XPEL Reports Third Quarter 2026 Revenue Growth and Margin Expansion
XPEL reported third-quarter revenue of $137.8 million, representing a 9.9% year-over-year increase, alongside an expanded gross margin of 44.6%. While the company faces short-term headwinds due to regulatory scrutiny regarding vehicle add-ons in U.S. dealerships (notably the CARS Act), management expects these pressures to bottom out in the fourth quarter as dealers transition to compliant sales models. To drive long-term growth, XPEL is shifting toward direct international distribution and expanding its manufacturing footprint through a new Texas plant and the acquisition of VISCO and a facility in China. The company also reported an unprecedented OEM project pipeline for 2027, which is approximately double its historical total, signaling significant potential for expansion into vehicle personalization and manufacturer partnerships.
Topics: acquisition gross margin expansion regulatory impact revenue growth