Xpel Inc

XPEL, Inc. posted record second-quarter revenue of $143.1 million, a 14.7% increase that included roughly $2 million in pull-ahead sales ahead of anticipated third-quarter price increases. The U.S. independent channel outperformed the dealership channel, which faces regulatory headwinds, while China domestic sales held up despite a 20% decline in the broader car market, aided by a regional distributor acquisition. Gross margin improved to 44.1% as the company sold through higher-priced inventory from the China deal, and management is cutting SKUs by about 10% to boost inventory turnover. The company guided third-quarter revenue between $137 million and $139 million, reflecting seasonal European holidays and the pulled-forward sales, and is investing $110 million in manufacturing facilities in San Antonio and China, with incremental margin benefits expected from mid-2027. XPEL also financed part of the San Antonio real estate purchase with a $44.8 million 10-year term loan and targets a mid-20% operating margin run rate by the end of 2028.

Brown Capital Management added XPEL to its Small Company Fund in the first quarter of 2026. The fund highlighted XPEL's core paint protection film business, noting the market is less than 10% penetrated on cars in the U.S. and globally. XPEL pursues a multi-channel strategy selling through aftermarket shops, dealerships, and auto manufacturers, and its proprietary software helps installers apply products with greater speed and precision. The fund's investor shares fell 19.78% in the quarter, underperforming the Russell 2000 Growth index's 2.81% decline, amid worsened market conditions from the Iran war and an oil price spike. XPEL shares closed at $45.96 on June 23, 2026, with a market capitalization of $1.27 billion.