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XPEL Revenues Increase 19.5% to $85.8 Million in First Quarter 2023 With Gross Margin of 41.9%

Published On 5/9/2023

San Antonio, TX – May 9, 2023 – XPEL, Inc. (Nasdaq: XPEL) a global provider of protective films and coatings, today announced results for the quarter ended March 31, 2023.

First Quarter 2023 Highlights::

  • Revenues increased 19.5% to $85.8 million in the first quarter.
  • Gross margin percentage improved to 41.9% in the first quarter, a new high for the Company.
  • Net income grew 46.5% to $11.4 million, or $0.41 per share, compared to $7.8 million, or $0.28 per share, in the same quarter of 2022.
  • EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) grew 43.9% to $17.1 million, or 19.9% of revenues compared to $11.9 million in first quarter 2022.1

Ryan Pape, President and Chief Executive Officer of XPEL, commented, “We’re off to a great start in 2023 with solid first quarter results. We continue to see good momentum in our business and remain focused on driving growth as we move through 2023.”

For the Quarter Ended March 31, 2023:

Revenues. Revenues increased approximately $14.0 million or 19.5% to $85.8 million as compared to $71.9 million in the first quarter of the prior year.

Gross Margin. Gross margin was 41.9% compared to 38.6% in the first quarter of 2022.

Expenses. Operating expenses increased to $21.0 million, or 24.5% of sales, compared to $17.7 million, or 24.6% of sales in the prior year period.

Net income. Net income was $11.4 million, or $0.41 per basic and diluted share, versus net income of $7.8 million, or $0.28 per basic and diluted share in the first quarter of 2022.

EBITDA. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was $17.1 million, or 19.9% of sales, as compared to $11.9 million, or 16.5% of sales in the prior year.1

Conference Call Information

The Company will host a conference call and webcast today, May 9, 2023, at 11:00 a.m. Eastern Time to discuss the Company’s first quarter 2023 results.

To access the live webcast, please visit the XPEL, Inc. website at

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: 760015

A replay of the teleconference will be available until June 8, 2023, and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 48243.

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”.

1See reconciliation of non-GAAP financial measures below.

Safe harbor statement

This release includes forward-looking statements 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, and execution of the company's growth strategy. 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 of the management of XPEL. The forward-looking events and circumstances discussed in this release may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting the company, performance and acceptance of the company's products, economic factors, competition, the equity markets generally and many other factors beyond the control of XPEL. Without limitation, the risks and uncertainties affecting XPEL are described in XPEL’s most recent Form 10-K (including Item 1A Risk Factors) filed with the SEC. 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.

For more information contact:
Investor Relations:
John Nesbett/Jennifer Belodeau
IMS Investor Relations
Phone: (203) 972-9200

Condensed Consolidated Statements of Income (Unaudited)
(In thousands except per share data)


Three Months Ended
March 31,



 Product revenue $    67,308 $    58,098
 Service revenue      18,534      13,766
    Total revenue      85,842      71,864
Cost of Sales
 Cost of product sales      42,180      38,194
 Cost of service      7,702      5,953
     Total cost of sales      49,882      44,147
Gross Margin      35,960      27,717
Operating Expenses
 Sales and marketing      6,675      6,311
 General and administrative      14,354      11,369
     Total operating expenses      21,029      17,680
Operating Income      14,931      10,037
 Interest expense      523      220
 Foreign currency exchange (gain) loss      (9)      5
Income before income taxes      14,417      9,812
 Income tax expense      2,984      2,009
Net income $    11,433 $    7,803
Earnings per share
 Basic $        0.41 $        0.28
 Diluted $        0.41 $        0.28
Weighted Average Number of Common Shares
 Basic $     27,616 $     27,613
 Diluted $     27,626 $     27,613

Condensed Consolidated Balance Sheets
(In thousands except per share data)


March 31, 2023

December 31, 2022

 Cash and cash equivalents $       8,330 $       8,056
 Accounts receivable, net      21,353      14,726
 Inventory, net      84,594      80,575
 Prepaid expenses and other current assets      6,035      3,464
     Total current assets      120,312      106,821
Property and equipment, net      15,311      14,203
Right-of-use lease assets      15,624      15,309
Intangible assets, net      28,485      29,294
Other non-current assets      1,116      972
Goodwill      26,819      26,763
     Total assets $   207,667 $   193,362
 Current portion of notes payable      --      77
 Current portion lease liabilities      4,261      3,885
 Accounts payable and accrued liabilities      20,541      22,970
 Income tax payable      2,828      470
     Total current liabilities      27,630      27,402
Deferred tax liability, net      1,935      2,049
Other long-term liabilities      1,105      1,070
Borrowings on line of credit      28,000      26,000
Non-current portion of lease liabilities      12,240      12,119
     Total liabilities      70,910      68,640
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; 27,616,064 issued and outstanding      28      28
Additional paid-in-capital      11,376      11,073
Accumulated other comprehensive loss      (1,904)      (2,203)
Retained earnings      127,257      115,824
  Total stockholders' equity      136,757      124,722
  Total liabilities and stockholders' equity $     207,667 $     193,362

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)


Three Months Ended
March 31,



Net Income $     11,433 $     7,803
Interest      523      220
Taxes      2,984      2,009
Depreciation      972      756
Amortization      1,161      1,076
EBITDA $     17,073 $     11,864