XPEL (XPEL) Is Up 11.4% After Strong Q2 Results and Guidance Update Has the Bull Case Changed?

• XPEL, Inc. recently announced its second quarter 2025 results, reporting US$124.71 million in revenue and US$16.29 million in net income, along with third quarter revenue guidance of US$117–119 million.
• Net income and earnings per share both grew compared to the prior year, reflecting ongoing business momentum and operational improvements.
• Let's examine how the latest revenue growth and new third quarter guidance might influence XPEL's long-term investment outlook.

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XPEL Investment Narrative Recap

To own XPEL, Inc., investors must believe in the company's ability to extend its brand and premium position amid global automotive trends and competition. The latest earnings release, showing revenue and net income growth, supports business momentum, but the subdued third quarter guidance raises questions about the pace of near-term demand, making sensitivity to global automotive sales one of the most important catalysts to monitor. At the same time, the persistent risk remains the potential for new competition from lower-cost Asian manufacturers, which could pressure margins if recent product and geographic expansions don’t offset pricing headwinds.

Among XPEL’s latest announcements, the share repurchase program, authorized for up to US$50 million, stands out. This move indicates the company’s focus on capital allocation and may provide downside support to the share price, but doesn’t directly address competitive pressures or future global demand uncertainties that are critical to the long-term story. However, the bigger question for investors is whether XPEL’s international expansion and network investments can sustain higher growth as industry competition intensifies.

In contrast, investors should be aware that the challenge from lower-cost manufacturers is still very real, especially...

Read the full narrative on XPEL (it's free!)

XPEL's narrative projects $644.9 million revenue and $100.3 million earnings by 2028. This requires 12.8% yearly revenue growth and a $51.6 million earnings increase from $48.7 million.

Uncover how XPEL's forecasts yield a $47.67 fair value, a 24% upside to its current price.

Exploring Other Perspectives

Four Simply Wall St Community members estimate XPEL's fair value between US$35.58 and US$63.96, showing a range of independent outlooks. With competition from lower-cost manufacturers still a concern, consider the context behind each perspective before making conclusions.

Explore 4 other fair value estimates on XPEL - why the stock might be worth as much as 66% more than the current price!

Build Your Own XPEL Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your XPEL research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free XPEL research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate XPEL's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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