XPEL, Inc. (XPEL) experienced a significant intraday plummet of 12.62% on Wednesday, as trading commenced following the release of its quarterly financial results.
The sharp decline appears to be driven by the company's fourth-quarter 2025 revenue of $122.3 million, which, despite growing 13.7% year-over-year, fell short of the analyst consensus estimate of $125.01 million. Concurrently, the company provided its revenue outlook for the first quarter of 2026, projecting it to be in the range of approximately $112 million to $114 million.
While the company reported strong operational performance with a 37.6% increase in EBITDA and highlighted significant growth in its China business and service revenue, the market reaction focused on the revenue miss against expectations and the forward-looking guidance.
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