XPEL, Inc.XPEL

XPEL, Inc. Segments Disclosure

10-KFiled Feb 27, 20262 min read
SEGMENT INFORMATION
The Company's chief operating decision maker (“CODM”) is its Chief Executive Officer. The CODM reviews geographically segmented data as well as consolidated results on a monthly basis to evaluate performance and make resource allocation decisions. Each geographical segment exhibits similar economic characteristics, shares common products and services, has similar customer types, and uses similar distribution methods. As a result, these segments have been aggregated into a single reportable segment in accordance with the aggregation criteria under ASC 280, Segment Reporting.
The CODM reviews balance sheet information on a consolidated basis which is reflected in the Company's Consolidated Balance Sheets as of December 31, 2025 and December 31, 2024. The CODM uses gross margin and income from operations to evaluate return on total assets in deciding whether to invest in the development and expansion of our consolidated operations or into strategic transactions, such as acquisitions. Both metrics are also used to monitor budget versus actual results, perform competitive benchmarking analyses, and are considered in evaluating our executives’ compensation.
The following table presents our significant expense categories included in our reported measure of segment profitability for the periods represented (in thousands):
Year Ended December 31,
202520242023
Total revenue476,200 420,400 396,293 
Less:
Direct product costs223,967 199,791 198,008 
Direct non-product costs51,214 43,249 35,871 
Gross margin201,019 177,360 162,414 
Personnel costs60,942 50,979 40,709 
Sales and marketing costs15,253 15,249 11,226 
Facility expenses11,712 9,908 7,776 
Depreciation and amortization11,144 9,585 7,726 
Travel and entertainment8,921 9,198 7,056 
Information technology6,546 5,599 4,174 
Professional fees7,400 5,086 5,313 
Shipping5,082 4,830 4,611 
Other11,370 7,779 6,851 
Income from operations62,649 59,147 66,972 
Interest expense83 996 1,248 
Income tax expense12,472 11,289 13,231 
Foreign currency exchange (gain)/loss(1,495)1,373 (307)
Net income$51,589 $45,489 $52,800 

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Feb 28, 2025

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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