XPEL Inc. reported fourth‑quarter 2025 revenue of $122.3 million, a 13.7% increase from $107.5 million in the same quarter a year earlier. Gross margin expanded to 41.9% from 40.6% year‑over‑year, while EBITDA rose to $19.6 million, a 37.6% jump.
Earnings per share of $0.48 surpassed the consensus estimate of $0.43, a beat of $0.05 or 11.6%. The outperformance was driven by disciplined cost management and a favorable product mix that lifted margins, offsetting modest revenue shortfall.
Revenue growth was strongest in China, up 51.9%, and in Europe, the United Kingdom, and Africa, up 26.8%. Service revenue grew 22.2% year‑over‑year, outpacing product revenue. The acquisition of a China distribution network added roughly $14 million in Q4 revenue and provided a tailwind for future growth.
Management guided Q1 2026 revenue to $112–$114 million, below the analyst consensus of $120.3 million, reflecting concerns about a pull‑forward of electric‑vehicle tax‑credit demand, weakness in Canada and parts of Latin America, and longer payment terms from OEMs. The company also noted a $1–$2 million demand hit in Q4 from the tax‑credit shift.
CEO Ryan L. Pape said, '2025 was a significant year for us. We accomplished a lot, including our long‑planned China distribution acquisition, significant completion of our plans to have a direct position in the largest car markets in the world, also positioning ourselves for significant change going forward with planned investments in manufacturing and supply chain. We closed out the year with good momentum, Q4 revenue growing 13.7% and Q4 EBITDA growing 37.6%.' He added, '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.' Investors reacted negatively, citing the revenue miss and conservative guidance.
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