XPEL, Inc. (XPEL)

XPEL is a global provider of after-market automotive products, including automotive surface and paint protection film, headlight protection, automotive window films and ceramic coatings, along with complementary proprietary software. Founded in 1997 and incorporated in Nevada in 2003, it began as a software company designing vehicle patterns used to cut protective film for painted surfaces, started selling paint protection film in 2007, and introduced its self-healing ULTIMATE film line in 2011. In 2018 it added architectural window and security film for commercial and residential use, and in 2019 it added automotive ceramic coatings.

Its main revenue lines for 2022 were surface and paint protection film (about 62% of consolidated revenue), automotive window film (about 15%), installation services including product and labor (about 16%), and architectural window film (about 2%). Paint protection products include ULTIMATE PLUS, ULTIMATE FUSION, STEALTH, TRACWRAP, LUX PLUS for China, XPEL RX and XPEL ARMOR. Window films are sold mainly under the XPEL PRIME brand, and architectural films under the VISION brand. DAP, a proprietary SaaS platform with over 80,000 vehicle patterns, is sold by monthly subscription (under 2% of revenue). XPEL also sells FUSION PLUS ceramic coating, pre-cut film, installation tools and accessories, and branded merchandise.

XPEL sells through independent installers and new car dealerships (about 65% of 2022 revenue), third-party distributors (about 17%), Company-owned installation centers and dealership services (about 15%), automobile OEMs (about 3%), Protex Canada franchisees, and online (under 1%). Its turn-key offering to installers and dealers includes film, training, DAP software, marketing and lead generation. In China it relies on a sole distributor, Shanghai Xing Ting Trading Co., Ltd., which accounted for about 10% of 2022 consolidated revenue. It operates 13 Company-owned installation centers: seven in the United States, three in Canada and one in the United Kingdom. It has expanded through offices and acquisitions in the UK, Canada, the Netherlands (European headquarters), Mexico, Taiwan, France, Australia and the US.

XPEL follows an asset-light model, using third-party suppliers and contract manufacturers for roll-to-roll film production, while it handles conversion operations such as inspection, rewinding and packaging at its own facilities. It owns or licenses key intellectual property, including a perpetual license to US Patent No. 8,765,263 for multilayer polyurethane protective films. Its main competitor in paint protection film is Eastman Chemical Company (LLumar and Suntek brands), along with several smaller companies. Its stock trades on Nasdaq under the symbol "XPEL," and it is ISO 14001:2015 registered. The company is subject to export control, privacy, anti-corruption and environmental regulations.