Free cash flow turned negative at -$34.3M in 2026Q2 due to a CapEx spike to $65.1M (45.5% of revenue), yet cumulative operating cash flow of $150.8M over ten quarters exceeds cumulative net income of $125.0M.
XPEL, Inc. (XPEL) cash flow statement — 23-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 |
|---|
| Cash from Operations | 73.99M | 66.94M | 47.82M | 37.38M | 12.06M | 18.27M | 18.47M | 10.97M | 6.8M | 3.95M | 2.93M | 1.41M | 599.65K | 771.95K | 1.32M | 650.4K | 234.82K | 234.55K | 195.51K | 130.79K | -546.9K | -900.46K | -205.01K | 14.67K |
| Operating CF Margin % | - | 14.06% | 11.38% | 9.43% | 3.72% | 7.05% | 11.62% | 8.44% | 6.18% | 5.87% | 5.66% | 3.39% | 2.02% | 4.31% | 12.4% | 10.76% | 5.69% | 6.12% | 2.51% | 2.23% | -16.12% | -29.58% | -7.9% | 0.73% |
| Operating CF Growth % | 150.65% | 39.97% | 27.93% | 210.06% | -34% | -1.07% | 68.4% | 61.33% | 71.99% | 34.86% | 108.2% | 134.71% | -22.32% | -41.67% | 103.49% | 176.97% | 0.12% | 19.97% | 49.48% | 123.91% | 39.26% | -339.24% | -1497.26% | - |
| Net Income | 54.73M | 51.23M | 45.49M | 52.8M | 41.38M | 31.57M | 18.28M | 14M | 8.72M | 1.13M | 2.16M | 1.47M | 3.07M | 1.32M | 1.16M | 815.89K | 425.81K | 141.05K | -1.18M | -823.91K | -1.45M | -742.86K | -655.24K | -40.49K |
| Depreciation & Amortization | 14.72M | 13.25M | 11.7M | 9.59M | 7.83M | 4.39M | 2.23M | 1.7M | 1.38M | 1.77M | 1.14M | 891.37K | 477.2K | 383.75K | 354.15K | 338.75K | 330.91K | 355K | 456.92K | 236.08K | 99.21K | 65.07K | 151.45K | 22.16K |
| Stock-Based Compensation | 3.27M | 2.75M | 3.2M | 1.64M | 522K | 169K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8.53K | 233.12K | 310.55K | 375.72K | 125.06K | 48.02K | 0 |
| Deferred Taxes | 32K | -299K | -2.75M | -921K | -471K | 1.01M | -273K | 117.33K | -86.22K | -255.24K | -97.85K | 211.87K | -384K | 714K | -85K | -206.94K | -201.06K | -707.46K | -34.17K | 0 | 0 | 0 | -3.48K | 0 |
| Other Non-Cash Items | 1.51M | 1.27M | 341K | 230K | 466K | 291K | 176K | 358.47K | 43.42K | 78.96K | 59.34K | -134.31K | -39.82K | 1.85K | -4.87K | 4.33K | 87.65K | 686.63K | -19.87K | -16.94K | 122.64K | 90.39K | 18.52K | 0 |
| Working Capital Changes | -1.15M | -1.27M | -10.15M | -25.96M | -37.67M | -19.16M | -1.95M | -5.2M | -3.48M | 1.22M | -442.9K | -1.12M | -2.55M | -1.65M | -102.99K | -301.63K | -408.49K | -249.2K | 735.99K | 425.01K | 306.26K | -438.12K | 235.72K | 33.01K |
| Change in Receivables | -17.38M | -20.44M | -5.6M | -7M | -2.63M | -432K | -2.43M | -1.77M | -261.26K | -814.23K | -1.25M | -677.42K | -1.24M | -114.5K | -310.94K | -228.41K | -102.6K | -56.94K | 116.36K | 172.77K | -85.92K | -85.6K | -25.69K | -10.17K |
| Change in Inventory | -502K | 11.48M | -4.79M | -24.84M | -28.57M | -26.94M | -6.76M | -4.25M | 11.15K | -1.86M | -637.53K | -321.56K | -3.52M | -817.08K | -737.99K | -802.17K | -136.49K | -11.67K | -27.21K | -45.12K | 8.23K | -124.85K | 7.63K | -43.22K |
| Change in Payables | 807K | 11.34M | 2.69M | 0 | 0 | 0 | 6.36M | 3.88M | -3.64M | 3.14M | 1.17M | 242.83K | 0 | -713.65K | 948.64K | 726.96K | -164.86K | -148.38K | 0 | 330.64K | 280.84K | 0 | 0 | 0 |
| Cash from Investing | -113.65M | -33.78M | -18.4M | -26.35M | -14.16M | -56.81M | -4.66M | -2.3M | -3.09M | -3.31M | -2.18M | -3.22M | -1.42M | -821.84K | -352K | -379.11K | -68.56K | 5.3K | -372.74K | -1.95M | -124.92K | -24.89K | -193.11K | -101.26K |
| Capital Expenditures | -76.88M | -4.01M | -6.71M | -6.36M | -7.94M | -6.72M | -1.78M | -1.57M | -2.42M | -2.21M | -1.36M | -1.21M | -924.74K | -827.84K | -357.63K | -379.41K | -331.07K | -21.14K | -352.11K | -435.76K | -54.94K | -2.06K | -211.92K | -101.26K |
| CapEx % of Revenue | 15.13% | 0.84% | 1.6% | 1.6% | 2.45% | 2.59% | 1.12% | 1.21% | 2.2% | 3.28% | 2.63% | 2.93% | 3.12% | 4.63% | 3.35% | 6.28% | 8.02% | 0.55% | 4.53% | 7.44% | 1.62% | 0.07% | 8.17% | 5.02% |
| Acquisitions | -33.12M | -26.17M | -9.86M | -18.73M | -4.67M | -49.19M | -2.57M | -127.62K | -831.93K | -1.14M | -822.07K | -2M | -493.89K | 0 | 0 | 0 | 276.26K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -3.23M | -1.5M | -1.84M | -1.26M | -1.55M | -898K | -313K | -606.12K | 155.28K | 39.5K | 3.48K | -763.71K | -555.66K | 6K | 5.63K | 300 | -227.41K | -187.4K | -20.63K | -1.51M | -69.98K | -22.83K | 18.8K | 0 |
| Cash from Financing | 31.33M | -3.66M | -19.25M | -7.26M | 602K | 19.24M | 3.51M | -1.14M | -3.1M | 1.56M | -1.65M | 3.3M | 878.2K | 68.5K | 0 | -4.33K | -131.12K | -191.92K | 211.05K | 2.49M | 435.89K | 1.12M | 415.15K | 107.44K |
| Debt Issued (Net) | 44.6M | -243K | -19.06M | -7.09M | 632K | 19.24M | 4.3M | -1.14M | -3.1M | -1.53M | -1.65M | 3.3M | 878.2K | 68.5K | 0 | 0 | -131.12K | -191.92K | 130.07K | -325.69K | -58.18K | -32.03K | 20.13K | 127.61K |
| Equity Issued (Net) | -5.94M | -3M | -193K | 0 | 0 | 0 | 0 | 0 | 0 | 2.61M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 67.52K | 2.8M | 244.08K | 1.15M | 38K | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -5.94M | -3M | -193K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -7.33M | -415K | 0 | -167K | -30K | 0 | -785K | 0 | 0 | -38.02K | 0 | -150K | 0 | 0 | 0 | -4.33K | -15.51K | 0 | 15.98K | 17.5K | 250K | 0 | 357.02K | -20.16K |
| Net Change in Cash | -8.92M | 28.78M | 10.48M | 3.55M | -1.59M | -19.38M | 17.53M | 7.53M | 472.32K | 1.64M | -979.46K | 1.37M | 59.22K | 18.61K | 971.5K | 266.96K | 35.14K | 47.93K | -592.14K | 704.68K | -235.93K | 191.78K | 17.03K | 20.86K |
| Free Cash Flow | -3.14M | 62.93M | 41.11M | 29.74M | 2.5M | 10.58M | 16.31M | 8.72M | 4.38M | 1.75M | 1.57M | 193.28K | -325.08K | -55.89K | 965.88K | 270.99K | -96.25K | 213.41K | -156.61K | -304.97K | -601.85K | -902.51K | -416.92K | -86.59K |
| FCF Margin % | -0.62% | 13.21% | 9.78% | 7.5% | 0.77% | 4.08% | 10.26% | 6.71% | 3.98% | 2.59% | 3.03% | 0.47% | -1.1% | -0.31% | 9.05% | 4.49% | -2.33% | 5.57% | -2.01% | -5.21% | -17.74% | -29.65% | -16.07% | -4.29% |
| FCF Growth % | -105.96% | 53.07% | 38.25% | 1089% | -76.36% | -35.14% | 87.02% | 99.14% | 150.92% | 11.32% | 711.2% | 159.45% | -481.63% | -105.79% | 256.43% | 381.56% | -145.1% | 236.27% | 48.65% | 49.33% | 33.31% | -116.47% | -381.5% | - |
| FCF per Share | -0.11 | 2.27 | 1.49 | 1.08 | 0.09 | 0.38 | 0.59 | 0.32 | 0.16 | 0.06 | 0.06 | 0.01 | -0.01 | -0.00 | 0.04 | 0.01 | -0.00 | 0.01 | -0.01 | -0.01 | -0.03 | -0.04 | -0.02 | -0.00 |
| FCF Conversion (FCF/Net Income) | -0.06x | 1.31x | 1.05x | 0.71x | 0.29x | 0.58x | 1.01x | 0.78x | 0.78x | 3.77x | 1.32x | 0.91x | 0.19x | 0.58x | 1.14x | 0.80x | 0.55x | -0.41x | -0.05x | -0.16x | 0.38x | 1.21x | 0.31x | -0.36x |
| Interest Paid | 0 | 89K | 1.03M | 1.24M | 1.31M | 210K | 178K | 17.85K | 86.42K | 245.99K | 163.71K | 157.19K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 6.36M | 0 | 13.62M | 15.29M | 9.9M | 7.76M | 4.46M | 4.08M | 2.51M | 452.17K | 685K | 910K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying XPEL stock.
XPEL, Inc. (XPEL) generated $66.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
XPEL, Inc. (XPEL) generated $62.9M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
XPEL, Inc. (XPEL) spent $4.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, XPEL, Inc. (XPEL) spent $3.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
CapEx spike and working capital swings
Metrics are mathematically derived from official filings.
Earnings Quality Shows Wide Swings
XPEL's operating cash flow to net income ratio swung from 2.56 in 2025Q3 to 0.20 in 2025Q4, per quarterly filings, indicating volatile earnings conversion.
The OCF/NI ratio has been highly erratic, ranging from -0.74 in 2024Q1 to 2.56 in 2025Q3, suggesting that net income is not consistently translating into cash. The 2026Q2 ratio of 1.71 is healthy, but the 2025Q4 ratio of 0.20 highlights quarters where working capital absorbed cash. This volatility may indicate timing differences in receivables and payables, warranting close monitoring of cash conversion stability.
FCF Turns Negative on CapEx Spike
Free cash flow plunged to -$34.3M in 2026Q2 from +$31.9M in 2025Q3, as CapEx surged to $65.1M, according to reported cash flow statements.
The FCF margin collapsed from 25.4% in 2025Q3 to -24.0% in 2026Q2, driven by a massive increase in capital expenditures. This CapEx spike appears to be a strategic investment, but it has temporarily inverted FCF, which may pressure liquidity if sustained. Investors should monitor whether this investment generates future revenue growth and cash returns.
Capital Intensity Jumps Dramatically
CapEx as a percentage of revenue soared to 45.5% in 2026Q2 from 0.8% in 2025Q2, based on quarterly data, signaling a major shift in capital allocation.
Historically, XPEL's CapEx/Revenue was below 2%, but the 2026Q2 figure of 45.5% represents a step-change in capital intensity. This could indicate investment in new facilities, equipment, or technology, but it also raises the question of whether this is maintenance or growth capex. Given the prior low capital intensity, this spike may be a one-time expansion, but it materially alters the company's cash flow profile.
Working Capital Volatility Drives Cash Flow
Working capital changes swung from +$15.8M in 2025Q3 to -$17.3M in 2025Q4, per cash flow statements, causing significant quarterly cash flow fluctuations.
The working capital line has been a major source of volatility, with positive contributions in some quarters (e.g., +$8.6M in 2025Q2) and negative in others (e.g., -$14.9M in 2024Q1). This suggests that XPEL's cash conversion cycle is not stable, possibly due to inventory builds or receivable collection timing. The 2026Q2 positive $7.9M is a reversal from the prior quarter's -$7.6M, indicating ongoing swings that investors should factor into cash flow projections.
Minimal Returns to Shareholders
XPEL paid no dividends and repurchased only $2.9M in 2026Q1, with no buybacks in 2026Q2, as per cash flow data, indicating a focus on internal reinvestment.
Capital deployment has been conservative, with no dividends and sporadic, small buybacks. The $65.1M CapEx in 2026Q2 suggests that management is prioritizing growth investments over shareholder returns. This aligns with the company's growth phase, but investors seeking income or buyback support may be disappointed. The lack of consistent buybacks also means that cash is being retained for operational needs.
Cumulative Cash Generation Exceeds Earnings
Over the last ten quarters, cumulative operating cash flow of $150.8M exceeds cumulative net income of $125.0M, based on reported figures, indicating strong cash generation.
The cumulative OCF/NI ratio is approximately 1.21, suggesting that XPEL has converted more than $1.20 of cash for every $1.00 of net income over the period. This is a positive signal, but the quarterly volatility and the recent CapEx spike may alter this trend. The divergence between cumulative earnings and cash flow is favorable, but investors should monitor whether the 2026 CapEx investment will sustain this cash generation.
What Could Invalidate the Base Case
The 2026Q2 CapEx surge to $65.1M may obscure underlying cash flow weakness, as working capital swings and acquisition outflows complicate the cash picture.
While cumulative cash generation appears strong, the recent CapEx spike and erratic working capital changes could signal that the company is investing heavily to maintain growth, not just expand. The $7.1M acquisition outflow in 2026Q2 and negative working capital contributions in several quarters suggest that cash flow quality may be less robust than headline numbers imply. Investors should scrutinize whether the CapEx investment yields sufficient returns to justify the temporary FCF inversion.