XPEL, Inc. (XPEL) FY2025 10-K Annual Report

Filed: Feb 27, 2026
Industrials
Coating, Engraving & Allied ServicesSEC EDGAR

XPEL, Inc. (XPEL) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 27, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

XPEL, Inc. FY2025 10-K Analysis

Business Overview

  • Core business: Supplier of automotive protective films, coatings, and related services with focus on paint protection and window films
  • Expanded manufacturing and supply chain investments to lower costs and improve quality, shifting from historical "asset-light" model in 2025
  • Completed five international acquisitions (India, Thailand, Japan, China) in 2025 to enhance global footprint and direct sales in top car markets
  • Employees increased to approximately 1,337 as of December 31, 2025, with 729 in the US and 608 internationally
  • Emphasis on proprietary SAAS Design Access Platform with 90,000+ vehicle patterns facilitating film customization and installer efficiency

Management Discussion & Analysis

  • Revenue $476.2M, up 13.3% YoY; product revenue $359.9M (+12.9%), service revenue $116.3M (+14.6%)
  • Gross margin stable at 42.2% total; product margin 37.8% vs 37.3%, service margin down to 56.0% vs 57.4%
  • Best segment: window film revenue +21.7% to $94.5M; worst segment: cutbank credits declined 2.9% to $16.5M
  • Operating cash flow $66.9M (+40% YoY); investing cash flow outflow $33.8M due to acquisitions; financing cash flow used $3.7M
  • Management expects sufficient liquidity from $50.9M cash, $128.3M credit availability; risks include lease and contingent liabilities payments

Risk Factors

  • PRC regulatory risk: compliance with complex China M&A rules including Security Review Rules restricting foreign acquisitions, possibly delaying expansion efforts
  • Geopolitical risk: exposure to China operations with substantial government control and potential political interference affecting business and financials
  • Supply chain risk: reliance on limited or sole-source suppliers for key raw materials risking shortages, cost increases, and production delays
  • Competitive risk: increased regulatory scrutiny on dealerships by FTC and state authorities potentially limiting accessory sales channels
  • Key-person risk: dependence on CEO Ryan Pape and CFO Barry Wood, with neither under employment agreement, risking operational disruption if lost

XPEL, Inc. FY2025 Key Financial Metrics
XBRL

Revenue

$476M

+13.3% YoY

Net Income

$51M

+12.6% YoY

Gross Margin

42.2%

+2bp YoY

Operating Margin

13.2%

-91bp YoY

Net Margin

10.8%

-6bp YoY

ROE

18.3%

-190bp YoY

Total Assets

$383M

+33.9% YoY

EPS (Diluted)

$1.85

+12.1% YoY

Operating Cash Flow

$67M

+40.0% YoY

Source: XBRL data from XPEL, Inc. FY2025 10-K filing on SEC EDGAR. All figures in USD.

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