# EDGAR Filing Document

**Accession Number:** 0001767258
**File Stem:** 0001767258-25-000045
**Filing Date:** 2025-8
**Character Count:** 27562
**Document Hash:** 1eca6303d0daed547e39e45be45cb189
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001767258-25-000045.hdr.sgml**: 20250806

**ACCESSION NUMBER**: 0001767258-25-000045

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20250806

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250806

**DATE AS OF CHANGE**: 20250806

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** XPEL, Inc.
- **CENTRAL INDEX KEY:** 0001767258
- **STANDARD INDUSTRIAL CLASSIFICATION:** COATING, ENGRAVING & ALLIED SERVICES [3470]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 201117381
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38858
- **FILM NUMBER:** 251187786

**BUSINESS ADDRESS:**
- **STREET 1:** 711 BROADWAY ST.
- **STREET 2:** SUITE 320
- **CITY:** SAN ANTONIO
- **STATE:** TX
- **ZIP:** 78215
- **BUSINESS PHONE:** 210-678-3700

**MAIL ADDRESS:**
- **STREET 1:** 711 BROADWAY ST.
- **STREET 2:** SUITE 320
- **CITY:** SAN ANTONIO
- **STATE:** TX
- **ZIP:** 78215

?xml version='1.0' encoding='ASCII'? xpel-20250806

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K** 

**CURRENT REPORT**

**Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934**

**August 6, 2025**

Date of Report (date of earliest event reported)

**XPEL, INC.** 

**(Exact name of registrant as specified in its charter)**

---

| | | | |
|:---|:---|:---|:---|
| **Nevada** | **001-38858** | **001-38858** | **20-1117381** |
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (Commission File Number) | (I.R.S. Employer Identification No.) |
| **711 Broadway, Suite 320** | **711 Broadway, Suite 320** | **78215** | **78215** |
| **San Antonio** | **Texas** | | |
| (Address of Principal Executive Offices) | (Address of Principal Executive Offices) | (Zip Code) | (Zip Code) |

---

Registrant's telephone number, including area code: (210) 678-3700

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common Stock, par value $0.001 per share | XPEL | The Nasdaq Stock Market LLC |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company **☐**

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. **☐**

------

**Item 2.02 Results of Operations and Financial Condition**

On August 6, 2025, XPEL, Inc. ("XPEL") announced its consolidated financial results for the three and six months ended June 30, 2025. A copy of the press release is attached as Exhibit 99.1 to this current report on Form 8-K, and the information set forth therein is incorporated herein by reference and constitutes a part of this report.

The information contained in Item 2.02 of this report and Exhibit 99.1 to this report shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and shall not be incorporated by reference into any filings made by XPEL under the Securities Act of 1933, as amended, or the Exchange Act, except as may be expressly set forth by specific reference in such filing.

&nbsp;&nbsp;&nbsp;&nbsp;**Item 9.01. Financial Statements and Exhibits**

&nbsp;&nbsp;&nbsp;&nbsp;(d) Exhibits

The following exhibit is to be filed as part of this Form 8-K:

---

| | |
|:---|:---|
| **EXHIBIT NO.** | **IDENTIFICATION OF EXHIBIT** |
| 99.1 | <u>[Press Release Dated August 6, 2025](xpelq22025er.htm)</u> |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL Document) |

---

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | |
|:---|:---|
| | **XPEL, Inc.** |
| Dated: August 6, 2025 | By: /s/ Barry R. Wood |
|  | Barry R. Wood |
|  | Senior Vice President and Chief Financial Officer |

---

## Exhibit 99.1

Ex. 99.1

**XPEL Reports Record Revenue of $124.7 Million; Revenue Growth of 13.5% in Second Quarter 2025**

San Antonio, TX – August 6, 2025 – XPEL, Inc. (Nasdaq: XPEL) (the "Company"), a global provider of protective films and coatings, announced consolidated results<sup>1</sup> for the second quarter of 2025.

Second Quarter 2025 Overview:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Revenue increased 13.5% to $124.7 million in the second quarter of 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gross margin of 42.9% in the second quarter of 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased 7.1% to $23.4 million, or 18.7% of revenue, compared to $21.8 million, or 19.9% of revenue in the second quarter of 2024.<sup>2</sup> The Company incurred approximately $1.6 million in one-time charges related to restructuring costs, legal and due diligence costs related to the Company's acquisition strategy and other costs. Normalizing for these costs, EBITDA would have increased 14.7% to $25.0 million, or 20.0% of revenue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net income increased 7.8% to $16.2 million, or $0.59 per basic and diluted share, versus net income of $15.0 million, or $0.54 per basic and diluted share in the second quarter of 2024. Normalizing for the one-time charges, net income would have grown 16.7% to $17.5 million or $0.63 per basic and diluted share.

First Six Months 2025 Overview:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Revenue increased 14.2% to $228.5 million in the first six months of 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gross margin of 42.6% in the first six months of 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased 12.9% to $37.8 million, or 16.6% of revenue, compared to $33.5 million, or 16.8% of revenue in the first six months of 2024.<sup>2</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net income increased 14.3% to $24.8 million, or $0.90 per basic and diluted share, versus net income of $21.7 million, or $0.79 per basic and diluted share in the first six months of 2024.

Ryan Pape, President and Chief Executive Officer of XPEL, commented, "We saw good revenue momentum in the first half of the year and I am pleased with our first half performance in this environment. We look forward to building on this momentum for the rest of the year."

------

**Financial Highlights for the Second Quarter 2025:** 

Summary consolidated financial information for the three months ended June 30, 2025 and 2024 (unaudited, dollars in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **% Change** |
| | **2025** | **%<br>of Total Revenue** | **2024** | **%<br>of Total Revenue** | **2025 vs. 2024** |
| Total revenue | $124713 | 100.0% | $109917 | 100.0% | 13.5% |
| Gross margin | 53517 | 42.9% | 47865 | 43.5% | 11.8% |
| Operating Expenses | 34219 | 27.4% | 28679 | 26.1% | 19.3% |
| Net income | 16208 | 13.0% | 15033 | 13.7% | 7.8% |
| EBITDA<sup>2</sup> | 23369 | 18.7% | 21824 | 19.9% | 7.1% |
| Net cash provided by operating activities | $27888 | 22.4% | $26896 | 24.5% | 3.7% |

---

*<u>Geographical Revenue Summary</u>*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **% Change** | **% of Total Revenue** | **% of Total Revenue** |
| | **2025** | **2024** | **Inc (Dec)** | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;United States | $70380 | $64902 | 8.4% | 56.4% | 59.0% |
| &nbsp;&nbsp;&nbsp;Canada | 14254 | 13274 | 7.4% | 11.5% | 12.1% |
| **North America** | 84634 | 78176 | 8.3% | 67.9% | 71.1% |
| &nbsp;&nbsp;&nbsp;China | 7705 | 4401 | 75.1% | 6.2% | 4.0% |
| &nbsp;&nbsp;&nbsp;Asia Other | 5428 | 4120 | 31.7% | 4.3% | 3.8% |
| **Asia Pacific** | 13133 | 8521 | 54.1% | 10.5% | 7.8% |
| **EU, UK, and Africa** | 17360 | 15261 | 13.8% | 13.9% | 13.9% |
| **India and Middle East** | 6746 | 4800 | 40.5% | 5.4% | 4.4% |
| **Latin America** | 2840 | 3159 | (10.1)% | 2.3% | 2.8% |
| &nbsp;&nbsp;&nbsp;**Total** | $124713 | $109917 | 13.5% | 100.0% | 100.0% |

---

*<u>Overall Revenue</u>*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total revenue grew 13.5% compared to second quarter of 2024 ("YoY").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We saw record revenue in US, Europe and the Middle East.

*<u>Product and Service Revenue</u>*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total product revenue increased 13.9% YoY and represented 76.0% of total revenue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total window film revenue increased 27.0% YoY and represented 22.4% of total revenue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total service revenue increased 12.0% YoY and represented 24.0% of total revenue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total installation revenue (labor and product combined) grew 17.9% YoY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted product revenue (combining cutbank credits revenue and product revenue) increased 12.9% YoY.

*<u>Other Financial Information</u>*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gross margin percentage was 42.9% and 43.5% in the second quarter of 2025 and 2024, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sales and marketing expense increased 15.4% YoY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• General and administrative expense increased 21.5% YoY.

------

*<u>Cash Flows from Operations</u>*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cash flows provided by operations were $27.9 million in the second quarter 2025.

***2025 Outlook***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company expects third quarter 2025 revenue of approximately $117 - $119 million.

Please see the information under "Forward-looking Statements" below regarding certain cautionary statements relating to our 2025 Third Quarter Outlook.

**Conference Call Information**

The Company will host a conference call and webcast today, August 6, 2025 at 11:00 a.m. Eastern Time to discuss the Company's second quarter 2025 results.

To access the live webcast, please visit the XPEL, Inc. website at https://investor.xpel.com/events-and-presentations/.

To participate in the call by phone, dial (888) 506-0062 approximately five minutes prior to the scheduled start time. International callers please dial (973) 528-0011. Callers should use access code: 856599.

A replay of the teleconference will be available until September 5, 2025 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 52679.

**About XPEL, Inc.**

XPEL is a leading provider of protective films and coatings, including automotive paint protection film, surface protection film, automotive and architectural window films, and ceramic coatings. With a global footprint, a network of trained installers and proprietary DAP software, XPEL is dedicated to exceeding customer expectations by providing high-quality products, leading customer service, expert technical support and world-class training. XPEL, Inc. is publicly traded on Nasdaq under the symbol "XPEL".

<sup>1</sup> The results summarized above for 2025 are preliminary and unaudited. As the Company completes its quarter-end financial close processes and finalizes its financial statements for the second quarter of 2025, it is possible that the Company may identify items that require it to make adjustments to the preliminary information set forth above, and those adjustments could be material. Full second quarter 2025 financial information will be included in the filing of the Company's Quarterly Report on Form 10-Q with the Securities and Exchange Commission which is anticipated on or prior to August 8, 2025.

<sup>2</sup> See "Non-GAAP Financial Measure" and "Reconciliation of Non-GAAP Financial Measure" below.

**Forward-looking Statements**

*This release includes forward-looking statements (within the meaning of Section 27A of the Securities act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended) regarding XPEL, Inc. and its business, which may include, but is not limited to, anticipated use of proceeds from capital transactions, expansion into new markets, execution of the company's growth strategy and outlook. Often, but not always, forward-looking statements can be identified by the use of words such as "plans," "is expected," "expects," "scheduled," "intends," "contemplates," "anticipates," "believes," "proposes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may," "could," "would," "might" or "will" be taken, occur or be achieved. Such statements are based on the current expectations and assumptions of the management of XPEL. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements expressed or implied by the forward-looking statements. These risks, uncertainties and other factors relate to, among others: competition, a prolonged or material contraction in automotive sales and production volumes, disruption in our supply chain, technology that could render our products obsolete, changes in the way vehicles are sold, damage to our brand and reputation, cyber events and other legal and regulatory developments.* 

------

*There are several risks, uncertainties, and other important factors, many of which are beyond the Company's control, that could cause its actual results to differ materially from the forward-looking statements contained in this press release, including those described in the "Risk Factors" section of Annual Report on Form 10-K. Although XPEL has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and XPEL undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.*

**Non-GAAP Financial Measure**

*To aid in the understanding of XPEL's ongoing business performance, XPEL uses EBITDA, a non-GAAP financial measure. EBITDA is defined as net income (loss) plus interest expense, net, plus income tax expense plus depreciation and amortization expense. EBITDA should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. It is not a measurement of XPEL's financial performance under GAAP and should not be considered as an alternative to revenue or net income, as applicable, or any other performance measures derived in accordance with GAAP and may not be comparable to other similarly title measures. For a full reconciliation of EBITDA to comparable GAAP measure, refer to the reconciliation titled "****Reconciliation of Non-GAAP Financial Measure."***

---

| |
|:---|
| <br>**For more information, contact:**  |
| Investor Relations:<br>John Nesbett/Jennifer Belodeau<br>IMS Investor Relations<br>Phone: (203) 972-9200<br>Email: xpel@imsinvestorrelations.com |

---

------

**XPEL, Inc.**

**Consolidated Statements of Income (Unaudited)**

**(In thousands except per share data)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Revenue** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Product revenue | $94795 | $83200 | $173507 | $150052 |
| &nbsp;&nbsp;&nbsp;Service revenue | 29918 | 26717 | 55011 | 49969 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total revenue** | 124713 | 109917 | 228518 | 200021 |
| **Cost of Sales** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cost of product sales | 58190 | 51274 | 106630 | 93409 |
| &nbsp;&nbsp;&nbsp;Cost of service | 13006 | 10778 | 24475 | 20871 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total cost of sales** | 71196 | 62052 | 131105 | 114280 |
| **Gross Margin** | 53517 | 47865 | 97413 | 85741 |
| **Operating Expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 11862 | 10280 | 23737 | 20671 |
| &nbsp;&nbsp;&nbsp;General and administrative | 22357 | 18399 | 43258 | 36655 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total operating expenses** | 34219 | 28679 | 66995 | 57326 |
| **Operating Income** | 19298 | 19186 | 30418 | 28415 |
| &nbsp;&nbsp;&nbsp;Interest expense | 7 | 392 | 83 | 865 |
| &nbsp;&nbsp;&nbsp;Foreign currency exchange (gain)/loss | (1039) | 275 | (1275) | 548 |
| **Income before income taxes** | 20330 | 18519 | 31610 | 27002 |
| &nbsp;&nbsp;&nbsp;Income tax expense | 4122 | 3486 | 6816 | 5303 |
| **Net income** | 16208 | 15033 | 24794 | 21699 |
| **Net loss attributed to non-controlling interest** | (82) |  | (82) |  |
| **Net income attributable to stockholders of the Company** | $16290 | $15033 | $24876 | $21699 |
| **Earnings per share attributable to stockholders of the Company** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Basic** | $0.59 | $0.54 | $0.90 | $0.79 |
| &nbsp;&nbsp;&nbsp;**Diluted** | $0.59 | $0.54 | $0.90 | $0.79 |
| **Weighted Average Number of Common Shares** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Basic** | 27666 | 27635 | 27660 | 27633 |
| &nbsp;&nbsp;&nbsp;**Diluted** | 27673 | 27637 | 27675 | 27637 |

---

------

**XPEL, Inc.**

**Consolidated Balance Sheets**

**(In thousands except share and per share data)**

---

| | | |
|:---|:---|:---|
| | **(Unaudited)** | **(Audited)** |
| | **June 30, 2025** | **December 31, 2024** |
| **Assets** | | |
| **Current** | | |
| &nbsp;&nbsp;Cash and cash equivalents | $49591 | $22087 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 38122 | 29146 |
| &nbsp;&nbsp;&nbsp;Inventory, net | 104129 | 110904 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 5474 | 5314 |
| &nbsp;&nbsp;&nbsp;Income tax receivable |  | 893 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total current assets** | 197316 | 168344 |
| Property and equipment, net | 16875 | 17735 |
| Right-of-use lease assets | 20138 | 19490 |
| Intangible assets, net | 32491 | 34562 |
| Deferred tax asset, net | 1257 |  |
| Other non-current assets | 3456 | 1350 |
| Goodwill | 46538 | 44126 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $318071 | $285607 |
| **Liabilities** |  |  |
| **Current** |  |  |
| &nbsp;&nbsp;&nbsp;Current portion of notes payable | $69 | $63 |
| &nbsp;&nbsp;&nbsp;Current portion lease liabilities | 5396 | 4666 |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | 38955 | 36789 |
| &nbsp;&nbsp;&nbsp;Income tax payable | 205 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total current liabilities** | 44625 | 41518 |
| Deferred tax liability, net |  | 469 |
| Other long-term liabilities | 1492 | 1810 |
| Non-current portion of lease liabilities | 16159 | 16126 |
| Non-current portion of notes payable | 137 | 229 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | 62413 | 60152 |
| **Commitments and Contingencies (Note 11)** |  |  |
| **Stockholders' equity** |  |  |
| Preferred stock, $0.001 par value; authorized 10,000,000; none issued and outstanding |  |  |
| Common stock, $0.001 par value; 100,000,000 shares authorized; 27,669,848 and 27,651,773 issued and outstanding, respectively | 28 | 28 |
| Additional paid-in-capital | 17085 | 15550 |
| Accumulated other comprehensive loss | (362) | (4236) |
| Retained earnings | 238989 | 214113 |
|  | 255740 | 225455 |
| Non-controlling interest | (82) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total stockholders' equity** | 255658 | 225455 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and stockholders' equity** | $318071 | $285607 |

---

------

**XPEL, Inc.**

**Consolidated Statements of Cash Flows (Unaudited)**

**(In thousands)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Cash flows from operating activities** |  |  |  |  |
| Net income | $16290 | $15033 | $24876 | $21699 |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation of property, plant and equipment | 1557 | 1471 | 3093 | 2804 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangible assets | 1538 | 1442 | 3059 | 2852 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss/(Gain) on sale of property and equipment | 7 | (10) | 7 | (28) |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock compensation | 1017 | 837 | 1696 | 1467 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses | 109 | 100 | 181 | 189 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax | (1136) | (705) | (1902) | (862) |
| Changes in assets and liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | (3926) | (991) | (7841) | (5754) |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventory, net | 12099 | 12644 | 7911 | 8766 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (1430) | 1016 | (1981) | (1309) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes receivable and payable | (1902) | (1491) | 1052 | (587) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | 3665 | (2450) | 966 | (7299) |
| **Net cash provided by operating activities** | 27888 | 26896 | 31117 | 21938 |
| **Cash flows used in investing activities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Purchase of property, plant and equipment | (943) | (1811) | (1946) | (3828) |
| &nbsp;&nbsp;&nbsp;Proceeds from sale of property and equipment | 14 |  | 15 |  |
| &nbsp;&nbsp;Acquisition of businesses, net of cash acquired | (143) | (5171) | (184) | (5928) |
| &nbsp;&nbsp;&nbsp;Development of intangible assets | (275) | (501) | (788) | (841) |
| **Net cash used in investing activities** | (1347) | (7483) | (2903) | (10597) |
| **Cash flows from financing activities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net payments on revolving line of credit |  | (13000) |  | (8000) |
| &nbsp;&nbsp;Restricted stock withholding taxes paid in lieu of issued shares | (68) | (87) | (161) | (87) |
| &nbsp;&nbsp;&nbsp;Repayments of notes payable | (21) | (16) | (98) | (31) |
| **Net cash used in financing activities** | (89) | (13103) | (259) | (8118) |
| **Net change in cash and cash equivalents** | 26452 | 6310 | 27955 | 3223 |
| **Foreign exchange impact on cash and cash equivalents** | (402) | 60 | (451) | 152 |
| **Increase in cash and cash equivalents during the period** | 26050 | 6370 | 27504 | 3375 |
| **Cash and cash equivalents at beginning of period** | 23541 | 8614 | 22087 | 11609 |
| **Cash and cash equivalents at end of period** | $49591 | $14984 | $49591 | $14984 |
| **Supplemental schedule of non-cash activities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Non-cash lease financing** | $2009 | $4086 | $2840 | $5038 |
| &nbsp;&nbsp;&nbsp;**Issuance of common stock for vested restricted stock units** | $331 | $405 | $521 | $462 |
| **Supplemental cash flow information** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Cash paid for income taxes** | $6938 | $5646 | $7457 | $6798 |
| &nbsp;&nbsp;&nbsp;**Cash paid for interest** | $— | $414 | $89 | $844 |

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**Reconciliation of Non-GAAP Financial Measure** 

EBITDA is a non-GAAP financial measure. EBITDA is defined as net income (loss) plus interest expense, net, plus income tax expense plus depreciation expense and amortization expense. EBITDA should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. It is not a measurement of our financial performance under GAAP and should not be considered as alternatives to revenue or net income, as applicable, or any other performance measures derived in accordance with GAAP and may not be comparable to other similarly titled measures of other businesses. EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our operating results as reported under GAAP.

EBITDA does not reflect the impact of certain cash charges resulting from matters we consider not to be indicative of ongoing operations and other companies in our industry may calculate EBITDA differently than we do, limiting its usefulness as a comparative measure.

**EBITDA Reconciliation (in thousands)**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Net Income** | $16208 | $15033 | $24794 | $21699 |
| **Interest** | 7 | 392 | 83 | 865 |
| **Taxes** | 4122 | 3486 | 6816 | 5303 |
| **Depreciation** | 1557 | 1471 | 3093 | 2804 |
| **Amortization** | 1475 | 1442 | 3059 | 2852 |
| **EBITDA** | $23369 | $21824 | $37845 | $33523 |

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