XPEL (NASDAQ:XPEL) reported a robust financial performance for the first quarter of 2026, achieving a 13.1% revenue increase to $117.4 million. This growth was primarily fueled by strong results in the US and Asia-Pacific (APAC) regions, particularly in the US solar channel and dealership services, where installation revenue rose by 24% and dealership services installation revenue increased by 27%. The company's OEM programs also showed significant progress, contributing nearly 7% to total revenue, marking the highest contribution in its history.

Despite these positive results, XPEL faces challenges in the Middle East market due to vehicle shortages and logistical difficulties, which may impact future performance. The company has set a revenue guidance for Q2 between $135 million and $137 million, anticipating modest improvement in Canada but potential challenges in the Middle East. Gross margin for the quarter finished at 43.7%, with expectations of continued improvement throughout the year despite pricing pressures. XPEL's strategic initiatives include ongoing vertical integration and supply chain investments, alongside plans to expand its board to enhance expertise. Overall, the company remains optimistic about its growth trajectory for the year.