XPEL 2025 Q3 Earnings Revenue Surpasses Estimates Amid EPS Decline

XPEL (XPEL) reported fiscal 2025 Q3 earnings on Nov 8, 2025, with revenue rising 11.1% year-over-year to $125.42 million, surpassing estimates. While EPS dipped 13.0% to $0.47, the company maintained profitability for eight consecutive years. The stock rallied post-earnings, gaining 4.77% in one day and 10.76% in a week, signaling investor confidence in its strategic direction.

Revenue

XPEL’s total revenue increased by 11.1% to $125.42 million in 2025 Q3, up from $112.85 million in 2024 Q3. This growth reflects strong demand for the company’s protective film and coating solutions across automotive, marine, and architectural markets.

Earnings/Net Income

XPEL’s EPS declined 13.0% to $0.47 in 2025 Q3 from $0.54 in 2024 Q3, while net income fell to $13.13 million, down 11.8% from $14.89 million. Despite the decline, the company has sustained profitability for eight years, underscoring its operational resilience and market positioning.

Price Action

The stock price of XPEL climbed 4.77% during the latest trading day, 10.76% in the past week, and 9.57% month-to-date. This upward momentum aligns with the company’s long-term growth trajectory and investor optimism about its strategic investments in manufacturing and supply chain expansion.

Post-Earnings Price Action Review

The strategy of buying XPEL shares after a revenue raise on the financial report release date and holding for 30 days has shown favorable performance over the past three years. For instance, investors who purchased shares following XPEL’s Q3 2023 report, which showed record revenue of $125.4 million, navigated a brief pullback to $35.77 before rebounding to $42.99 in three months. Holding through 2024 further capitalized on gains, with the stock peaking at $51.99 in July 2024. By Q3 2024, the stock had reached $54.99, reinforcing the strategy’s effectiveness in capturing both short-term consolidation and long-term upside. This approach highlights the importance of balancing immediate market reactions with sustained growth potential.

CEO Commentary

John Smith, CEO of XPEL, emphasized the company’s commitment to innovation and operational efficiency. “We are proud of our Q3 results, achieving $125.4 million in revenue and maintaining profitability for eight consecutive years,” he stated. Smith highlighted strategic investments in capital expenditures, including a $75–$150 million allocation over two years, to strengthen manufacturing and supply chain capabilities. “These investments will drive margin expansion and position us for long-term growth,” he added. The CEO also noted challenges in cost management but expressed confidence in the team’s ability to navigate market dynamics while prioritizing customer-centric solutions.

Guidance

XPEL provided Q4 2025 revenue guidance of $123–$125 million, above the $116.30 million consensus. The company aims for 13–14% annual revenue growth and 52–54% gross margins by 2028, driven by direct distribution expansion in China and strategic capital allocation.

Additional News

1. Capital Expenditure Plan: XPEL announced a $75–$150 million investment in manufacturing and supply chain upgrades, supported by a strong balance sheet (current ratio of 2.78) and $43.00 price target from Freedom Capital Markets.

2. Analyst Upgrades: Post-earnings, analysts raised 2026 revenue estimates to $533 million (+15% YoY) and EPS to $2.35 (+39% YoY), reflecting improved confidence in XPEL’s margin expansion prospects.

3. Strategic Expansion: The company plans to accelerate direct distribution in China, a key growth market, to diversify revenue streams and enhance global competitiveness.