XPEL, Inc.
For the period ended Jun 30, 2026. Filed Aug 7, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 7, 2026
XPEL$38.39-4.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-08.
0001767258-26-000038
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-07.
0001767258-26-000074
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 101 previous paragraphs and 119 current paragraphs.
74 unchanged; 25 reworded; 16 added; 2 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 5 previous and 5 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (16)
Current report
In May 2026 we purchased a four-building site totaling 431,525 square feet in San Antonio, Texas (the "Properties") in which the Company was a substantial tenant for $60.4 million which will serve as the centerpiece of the Company's North American manufacturing and operations footprint. In addition, we acquired a manufacturing facility in China to augment the Company's growing presence in the region.
Current report
Geographically, we experienced continued growth in most of our regions during the three months ended June 30, 2026 including 106.7% and 13.8% in China and Asia-Other, respectively. The increase in China revenue was driven primarily by higher customer demand and the recognition of incremental direct revenues following the acquisition of our China distributor, completed late in the third quarter of 2025. US revenues increased 11.7% due primarily to increased demand. These increases were offset by a slight decrease in Europe revenue due primarily to timing of distributor sales and the on-going conflict in Iran and a 5.0% decrease India/Middle East revenue due primarily to the on-going conflict in Iran.
Current report
Service revenue for the six months ended June 30, 2026 grew 9.1% over the six months ended June 30, 2025. Within this category, software revenue grew 4.3% over the six months ended June 30, 2025. This increase was due to an increase in total subscribers to our DAP software. Installation labor revenue increased 17.8% over the six months ended June 30, 2025 due mainly to increased demand across our dealership services and OEM networks. Excluding cutbank credit revenue, total service revenue for the six months ended June 30, 2026 increased 19.6% over the six months ended June 30, 3035
Current report
Gross margin for the six months ended June 30, 2026 grew approximately $17.0 million, or 17.4%, compared to the six months ended June 30, 2025. For the six months ended June 30, 2026, gross margin represented 43.9% of revenue compared to 42.6% for the six months ended June 30, 2025.
Current report
Product gross margin for the six months ended June 30, 2026 increased approximately $15.7 million, or 23.5%, over the six months ended June 30, 2025 and represented 41.2% and 38.5% of total product revenue for the six months ended June 30, 2026 and 2025, respectively. The increase in gross margin percentage was due primarily to decreases in product costs, favorable changes in product mix, improved operating leverage and the on-going sell through of higher cost inventory acquired in our China distributor acquisition in September 2025.
Current report
Service gross margin was comparable to the three months ended June 30, 2025. This represented 53.9% and 56.5% of total service revenue for the three months ended June 30, 2026 and 2025, respectively. Excluding cutbank credit revenue, service gross margin was 50.9% and 48.8% for the three months ended June 30, 2026 and 2025, respectively. This increase was due primarily to a more favorable mix of service channel revenue.
Current report
For the six months ended June 30, 2026, sales and marketing expenses increased 28.7% compared to the same period in 2025. This increase was due to increased personnel and marketing costs incurred associated with ongoing growth in multiple markets as the Company increased its marketing efforts to dealerships as well as increased direct sales marketing costs in China. These expenses represented 11.7% and 10.4% of total consolidated revenue for the six months ended June 30, 2026 and 2025, respectively.
Current report
Interest Expense
Current report
Interest expense for the three months ended June 30, 2026 increased $0.3 million from the three months ended June 30, 2025. This increase resulted from interest expense associated with the new term loan agreement obtained in connection with the purchase of certain real estate assets. (See Note 8 in the Notes to Condensed Consolidated Financial Statements).
Current report
Income tax expense for the six months ended June 30, 2026 increased $1.0 million from the six months ended June 30, 2025. Our effective tax rate was 21.4% for the six months ended June 30, 2026 compared with 21.6% for the six months ended June 30, 2025.
Current report
Net income for the six months ended June 30, 2026 increased 16.2% to $28.8 million.
Current report
Term Loan
Current report
On May 15, 2026, the Company entered into a $44.8 million term loan agreement with PNC Bank, N.A. (“PNC”), secured by four commercial properties in San Antonio, Texas (the “Properties”), and a guarantee (the "Guaranty") by the Company.
Current report
Borrowings outstanding bear interest at the sum of (a) the Term SOFR Rate in effect on each Reset Date (defined as the closing date or the last day of every month thereafter, unless the last day falls on a non-business day, upon which the Reset Date shall be the first business day after the last day of the month), plus (b) 125 basis points (1.25%), matures ten years from the closing date on May 15, 2036, and amortizes over a twenty-five year period. The interest rate at closing was 4.7% per annum. At June 30, 2026, the interest rate was 4.9%.
Current report
The term loan is secured by the assets owned by Harvest and is subject to customary representations, warranties, covenants, and events of default. Upon the occurrence of an event of default, PNC may, among other remedies, accelerate the outstanding principal balance and accrued interest, foreclose on the Properties, and exercise its rights under the Guaranty. As of June 30, 2026, $44.8 million in principal was outstanding, $1.3 million of which was classified as current and $43.5 million as long-term debt on the Condensed Consolidated Balance Sheets. Debt issuance costs incurred in connection with this term loan were not material to the condensed consolidated financial statements.
Current report
The Term Loan includes certain affirmative and negative covenants that require, among other things, Harvest to maintain its legal existence and good standing, comply with applicable laws, maintain accounting records, deliver financial statements and compliance certifications on a timely basis, pay taxes as required by law, maintain insurance coverage, and maintain its depository accounts with PNC Bank, as well as to forgo certain specified future activities, including incurring additional indebtedness other than indebtedness under the Credit Agreement or not otherwise permitted under the Credit Agreement, granting liens on its assets, guaranteeing third-party obligations, paying dividends except as permitted under the Credit Agreement, merging or transferring substantially all of its assets, or changing its ownership or management, and certain other customary covenants. The Term Loan provides for two financial covenants which become effective after the Credit Agreement with Wells Fargo and any refinancing of the Credit Agreement ceases to be in effect as follows:
Removed paragraphs (2)
Previous report
As of the last day of each fiscal quarter:
Previous report
XPEL shall not allow its Consolidated Total Leverage Ratio to exceed 3.50 to 1.00, and
Reworded paragraphs (25)
Previous wording
The following table is a reconciliation of Net Income to EBITDA for the three months ended March 31, 2026 and 2025 (in thousands):
Current wording
The following table is a reconciliation of Net Income to EBITDA for the three and six months ended June 30, 2026 and 2025 (in thousands):
Previous wording
The following tables summarize the Company’s consolidated results of operations for the three months ended March 31, 2026 and 2025 (dollars in thousands):
Current wording
The following tables summarize the Company’s consolidated results of operations for the three and six months ended June 30, 2026 and 2025 (dollars in thousands):
Previous wording
The following tables summarize revenue results for the three months ended March 31, 2026 and 2025 (dollars in thousands):
Current wording
The following tables summarize revenue results for the three and six months ended June 30, 2026 and 2025 (dollars in thousands):
Previous wording
Because many of our international customers require us to ship their orders to freight forwarders located in the United States, we cannot be certain about the ultimate destination of the product. The following table represents our estimate of sales by summarized geographic regions based on our understanding of ultimate product destination based on customer interactions, customer locations and other factors for the three months ended March 31, 2026 and 2025 (dollars in thousands):
Current wording
Because many of our international customers require us to ship their orders to freight forwarders located in the United States, we cannot be certain about the ultimate destination of the product. The following table represents our estimate of sales by summarized geographic regions based on our understanding of ultimate product destination based on customer interactions, customer locations and other factors for the three and six months ended June 30, 2026 and 2025 (dollars in thousands):
Previous wording
Product Revenue. Product revenue for the three months ended March 31, 2026 increased 12.7% over the three months ended March 31, 2025. Product revenue represented 75.6% of our total revenue compared to 75.9% in the three months ended March 31, 2025. Revenue from our paint protection film product line increased 9.3% over the three months ended March 31, 2025. Paint protection film sales represented 52.5% and 54.4% of our total consolidated revenues for the three months ended March 31, 2026 and 2025, respectively. The total increase in paint protection film sales was due to increased demand for our film products across multiple regions.
Current wording
Product Revenue. Product revenue for the three months ended June 30, 2026 increased 17.8% over the three months ended June 30, 2025. Product revenue represented 78.1% of our total revenue compared to 76.0% in the three months ended June 30, 2025. Revenue from our paint protection film product line increased 19.4% over the three months ended June 30, 2025. Paint protection film sales represented 52.3% and 50.2% of our total consolidated revenues for the three months ended June 30, 2026 and 2025, respectively. The total increase in paint protection film sales was primarily due to increased paint protection film sales into China resulting from our increased direct presence and increased demand for our film products across the US and Canada.
Previous wording
Revenue from our window film product line grew 24.8% for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. Window film sales represented 19.8% and 18.0% of our total consolidated revenues for the three months ended March 31, 2026 and 2025, respectively. This increase was driven by continued demand resulting from increased product adoption in multiple regions for automotive window film led by our China and APAC regions resulting primarily from increasing our direct presence is these regions.
Current wording
Revenue from our window film product line grew 16.1% for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Window film sales represented 22.7% and 22.4% of our total consolidated revenues for the three months ended June 30, 2026 and 2025, respectively. This increase was driven by continued demand resulting from increased product adoption in multiple regions for automotive window film led by our China and APAC regions resulting primarily from increasing our direct presence in these regions.
Previous wording
Geographically, we experienced continued growth in most of our regions during the three months ended March 31, 2026 including 44.4%, 25.1%, 19.0%, and in China, Asia-Other, and EU/UK/Africa, respectively. The increase in China was driven primarily by increased demand and incremental direct revenue resulting from the completion of our acquisition of our China distributor late in the third quarter of 2025. The increases in Asia-Other and EU/UK/Africa were driven primarily by increased product adoption and increased demand. Revenue from our Canada region declined 10.9% primarily due to timing of distributor sales. Normalizing for this timing, revenue would have grown 5.7%.
Current wording
Geographically, we experienced continued growth in all of our regions during the six months ended June 30, 2026 including 74.8%, 18.9%, 10.9% in China, Asia-Other, and in the United States, respectively. The increase in China revenue was driven primarily by higher customer demand and the recognition of incremental direct revenues following the acquisition of our China distributor, completed late in the third quarter of 2025. The increases in Asia-Other and the United States were driven primarily by increased product adoption and increased demand.
Previous wording
Service revenue grew 14.1% over the three months ended March 31, 2025. Installation labor revenue increased 23.9% over the three months ended March 31, 2025 due mainly to increased demand across our dealership services and OEM networks. Cutbank credit revenue declined due primarily to a reduction in the estimated fair value of a cutbank credit.
Current wording
Service revenue grew 4.9% over the three months ended June 30, 2025. Installation labor revenue increased 12.8% over the three months ended June 30, 2025 due mainly to increased demand across our dealership services and OEM networks. Cutbank credit revenue declined due primarily to a reduction in the estimated fair value of a cutbank credit. Excluding cutbank credit revenue, total service revenue for the three months ended June 30, 2026 increased 16.0% over the three months ended June 30, 3035
Previous wording
Total installation revenue (labor and product combined) increased 24.3% over the three months ended March 31, 2025. This represented 23.7% and 21.5% of our total consolidated revenue for the three months ended March 31, 2026 and 2025, respectively. These increases were primarily due to increased demand across our dealership services and OEM networks. Adjusted product revenue, which combines the cutbank credit revenue service component with product revenue, increased 10.2% over the three months ended March 31, 2025.
Current wording
Total installation revenue (labor and product combined) increased 10.8% over the three months ended June 30, 2025. This represented 21.3% and 22.0% of our total consolidated revenue for the three months ended June 30, 2026 and 2025, respectively. These increases were primarily due to increased demand in our corporate owned stores and across our dealership services and OEM networks. Total installation revenue (labor and product combined) increased 16.9% over the six months ended June 30, 2025. This represented 22.4% and 21.8% of our total consolidated revenue for the six months ended June 30, 2026 and 2025, respectively. These increases were primarily due to increased demand in our corporate owned stores and across our dealership services and OEM networks. Adjusted product revenue, which combines the cutbank credit revenue service component with product revenue, increased 14.4% over the three months ended June 30, 2025. Adjusted product revenue increased 12.5% over the six months ended June 30, 2025.
Previous wording
Product costs for the three months ended March 31, 2026 increased 8.1% over the three months ended March 31, 2025. Cost of product sales represented 44.6% and 46.7% of total revenue in the three months ended March 31, 2026 and 2025, respectively. Cost of service revenue grew 20.0% during the three months ended March 31, 2026. Refer to the Gross Margin section below for discussion of this cost relative to revenue.
Current wording
Product costs for the three months ended June 30, 2026 increased 12.5% over the three months ended June 30, 2025. Cost of product sales represented 45.8% and 46.7% of total revenue in the three months ended June 30, 2026 and 2025, respectively. Cost of service revenue grew 11.1% during the three months ended June 30, 2026. Refer to the Gross Margin section below for discussion of this cost relative to revenue.
Previous wording
Gross margin for the three months ended March 31, 2026 grew approximately $7.3 million, or 16.7%, compared to the three months ended March 31, 2025. For the three months ended March 31, 2026, gross margin represented 43.7% of revenue compared to 42.3% for the three months ended March 31, 2025.
Current wording
Gross margin for the three months ended June 30, 2026 grew approximately $9.6 million, or 18.0%, compared to the three months ended June 30, 2025. For the three months ended June 30, 2026, gross margin represented 44.1% of revenue compared to 42.9% for the three months ended June 30, 2025.
Previous wording
The following tables summarizes gross margin for product and services for the three months ended March 31, 2026 and 2025 (dollars in thousands):
Current wording
The following tables summarizes gross margin for product and services for the three and six months ended June 30, 2026 and 2025 (dollars in thousands):
Previous wording
Product gross margin for the three months ended March 31, 2026 increased approximately $6.1 million, or 20.1%, over the three months ended March 31, 2025 and represented 41.0% and 38.5% of total product revenue for the three months ended March 31, 2026 and 2025, respectively. The increase in gross margin percentage was due primarily to decreases in product costs, favorable changes in product mix and improved operating leverage.
Current wording
Product gross margin for the three months ended June 30, 2026 increased approximately $9.6 million, or 26.2%, over the three months ended June 30, 2025 and represented 41.4% and 38.6% of total product revenue for the three months ended June 30, 2026 and 2025, respectively. The increase in gross margin percentage was due primarily to decreases in product costs, favorable changes in product mix improved operating leverage and the on-going sell through of higher cost inventory acquired in our China distributor acquisition in September 2025.
Previous wording
Service gross margin increased approximately $1.3 million, or 9.2%, over the three months ended March 31, 2025. This represented 52.0% and 54.3% of total service revenue for the three months ended March 31, 2026 and 2025, respectively. The decrease was primarily due to the reduction in the estimated fair value of a cutbank credit. Excluding this reduction, service gross margin was 54.6%.
Current wording
Service gross margin increased approximately $1.3 million, or 4.2%, over the six months ended June 30, 2025. This represented 53.0% and 55.5% of total service revenue for the six months ended June 30, 2026 and 2025, respectively. Excluding cutbank credit revenue, service gross margin was 49.6% and 47.7% for the six months ended June 30, 2026 and 2025, respectively. This increase was due primarily to a more favorable mix of service channel revenue.
Previous wording
Sales and marketing expenses for the three months ended March 31, 2026 increased 27.7% compared to the same period in 2025. This increase was primarily due to increased personnel and marketing costs associated with ongoing growth in multiple markets as the Company increased the number of sponsorships and increased marketing efforts to dealerships and end customers. These expenses represented 12.9% and 11.4% of total consolidated revenue for the three months ended March 31, 2026 and 2025, respectively.
Current wording
Sales and marketing expenses for the three months ended June 30, 2026 increased 29.7% compared to the same period in 2025. This increase was primarily due to increased personnel and marketing costs associated with ongoing growth in multiple markets as the Company increased the number of sponsorships and increased marketing efforts to dealerships as well as increased direct sales marketing costs in China. These expenses represented 10.8% and 9.5% of total consolidated revenue for the three months ended June 30, 2026 and 2025, respectively.
Previous wording
General and administrative expenses grew approximately $2.2 million, or 10.3% over the three months ended March 31, 2025. This increase in cost was due primarily to increases in personnel, occupancy costs and professional fees. Total General and Administrative expenses represented 19.6% and 20.1% of total consolidated revenue for the three months ended March 31, 2026 and 2025, respectively.
Current wording
General and administrative expenses grew approximately $2.2 million, or 9.8% over the three months ended June 30, 2025. This increase in cost was due primarily to increases in personnel, occupancy costs and professional fees including legal costs associated the acquisition of a Chinese manufacturer. Total General and Administrative expenses represented 17.2% and 17.9% of total consolidated revenue for the three months ended June 30, 2026 and 2025, respectively.
Previous wording
Income tax expense for the three months ended March 31, 2026 increased $0.1 million from the three months ended March 31, 2025. Our effective tax rate was 20.9% for the three months ended March 31, 2026 compared with 23.9% for the three months ended March 31, 2025. The decrease in our effective rate was primarily due to a higher proportion of foreign earnings taxed at lower rates.
Current wording
Income tax expense for the three months ended June 30, 2026 increased $0.9 million from the three months ended June 30, 2025. Our effective tax rate was 21.6% for the three months ended June 30, 2026 compared with 20.3% for the three months ended June 30, 2025. The increase in our effective rate was primarily due to an increase in foreign taxes associated with our China operations.
Previous wording
Net income for the three months ended March 31, 2026 increased 22.4% to $10.5 million.
Current wording
Net income for the three months ended June 30, 2026 increased 12.9% to $18.3 million.
Previous wording
Our primary sources of liquidity are available cash and cash equivalents, cash flows provided by operations and borrowing capacity under our credit facilities. As of March 31, 2026, we had cash and cash equivalents of $45.1 million. For the three months ended March 31, 2026, cash provided by operations was $7.4 million and as of March 31, 2026 we had $128.2 million in funds available under our credit facilities. We expect to continue to have sufficient access to cash to support working capital needs, pay for capital expenditures (including acquisitions), and to pay interest and service debt. We believe we have the ability and sufficient resources to meet these cash requirements by using available cash, internally generated funds and borrowings under committed credit facilities. We are focused on continuing to generate positive operating cash to fund our operational and capital investment initiatives. We believe we have sufficient liquidity to operate for at least the next 12 months from the date of this quarterly report.
Current wording
Our primary sources of liquidity are available cash and cash equivalents, cash flows provided by operations and borrowing capacity under our credit facilities. As of June 30, 2026, we had cash and cash equivalents of $40.7 million. For the six months ended June 30, 2026, cash provided by operations was $38.2 million and as of June 30, 2026 we had $128.2 million in funds available under our credit facilities. We expect to continue to have sufficient access to cash to support working capital needs, pay for capital expenditures (including acquisitions), and to pay interest and service debt. We believe we have the ability and sufficient resources to meet these cash requirements by using available cash, internally generated funds and borrowings under committed credit facilities. We are focused on continuing to generate positive operating cash to fund our operational and capital investment initiatives. We believe we have sufficient liquidity to operate for at least the next 12 months from the date of this quarterly report.
Previous wording
Operating activities. Cash provided by operations totaled $7.4 million for the three months ended March 31, 2026, compared to $3.2 million during the three months ended March 31, 2025. This increase in cash flows from operating activities was mainly due to the timing of income tax payments and increases in accounts payable and other accrued liabilities offset by increases in inventory related to planned seasonal volume increases.
Current wording
Operating activities. Cash provided by operations totaled $38.2 million for the six months ended June 30, 2026, compared to $31.1 million during the six months ended June 30, 2025. This increase in cash flows from operating activities was mainly due to an increase in net income and other changes in working capital.
Previous wording
Investing activities. Cash used in investing activities totaled approximately $9.9 million during the three months ended March 31, 2026 compared to $1.6 million during the three months ended March 31, 2025. This increase was due primarily to an increase in deposits related to our supply chain initiatives.
Current wording
Investing activities. Cash used in investing activities totaled approximately $82.8 million during the six months ended June 30, 2026 compared to $2.9 million during the six months ended June 30, 2025. This increase was due primarily to the purchase of certain real estate assets totaling $60.4 million, deposits related to our supply chain initiatives and acquisition related payments.
Previous wording
Financing activities. Cash used in financing activities during the three months ended March 31, 2026 totaled $3.6 million compared to $0.2 million during the same period in the prior year. This change was due primarily to the purchase of treasury shares during 2026.
Current wording
Financing activities. Cash provided by financing activities during the six months ended June 30, 2026 totaled $34.7 million compared to $0.3 million used during the same period in the prior year. This change was due primarily to borrowings on bank term loan in 2026 in connection with the purchase of certain real estate assets.
Previous wording
Debt and contingent obligations as of March 31, 2026 and December 31, 2025 totaled approximately $18.2 million and $20.0 million, respectively.
Current wording
Debt and contingent obligations as of June 30, 2026 and December 31, 2025 totaled approximately $60.7 million and $20.0 million, respectively.
Previous wording
We expect to fund ongoing operating expenses, capital expenditures, acquisitions, interest payments, tax payments, credit facility maturities, future lease obligations, and payments for other long-term liabilities with cash flow from operations and borrowings under our credit facility. In the short-term, we are contractually obligated to make lease payments and make payments on contingent liabilities related to certain completed acquisitions. In the long-term, we are contractually obligated to make lease payments, for contingent liabilities, and for repayment of borrowings on our line of credit. In addition, if an opportunity presents itself, we may increase our borrowing under available credit arrangements or sell debt or equity securities, although we may not be able to complete any such financing on terms acceptable to us or at all. We believe that we have sufficient cash and cash equivalents, as well as borrowing capacity, to cover our estimated short-term and long-term funding needs.
Current wording
We expect to fund ongoing operating expenses, capital expenditures, acquisitions, interest payments, tax payments, credit facility maturities, future lease obligations, and payments for other long-term liabilities with cash flow from operations and borrowings under our credit facility. In the short-term, we are contractually obligated to make lease payments and make payments on contingent liabilities related to certain completed acquisitions. In the long-term, we are contractually obligated to make lease payments, for contingent liabilities, and for repayment of borrowings on bank term loan and credit facility. In addition, if an opportunity presents itself, we may increase our borrowing under available credit arrangements or sell debt or equity securities, although we may not be able to complete any such financing on terms acceptable to us or at all. We believe that we have sufficient cash and cash equivalents, as well as borrowing capacity, to cover our estimated short-term and long-term funding needs.
Previous wording
Obligations under the Credit Agreement are secured by a first priority perfected security interest, subject to certain permitted encumbrances, in all of XPEL’s material property and assets.
Current wording
Obligations under the Credit Agreement are secured by a first priority perfected security interest, subject to certain permitted encumbrances, in all of XPEL’s material property and assets, other than the assets which secure the Term Loan.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Product Revenue. Product revenue for the six months ended June 30, 2026 increased 15.5% over the six months ended June 30, 2025. Product revenue represented 77.0% of our total revenue compared to 75.9% in the six months ended June 30, 2025. Revenue from our paint protection film product line increased 14.6% over the six months ended June 30, 2025. Paint protection film sales represented 52.4% and 52.1% of our total consolidated revenues for the six months ended June 30, 2026 and 2025, respectively. The total increase in paint protection film sales was due to increased demand for our film products across multiple regions and the recognition of incremental direct revenues following the acquisition of our China distributor, completed late in the third quarter of 2025.
Current report — wording carried from elsewhere
Revenue from our window film product line grew 19.6% for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. Window film sales represented 21.4% and 20.4% of our total consolidated revenues for the six months ended June 30, 2026 and 2025, respectively. This increase was driven by continued demand resulting from increased product adoption in multiple regions for automotive window film led by our China and APAC regions resulting primarily from increasing our direct presence in these regions.
Current report — wording carried from elsewhere
Product costs for the six months ended June 30, 2026 increased 10.5% over the six months ended June 30, 2025. Cost of product sales represented 45.2% and 46.7% of total revenue in the six months ended June 30, 2026 and 2025, respectively. Cost of service revenue grew 15.3% during the six months ended June 30, 2026. Refer to the Gross Margin section below for discussion of this cost relative to revenue.
Current report — wording carried from elsewhere
General and administrative expenses grew approximately $4.3 million, or 10.0% over the six months ended June 30, 2025. This increase in cost was due primarily to increases in personnel, occupancy costs and professional fees including legal costs associated with the acquisition of a Chinese manufacturer. Total General and Administrative expenses represented 18.3% and 18.9% of total consolidated revenue for the six months ended June 30, 2026 and 2025, respectively.