Xpel Revenue Rises 9.9% in Third Quarter
The San Antonio auto-protection firm reported higher third-quarter sales and profit, even as its dealership segment stayed roughly flat.
Updated on Nov. 4, 2026 in Buying/Selling
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Xpel reported third-quarter revenue of $137.8 million for the three months ended Sept. 30, up 9.9%, with net income rising 26.3% to $16.3 million, or 59 cents per share. Growth was led by China, where revenue rose 52% to $15.4 million, while its dealership segment was roughly flat.
Why it matters
The results show a company in San Antonio posting growth while parts of the auto market soften, including car sales in China and Saudi Arabia. Its flat dealership segment reflects pressure on dealers from pricing scrutiny and disruption in the Middle East.
Xpel's third-quarter net income rose 26.3% to $16.3 million, or 59 cents per share, while installation segment revenue grew more than 9%. Its India and Middle East revenue fell 16.6%, a decline the filing attributes to market conditions rather than company-specific causes.
The players
Xpel Inc.
Xpel is a San Antonio-based company that makes paint protection film and other protective products for vehicles, sold largely through dealerships and installers.
The details
Xpel's China business grew 52% to $15.4 million after it acquired a Chinese distributor in September 2025, even as car sales in China fell 20% from the prior year's third quarter. Saudi Arabia's new car sales fell roughly 38.5% in August, and disruption around the Strait of Hormuz continues to weigh on Middle East vehicle demand. The dealership segment was roughly flat, a result the company described as unusual for a typically growing period.
Timeline
September 2025: Xpel acquired a Chinese distributor.
August 2026: New car sales in Saudi Arabia fell roughly 38.5%.
September 30, 2026: Xpel's third quarter ended with revenue up 9.9%.
October 1, 2026: California's car-buying transparency law took effect.
Fourth quarter 2026: The dealership segment is expected to worsen incrementally.
Roadmap
California's Combating Auto Retail Scams Act, which took effect October 1, requires dealers to disclose overall pricing and fees, adding to the transparency pressure on dealers. The change lands alongside continued FTC scrutiny of dealer pricing and add-on practices, which the stub says has created uncertainty for the dealership channel.
California drivers now get clearer overall pricing and fee disclosures when buying a car, which can make it easier to compare dealer offers. Shoppers in other markets may see less change, but the broader push for transparency affects how dealers price add-ons.
The takeaway
Compare the out-the-door price, including fees and add-ons, rather than the sticker price alone when shopping for a vehicle. Clearer disclosure rules in California make that comparison easier.
What happens next
Xpel expects to begin bringing its Northeast Side manufacturing facility online toward the middle of 2027.
Further reading
For more on how dealer pricing rules shape car purchases, see Buying/Selling coverage.
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