above, and those adjustments could be material. Full year end 2024 financial information will be included in the filing of the Company’s Annual Report on Form 10-K with the Securities and Exchange Commission which is anticipated on or prior to February 28, 2025.

2 See "Non-GAAP Financial Measure" and "Reconciliation of Non-GAAP Financial Measure" below.







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."

For more information, contact:
Investor Relations:
John Nesbett/Jennifer Belodeau
IMS Investor Relations
Phone: (203) 972-9200
Email: xpel@imsinvestorrelations.com


XPEL, Inc.
Consolidated Statements of Income (Unaudited)
(In thousands except per share data)

Three Months Ended December 31,Year Ended December 31,
(Unaudited)(Unaudited)(Unaudited)
2024202320242023
Revenue
Product revenue$81,847 $82,067 $318,849 $311,406 
Service revenue25,680 23,471 101,551 84,887 
Total revenue107,527 105,538 420,400 396,293 
Cost of Sales
Cost of product sales52,415 54,395 199,791 198,008 
Cost of service11,409 10,211 43,249 35,871 
Total cost of sales63,824 64,606 243,040 233,879 
Gross Margin43,703 40,932 177,360 162,414 
Operating Expenses
Sales and marketing11,509 9,234 42,817 31,788 
General and administrative19,849 17,474 75,396 63,654 
Total operating expenses31,358 26,708 118,213 95,442 
Operating Income12,345 14,224 59,147 66,972 
Interest expense34 301 996 1,248 
Foreign currency exchange loss (gain)1,157 (726)1,373 (307)
Income before income taxes11,154 14,649 56,778 66,031 
Income tax expense2,256 2,679 11,289 13,231 
Net income$8,898 $11,970 $45,489 $52,800 
Earnings per share
Basic$0.32 $0.43 $1.65 $1.91 
Diluted$0.32 $0.43 $1.65 $1.91 
Weighted Average Number of Common Shares
Basic27,649 27,629 27,639 27,622 
Diluted27,656 27,633 27,643 27,634 


















XPEL, Inc.
Consolidated Balance Sheets
(In thousands except share and per share data)


(Unaudited)
12/31/2024		December 31, 2023
Assets
Current
Cash and cash equivalents$22,087 $11,609 
Accounts receivable, net29,146 24,111 
Inventory, net110,904 106,509 
Prepaid expenses and other current assets5,314 3,529 
Income tax receivable893 696 
Total current assets168,344 146,454 
Property and equipment, net17,735 16,980 
Right-of-use lease assets19,490 15,459 
Intangible assets, net34,562 34,905 
Other non-current assets1,350 782 
Goodwill44,126 37,461 
Total assets$285,607 $252,041 
Liabilities
Current
Current portion of notes payable$63 $62 
Current portion of lease liabilities4,666 3,966 
Accounts payable and accrued liabilities36,789 32,444 
Total current liabilities41,518 36,472 
Deferred tax liability, net469 2,658 
Other long-term liabilities1,810 890 
Borrowings on line of credit— 19,000 
Non-current portion of lease liabilities16,126 12,715 
Non-current portion of notes payable229 317 
Total liabilities60,152 72,052 
Stockholders’ equity
Preferred stock, $0.001 par value; authorized 10,000,000; none issued and outstanding
— — 
Common stock, $0.001 par value; 100,000,000 shares authorized; 27,651,773 and 27,630,025 issued and outstanding, respectively
28 28 
Additional paid-in-capital15,550 12,546 
Accumulated other comprehensive loss(4,236)(1,209)
Retained earnings214,113 168,624 
Total stockholders’ equity225,455 179,989 
Total liabilities and stockholders’ equity$285,607 $252,041 






XPEL, Inc.


Consolidated Statements of Cash Flows (Unaudited)
(In thousands)

Three Months ended December 31,Year Ended December 31,
(Unaudited)(Unaudited)(Unaudited)
2024202320242023
Cash flows from operating activities
Net income$8,898 $11,970 $45,489 $52,800 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property, plant and equipment1,512 1,305 5,820 4,534 
Amortization of intangible assets1,550 1,399 5,877 5,059 
Gain on sale of property and equipment(14)(2)(49)(13)
Stock compensation868 496 3,197 1,640 
Provision for credit losses111 27 390 243 
Deferred income tax(1,367)(77)(2,781)(921)
Changes in assets and liabilities:
Accounts receivable, net(129)2,483 (5,604)(7,000)
Inventory, net(9,959)(13,260)(4,785)(24,843)
Prepaid expenses and other assets631 7,892 (2,154)604 
Income tax receivable or payable(637)(1,517)(267)(1,197)
Accounts payable and accrued liabilities4,863 (11,833)2,691 6,478 
Net cash provided by (used in) operating activities6,327 (1,117)47,824 37,384 
Cash flows used in investing activities
Purchase of property, plant and equipment(1,628)(1,615)(6,713)(6,356)
Proceeds from sale of property and equipment— 9 40 29 
Acquisitions, net of cash acquired, payment holdbacks, and notes payable(3,335)(14,038)(9,855)(18,735)
Development or purchase of intangible assets(455)(493)(1,876)(1,291)
Net cash used in investing activities(5,418)(16,137)(18,404)(26,353)
Cash flows from financing activities
Net borrowings (payments) on revolving credit agreements
— 19,000 (19,000)(7,000)
Restricted stock withholding taxes paid in lieu of issued shares(18)— (193)(167)
Repayments of notes payable(16)(15)(60)(92)
Net cash (used in) provided by financing activities(34)18,985 (19,253)(7,259)
Net change in cash and cash equivalents875 1,731 10,167 3,772 
Foreign exchange impact on cash and cash equivalents226 (496)311 (219)
Increase in cash and cash equivalents during the period1,101 1,235 10,478 3,553 
Cash and cash equivalents at beginning of year
20,986 10,374 11,609 8,056 
Cash and cash equivalents at end of year$22,087 $11,609 $22,087 $11,609 
Supplemental schedule of non-cash activities
Contingent consideration$1,600 $— $1,600 $— 
Non-cash lease financing$2,491 $2,384 $8,701 $4,231 
Issuance of common stock for vested restricted stock units$210 $327 $1,110 $1,038 
Supplemental cash flow information
Cash paid for income taxes$3,361 $4,149 $13,617 $15,293 
Cash paid for interest$31 $240 $1,026 $1,240 


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)

Three Months Ended December 31,Year Ended December 31,
(Unaudited)(Unaudited)(Unaudited)
2024202320242023
Net Income$8,898 $11,970 $45,489 $52,800 
Interest34 301 996 1,248 
Taxes2,256 2,679 11,289 13,231 
Depreciation1,512 1,305 5,820 4,534 
Amortization1,550 1,399 5,877 5,059 
EBITDA$14,250 $17,654 $69,471 $76,872 

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Feb. 26, 2025
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Entity Address, State or Province TX
Entity Address, City or Town San Antonio
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