XPEL (NASDAQ:XPEL) Releases Quarterly Earnings Results, Beats Expectations By $0.05 EPS

XPEL (NASDAQ:XPEL) released its quarterly earnings data on Wednesday. The company reported $0.48 earnings per share for the quarter, beating the consensus estimate of $0.43 by $0.05, FiscalAI reports. XPEL had a net margin of 10.12% and a return on equity of 19.20%. The company had revenue of $122.27 million during the quarter, compared to analyst estimates of $125.01 million. During the same quarter in the previous year, the business posted $0.32 EPS. XPEL’s revenue for the quarter was up 13.7% compared to the same quarter last year.

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

• XPEL reported solid Q4 results with revenue up 13.7% and EBITDA up 37.6%, showing strong operating leverage despite seasonal softness.
• The China distribution acquisition is now integrated, producing about $14 million in Q4 revenue and positioning XPEL for growth across aftermarket, 4S/dealership, and OEM channels.
• Gross margin finished at 41.9% (flat vs. Q3); management expects margins to improve through 2026 as acquired higher-cost China inventory is sold through and pricing actions take effect.
• Management guided Q1 revenue of $112–$114 million and expressed optimism for 2026 driven by investments in manufacturing/supply chain, the DAP platform, and continued operating-leverage gains.
• Near-term headwinds include an estimated $1–$2 million Q4 demand hit from EV tax-credit pull-forward, continued weakness in Canada and parts of Latin America, and slight DSO pressure from longer OEM payment terms.

XPEL Price Performance

Shares of XPEL stock traded down $5.56 on Wednesday, hitting $44.91. The stock had a trading volume of 151,711 shares, compared to its average volume of 206,122. The business has a 50 day moving average of $52.41 and a 200 day moving average of $43.31. XPEL has a 12-month low of $24.25 and a 12-month high of $55.91. The stock has a market cap of $1.24 billion, a price-to-earnings ratio of 26.45 and a beta of 1.26.

Hedge Funds Weigh In On XPEL

Hedge funds have recently modified their holdings of the company. Steward Partners Investment Advisory LLC increased its position in XPEL by 462.9% in the fourth quarter. Steward Partners Investment Advisory LLC now owns 985 shares of the company’s stock worth $49,000 after buying an additional 810 shares during the last quarter. Lazard Asset Management LLC bought a new position in shares of XPEL during the 2nd quarter worth $55,000. Russell Investments Group Ltd. purchased a new stake in XPEL in the 3rd quarter worth about $66,000. Tower Research Capital LLC TRC raised its stake in XPEL by 234.0% in the 2nd quarter. Tower Research Capital LLC TRC now owns 2,886 shares of the company’s stock valued at $104,000 after acquiring an additional 2,022 shares during the period. Finally, Osaic Holdings Inc. raised its stake in XPEL by 319.7% in the 2nd quarter. Osaic Holdings Inc. now owns 2,984 shares of the company’s stock valued at $107,000 after acquiring an additional 2,273 shares during the period. Institutional investors own 75.08% of the company’s stock.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on XPEL shares. Weiss Ratings reaffirmed a “hold (c)” rating on shares of XPEL in a research note on Monday, December 29th. Wall Street Zen cut XPEL from a “buy” rating to a “hold” rating in a research note on Saturday, November 8th. Two analysts have rated the stock with a Hold rating, According to MarketBeat.com, the company has an average rating of “Hold”.

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.