Jiffy Lube for car paint and window protection.

A specialized 3M for automotive films and surface protection.

• Automotive Protection Films: Films designed to protect vehicle surfaces, paint, and headlights from damage like scratches, chips, and environmental elements.
• Architectural Window Films: Films applied to windows in buildings to provide protection, enhance privacy, or improve energy efficiency.
• Ceramic Coatings: Liquid polymers applied to automotive surfaces to create a durable, protective layer that repels water and contaminants.
• Proprietary Software: Specialized software often used by installers for precise cutting and application of their film products.
• Tools and Accessories: Various items including squeegees, microfiber towels, application fluids, and cutting tools essential for product installation and maintenance.
• Car Care Products: A range of products for washing and after-care of vehicles, complementing their protection solutions.
• Merchandise and Apparel: Branded clothing and promotional items offered by the company.

Major Customers of XPEL (XPEL)

XPEL, Inc. primarily sells its products to other companies rather than directly to individuals as its main channel. The company's major customer categories, based on the provided description, include:

• Independent Installers and Franchisees: These are businesses (both independent shops and XPEL-branded franchisees) that specialize in the professional application of automotive surface and paint protection films, window films, and other XPEL products for end-users.
• New Car Dealerships: Automotive dealerships that integrate XPEL's products into their offerings, selling and installing them on new and used vehicles for their customers.
• Third-Party Distributors: Companies that purchase XPEL's products in bulk to resell and distribute them to a broader network of businesses, such as other installers, retailers, or dealerships in various regions.

The provided background information does not include the specific names of these customer companies or their public symbols.

Ryan Pape, Chairman, President & Chief Executive Officer

Mr. Pape has served as XPEL's Chairman, President, and CEO since 2009, after holding various positions within the company. He joined XPEL in 2004 following a career in technology consulting. He holds a Bachelor of Science from the University of Texas at Austin. He took over as CEO in February 2009 when the company had a $1 million market cap and was facing significant financial problems, personally investing to help pay off company debt and leading an unprecedented turnaround.

Barry Wood, Senior Vice President & Chief Financial Officer

Mr. Wood has served as XPEL's Chief Financial Officer since June 2016, leading Finance, Risk Management, Treasury, Investor Relations, Enterprise Systems, and Corporate Development. Prior to joining XPEL, he served as VP of Dispensing Operations for Optum Rx (previously Catamaran Home Delivery), CFO of PTRX, Inc., and held senior finance roles at AT&T. He began his career as an Audit Manager with Ernst & Young. He is a Certified Public Accountant and a Chartered Global Management Accountant.

Tony Rimas, Vice President of Revenue

Mr. Rimas joined XPEL in 2023 and leads the global sales team, partnerships, and commercial strategy. Before XPEL, he was President of Repairify and co-founder and Managing Partner of FM Capital, where he led numerous automotive investments including Autoniq, Frontier Car Group, Vroom, Autopay, and Revolution Parts. He previously served as Director of Operations for the Red McCombs Automotive Group, where he helped lead successful investments in HomeNet Automotive (acquired by Cox Automotive) and ClickMotive (acquired by DealerTrack). He is currently Chairman of NitroFill and a Venture Partner with AutoTech Ventures.

Chris West, Vice President, Asia Pacific

Mr. West joined XPEL in 2021 and oversees the company's business affairs in the Asia Pacific region. With over 20 years in the automotive aftermarket industry, he founded Tracwrap, which was acquired by XPEL in 2013, and owned a successful installation business in Alaska.

Michael Mayall, Vice President, Corporate Development

Mr. Mayall has worked for or with XPEL since 2000 and joined full-time in 2016 when his businesses, PRO-TECT FILM and PROFORM, were acquired by XPEL. He has been involved in the film, adhesive, and automotive aftermarket since 1993, initially as an installer. In 2004, he founded PRO-TECT FILM, which grew to be a leading installer of automotive paint protection film and residential safety/security film in Las Vegas prior to its acquisition.

Here are the key risks to XPEL's business:

1. Economic Sensitivity and Discretionary Consumer Spending: XPEL's products, such as paint protection films and automotive window films, are largely aftermarket upgrades considered discretionary purchases for consumers. Demand for these products is highly sensitive to economic cycles, consumer confidence, rising interest rates, and the overall cost of new vehicles. Economic downturns or periods of tighter consumer budgets can lead to a decrease in demand as consumers may prioritize essential purchases over aesthetic or protective vehicle enhancements, directly impacting the company's sales and financial performance.
2. Intense Competition and Pricing Pressure: The automotive aftermarket for protective films and coatings is highly competitive. XPEL faces significant competition from both established brands like 3M and Eastman Chemical, as well as an increasing number of lower-cost manufacturers, particularly from Asia, that offer products with comparable features at substantially reduced price points. This intense competition can lead to pricing pressures, erode XPEL's premium margins, and necessitate continuous investment in research and development, marketing, and installer network support to maintain market share and product differentiation.
3. Supply Chain Dependencies and Raw Material Cost Volatility: XPEL primarily operates an "asset-light" manufacturing model, which means it heavily relies on third-party contract manufacturers and key suppliers for the majority of its product supply. This dependence exposes the company to risks associated with supply chain disruptions, potential quality control issues, and an inability to meet customer demand if suppliers face problems. Furthermore, fluctuations in the cost of essential raw materials, particularly specialized polyurethane film, can directly impact the company's gross margins, as evidenced by recent periods where unfavorable price increases from suppliers have compressed profitability.

The primary emerging threat to XPEL lies in advancements by automotive original equipment manufacturers (OEMs) in paint technology. If car manufacturers widely adopt and implement factory-installed, highly durable, scratch-resistant, or self-healing paint solutions that significantly reduce or eliminate the need for aftermarket paint protection films and ceramic coatings, it could severely diminish the demand for XPEL's core product offerings. This mirrors historical disruptions where superior integrated technology (like the iPhone) rendered specialized aftermarket solutions (like BlackBerry's unique keyboard) less relevant.

XPEL, Inc. operates in several key addressable markets, primarily within the automotive aftermarket and architectural sectors. The market sizes for their main products and services on a global scale are as follows:

• Paint Protection Film (PPF): The global paint protection film market was valued at approximately USD 866 million in 2024 and is projected to reach USD 1,268 million by 2032, with a compound annual growth rate (CAGR) of 5.7%. Other estimates place the global market size at USD 630.84 million in 2025, projected to grow to USD 1,086.07 million by 2034 with a CAGR of 6.20%. In 2023, the global PPF market size was USD 1.16 billion, with anticipated growth to USD 1.23 billion in 2024.
• Automotive Window Films (including tinting film): The global automotive tinting film market size was valued at USD 7.59 billion in 2024 and is expected to grow at a CAGR of 7.7% from 2025 to 2030. The global automotive window film market is estimated to increase from US$ 4,224.8 million in 2025 to US$ 6,310.7 million by 2032, at a CAGR of 5.9%. Broader "automotive films" market, which encompasses window films, paint protection films, and vehicle wraps, is calculated at USD 9.68 billion in 2025 and is predicted to increase to approximately USD 15.61 billion by 2035.
• Architectural Window Films: The global architectural window films market was valued at USD 3.82 billion in 2025 and is projected to expand to USD 5.73 billion by 2034, growing at a CAGR of 4.60%. Another source states the market was valued at USD 5.39 billion in 2025 and is predicted to increase to approximately USD 8.04 billion by 2035, expanding at a CAGR of 3.70%.
• Ceramic Coatings: The global ceramic coating market size was estimated at USD 12.15 billion in 2024 and is predicted to increase from USD 13.10 billion in 2025 to approximately USD 25.60 billion by 2034, expanding at a CAGR of 7.74%. Another report indicates the market size was over USD 13.08 billion in 2025 and is anticipated to cross USD 27.98 billion by 2035, witnessing more than 7.9% CAGR.

XPEL (symbol: XPEL) is expected to drive future revenue growth over the next two to three years through several key initiatives:

1. Geographic Expansion and Direct Distribution Strategy: XPEL is strategically expanding its presence in international markets, particularly in regions like China and Europe. The acquisition of its China distribution operations has already proven successful, contributing significantly to revenue and positioning the company for further growth in this major automotive market. The company is also focusing on a direct distribution strategy in certain international markets, such as Brazil, to gain greater control over its sales channels and capture additional margins.
2. Product Innovation and Expanded Offerings: A key driver will be the continued innovation and expansion of its product portfolio. This includes advanced paint protection films (PPF) with features like self-healing and hydrophobic properties, as well as new finishes such as matte and satin. Furthermore, XPEL is broadening its product lines beyond traditional automotive applications to include architectural and commercial window films, flat-glass safety/energy films, and specialty surface protection for marine, powersports, and bicycles. The success of recently launched products, such as windshield protection film, also contributes to this growth.
3. Expansion of Installation Centers: XPEL is committed to growing its network of installation centers, including both company-owned and affiliated locations. This expansion, particularly in top metropolitan areas, is aimed at increasing the throughput for its core products like paint protection film, window tint, and ceramic coatings. A larger footprint of installation centers directly translates to increased product installations and sales volume.
4. Advancements in Proprietary Software and Training Monetization: Investments in the Design Access Program (DAP) platform and AI-assisted patterning are crucial for enhancing installer efficiency by enabling same-day pattern availability and reducing preparation time. This technological leadership strengthens XPEL's ecosystem, making its products more attractive to installers. Additionally, the monetization of software and training programs provides an avenue for recurring value and revenue.

Share Repurchases

• XPEL's Board of Directors authorized a stock repurchase program of up to $50 million of common stock, announced in the first quarter of 2025.
• In 2025, the company repurchased $3 million worth of shares.

Share Issuance

• XPEL issued common stock for vested restricted stock units amounting to approximately $323,000 in 2025, $210,000 in 2024, and $1,171,000 in 2023.

Outbound Investments

• In October 2021, XPEL acquired five businesses in the United States and Canada, including distributors, installers, and a software company, for approximately $20.1 million.
• In September 2025, XPEL acquired the assets of its exclusive distributor in China, resulting in a 76% ownership interest in the entity and an expected annual revenue contribution of $45-$50 million from the acquired business.
• The company completed five acquisitions in 2025 and is strategically focused on acquiring distributors in key international markets to expand its global presence.

Capital Expenditures

• Capital expenditures amounted to $7.7 million in 2021, $9.6 million in 2022, $7.6 million in 2023, $6.7 million in 2024, and $4.0 million in 2025.
• XPEL plans to invest between $75 million and $150 million over the next two years (from late 2025/early 2026) into manufacturing and supply chain assets, which includes capital expenditures, mergers/acquisitions, and/or joint ventures.
• The primary focus of these future capital expenditures is to increase gross and operating margins by shifting away from an asset-light manufacturing model towards owning more manufacturing and supply chain assets.