XPEL Tech | 10-Q: FY2025 Q3 Revenue Beats Estimate at USD 125.42 M

Revenue: As of FY2025 Q3, the actual value is USD 125.42 M, beating the estimate of USD 119.25 M.

EPS: As of FY2025 Q3, the actual value is USD 0.47, missing the estimate of USD 0.5167.

EBIT: As of FY2025 Q3, the actual value is USD 16.75 M.

Product Revenue: $95,459 thousand for the three months ended September 30, 2025, compared to $86,950 thousand for the same period in 2024. For the nine months ended September 30, 2025, product revenue was $268,966 thousand, compared to $237,002 thousand in 2024.
Service Revenue: $29,956 thousand for the three months ended September 30, 2025, compared to $25,902 thousand for the same period in 2024. For the nine months ended September 30, 2025, service revenue was $84,967 thousand, compared to $75,871 thousand in 2024.

Net Income: $13,135 thousand for the three months ended September 30, 2025, compared to $14,892 thousand for the same period in 2024. For the nine months ended September 30, 2025, net income was $37,929 thousand, compared to $36,591 thousand in 2024.
Gross Margin: $52,424 thousand for the three months ended September 30, 2025, compared to $47,916 thousand for the same period in 2024. For the nine months ended September 30, 2025, gross margin was $149,836 thousand, compared to $133,657 thousand in 2024.
Operating Income: $16,751 thousand for the three months ended September 30, 2025, compared to $18,387 thousand for the same period in 2024. For the nine months ended September 30, 2025, operating income was $47,169 thousand, compared to $46,802 thousand in 2024.
Operating Expenses: $35,673 thousand for the three months ended September 30, 2025, compared to $29,529 thousand for the same period in 2024. For the nine months ended September 30, 2025, operating expenses were $102,667 thousand, compared to $86,855 thousand in 2024.

Operating Cash Flow: $64,271 thousand for the nine months ended September 30, 2025, compared to $41,497 thousand for the same period in 2024.
Investing Cash Flow: - $20,786 thousand for the nine months ended September 30, 2025, compared to - $12,986 thousand for the same period in 2024.
Financing Cash Flow: - $425 thousand for the nine months ended September 30, 2025, compared to - $19,219 thousand for the same period in 2024.

Goodwill: $52,292 thousand as of September 30, 2025, compared to $44,126 thousand as of December 31, 2024.
Intangible Assets: $56,267 thousand as of September 30, 2025, compared to $34,562 thousand as of December 31, 2024.

Core Business Focus: The company plans to continue investing in manufacturing and the supply chain to become a high-quality, low-cost producer, which is expected to improve operating margins and allow more control over the end-to-end manufacturing process.
Non-Core Business: The company completed acquisitions for an aggregate purchase price of $48.7 million during 2025 to increase its geographical footprint.
Priority: The company aims to generate positive operating cash to fund operational and capital investment initiatives, ensuring sufficient liquidity to operate for at least the next 12 months.