XPEL, Inc. (NASDAQ: XPEL) saw its stock price plummet by 5.66% in intraday trading on Wednesday, following the release of its third-quarter 2025 financial results. The company reported mixed performance, with revenue growth overshadowed by an earnings miss that appears to have disappointed investors.
XPEL reported quarterly earnings of $0.47 per diluted share, falling short of the analyst consensus estimate of $0.52 by 9.09%. This represents a 12.96% decrease from the $0.54 per share reported in the same period last year. Despite the earnings setback, the company's revenue for the quarter ended September 30 reached $125.4 million, up 11.1% from $112.9 million a year earlier and surpassing the FactSet analyst expectations of $119.3 million.
In an effort to boost long-term profitability, XPEL announced plans for strategic investments ranging from $75 million to $150 million, aimed at enhancing margins by 2028. The company also provided an optimistic outlook for the fourth quarter, projecting revenue between $123 million and $125 million, which exceeds the current analyst expectations of $116.3 million. However, this positive guidance and the announcement of strategic investments were not enough to offset investor concerns about the earnings miss, resulting in the significant stock price decline.
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