XPEL, Inc.
For the period ended Sep 30, 2026. Filed Nov 6, 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.
Sep 30, 2026 · Filed Nov 6, 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 2026-06-30; filed 2026-08-07.
0001767258-26-000074
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-06.
0001767258-26-000101
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 119 previous paragraphs and 123 current paragraphs.
75 unchanged; 43 reworded; 5 added; 0 removed; 1 previous and 0 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 (5)
Current report
Product costs for the three months ended September 30, 2026 increased 3.9% over the three months ended September 30, 2025. Cost of product sales represented 45.1% and 47.7% of total revenue in the three months ended September 30, 2026 and 2025, respectively. Cost of service revenue grew 7.4% during the three months ended September 30, 2026. Refer to the Gross Margin section below for discussion of this cost relative to revenue. During the three months ended September 30, 2026, the Company received $4.6 million of cash recoveries related to previously paid import tariffs on inventory purchases. The total recovery was recorded as a reduction of cost of sales. In addition, the Company accelerated the discontinuation of certain older products pursuant to the Company's planned SKU rationalization in conjunction with its vertical integration plan. As a result, the Company recorded a charge to cost of sales of $4.6 million.
Current report
September 30, 2026, gross margin represented 44.6% of revenue compared to 41.8% for the three months ended September 30, 2025.
Current report
Interest expense for the nine months ended September 30, 2026 increased $0.6 million from the nine months ended September 30, 2025.
Current report
Credit Facilities and Term Loan
Current report
The Company has U.S. and Canadian revolving credit facilities and Harvest Ventures Holding Company (“Harvest”), a wholly-owned subsidiary of the Company, has a term loan which it incurred in connection with the purchase of the Properties.
Reworded paragraphs (43)
Previous wording
•Our planned investment in manufacturing and supply chain assets exposes us to execution risks.
Current wording
•Our investment in manufacturing and supply chain assets exposes us to regulatory and execution risks.
Previous wording
We are a supplier of protective films, coatings and related services primarily to the automobile aftermarket, new car dealerships and automobile original equipment manufacturers, or OEMs. The majority of our revenue is derived from the sale of our automotive products and related services while the remainder of our revenue is derived from non-automotive products including architectural window film and marine and flat surface protection films.
Current wording
We manufacture, sell, distribute, and install protective films, coatings and related services primarily to the automobile aftermarket, new car dealerships and automobile original equipment manufacturers, or OEMs. The majority of our revenue is derived from the sale of our automotive products and related services while the remainder of our revenue is derived from non-automotive products including architectural window film and marine and flat surface protection films.
Previous wording
The Company began as a software company designing vehicle patterns used to produce cut-to-fit protective film for headlights and painted surfaces of automobiles. In 2007, we began selling automotive paint protection film products to complement our software business. As paint protection film technology improved and became more durable, awareness and adoption of paint protection film has continued to increase, driving significant industry growth over the last several years. Initial adoption of paint protection film came primarily from luxury car enthusiasts in the United States and Canada. These enthusiasts were primarily served by a growing automotive aftermarket of independent installers of automotive paint protection and window films. Internationally, nascent demand began to build as awareness and adoption in the United States and Canada continued to increase. Over the last few years, new car dealership interest in the product has increased due to their exposure to the aftermarket installer network, while OEM interest in the product increased through their exposure to the new car dealerships who were selling the product.
Current wording
The Company began as a software company designing vehicle patterns used to produce cut-to-fit protective film for headlights and painted surfaces of automobiles. In 2007, we began selling automotive paint protection film products to complement our software business. As paint protection film technology improved and became more durable, awareness and adoption of paint protection film has continued to increase, driving significant industry growth over the last several years. Initial adoption of paint protection film came primarily from luxury car enthusiasts in the United States and Canada. These enthusiasts were primarily served by a growing automotive aftermarket of independent installers of automotive paint protection and window films. Internationally, nascent demand began to build as awareness and adoption in the United States and Canada continued to increase. Over the last few years, new car dealership interest in the product has increased due to their exposure to the aftermarket installer network, while OEM interest in the product has increased through their exposure to the new car dealerships who sell the product.
Previous 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):
Current wording
The following table is a reconciliation of Net Income to EBITDA for the three and nine months ended September 30, 2026 and 2025 (in thousands):
Previous 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):
Current wording
The following tables summarize the Company’s consolidated results of operations for the three and nine months ended September 30, 2026 and 2025 (dollars in thousands):
Previous wording
The following tables summarize revenue results for the three and six months ended June 30, 2026 and 2025 (dollars in thousands):
Current wording
The following tables summarize revenue results for the three and nine months ended September 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 and six months ended June 30, 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 nine months ended September 30, 2026 and 2025 (dollars in thousands):
Previous 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.
Current wording
Product Revenue. Product revenue for the three months ended September 30, 2026 increased 13.9% over the three months ended September 30, 2025. Product revenue represented 78.9% of our total revenue compared to 76.1% in the three months ended September 30, 2025. Revenue from our paint protection film product line increased 15.7% over the three months ended September 30, 2025. Paint protection film sales represented 53.4% and 50.7% of our total consolidated revenues for the three months ended September 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 in these regions and increased demand for our film products across the US and Canada.
Previous 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.
Current wording
Revenue from our window film product line grew 11.8% for the three months ended September 30, 2026 compared to the three months ended September 30, 2025. Window film sales represented 22.4% and 22.0% of our total consolidated revenues for the three months ended September 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 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 wording
Geographically, we experienced continued growth in most of our regions during the three months ended September 30, 2026 including 52.4% 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, Canada, and Latin America revenues increased 7.0%, 17.9%and 12.1%, respectively, due primarily to increased demand. These increases were offset by a slight decrease in Europe revenue due primarily to timing of distributor sales and a 16.6% decrease in India/Middle East revenue due primarily to the on-going conflict in Iran.
Previous wording
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 wording
Product Revenue. Product revenue for the nine months ended September 30, 2026 increased 14.9% over the nine months ended September 30, 2025. Product revenue represented 77.6% of our total revenue compared to 76.0% during the nine months ended September 30, 2025. Revenue from our paint protection film product line increased 15.0% over the nine months ended September 30, 2025. Paint protection film sales represented 52.7% and 51.6% of our total consolidated revenues for the nine months ended September 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.
Previous wording
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 wording
Revenue from our window film product line grew 16.7% for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. Window film sales represented 21.7% and 21.0% of our total consolidated revenues for the nine months ended September 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 our increased direct presence in these regions.
Previous 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.
Current wording
Geographically, we experienced continued growth in all of our regions during the nine months ended September 30, 2026 including 66.1%, 17.1%, 9.5%, and 7.7% in China, Asia-Other, the United States, and in Canada, 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, the United States, and Canada were driven primarily by increased product adoption and increased demand.
Previous 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
Current wording
Service revenue decreased 2.9% over the three months ended September 30, 2025. Installation labor revenue increased 9.7% over the three months ended September 30, 2025 due mainly to increased demand across our corporate owned stores and our OEM networks. In the same period, software revenue grew 26.7% over the three months ended September 30, 2025 due to growth in DAP software subscribers. The increase was offset by a decline in cutbank credit revenue 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 September 30, 2026 increased 9.5% over the three months ended September 30, 2025.
Previous wording
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 wording
Service revenue for the nine months ended September 30, 2026 grew 4.9% over the nine months ended September 30, 2025. Within this category, software revenue grew 11.9% over the nine months ended September 30, 2025. This increase was due to an increase in total subscribers to our DAP software. Installation labor revenue increased 15.0% over the nine months ended September 30, 2025 due mainly to increased demand across our corporate owned stores, our dealership services and OEM networks. Excluding cutbank credit revenue, total service revenue for the nine months ended September 30, 2026 increased 16.0% over the nine months ended September 30, 2025.
Previous 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.
Current wording
Total installation revenue (labor and product combined) increased 4.5% over the three months ended September 30, 2025. This represented 20.8% and 21.9% of our total consolidated revenue for the three months ended September 30, 2026 and 2025, respectively. This increase was primarily due to increased demand in our corporate owned stores and across our OEM networks. Total installation revenue (labor and product combined) increased 12.5% over the nine months ended September 30, 2025. This represented 21.8% and 21.8% of our total consolidated revenue for the nine months ended September 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 10.0% over the three months ended September 30, 2025. Adjusted product revenue increased 11.6% over the nine months ended September 30, 2025.
Previous 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.
Current wording
Product costs for the nine months ended September 30, 2026 increased 8.1% over the nine months ended September 30, 2025. Cost of product sales represented 45.2% and 47.0% of total revenue in the nine months ended September 30, 2026 and 2025, respectively. Cost of service revenue grew 12.5% during the nine months ended September 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 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.
Current wording
Gross margin for the three months ended September 30, 2026 grew approximately $9.1 million, or 17.3%, compared to the three months ended September 30, 2025. For the three months ended
Previous wording
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 wording
Gross margin for the nine months ended September 30, 2026 grew approximately $26.0 million, or 17.4%, compared to the nine months ended September 30, 2025. For the nine months ended September 30, 2026, gross margin represented 44.2% of revenue compared to 42.3% for the nine months ended September 30, 2025.
Previous 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):
Current wording
The following tables summarize gross margin for product and services for the three and nine months ended September 30, 2026 and 2025 (dollars in thousands):
Previous 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.
Current wording
Product gross margin for the three months ended September 30, 2026 increased approximately $10.9 million, or 30.7%, over the three months ended September 30, 2025 and represented 42.8% and 37.3% of total product revenue for the three months ended September 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
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 wording
Product gross margin for the nine months ended September 30, 2026 increased approximately $26.6 million, or 26.0%, over the nine months ended September 30, 2025 and represented 41.8% and 38.1% of total product revenue for the nine months ended September 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 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 wording
Service gross margin declined 10.9% compared to the three months ended September 30, 2025. This represented 51.5% and 56.1% of total service revenue for the three months ended September 30, 2026 and 2025, respectively. Excluding cutbank revenue, service gross margin increased 11.7% and service gross margin percentage was 48.2% and 41.9% for the three months ended September 30, 2026 and 2025, respectively. This increase was due primarily to a more favorable mix of service channel revenue.
Previous 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.
Current wording
Service gross margin declined 1.2% compared to the nine months ended September 30, 2025. This represented 52.5% and 55.7% of total service revenue for the nine months ended September 30, 2026 and 2025, respectively. Excluding cutbank credit revenue, service gross margin increased 19.9% and service gross margin percentage was 46.9% and 41.1% for the nine months ended September 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 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.
Current wording
Sales and marketing expenses for the three months ended September 30, 2026 increased 8.7% 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 10.9% and 11.0% of total consolidated revenue for the three months ended September 30, 2026 and 2025, respectively.
Previous wording
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 wording
For the nine months ended September 30, 2026, sales and marketing expenses increased 21.4% 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 11.4% and 10.6% of total consolidated revenue for the nine months ended September 30, 2026 and 2025, respectively.
Previous 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.
Current wording
General and administrative expenses grew approximately $3.6 million, or 16.3% over the three months ended September 30, 2025. This increase in cost was due primarily to increases in personnel, occupancy costs and other general expenses associated with new costs pursuant to our acquisition of our China distributor in September 2025 and a Chinese manufacturer in May 2026. Total General and Administrative expenses represented 18.5% and 17.4% of total consolidated revenue for the three months ended September 30, 2026 and 2025, respectively.
Previous wording
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.
Current wording
General and administrative expenses grew approximately $7.9 million, or 12.1% over the nine months ended September 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 18.4% of total consolidated revenue for the nine months ended September 30, 2026 and 2025, respectively.
Previous wording
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 wording
Interest expense for the three months ended September 30, 2026 increased $0.4 million from the three months ended September 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 9 in the Notes to Condensed Consolidated Financial Statements).
Previous wording
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 wording
Income tax expense for the three months ended September 30, 2026 increased $1.0 million from the three months ended September 30, 2025. Our effective tax rate was 21.1% for the three months ended September 30, 2026 compared with 21.1% for the three months ended September 30, 2025.
Previous 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.
Current wording
Income tax expense for the nine months ended September 30, 2026 increased $2.0 million from the nine months ended September 30, 2025. Our effective tax rate was 21.3% for the nine months ended September 30, 2026 compared with 21.4% for the nine months ended September 30, 2025.
Previous wording
Net income for the three months ended June 30, 2026 increased 12.9% to $18.3 million.
Current wording
Net income for the three months ended September 30, 2026 increased 27.2% to $16.7 million.
Previous wording
Net income for the six months ended June 30, 2026 increased 16.2% to $28.8 million.
Current wording
Net income for the nine months ended September 30, 2026 increased 20.0% to $45.5 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 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.
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 September 30, 2026, we had cash and cash equivalents of $45.7 million. For the nine months ended September 30, 2026, cash provided by operations was $59.3 million and as of September 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 $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.
Current wording
Operating activities. Cash provided by operations totaled $59.3 million for the nine months ended September 30, 2026, compared to $64.3 million during the nine months ended September 30, 2025. This decrease in cash flows from operating activities was mainly due to an increase in inventory partially offset by other changes in working capital.
Previous 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.
Current wording
Investing activities. Cash used in investing activities totaled approximately $90.6 million during the nine months ended September 30, 2026 compared to $20.8 million during the nine months ended September 30, 2025. This increase was due primarily to the purchase of the Properties (as defined below) totaling $60.4 million, deposits related to our supply chain initiatives and acquisition-related payments.
Previous 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.
Current wording
Financing activities. Cash provided by financing activities during the nine months ended September 30, 2026 totaled $26.7 million compared to $0.4 million used during the same period in the prior year. This change was due primarily to borrowings on the Term Loan (as defined below) in 2026 in connection with the purchase of the Properties.
Previous wording
Debt and contingent obligations as of June 30, 2026 and December 31, 2025 totaled approximately $60.7 million and $20.0 million, respectively.
Current wording
Debt and contingent obligations as of September 30, 2026 and December 31, 2025 totaled approximately $58.1 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 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.
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 the Term Loan and credit facilities. 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
Borrowings under the Credit Agreement bear interest, at XPEL’s option, at a rate equal to either (a) Base Rate or (b) Adjusted Term SOFR. In addition to the applicable interest rate, the Credit Agreement includes a commitment fee ranging from 0.20% to 0.25% per annum for the unused portion of the aggregate commitment and an applicable margin ranging from 0.00% to 0.50% for Base Rate Loans and 1.00% to 1.50% for Adjusted Term SOFR Loans. At June 30, 2026, these rates were 6.8% and 4.7%, respectively. Both the margin applicable to the interest rate and the commitment fee are dependent on XPEL’s Consolidated Total Leverage Ratio. The Credit Agreement's maturity date is September 11, 2028.
Current wording
Borrowings under the Credit Agreement bear interest, at XPEL’s option, at a rate equal to either (a) Base Rate or (b) Adjusted Term SOFR. In addition to the applicable interest rate, the Credit Agreement includes a commitment fee ranging from 0.20% to 0.25% per annum for the unused portion of the aggregate commitment and an applicable margin ranging from 0.00% to 0.50% for Base Rate Loans and 1.00% to 1.50% for Adjusted Term SOFR Loans. At September 30, 2026, these rates were 7.0% and 4.8%, respectively. Both the margin applicable to the interest rate and the commitment fee are dependent on XPEL’s Consolidated Total Leverage Ratio. The Credit Agreement's maturity date is September 11, 2028.
Showing the first 40 of 43 pairs. Open the source sections for the rest.
Rearranged previous paragraphs (1)
Previous report — wording carried 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.