XPEL Reports Revenue of $137.8 million; Revenue Growth of 9.9% in Third Quarter 2026

XPEL, Inc. (Nasdaq: XPEL) (the "Company"), a global provider of protective films and coatings, announced consolidated results¹ for the third quarter and nine months ended September 30, 2026.

Third Quarter 2026 Overview:

• Revenue increased 9.9% to $137.8 million in the third quarter of 2026 compared to $125.4 million in the third quarter of 2025.
• Gross margin of 44.6% in the third quarter of 2026 compared to 41.8% in the third quarter last year.
• Net income attributable to stockholders of the Company increased 26.3% to $16.3 million, or $0.59 per basic and diluted share, versus net income attributable to stockholders of the Company of $12.9 million, or $0.47 per basic and diluted share in the third quarter of 2025.
• Adjusted net income attributable to stockholders increased 31.7% to $17.0 million. Adjusted earnings per share was $0.62 per basic and diluted share. Adjusted net income attributable to stockholders and adjusted earnings per share excludes costs related to the start-up and ramp-up of the Company’s San Antonio manufacturing facility investment incurred prior to reaching full operational capacity.²
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased 28.3% to $25.6 million, or 18.6% of revenue, compared to $19.9 million, or 15.9% of revenue in the third quarter of 2025.²
• Adjusted EBITDA grew 30.7% to $26.1 million or 18.9% of revenue. Adjusted EBITDA excludes costs related to the start-up and ramp-up of the Company’s San Antonio manufacturing investments incurred prior to reaching full operational capacity.²

First Nine Months 2026 Overview:

• Revenue increased 12.5% to $398.2 million in the first nine months of 2026 compared to $353.9 million in the same period in 2025.
• Gross margin of 44.2% in the first nine months of 2026 compared to 42.3% in the first nine months last year.
• Net income attributable to stockholders of the Company increased 18.3% to $44.7 million, or $1.62 per basic and diluted share, versus net income attributable to stockholders of the Company of $37.8 million, or $1.37 per basic and diluted share in the first nine months of 2025.
• Adjusted net income attributable to stockholders increased 22.2% to $46.2 million. Adjusted earnings per share was $1.67 per basic and diluted share. Adjusted net income attributable to stockholders and adjusted earnings per share exclude acquisition related expenses associated with the purchase of the China manufacturer and costs related to the start-up and ramp-up of the Company’s San Antonio manufacturing investments incurred prior to reaching full operational capacity.²
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased 21.3% to $70.1 million, or 17.6% of revenue, compared to $57.8 million, or 16.3% of revenue in the first nine months of 2025.²
• Adjusted EBITDA grew 23.4% to $71.3 million or 17.9% of revenue. Adjusted EBITDA exclude acquisition related expenses associated with the purchase of the China manufacturer and costs related to the start-up and ramp-up of the Company’s San Antonio manufacturing investments incurred prior to reaching full operational capacity.²

Ryan Pape, President and Chief Executive Officer of XPEL, commented, "We delivered a solid third quarter in a challenging environment, growing revenue nearly 10% and expanding gross margin for the third consecutive quarter. Our manufacturing investments in San Antonio and China remain on track, and we are confident they will drive meaningful margin expansion in the years ahead."

Financial Highlights for the Third Quarter 2026:

Summary consolidated financial information for the third quarter ended September 30, 2026 and 2025 (unaudited, dollars in thousands):

Geographical Revenue Summary

Overall Revenue

• Total revenue grew 9.9% compared to third quarter 2025 ("YoY").
• US revenue increased 7.0%YoY.

Product and Service Revenue

• Adjusted product revenue (combining cutbank credits revenue and product revenue) increased 10.0% YoY.
• Total window film revenue increased 11.8% YoY and represented 22.4% of total revenue.
• Total service revenue excluding cutbank credit revenue increased 9.5% YoY.
• Total installation revenue (labor and product combined) grew 4.5% YoY.

Other Financial Information

• Gross margin was 44.6% and 41.8% in the third quarter of 2026 and 2025, respectively.
• Total operating expenses increased 13.3% YoY.
• Sales and marketing expenses increased 8.7% YoY and represented 10.9% of revenue.
• General and administrative expenses increased 16.3% YoY and represented 18.5% of revenue.

Cash Flows from Operations

• Cash flows provided by operations were $21.1 million in the third quarter 2026 compared to $33.2 million in the third quarter of 2025.

2026 Fourth Quarter Outlook

• The Company expects fourth quarter 2026 revenue of approximately $125 - $127 million.

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

Conference Call Information

The Company will host a conference call and webcast today, November 4, 2026 at 8:30 a.m. Eastern Time to discuss the Company’s third quarter 2026 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: 875419.

A replay of the teleconference will be available until December 4, 2026 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 54582.

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 2026 are preliminary and unaudited. As the Company completes its quarter-end financial close processes and finalizes its financial statements for the third quarter of 2026, 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 third quarter 2026 financial information will be included in the filing of the Company’s Quarterly Report on Form 10-Q with the Securities and Exchange Commission which is anticipated on or prior to November 6, 2026.

² See "Non-GAAP Financial Measures" and "Reconciliation of Non-GAAP Financial Measures" 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 Measures

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. This press release also includes an analysis of adjusted EBITDA, adjusted diluted earnings per share attributable to Stockholders and adjusted net income attributable to stockholders as additional consolidated, non-GAAP financial measures. For a reconciliation of these measures to the most directly comparable GAAP measures and for a discussion of why we consider these non-GAAP measures useful, refer to the reconciliation titled "Reconciliation of Non-GAAP Financial Measures."

Reconciliation of Non-GAAP Financial Measures

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.

We use adjusted EBITDA, adjusted earnings per share attributable to stockholders and adjusted net income attributable to stockholders, together with financial measures prepared in accordance with GAAP to assess our historical and prospective operating performance and to enhance our understanding of our core operating performance. We believe these measures are useful for investors to assess the operating performance of our business without the effect of costs related to the start-up and ramp-up of our manufacturing operations. In the following tables, there could be immaterial difference in amounts presented due to rounding.

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