XPEL, Inc. reported significant financial performance for the third quarter and the first nine months of 2024, showcasing growth in revenue and profitability compared to the same periods in 2023. For the three months ended September 30, 2024, total revenue reached $112.9 million, a 9.9% increase from $102.7 million in the prior year. This growth was driven by a 7.2% rise in product revenue to $87.0 million and a 20.6% increase in window film revenue, which totaled $22.6 million. Service revenue also saw a notable increase of 20.6%, amounting to $25.9 million.

For the nine months ended September 30, 2024, total revenue was $312.9 million, reflecting a 7.6% increase from $290.8 million in the same period of 2023. Product revenue for this period increased by 3.3% to $237.0 million, while service revenue surged by 23.5% to $75.9 million. The company’s gross margin improved, with gross profit for the third quarter at $47.9 million (42.5% of revenue), up from $41.5 million (40.4% of revenue) in the prior year.

Despite the positive revenue trends, net income for the nine months ended September 30, 2024, decreased to $36.6 million from $40.8 million in 2023, marking a 10.4% decline. This decline was attributed to increased operating expenses, which rose by 26.4% to $86.9 million, driven by higher sales and marketing costs and general administrative expenses.

XPEL's cash position improved significantly, with cash and cash equivalents increasing to $21.0 million as of September 30, 2024, compared to $11.6 million at the end of 2023. The company reported net cash provided by operating activities of $41.5 million for the nine months, up from $38.5 million in the previous year.

Strategically, XPEL completed acquisitions totaling $8.0 million in 2024 to expand its geographical footprint and product offerings, although these acquisitions have not yet significantly impacted consolidated operating results. The company also maintained a strong balance sheet, with no outstanding balance on its $125 million revolving credit facility as of September 30, 2024, compared to an outstanding balance of $19 million at the end of 2023.

XPEL continues to focus on global expansion and increasing brand awareness through targeted marketing initiatives. The company operates as a single segment, specializing in protective films and coatings, and is committed to enhancing its product delivery and service capabilities.