XPEL 2025 Q2 Earnings Net Income Grows 7.8%

XPEL (XPEL) reported its Q2 2025 earnings on August 8, 2025. The company delivered a strong performance with revenue up 13.5% to $124.71 million, and net income increased by 7.8% year-over-year. The results reflect XPEL’s ongoing success in its automotive protection and window film segments, supported by global demand growth and strategic diversification.

Revenue
XPEL’s total revenue rose to $124.71 million in Q2 2025, a 13.5% increase from $109.92 million in the same period the prior year. The Product Revenue segment was a key contributor, generating $94.80 million, with Paint Protection Film leading at $62.67 million. Window Film added $27.96 million, while other product categories accounted for $4.17 million. The Service Revenue segment reached $29.92 million, driven by $22.45 million in installation labor, $4.52 million in Cutbank credits, and $2.18 million in software-related services. This revenue breakdown reflects a balanced growth across both product and service offerings.

Earnings/Net Income
XPEL’s earnings per share (EPS) increased by 9.3% to $0.59 in Q2 2025, compared to $0.54 in Q2 2024. Net income grew to $16.21 million, up 7.8% from $15.03 million in the prior year. The consistent profitability over eight consecutive years demonstrates the company’s financial resilience and operational efficiency. This performance supports the company's long-term strategic objectives and strengthens its market position.

Price Action
Following the earnings report, XPEL’s stock price showed mixed performance in the short term. The stock dropped 4.14% on the latest trading day but gained 6.64% over the most recent full trading week. However, the month-to-date performance was more challenging, with the stock declining 11.59%. Investors remain closely monitoring the company's market response to these results.

Post-Earnings Price Action Review
The post-earnings trading strategy of buying XPEL shares after a beat and selling after 30 days yielded a 21.81% return. While this outperformed a flat market, it significantly underperformed the benchmark return of 85.66%. The strategy exhibited a modest Sharpe ratio of 0.15, suggesting limited risk-adjusted returns. With a maximum drawdown of 0.00% and a volatility of 26.35%, the strategy showed minimal downside risk but was not particularly effective in generating substantial returns.

CEO Commentary
Jerry Mitchell, XPEL’s CEO and Founder, highlighted the company’s strong Q2 performance, emphasizing growing global demand for premium automotive protection and window film products. He noted the company's strategic shift from a product-centric approach to a diversified portfolio, including high-performance window films and home and building applications. Mitchell expressed confidence in XPEL’s ability to maintain its leadership in the market, particularly as the window film segment gains traction in international markets.

Guidance
XPEL provided forward-looking guidance focused on continued investment in product innovation and global distribution. Although specific revenue or EPS targets were not disclosed, the company expects sustained revenue growth and profitability in alignment with its long-term strategic goals. The CEO reiterated XPEL’s commitment to delivering high-value, customer-centric solutions, ensuring competitive positioning in the evolving automotive protection and window film market.

Additional News
Recent news from other sectors highlighted several significant developments. In the automotive industry, new product launches and strategic partnerships were notable. Meanwhile, geopolitical and regulatory updates influenced market dynamics across various sectors. Key corporate developments included leadership changes and expansion initiatives, reflecting the broader industry trends toward innovation and market diversification.