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.
Xpel IncRecord Q2 revenue and improved gross margin, with guidance and long-term margin targets.
NVIDIA Corporation