Abstract

XPEL, Inc. will report results Pre-Market on February 25, 2026, with current-quarter forecasts pointing to mid-teens year-over-year revenue growth and a recovery in earnings per share, while recent institutional commentary in the defined period appears limited.

Market Forecast

Based on the most recent forecast dataset, XPEL, Inc. is projected to deliver revenue of 125.01 million for the current quarter, an increase of 16.85% year over year, with adjusted EPS estimated at 0.447, up 18.45% year over year; EBIT is forecast at 15.71 million, implying 9.65% year-over-year growth. Forecast detail for gross profit margin and net profit margin is not specified, and margin expectations will be inferred from last quarter’s baselines.

In the main business, the company continues to rely on the core product portfolio as the principal revenue engine, with expectations that product-led mix will anchor current-quarter performance while margins are monitored closely for consistency with recent levels. Services remain the most promising segment from a mix-enhancement perspective, contributing 29.96 million last quarter; segment-level year-over-year growth was not disclosed, while company-wide revenue expanded 11.13% year over year.

Last Quarter Review

XPEL, Inc. reported last quarter revenue of 125.42 million, a gross profit margin of 41.80%, GAAP net profit attributable to the parent company of 12.94 million, a net profit margin of 10.32%, and adjusted EPS of 0.47, representing a 12.96% year-over-year decline. Sequentially, net profit contracted by 20.56% quarter over quarter, with top line outperforming the prior estimate by 6.16 million (a 5.17% positive surprise) while EPS fell short by 0.047 (a 9.09% negative surprise), and EBIT of 16.75 million trailed its estimate by 1.46 million amid a year-over-year decline of 8.90%.

Main business highlights showed a revenue mix centered on Products at 95.46 million (76.11% of total) and Services at 29.96 million (23.89% of total), while overall revenue grew 11.13% year over year; segment-level growth rates were not disclosed.

Current Quarter Outlook

Products Business Outlook

The products business accounts for the majority of XPEL, Inc.’s revenue base and remains the principal determinant of near-term earnings trajectories. With current-quarter revenue forecast at 125.01 million and EPS at 0.447, the company’s execution in product sales volume, channel performance, and pricing discipline will likely be the primary drivers of whether the quarter meets or exceeds internal and market expectations. Last quarter’s gross profit margin of 41.80% offers a benchmark against which investors will evaluate cost control, procurement efficiency, and pricing mix across the product set; maintaining or improving upon this margin baseline would support both EBIT and EPS trajectories.

Relative to the prior quarter actual of 125.42 million, the revenue estimate for the current quarter implies a largely flat sequential backdrop, while the year-over-year acceleration of 16.85% underscores the potential return to growth against last year’s comparable. In such a setting, the sensitivity of EBIT (forecast at 15.71 million, +9.65% year over year) to margin stability becomes a focal point. If the products segment sustains healthy margins and limits discounting, it can leverage scale economics to support earnings per share growth of 18.45% year over year, even with modest sequential revenue variation. Conversely, any adverse shift in pricing mix that compresses gross margin from the last quarter’s 41.80% baseline would likely flow through to EBIT, and ultimately EPS, thus moderating the anticipated year-over-year improvement.

Given the weight of products at 95.46 million last quarter (76.11% of total), mix quality within this segment holds particular importance. Investors will look for indications of consistent demand across the company’s core offerings and whether the margin profile aligns with that demand. The current forecast suggests that the company’s operational cadence can generate year-over-year growth even as sequential trends appear stable, placing strategic emphasis on margin maintenance and operational efficiency within the products portfolio to underpin the expected EPS expansion.

Services Business Outlook

Services contributed 29.96 million last quarter (23.89% of total revenue), positioning this segment as a meaningful lever for stabilizing margins and potentially enriching the earnings mix if scaled effectively. While segment-level year-over-year growth rates were not disclosed, investors typically monitor service-related revenue for its potential to add resilience to overall margin and to support EBIT through less variable cost structures than pure product volume. If services maintain or improve throughput and attach rates relative to product sales, they can reinforce operating leverage, providing incremental support to the 9.65% year-over-year increase in EBIT and the 18.45% year-over-year increase in EPS that are currently forecast.

The net profit margin last quarter was 10.32%, which frames expectations for how services could influence the bottom line in the current period. Stability or incremental improvement in services revenue could help sustain net margin at or above that 10.32% baseline, especially if the segment delivers a favorable mix that complements product-led revenue growth. Conversely, if services underperform relative to last quarter’s 29.96 million contribution, the company may need stronger product margin realization to hold net margin steady; in that case, EBIT growth could still be achieved but would rely more heavily on product pricing and cost control within the broader operational framework.

Looking ahead to the print, the services segment is viewed as the most promising area for reshaping the earnings mix, given its potential to contribute consistent revenue alongside margin enhancement. Monitoring services intake, delivery execution, and any commentary on service capacity and efficiency will be key to assessing whether the company can sustain the projected EPS growth. With the revenue estimate at 125.01 million and EPS at 0.447, the services trajectory will play an outsized role in validating the year-over-year growth profile and signaling durability into subsequent quarters.

Factors Most Impacting This Quarter’s Stock Price

Three interconnected factors appear pivotal in shaping equity performance around the upcoming report: the revenue print relative to the 125.01 million forecast, margin outcomes versus last quarter’s baselines, and earnings delivery compared to the 0.447 EPS forecast. A revenue outcome that aligns with or exceeds the 125.01 million estimate, combined with gross margin around or above 41.80%, would lend credibility to the 9.65% year-over-year growth in EBIT and the 18.45% year-over-year growth in EPS, supporting constructive sentiment. The converse—a revenue shortfall or a gross margin that slips below the last quarter’s 41.80%—would likely temper expectations for EBIT and EPS, raising questions about mix quality and near-term demand normalization.

Investors will also evaluate net profitability against last quarter’s 10.32% net profit margin and the GAAP net profit of 12.94 million. Given the prior quarter’s sequential net profit contraction of 20.56%, evidence of stabilization or improvement in net margin will be an important marker of earnings momentum. If net margin holds at or above 10.32%, the 0.447 EPS projection appears attainable, supporting confidence in the forecasted year-over-year trajectory. If net margin compresses, EPS delivery will depend more heavily on top-line performance and operating expense control, and the stock’s immediate reaction may hinge on management’s commentary about margin drivers and the revenue mix within the quarter.

Guidance framing will matter, particularly whether the company articulates visibility into revenue drivers and the margin path in the upcoming periods. While the current forecast implies solid year-over-year growth in revenue and EPS, sequential nuances and any commentary on intra-quarter trends can sway investor interpretation of sustainability. Confirmation of execution within the products segment and tangible progress in scaling services would reinforce the earnings case. Absent those signals, the market may default to a cautious stance, awaiting further clarity in margins and mix.

Analyst Opinions

Within the defined period from January 1, 2026 to February 18, 2026, formal sell-side earnings previews or rating changes specific to XPEL, Inc. were not identified through the available channels used in this review. As a result, a clear bullish-versus-bearish majority could not be derived from named institutional or analyst reports in the specified window. In the absence of directly attributable previews, investor attention is likely to tilt toward the company’s reported and forecast metrics—namely the 125.01 million revenue estimate (+16.85% year over year), the 15.71 million EBIT estimate (+9.65% year over year), and the 0.447 EPS estimate (+18.45% year over year)—as the practical anchors for near-term expectations. Commentary following the release that addresses margin direction against last quarter’s 41.80% gross margin and 10.32% net profit margin, as well as mix dynamics across products and services, will serve as the primary validation points for the quarter’s narrative.

Given the limited availability of identifiable, named institutional views in the period, investor assessment will focus on how the company’s execution aligns with the current-quarter forecast. Delivery near or above the revenue and EPS estimates would support a constructive interpretation of the earnings trajectory. Conversely, underperformance versus these benchmarks—especially if accompanied by margin compression relative to the prior quarter—would likely prompt restraint until the company provides clearer forward context. For now, and strictly within the confines of the collected materials, institutional commentary appears limited, and the market process will rely largely on the company’s actuals and near-term outlook to define sentiment post-release.