XPEL Reports Q3 2026 Revenue Growth Driven by China Expansion and Margin Improvements
XPEL (XPEL) reported a strong third quarter with revenue reaching $137.8 million, representing a 9.9% year-over-year increase. Despite an estimated $2 million pull-forward in sales to the previous quarter, the company saw significant growth in China, where revenue surged 52.4% following a transition to a direct sales model. Gross margins improved by 280 basis points to 44.6%, aided by lower product costs and strategic international acquisitions. However, the company faces regional headwinds, including a 16.6% decline in India and Middle East revenue due to geopolitical tensions and reduced vehicle demand in Saudi Arabia. In the U.S., growth was tempered by flat performance in the dealership channel amid FTC scrutiny on dealer pricing practices. For the fourth quarter, XPEL provided revenue guidance between $125 million and $127 million, anticipating continued softness in the domestic dealership sector.
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Topics: capital expenditures china market performance financial guidance gross margin expansion revenue growth