XPEL, Inc. (NASDAQ: XPEL)

XPEL, Inc., operates as a supplier of protective films, coatings, and related services, primarily catering to the automobile aftermarket, new car dealerships, and automobile original equipment manufacturers (OEMs). The company's revenue is predominantly derived from automotive products and related services, with a smaller portion coming from non-automotive products such as architectural window film and marine and flat surface protection films. XPEL's journey began as a software company designing vehicle patterns for producing cut-to-fit protective film for headlights and painted surfaces of automobiles. In 2007, the company expanded into selling automotive paint protection film products, complementing its software business. The growth of paint protection film technology and its increasing durability have driven significant industry growth, particularly among luxury car enthusiasts in the United States and Canada. Internationally, demand has also been building as awareness and adoption in North America have increased.

XPEL generates revenue through the sale of its primary products, which include paint and surface protection films, automotive window films, windshield protection films, architectural window films, ceramic coatings, and various miscellaneous products, tools, and pre-cut films. The company also offers installation services for all its products through various sales channels, including independent installers, new car dealerships, third-party distributors, company-owned installation centers, OEMs, and online platforms. Additionally, XPEL provides software solutions, such as the Design Access Platform (DAP), which is a proprietary SAAS platform and database used by the company and its customers to cut automotive protection film into vehicle panel shapes. Training services are also offered to customers for the installation of all products.

• Surface and Paint Protection Film: This segment includes XPEL's flagship product, paint protection film, which is a self-adhesive film designed for painted surfaces of automobiles and other surfaces. The company offers both clear and colored paint protection films, along with various product lines, each with unique characteristics, warranties, and intended uses. Surface and paint protection film sales represented approximately 52.4% of the company's consolidated revenue for the year ended December 31, 2025.

• Automotive Window Film (or Tint): XPEL sells several lines of automotive window or tint films under the XPEL PRIME brand name, which exhibit a range of performance characteristics and appearances. Automotive window film sales represented approximately 16.6% of the company's consolidated revenue for the year ended December 31, 2025.

• Windshield Protection Film: This product is applied to the outside of a windshield to make it more impact-resistant and prevent costly repairs.

• Architectural Window Film: XPEL offers architectural glass solutions for commercial and residential buildings under the VISION brand name. These films come in several categories, including solar films designed for solar energy rejection, safety and security films to secure glass in the event of breakage, and other films such as anti-graffiti, exterior applied, and decorative films.

• Ceramic Coating: XPEL sells a hydrophobic, self-cleaning coating that can be applied to various surface types for automobiles, aircraft, and marine applications.

• Miscellaneous Products, Tools, and Pre-Cut Films: The company also sells a variety of other miscellaneous product sets, including pre-cut film products, tools and accessories, and merchandise and apparel.

XPEL's position within the industry is strengthened by its comprehensive suite of services that accompany its product offerings, including software, marketing, lead generation, and customer service. These services provide substantial differentiation from competitors. Within the market for surface and paint protection film, the company's principal competitors include Eastman Chemical Company (under the LLumar and Suntek brands), numerous suppliers in Korea and China, and several other smaller companies. XPEL also competes for "shelf space" within new car dealerships, particularly in the United States and Canada, where dealerships have several options to sell additional products and services to automobile purchasers to increase their gross profit per vehicle. The company believes its products and services provide dealerships with unique options to increase their gross profit per vehicle.

XPEL's customer base is diverse and includes independent after-market installers, new car dealerships, third-party distributors, OEMs, and online customers. The company offers complete turn-key solutions to independent after-market installers, which include XPEL protection films, installation training, access to the proprietary DAP software, marketing support, and lead generation. For the year ended December 31, 2025, approximately 51% of the company's consolidated revenue was generated through this channel. New car dealerships have multiple options to sell XPEL's products, including outsourcing the installation to the after-market, developing an in-house program, or utilizing third-party labor for installation. XPEL supports all these options through sales and support to after-market customers, training and support to dealerships, and through its Dealership Services business, which provides third-party installation services at dealership locations. The company also operates 34 company-owned installation centers globally, serving wholesale and retail customers in their respective markets. Additionally, XPEL sells products and provides services to various OEMs, including the installation of paint protection film, referral programs, and pre-delivery inspection.