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what it is
XPEL makes films and software that help protect cars, windows, and lights from scratches, heat, and wear.
how it gets paid
Last year Xpel made $476M in revenue. Paint protection film was the main engine at $238M, or 50% of sales.
why it's growing
Revenue grew 13.3% last year. The key number was 42.3% gross margin because margin tells you whether the brand still has pricing power when growth gets harder.
what just happened
Fourth-quarter revenue rose 13.7% to $122.3M, while EPS climbed to $0.48 and topped expectations.
At a glance
B+ balance sheet — decent shape, but not bulletproof
75/100 earnings predictability — reasonably predictable
27.0x trailing p/e — priced about right
18.5% return on capital — nothing to write home about
xvary composite: 52/100 — below average
What they do
XPEL makes films and software that help protect cars, windows, and lights from scratches, heat, and wear.
XPEL wins because it sells more than film. It sells a system. More than 2,400 direct customers and several thousand indirect customers use its products, software, and installer network, which makes switching a hassle for your shop and your workflow. Return on capital is 18.5% and operating margin is 21.0%, which means the niche is real and the pricing power is not fake.
How they make money
$476M
annual revenue · their business grew +13.3% last year
Paint protection film
$238M
Window film
$143M
Surface and headlight protection
$52M
Software and design tools
$24M
Training, franchise, and support
$19M
The products that matter
automotive paint protection film
Paint protection film
core to a $476M business
this remains the center of gravity in a company that produced $476M in revenue last year. the page does not give you a cleaner product split than that, which is itself a clue: concentration is still the story.
core category
automotive and architectural tinting
Window film
helped drive 13.7% q4 growth
management cited window film as a contributor to the 13.7% fourth-quarter revenue increase to $122.3M. it's not the whole business, but it matters because it broadens the installer's ticket.
growth support
direct distribution network
China distribution
2025 acquisition driver
the acquisition of XPEL's long-time distributor in China helped 2025 results. if that integration keeps working, it gives the company more control over sales in a key market.
expansion bet
Key numbers
27.0x
trailing p/e
P/E → price-to-earnings → how expensive the stock is versus last year's profit. At 27x, you are already paying for a lot of future growth.
$720M
2029 revenue
That is the 2029 revenue forecast versus $476M in 2025, so the story needs another $244M of annual sales to work.
21.0%
operating margin
Operating margin → profit after running the business → so what: XPEL keeps about $21 from every $100 of sales before interest and taxes.
18.5%
return on capital
Return on capital → profit earned on the money used in the business → so what: this niche still produces real returns, not just nice slides.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 4 — safer than 20% of stocks
- price stability 10 / 100
- net profit margin 16.0% — keeps 16 cents of every dollar in revenue
- return on equity 18% — $0.18 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in XPEL 3 years ago → it's now worth $6,280.
The index would have given you $13,880.
source: institutional data · total return
What just happened
beat estimates
Fourth-quarter revenue rose 13.7% to $122.3M, while EPS climbed to $0.48 and topped expectations.
Full-year 2025 revenue reached $476M and EPS hit $1.85. Gross margin was 42.3%, which tells you XPEL is still selling premium protection, not commodity plastic.
$122.3M
revenue
$0.48
eps
42.3%
gross margin
the number that mattered
The key number was 42.3% gross margin because margin tells you whether the brand still has pricing power when growth gets harder.
-
xpel, inc. ended 2025 on a high note.
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the fourth-quarter top line increased 13.7% vs. prior year, to $122.3 million.
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meanwhile, the bottom line jumped nearly 45% from the year-ago tally, to $0.48 per share.the overall results benefited from the acquisition of its long-time aftermarket distributor in china last year, as well as elevated product sales, bolstered by solid contributions from window film and installation services.
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for the full-year 2025, revenue and share earnings totaled $476 million and $1.85, respectively.
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the company has laid out ambitious long-term objectives.
source: company earnings report, 2026
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What could go wrong
the #1 risk is the Scott+Scott class action lawsuit.
med
lawsuit overhang
A class action lawsuit has been filed against XPEL by Scott+Scott Attorneys at Law LLP. when a small-cap already carries a 10/100 price stability score, legal uncertainty tends to hit the stock before it hits the income statement.
Even without a quantified damage estimate on this page, legal costs, management distraction, or a settlement would pressure earnings quality and sentiment.
med
China integration risk
2025 results benefited from acquiring XPEL's long-time aftermarket distributor in China. that can boost control and margins, but it also raises the execution bar in a market the company is counting on for growth.
If the integration stalls, the business loses one of the clearest reasons investors have for believing 13.3% annual growth can continue.
med
concentration and margin pressure
This is still a business built around one core category. a 15.0% net margin and 27.0x trailing p/e leave less room for error if competition intensifies or installers push back on pricing.
A weaker mix or slower demand would matter twice — first to profit margins, then to the multiple investors are willing to pay.
With the stock turning $10,000 into $6,280 over three years and carrying a 10/100 price stability score, XPEL does not have much room to disappoint.
source: institutional data · regulatory filings · risk analysis
Pay attention to
risk
lawsuit developments
Watch filings and company commentary around the Scott+Scott case. a stock with 10/100 price stability does not absorb headline risk gracefully.
trend
double-digit growth holding
Revenue grew 13.3% for the year and 13.7% in the fourth quarter. if that slips meaningfully, the 27.0x earnings multiple stops looking reasonable.
metric
net margin durability
The company posted a 15.0% net margin, but one recent quarter showed 10.3%. watch which number becomes the norm.
calendar
China integration milestones
Future earnings reports need to show that the distributor acquisition is more than a one-year boost. you want signs of sustainable sales and cleaner execution.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts are not seeing a near-term edge either way.
risk profile
below average
stability score 4 — more volatile than most names in the database. this is not a bunker stock.
chart momentum
top 20%
technical score 2 — the chart has improved even while the long-term return record still looks rough.
earnings predictability
75 / 100
Management has been reasonably consistent. in plain English: the business trends are steadier than the stock price suggests.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 79 buyers vs. 52 sellers in 4q2025. total institutional holdings: 20.4M shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$19
$68
$50
current price
$44
target midpoint · 12% from current · 3-5yr high: $85 (+70% · 14% ann'l return)
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