XPEL (NASDAQ:XPEL) Announces Earnings Results, Beats Estimates By $0.08 EPS

XPEL (NASDAQ:XPEL) posted its quarterly earnings data on Wednesday. The company reported $0.68 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.60 by $0.08, FiscalAI reports. XPEL had a return on equity of 19.14% and a net margin of 10.82%.The firm had revenue of $143.05 million for the quarter, compared to the consensus estimate of $135.09 million. During the same quarter in the previous year, the company earned $0.59 EPS. The business’s revenue for the quarter was up 14.7% compared to the same quarter last year.

Here are the key takeaways from XPEL’s conference call:

• Second-quarter revenue rose 14.7% to a record $143.1 million, exceeding management’s expectations despite approximately $2 million of sales pulled forward ahead of anticipated price increases. EBITDA increased 17.6%, while operating margin reached 16.2%.
• Operating cash flow reached a record $30.8 million, with improved cash conversion and lower days sales outstanding. Window film revenue grew 16.1% to $32.5 million, and management expects gross margin to increase modestly through the remainder of the year.
• Management expects third-quarter revenue of $137 million to $139 million, below Q2, reflecting seasonality, $1 million to $2 million of additional sales pulled forward, and continued weakness in Europe and the Middle East. Dealership demand remains pressured by FTC compliance concerns.
• XPEL is investing approximately $110 million in manufacturing facilities in San Antonio and China, with additional capital expenditures expected through early 2027. Incremental margin benefits are expected beginning in mid-2027, with a mid-20% operating-margin run rate targeted by the end of 2028.
• China revenue reached $15.9 million despite domestic vehicle sales declining approximately 20% year over year, while India grew more than 60%. Management also plans to pursue small service- and OEM-adjacent acquisitions and use remaining cash flow for share repurchases, though manufacturing-related startup costs reduced Q2 earnings by about $0.03 per share.

XPEL Trading Up 9.5%

NASDAQ XPEL traded up $4.38 during trading on Wednesday, reaching $50.29. 540,092 shares of the company’s stock were exchanged, compared to its average volume of 255,282. XPEL has a fifty-two week low of $31.50 and a fifty-two week high of $55.91. The company’s fifty day simple moving average is $45.66 and its 200-day simple moving average is $46.01. The firm has a market capitalization of $1.39 billion, a PE ratio of 26.33 and a beta of 1.09.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in XPEL. Steward Partners Investment Advisory LLC boosted its stake in shares of XPEL by 462.9% during the 4th quarter. Steward Partners Investment Advisory LLC now owns 985 shares of the company’s stock valued at $49,000 after buying an additional 810 shares during the period. Lazard Asset Management LLC acquired a new position in shares of XPEL in the second quarter worth $55,000. Russell Investments Group Ltd. acquired a new position in shares of XPEL in the third quarter worth $66,000. Tower Research Capital LLC TRC raised its holdings in shares of XPEL by 234.0% during the second quarter. Tower Research Capital LLC TRC now owns 2,886 shares of the company’s stock worth $104,000 after acquiring an additional 2,022 shares in the last quarter. Finally, Osaic Holdings Inc. boosted its position in XPEL by 319.7% during the second quarter. Osaic Holdings Inc. now owns 2,984 shares of the company’s stock valued at $107,000 after purchasing an additional 2,273 shares during the last quarter. Institutional investors and hedge funds own 75.08% of the company’s stock.

Analysts Set New Price Targets

XPEL has been the topic of several analyst reports. Zacks Research raised shares of XPEL from a “strong sell” rating to a “hold” rating in a research report on Monday, April 27th. Freedom Capital downgraded shares of XPEL from a “strong-buy” rating to a “hold” rating in a research report on Thursday, May 7th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of XPEL in a research note on Wednesday, June 24th. Three equities research analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold”.

Trending Headlines about XPEL

Here are the key news stories impacting XPEL this week:

• Positive Sentiment: XPEL reported record second-quarter revenue of $143.1 million, up 14.7% year over year and well above the $135.1 million consensus estimate. XPEL Reports Record Revenue of $143.1 million; Revenue Growth of 14.7% in Second Quarter 2026
• Positive Sentiment: Adjusted earnings were $0.68 per share, exceeding analyst expectations of approximately $0.60-$0.61 and rising from $0.59 a year earlier. The company also posted a 44.1% gross margin, up from 42.9% in the prior-year quarter. XPEL, Inc. Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Management said it is pursuing strategic initiatives aimed at expanding profitability and targets a mid-20% operating-margin run rate exiting 2028. That longer-term margin objective supports the growth and earnings outlook. XPEL targets mid-20% operating margin run rate exiting 2028
• Neutral Sentiment: XPEL guided for third-quarter revenue of $137 million-$139 million, broadly near but slightly below the $139.1 million consensus estimate. The guidance may limit near-term upside despite the strong second-quarter beat. XPEL Q3 revenue guidance and long-term margin target

XPEL Company Profile

XPEL, Inc is a leading manufacturer and distributor of advanced protective films and coatings for automotive, marine, aviation, and architectural applications. The company’s core products include paint protection film (PPF), window tinting film, and ceramic coatings designed to shield surfaces from scratches, environmental contaminants, and UV damage. XPEL’s flagship PPF, known for its self-healing properties, is engineered to maintain a vehicle’s factory finish by resisting swirl marks, stone chips, and acid rain.

Beyond automotive protection, XPEL has expanded its offerings to include protective films for electronics and architectural surfaces, providing solutions that enhance durability and prolong the life of high-value assets.