Stock Track | XPEL Soars 5.26% on Strong Q3 Revenue and Strategic Investment Plans

Stock Track2025-11-05

XPEL, Inc. (NASDAQ: XPEL) saw its stock soar 5.26% in pre-market trading on Wednesday following the release of its third-quarter earnings report and announcement of strategic investment plans. The automotive protective film provider delivered a mixed bag of results but impressed investors with its forward-looking initiatives.

For the third quarter of 2025, XPEL reported revenue of $125.4 million, representing an 11.1% increase year-over-year and surpassing analyst expectations of $119.3 million. However, the company's earnings per share (EPS) of $0.47 fell short of the $0.52 consensus estimate. Despite the earnings miss, investors seemed to focus on the company's strong top-line growth and future prospects.

Adding to the positive sentiment, XPEL announced plans to invest $75 million to $150 million over the next two years in manufacturing and supply chain initiatives. This strategic move aims to boost the company's gross margin to 52%-54% and operating margin to the mid to high 20% range by the end of 2028. Furthermore, XPEL provided an optimistic outlook for the fourth quarter, projecting revenue between $123 million and $125 million, which exceeded analyst expectations of $116.3 million. The combination of solid current performance and ambitious future plans appears to have fueled investor enthusiasm, driving the stock's significant pre-market rally.

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