Q4 2025 Xpel Inc Earnings Call Transcript
Key Points
- XPEL Inc (XPEL) reported a strong Q4 with revenue growth of 13.7% and EBITDA growth of 37.6%.
- The company's US region, its largest market, saw an 11% revenue increase despite challenging market dynamics.
- XPEL Inc (XPEL) completed its acquisition in China, contributing $14 million in revenue, setting the stage for growth in aftermarket, dealership, and OEM partnerships.
- Europe was a bright spot with a 26.8% revenue increase in Q4, showcasing strong performance across multiple channels.
- The company is optimistic about 2026, with strong growth prospects across all customer types and geographies, supported by a robust pipeline of new customer wins.
- XPEL Inc (XPEL) faced headwinds in Canada, with revenue declining slightly due to a 13% drop in car sales.
- The expiration of EV credits in the US negatively impacted Q4 demand, costing the company $1-2 million in end product demand from its referral program.
- Latin America remained flat, with continued weakness from Q3 into Q4, partly due to the conversion of Brazil into a direct market.
- Gross margins were impacted by selling through higher-cost acquired inventory from the China distributor purchase.
- The company experienced increased DSOs, attributed to longer terms on new OEM business, though not considered alarming.
Good morning everyone and welcome to the Xpel Incorporated fourth quarter and year-end 2025 earnings call.
(Operator Instructions) Please note that this conference is being recorded. I will now turn the conference over to your host, Jen Beado of IMF Investor Relations. Jen, the floor is yours.
Thank you. Good morning and welcome to our conference call to discuss Expel's fourth quarter and year-end 2025 financial results. On the call today, Ryan Pape, Expel's President and Chief Executive Officer; and Barry Wood, Expel's senior Vice President and Chief Financial Officer, will provide an overview of the business operations and review the company's financial results. Immediately after the prepared comments. We will take questions from our call participants.
A transcript of this call will be available on the company's website after the call. I'll take a moment now to read the Safe Harbor statement. During the course of this call, we will make certain forward-looking statements regarding Expel Inc. And
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