XPEL (XPEL) 10-Q 9 Aug 22 2022 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2022	Aug. 09, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity File Number	001-38858
Entity Registrant Name	XPEL, INC.
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	20-1117381
Entity Address, Address Line One	3251 I-35
Entity Address, City or Town	San Antonio
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	78219
City Area Code	210
Local Phone Number	678-3700
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	XPEL
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		27,616,064
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001767258

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current
Cash and cash equivalents	$ 9,321	$ 9,644
Accounts receivable, net	19,119	13,159
Inventory, net	74,142	51,936
Prepaid expenses and other current assets	4,434	3,672
Income tax receivable	550	617
Total current assets	107,566	79,028
Property and equipment, net	12,169	9,898
Right-of-use lease assets	13,580	12,910
Intangible assets, net	29,777	32,733
Other non-current assets	893	791
Goodwill	25,071	25,655
Total assets	189,056	161,015
Current
Current portion of notes payable	159	375
Current portion lease liabilities	3,673	2,978
Accounts payable and accrued liabilities	36,587	32,915
Total current liabilities	40,419	36,268
Deferred tax liability, net	2,412	2,748
Other long-term liabilities	1,140	2,631
Borrowings on line of credit	32,000	25,000
Non-current portion of lease liabilities	10,008	9,830
Non-current portion of notes payable	0	76
Total liabilities	85,979	76,553
Commitments and Contingencies (Note 11)
Stockholders’ equity
Preferred stock, $0.001 par value; authorized 10,000,000; none issued and outstanding	0	0
Common stock, $0.001 par value; 100,000,000 shares authorized; 27,612,597 issued and outstanding	28	28
Additional paid-in-capital	10,760	10,581
Accumulated other comprehensive loss	(1,860)	(590)
Retained earnings	94,149	74,443
Total stockholders’ equity	103,077	84,462
Total liabilities and stockholders’ equity	$ 189,056	$ 161,015

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock shares authorized (in shares)	10,000,000	10,000,000
Preferred stock shares issued (in shares)	0	0
Preferred stock shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock shares authorized (in shares)	100,000,000	100,000,000
Common stock shares issued (in shares)	27,612,597	27,612,597
Common stock shares outstanding (in shares)	27,612,597	27,612,597

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenue
Total revenue	$ 83,890	$ 68,736	$ 155,754	$ 120,602
Cost of Sales
Total cost of sales	50,907	43,489	95,054	77,068
Gross Margin	32,983	25,247	60,700	43,534
Operating Expenses
Sales and marketing	5,906	4,687	12,218	8,075
General and administrative	11,328	7,888	22,696	14,240
Total operating expenses	17,234	12,575	34,914	22,315
Operating Income	15,749	12,672	25,786	21,219
Interest expense	322	44	542	97
Foreign currency exchange (gain) loss	457	(63)	462	(28)
Income before income taxes	14,970	12,691	24,782	21,150
Income tax expense	$ 3,068	$ 2,505	5,076	4,117
Net income			$ 19,706	$ 17,033
Earnings per share
Basic (in dollars per share)	$ 0.43	$ 0.37	$ 0.71	$ 0.62
Diluted (in dollars per share)	$ 0.43	$ 0.37	$ 0.71	$ 0.62
Weighted Average Number of Common Shares
Basic (in shares)	27,613	27,613	27,613	27,613
Diluted (in shares)	27,613	27,613	27,613	27,613
Product
Revenue
Total revenue	$ 67,040	$ 58,667	$ 125,137	$ 103,599
Cost of Sales
Total cost of sales	44,227	40,593	82,421	72,139
Service
Revenue
Total revenue	16,850	10,069	30,617	17,003
Cost of Sales
Total cost of sales	$ 6,680	$ 2,896	$ 12,633	$ 4,929

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Other comprehensive income
Net income	$ 11,902	$ 10,186	$ 19,706	$ 17,033
Foreign currency translation	(1,175)	226	(1,270)	16
Total comprehensive income	$ 10,727	$ 10,412	$ 18,436	$ 17,049

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in-Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Dec. 31, 2020		27,613,000
Beginning balance at Dec. 31, 2020	$ 53,383	$ 28	$ 10,412	$ 42,877	$ 66
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	17,033			17,033
Foreign currency translation	16				16
Ending balance (in shares) at Jun. 30, 2021		27,613,000
Ending balance at Jun. 30, 2021	70,432	$ 28	10,412	59,910	82
Beginning balance (in shares) at Mar. 31, 2021		27,613,000
Beginning balance at Mar. 31, 2021	60,020	$ 28	10,412	49,724	(144)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	10,186			10,186
Foreign currency translation	226				226
Ending balance (in shares) at Jun. 30, 2021		27,613,000
Ending balance at Jun. 30, 2021	$ 70,432	$ 28	10,412	59,910	82
Beginning balance (in shares) at Dec. 31, 2021	27,612,597	27,613,000
Beginning balance at Dec. 31, 2021	$ 84,462	$ 28	10,581	74,443	(590)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	19,706			19,706
Foreign currency translation	(1,270)				(1,270)
Stock-based compensation	$ 179		179
Ending balance (in shares) at Jun. 30, 2022	27,612,597	27,613,000
Ending balance at Jun. 30, 2022	$ 103,077	$ 28	10,760	94,149	(1,860)
Beginning balance (in shares) at Mar. 31, 2022		27,613,000
Beginning balance at Mar. 31, 2022	92,242	$ 28	10,652	82,247	(685)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	11,902			11,902
Foreign currency translation	(1,175)				(1,175)
Stock-based compensation	$ 108		108
Ending balance (in shares) at Jun. 30, 2022	27,612,597	27,613,000
Ending balance at Jun. 30, 2022	$ 103,077	$ 28	$ 10,760	$ 94,149	$ (1,860)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash flows from operating activities
Net income	$ 19,706	$ 17,033
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property, plant and equipment	1,596	803
Amortization of intangible assets	2,131	685
Gain on sale of property and equipment, net	(11)	(16)
Stock-based compensation	179	0
Bad debt expense	251	123
Deferred income tax	16	6
Accretion on notes payable	5	18
Changes in assets and liabilities:
Accounts receivable	(6,604)	(849)
Inventory, net	(22,725)	(2,394)
Prepaid expenses and other assets	(1,039)	(1,624)
Income tax receivable and payable	96	1,206
Accounts payable and accrued liabilities	3,874	4,082
Net cash (used in) provided by operating activities	(2,525)	19,073
Cash flows used in investing activities
Purchase of property, plant and equipment	(4,025)	(3,461)
Proceeds from sale of property and equipment	53	16
Acquisition of a business, net of cash acquired	0	(29,992)
Development of intangible assets	(623)	(201)
Net cash used in investing activities	(4,595)	(33,638)
Cash flows from financing activities
Net borrowings on revolving credit agreement	7,000	0
Repayments on term loan	0	(5,056)
Repayments of notes payable	(294)	(367)
Net cash used in provided by (used in) financing activities	6,706	(5,423)
Net change in cash and cash equivalents	(414)	(19,988)
Foreign exchange impact on cash and cash equivalents	91	(305)
Decrease in cash and cash equivalents during the period	(323)	(20,293)
Cash and cash equivalents at beginning of period	9,644	29,027
Cash and cash equivalents at end of period	9,321	8,734
Supplemental schedule of non-cash activities
Non-cash lease financing	2,534	1,490
Supplemental cash flow information
Cash paid for income taxes	4,677	2,939
Cash paid for interest	$ 502	$ 92

INTERIM FINANCIAL INFORMATION

INTERIM FINANCIAL INFORMATION	6 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
INTERIM FINANCIAL INFORMATION	INTERIM FINANCIAL INFORMATION The accompanying (a) condensed consolidated balance sheet as of December 31, 2021, which has been derived from audited financial statements, and (b) unaudited interim condensed consolidated financial statements as of and for the three and six months ended June 30, 2022 and 2021 have been prepared by XPEL, Inc. (“XPEL” or the “Company”) in accordance with accounting principles generally accepted in the United States of America for interim financial information, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Pursuant to these rules and regulations, certain financial information and footnote disclosures normally included in the financial statements have been condensed or omitted. However, in the opinion of management, the financial statements include all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the financial position, results of operations and cash flows of the interim periods presented. Operating results for the interim periods presented are not necessarily indicative of results to be expected for the full year or for any other interim period due to variability in customer purchasing patterns and seasonal, operating and other factors. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K as filed with the SEC on February 28, 2022 (the "Annual Report"). These condensed consolidated financial statements also should be read in conjunction with the Management's Discussion and Analysis of Financial Condition and Results of Operations section appearing in this Report.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	SIGNIFICANT ACCOUNTING POLICIES Nature of Business - The Company is based in San Antonio, Texas and sells, distributes, and installs protective films and coatings, including automotive paint protection film, surface protection film, automotive and architectural window films and ceramic coatings. The Company was incorporated in the state of Nevada, U.S.A. in October 2003. Basis of Presentation - The condensed consolidated financial statements are prepared in conformity with United States Generally Accepted Accounting Principles ("U.S. GAAP") and include the accounts of the Company and its wholly owned subsidiaries. Intercompany accounts and transactions have been eliminated. The functional currency for the Company is the United States dollar. The assets and liabilities of each of its foreign subsidiaries are translated into U.S dollars using the exchange rate at the end of the balance sheet date. Revenues and expenses are translated at the average exchange rates for the period. Gains and losses from translations are recognized in foreign currency translation included in accumulated other comprehensive income in the accompanying consolidated balance sheets. Foreign currency exchange gains and losses are presented as foreign currency exchange loss in the accompanying condensed consolidated statements of income. The ownership percentages and functional currencies of the entities included in these condensed consolidated financial statements are as follows: Subsidiaries Functional Currency % Owned by XPEL, Inc. XPEL, Ltd. UK Pound Sterling 100 % XPEL Canada Corp. Canadian Dollar 100 % XPEL B.V. Euro 100 % XPEL Germany GmbH Euro 100 % XPEL de Mexico S. de R.L. de C.V. Peso 100 % XPEL Acquisition Corp. Canadian Dollar 100 % Protex Canada, Inc. Canadian Dollar 100 % Apogee Corp. New Taiwan Dollar 100 % XPEL Slovakia Euro 100 % XPEL France Euro 100 % XPEL Spain Euro 100 % PermaPlate Film, LLC US Dollar 100 % 1 One Armor, Inc. US Dollar 100 % TintNet, Inc. US Dollar 100 % North 1 Technologies, Inc. Canadian Dollar 100 % 1716808 Alberta, Ltd. o/a Shadow Tint Canadian Dollar 100 % 6873391 Canada, Ltd. o/a Shadow Shield Canadian Dollar 100 % invisiFRAME, Ltd. UK Pound Sterling 100 % Segment Reporting - Management has concluded that XPEL's chief operating decision maker (“CODM”) is the Company's chief executive officer. The Company’s CODM reviews the entire organization’s consolidated results as a whole on a monthly basis to evaluate performance and make resource allocation decisions. Management views the Company’s operations and manages its business as one operating segment. Use of Estimates - The preparation of these condensed consolidated financial statements in conformity to U.S. GAAP requires management to make judgments and estimates and form assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Estimates and underlying assumptions are reviewed on an ongoing basis. Actual outcomes may differ from these estimates under different assumptions and conditions. Accounts Receivable - Accounts receivable are shown net of an allowance for doubtful accounts of $0.3 million and $0.3 million as of June 30, 2022 and December 31, 2021, respectively. The Company evaluates the adequacy of its allowances by analyzing the aging of receivables, customer financial condition, historical collection experience, the value of any collateral and other economic and industry factors. Actual collections may differ from historical experience, and if economic, business or customer conditions deteriorate significantly, adjustments to these reserves may be required. When the Company becomes aware of factors that indicate a change in a specific customer’s ability to meet its financial obligations, the Company records a specific reserve for credit losses. The Company had no significant accounts receivable concentration as of June 30, 2022 or December 31, 2021. Provisions and Warranties - We provide a warranty on the Company's products. Liability under the warranty policy is based on a review of historical warranty claims. Adjustments are made to the accruals based on actual claims data. The Company's liability for warranties as of June 30, 2022 and December 31, 2021 was $0.2 million and $0.1 million, respectively. The following tables present a summary of the Company's accrued warranty liabilities for the six months ended June 30, 2022 and the twelve months ended December 31, 2021 (in thousands): 2022 Warranty liability, January 1 $ 75 Warranties assumed in period $ 295 Payments $ (168) Warranty liability, June 30 $ 202 2021 Warranty liability, January 1 $ 52 Warranties assumed in period $ 398 Payments $ (375) Warranty liability, December 31 $ 75 Recent Accounting Pronouncements Issued and Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, “Financial Instruments — Measurement of Credit Losses on Financial Instruments”, which requires measurement and recognition of expected credit losses for financial assets held. ASU 2016-13 is effective for the Company beginning January 1, 2023 and is required to be applied prospectively. We are currently evaluating the impact that ASU 2016-13 will have on our consolidated financial statements.

REVENUE

REVENUE	6 Months Ended
	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE Revenue recognition The Company recognizes revenue when it satisfies a performance obligation by transferring control of the promised goods and services to a customer, in an amount that reflects the consideration that it expects to receive in exchange for those goods or services. This is achieved through applying the following five-step model: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the Company satisfies a performance obligation The Company generates substantially all of its revenue from contracts with customers, whether formal or implied. Sales taxes collected from customers are remitted to the appropriate taxing jurisdictions and are excluded from sales revenue as the Company considers itself a pass-through conduit for collecting and remitting sales taxes, with the exception of taxes assessed during the procurement process of select inventories. Shipping and handling costs are included in cost of sales. Revenues from product and services sales are recognized when control of the goods is transferred to the customer which occurs at a point in time, typically upon shipment to the customer or completion of the service. This standard applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases, insurance, collaboration arrangements and financial instruments. Based upon the nature of the products the Company sells, its customers have limited rights of return, and these rights are immaterial. Discounts provided by the Company to customers at the time of sale are recognized as a reduction in sales at the time of the sale. Warranty obligations associated with the sale of the Company's products are assurance-type warranties that are a guarantee of the product’s intended functionality and, therefore, do not represent a distinct performance obligation within the context of the contract. Warranty expense is included in cost of sales. We apply a practical expedient to expense direct costs of obtaining a contract when incurred because the amortization period would have been one year or less. Under its contracts with customers, the Company stands ready to deliver product upon receipt of a customer's purchase order. Accordingly, the Company has no performance obligations under its contracts until its customers submit a purchase order. The Company does not enter into commitments to provide goods or services that have terms greater than one year. In limited cases, the Company requires payment in advance of shipping product. Typically, product is shipped within a few days after prepayment is received. These prepayments are recorded as contract liabilities on the condensed consolidated balance sheet and are included in accounts payable and accrued liabilities (Note 9). As the performance obligation is part of a contract that has an original expected duration of less than one year, the Company has applied the practical expedient under ASC 606 to omit disclosures regarding remaining performance obligations. When the Company transfers goods or provides services to a customer, payment is due, subject to normal terms, and is not conditional on anything other than the passage of time. Typical payment terms range from due upon receipt to 30 days, depending on the type of customer and relationship. At contract inception, the Company expects that the period of time between the transfer of goods to the customer and when the customer pays for those goods will be less than one year, which is consistent with the Company’s standard payment terms. Accordingly, the Company has elected the practical expedient under ASC 606 to not adjust for the effects of a significant financing component. As such, these amounts are recorded as receivables and not contract assets. The following table summarizes transactions within contract liabilities for the three and six months ended June 30, 2022 (in thousands): Balance, December 31, 2021 $ 818 Revenue recognized related to payments included in the December 31, 2021 balance $ (556) Payments received for which performance obligations have not been satisfied $ 181 Effect of foreign currency translation $ (2) Balance, March 31, 2022 $ 441 Revenue recognized related to payments included in the March 31, 2022 balance $ (387) Payments received for which performance obligations have not been satisfied $ 1,012 Effect of foreign currency translation $ (8) Balance, June 30, 2022 $ 1,058 The table below sets forth the disaggregation of revenue by product category for the periods indicated below (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 Product Revenue Paint protection film $ 48,275 $ 45,245 $ 92,236 $ 81,030 Window film 15,786 11,084 27,320 18,243 Other 2,979 2,338 5,581 4,326 Total 67,040 58,667 125,137 103,599 Service Revenue Software $ 1,247 $ 1,055 $ 2,453 $ 2,033 Cutbank credits 4,178 3,386 7,108 6,022 Installation labor 11,048 5,358 20,303 8,473 Training 306 270 655 475 Other 71 — 98 — Total 16,850 10,069 30,617 17,003 Total $ 83,890 $ 68,736 $ 155,754 $ 120,602 Because many of the Company's international customers require us to ship their orders to freight forwarders located in the United States, we cannot be certain about the ultimate destination of the product. The following table represents the Company's estimate of sales by geographic regions based on the Company's understanding of ultimate product destination based on customer interactions, customer locations and other factors (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 United States $ 49,166 $ 34,296 $ 90,753 $ 59,901 China 7,904 12,626 16,763 23,331 Canada 10,877 8,877 18,727 13,823 Continental Europe 6,944 5,215 12,607 9,539 United Kingdom 2,595 2,133 5,022 3,919 Middle East/Africa 2,654 2,414 4,703 4,376 Asia Pacific 1,977 2,056 4,009 3,648 Latin America 1,359 1,029 2,565 1,946 Other 414 90 605 119 Total $ 83,890 $ 68,736 $ 155,754 $ 120,602 XPEL's largest customer accounted for 9.4% and 18.4% of the Company's net sales during the three months ended June 30, 2022 and 2021, respectively and 10.8% and 19.3% of the Company's net sales during the six months ended June 30, 2022 and 2021, respectively.

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET	6 Months Ended
	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT, NET	PROPERTY AND EQUIPMENT, NET Property and equipment consists of the following (in thousands): June 30, 2022 December 31, 2021 Furniture and fixtures $ 2,560 $ 2,147 Computer equipment 2,687 2,201 Vehicles 822 822 Equipment 4,271 3,572 Leasehold improvements 6,743 5,138 Plotters 2,509 2,132 Construction in Progress 78 117 Total property and equipment 19,670 16,129 Less: accumulated depreciation 7,501 6,231 Property and equipment, net $ 12,169 $ 9,898 Depreciation expense for the three months ended June 30, 2022 and 2021 was $0.8 million and $0.4 million, respectively. For the six months ended June 30, 2022 and 2021, depreciation expense was $1.6 million and $0.8 million, respectively.

INTANGIBLE ASSETS, NET

INTANGIBLE ASSETS, NET	6 Months Ended
	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS, NET	INTANGIBLE ASSETS, NET Intangible assets consists of the following (in thousands): June 30, 2022 December 31, 2021 Trademarks $ 539 $ 500 Software 3,982 3,431 Trade names 1,463 2,579 Contractual and customer relationships 30,950 31,326 Non-compete 454 459 Other 676 693 Total cost 38,064 38,988 Less: Accumulated amortization 8,287 6,255 Intangible assets, net $ 29,777 $ 32,733 Amortization expense for the three months ended June 30, 2022 and 2021 was $1.1 million and $0.4 million, respectively. For the six months ended June 30, 2022 and 2021, amortization expense was $2.1 million and $0.7 million, respectively. Certain of these intangible assets have been adjusted for business acquisition open period adjustments. Refer to Footnote 13 for discussion of these updates.

GOODWILL

GOODWILL	6 Months Ended
	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL	GOODWILL The following table summarizes goodwill transactions for the six months ended June 30, 2022 and 2021 (in thousands): Balance at December 31, 2021 $ 25,655 Open period adjustments for 2021 acquisitions not yet finalized (153) Foreign Exchange (431) Balance at June 30, 2022 $ 25,071 Balance at December 31, 2020 $ 4,472 Additions 11,272 Foreign Exchange 83 Balance at June 30, 2021 $ 15,827 The Company completed seven acquisitions during the twelve months ended December 31, 2021. Purchase price accounting for the five acquisitions completed on October 1, 2021 remain preliminary in nature. Accounting for these acquisitions will be finalized within one year of their completion. Refer to Footnote 13 for discussion related to open period adjustments.

INVENTORIES

INVENTORIES	6 Months Ended
	Jun. 30, 2022
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES The components of inventory are summarized as follows (in thousands): June 30, 2022 December 31, 2021 Raw materials $ 12,537 $ 2,699 Work in process 4,054 180 Finished goods 57,551 49,057 $ 74,142 $ 51,936

DEBT

DEBT	6 Months Ended
	Jun. 30, 2022
Debt Disclosure [Abstract]
DEBT	DEBT REVOLVING FACILITIES The Company has a $75.0 million revolving line of credit with a financial institution. The facility is utilized to fund the Company's working capital needs and other strategic initiatives, and is secured by a security interest in substantially all of the Company's current and future assets. Borrowings under the credit agreement bear interest on at the Wall Street Journal U.S. Prime Rate less 0.75% per annum if the Company's EBITDA ratio (as defined in the Loan Agreement governing the facility) is equal to or less than 2.00 to 1.00 or the Wall Street Journal U.S. Prime rate less 0.25% if the Company's EBITDA ratio is greater than 2.00 to 1.00. The facility also includes a fee of 0.25% of the unused capacity on the facility. The interest rate for this credit facility as of June 30, 2022 and December 31, 2021 was 4.00% and 2.50%, respectively. The Company paid interest charges on borrowings under this facility of $0.3 million and $0.5 million during the three and six months ended June 30, 2022, respectively, and had a balance of $32.0 million and $25.0 million as of June 30, 2022 and December 31, 2021, respectively. This facility matures on July 5, 2024. The Loan Agreement governing the facility contains customary covenants relating to maintaining legal existence and good standing, complying with applicable laws, delivery of financial statements, payment of taxes and maintaining insurance. The Loan Agreement contains two financial covenants: (1) Senior Funded Debt (as defined in the Loan Agreement) divided by EBITDA (as defined in the Loan Agreement) at or below 3.50 : 1.00 when tested at the end of each fiscal quarter on a rolling four-quarter basis, and (2) A minimum Debt Service Coverage Ratio (as defined in the Loan Agreement) of 1.25 : 1.00 at the end of each fiscal quarter when measured on a rolling four-quarter basis. The Company also has a CAD $4.5 revolving credit facility through a financial institution in Canada, and is maintained by XPEL Canada Corp., a wholly-owned subsidiary of XPEL. This Canadian facility is utilized to fund the Company's working capital needs in Canada. This facility bears interest at HSBC Canada Bank’s prime rate plus 0.25% per annum and is guaranteed by the parent company. As of June 30, 2022 and December 31, 2021, no balance was outstanding on this line of credit. As of June 30, 2022 and December 31, 2021, the Company was in compliance with all debt covenants. NOTES PAYABLE As part of its acquisition strategy, the Company may use a combination of cash and unsecured non-interest bearing promissory notes payable to fund its business acquisitions. The Company discounts the promissory note to fair value using market interest rates at the time of the acquisition. Notes payable are summarized as follows (in thousands): Weighted Average Interest Rate Matures June 30, 2022 December 31, 2021 Face value of acquisition notes payable 2.61% 2023 161 458 Unamortized discount (2) (7) Current portion (159) (375) Total long-term debt $ — $ 76

ACCOUNTS PAYABLE AND ACCRUED LI

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	6 Months Ended
	Jun. 30, 2022
Accounts Payable and Accrued Liabilities [Abstract]
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	ACCOUNTS PAYABLE AND ACCRUED LIABILITIES The following table presents significant accounts payable and accrued liability balances as of the periods ending (in thousands): June 30, 2022 December 31, 2021 Trade payables $ 29,523 $ 25,175 Payroll liabilities 2,394 3,385 Contract liabilities 1,058 818 Acquisition holdback payments 1,300 2,007 Other liabilities 2,312 1,530 $ 36,587 $ 32,915

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2022
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS ASC 820 prioritizes the inputs to valuation techniques used to measure fair value into the following hierarchy: Level 1 – Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 – Inputs other than the quoted prices in active markets that are observable either directly or indirectly, including: quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data. Level 3 – Unobservable inputs that are supported by little or no market data and require the reporting entity to develop its own assumptions. Financial instruments include cash and cash equivalents, accounts receivable, accounts payable, our line of credit, and long-term debt. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, our line of credit, and short-term borrowings approximate fair value because of the near-term maturities of these financial instruments. The carrying value of the Company’s notes payable approximates fair value due to the relatively short-term nature and interest rates of the notes. The carrying value of the Company's long-term debt approximates fair value due to the interest rates being market rates. The estimated fair value of debt is based on market quotes for instruments with similar terms and remaining maturities. The Company incurred contingent liabilities in relation to the 2021 acquisition of invisiFRAME Ltd. and the 2020 acquisition of Veloce Innovation. The payments of these liabilities is contingent on attainment of certain revenue performance metrics in future years. The fair value of these liabilities was determined using a Monte Carlo Simulation method based on the probability and timing of certain future payments related to these metrics. These liabilities are accounted for as Level 3 liabilities within the fair value hierarchy. Liabilities measured at fair value on a recurring basis as of the dates noted below are as follows (in thousands): June 30, 2022 December 31, 2021 Level 3: Contingent Liabilities $ 1,119 $ 2,665 We assessed the fair value of these contingent considerations liabilities as of June 30, 2022. This assessment resulted in a reduction in the fair value of the liability of $0.3 million and $0.3 million for the three and six months ended June 30, 2022, respectively. This reduction is reflected in general and administrative expenses in the Condensed Consolidated Statement of Income for the three and six months ended June 30, 2022. The remaining decrease in our contingent liabilities is attributable to foreign currency fluctuations and non-finalized acquisition related valuations. Refer to Footnote 13 for discussion of these valuation updates. These decreases are recorded in accumulated other comprehensive loss and goodwill, respectively.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIESIn the ordinary course of business activities, the Company may be contingently liable for litigation and claims with customers, suppliers and former employees. Management believes that adequate provisions have been recorded in the accounts where required. Management also has determined that the likelihood of any litigation and claims having a material impact on our results of operations, cash flows or financial position is remote.

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE We compute basic earnings per share by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes effect of granted incremental restricted stock units. The following table reconciles basic and diluted weighted average shares used in the computation of earnings per share (in thousands except per share values): Three Months Ended June 30, Six Months Ended June 30, Numerator 2022 2021 2022 2021 Net income $ 11,902 $ 10,186 $ 19,706 $ 17,033 Denominator Weighted average basic shares 27,613 27,613 27,613 27,613 Dilutive effect of restricted stock units — — — — Weighted average diluted shares 27,613 27,613 27,613 27,613 Earnings per share Basic $ 0.43 $ 0.37 $ 0.71 $ 0.62 Diluted $ 0.43 $ 0.37 $ 0.71 $ 0.62

ACQUISITIONS OF BUSINESSES

ACQUISITIONS OF BUSINESSES	6 Months Ended
	Jun. 30, 2022
Business Combination and Asset Acquisition [Abstract]
ACQUISITIONS OF BUSINESSES	ACQUISITIONS OF BUSINESSES We acquired seven businesses during the twelve months ended December 31, 2021. The valuations of the identifiable intangible assets for TintNet, Inc., 1 One Armor, 6873391 Canada Ltd. (operating as Shadow Shield), 1716808 Alberta Ltd. (operating as Shadow Tint), and North 1 Technologies remain preliminary pending the finalization of the valuation models. These valuations will be finalized during the three months ending September 30, 2022. The accounting for all other assets and liabilities related to these acquisitions has been finalized. During the three months ended June 30, 2022, we finalized the valuation of the purchase price and related purchase price allocation for our November 1, 2021 acquisition of invisiFRAME Ltd. resulting in a $0.9 million reduction in purchase price. The final allocation resulted in a $1.1 million reduction in net identifiable intangible assets, a $0.1 million reduction in goodwill, a $0.3 million reduction in deferred tax liabilities and a $0.9 million reduction in contingent liabilities. These changes were caused by updates made to certain valuation assumptions, including the discount rate applied to the valuation model. These changes resulted in a $0.1 million reduction in amortization expense for the three and six months ended

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation - The condensed consolidated financial statements are prepared in conformity with United States Generally Accepted Accounting Principles ("U.S. GAAP") and include the accounts of the Company and its wholly owned subsidiaries. Intercompany accounts and transactions have been eliminated.
Segment Reporting	Segment Reporting - Management has concluded that XPEL's chief operating decision maker (“CODM”) is the Company's chief executive officer. The Company’s CODM reviews the entire organization’s consolidated results as a whole on a monthly basis to evaluate performance and make resource allocation decisions.
Use of Estimates	Use of Estimates - The preparation of these condensed consolidated financial statements in conformity to U.S. GAAP requires management to make judgments and estimates and form assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Estimates and underlying assumptions are reviewed on an ongoing basis. Actual outcomes may differ from these estimates under different assumptions and conditions.
Accounts Receivable	Accounts Receivable - Accounts receivable are shown net of an allowance for doubtful accounts of $0.3 million and $0.3 million as of June 30, 2022 and December 31, 2021, respectively. The Company evaluates the adequacy of its allowances by analyzing the aging of receivables, customer financial condition, historical collection experience, the value of any collateral and other economic and industry factors. Actual collections may differ from historical experience, and if economic, business or customer conditions deteriorate significantly, adjustments to these reserves may be required. When the Company becomes aware of factors that indicate a change in a specific customer’s ability to meet its financial obligations, the Company records a specific reserve for credit losses.
Provisions and Warranties	Provisions and Warranties - We provide a warranty on the Company's products. Liability under the warranty policy is based on a review of historical warranty claims. Adjustments are made to the accruals based on actual claims data.
Recent Accounting Pronouncements Issued and Not Yet Adopted	Recent Accounting Pronouncements Issued and Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, “Financial Instruments — Measurement of Credit Losses on Financial Instruments”, which requires measurement and recognition of expected credit losses for financial assets held. ASU 2016-13 is effective for the Company beginning January 1, 2023 and is required to be applied prospectively. We are currently evaluating the impact that ASU 2016-13 will have on our consolidated financial statements.
Revenue recognition	Revenue recognition The Company recognizes revenue when it satisfies a performance obligation by transferring control of the promised goods and services to a customer, in an amount that reflects the consideration that it expects to receive in exchange for those goods or services. This is achieved through applying the following five-step model: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the Company satisfies a performance obligation The Company generates substantially all of its revenue from contracts with customers, whether formal or implied. Sales taxes collected from customers are remitted to the appropriate taxing jurisdictions and are excluded from sales revenue as the Company considers itself a pass-through conduit for collecting and remitting sales taxes, with the exception of taxes assessed during the procurement process of select inventories. Shipping and handling costs are included in cost of sales. Revenues from product and services sales are recognized when control of the goods is transferred to the customer which occurs at a point in time, typically upon shipment to the customer or completion of the service. This standard applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases, insurance, collaboration arrangements and financial instruments. Based upon the nature of the products the Company sells, its customers have limited rights of return, and these rights are immaterial. Discounts provided by the Company to customers at the time of sale are recognized as a reduction in sales at the time of the sale. Warranty obligations associated with the sale of the Company's products are assurance-type warranties that are a guarantee of the product’s intended functionality and, therefore, do not represent a distinct performance obligation within the context of the contract. Warranty expense is included in cost of sales. We apply a practical expedient to expense direct costs of obtaining a contract when incurred because the amortization period would have been one year or less. Under its contracts with customers, the Company stands ready to deliver product upon receipt of a customer's purchase order. Accordingly, the Company has no performance obligations under its contracts until its customers submit a purchase order. The Company does not enter into commitments to provide goods or services that have terms greater than one year. In limited cases, the Company requires payment in advance of shipping product. Typically, product is shipped within a few days after prepayment is received. These prepayments are recorded as contract liabilities on the condensed consolidated balance sheet and are included in accounts payable and accrued liabilities (Note 9). As the performance obligation is part of a contract that has an original expected duration of less than one year, the Company has applied the practical expedient under ASC 606 to omit disclosures regarding remaining performance obligations. When the Company transfers goods or provides services to a customer, payment is due, subject to normal terms, and is not conditional on anything other than the passage of time. Typical payment terms range from due upon receipt to 30 days, depending on the type of customer and relationship. At contract inception, the Company expects that the period of time between the transfer of goods to the customer and when the customer pays for those goods will be less than one year, which is consistent with the Company’s standard payment terms. Accordingly, the Company has elected the practical expedient under ASC 606 to not adjust for the effects of a significant financing component. As such, these amounts are recorded as receivables and not contract assets.
Fair Value Measurements	FAIR VALUE MEASUREMENTS ASC 820 prioritizes the inputs to valuation techniques used to measure fair value into the following hierarchy: Level 1 – Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 – Inputs other than the quoted prices in active markets that are observable either directly or indirectly, including: quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data. Level 3 – Unobservable inputs that are supported by little or no market data and require the reporting entity to develop its own assumptions. Financial instruments include cash and cash equivalents, accounts receivable, accounts payable, our line of credit, and long-term debt. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, our line of credit, and short-term borrowings approximate fair value because of the near-term maturities of these financial instruments. The carrying value of the Company’s notes payable approximates fair value due to the relatively short-term nature and interest rates of the notes. The carrying value of the Company's long-term debt approximates fair value due to the interest rates being market rates. The estimated fair value of debt is based on market quotes for instruments with similar terms and remaining maturities. The Company incurred contingent liabilities in relation to the 2021 acquisition of invisiFRAME Ltd. and the 2020 acquisition of Veloce Innovation. The payments of these liabilities is contingent on attainment of certain revenue performance metrics in future years. The fair value of these liabilities was determined using a Monte Carlo Simulation method based on the probability and timing of certain future payments related to these metrics. These liabilities are accounted for as Level 3 liabilities within the fair value hierarchy.

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Schedule of Ownership Interests and Functional Currencies	The ownership percentages and functional currencies of the entities included in these condensed consolidated financial statements are as follows: Subsidiaries Functional Currency % Owned by XPEL, Inc. XPEL, Ltd. UK Pound Sterling 100 % XPEL Canada Corp. Canadian Dollar 100 % XPEL B.V. Euro 100 % XPEL Germany GmbH Euro 100 % XPEL de Mexico S. de R.L. de C.V. Peso 100 % XPEL Acquisition Corp. Canadian Dollar 100 % Protex Canada, Inc. Canadian Dollar 100 % Apogee Corp. New Taiwan Dollar 100 % XPEL Slovakia Euro 100 % XPEL France Euro 100 % XPEL Spain Euro 100 % PermaPlate Film, LLC US Dollar 100 % 1 One Armor, Inc. US Dollar 100 % TintNet, Inc. US Dollar 100 % North 1 Technologies, Inc. Canadian Dollar 100 % 1716808 Alberta, Ltd. o/a Shadow Tint Canadian Dollar 100 % 6873391 Canada, Ltd. o/a Shadow Shield Canadian Dollar 100 % invisiFRAME, Ltd. UK Pound Sterling 100 %
Schedule of Product Warranty Liability	The following tables present a summary of the Company's accrued warranty liabilities for the six months ended June 30, 2022 and the twelve months ended December 31, 2021 (in thousands): 2022 Warranty liability, January 1 $ 75 Warranties assumed in period $ 295 Payments $ (168) Warranty liability, June 30 $ 202 2021 Warranty liability, January 1 $ 52 Warranties assumed in period $ 398 Payments $ (375) Warranty liability, December 31 $ 75

REVENUE (Tables)

REVENUE (Tables)	6 Months Ended
	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Schedule of Transactions Within Contract Liabilities	The following table summarizes transactions within contract liabilities for the three and six months ended June 30, 2022 (in thousands): Balance, December 31, 2021 $ 818 Revenue recognized related to payments included in the December 31, 2021 balance $ (556) Payments received for which performance obligations have not been satisfied $ 181 Effect of foreign currency translation $ (2) Balance, March 31, 2022 $ 441 Revenue recognized related to payments included in the March 31, 2022 balance $ (387) Payments received for which performance obligations have not been satisfied $ 1,012 Effect of foreign currency translation $ (8) Balance, June 30, 2022 $ 1,058
Schedule of Disaggregation of Revenue	The table below sets forth the disaggregation of revenue by product category for the periods indicated below (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 Product Revenue Paint protection film $ 48,275 $ 45,245 $ 92,236 $ 81,030 Window film 15,786 11,084 27,320 18,243 Other 2,979 2,338 5,581 4,326 Total 67,040 58,667 125,137 103,599 Service Revenue Software $ 1,247 $ 1,055 $ 2,453 $ 2,033 Cutbank credits 4,178 3,386 7,108 6,022 Installation labor 11,048 5,358 20,303 8,473 Training 306 270 655 475 Other 71 — 98 — Total 16,850 10,069 30,617 17,003 Total $ 83,890 $ 68,736 $ 155,754 $ 120,602
Schedule of Revenue Estimate by Geographic Areas	The following table represents the Company's estimate of sales by geographic regions based on the Company's understanding of ultimate product destination based on customer interactions, customer locations and other factors (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 United States $ 49,166 $ 34,296 $ 90,753 $ 59,901 China 7,904 12,626 16,763 23,331 Canada 10,877 8,877 18,727 13,823 Continental Europe 6,944 5,215 12,607 9,539 United Kingdom 2,595 2,133 5,022 3,919 Middle East/Africa 2,654 2,414 4,703 4,376 Asia Pacific 1,977 2,056 4,009 3,648 Latin America 1,359 1,029 2,565 1,946 Other 414 90 605 119 Total $ 83,890 $ 68,736 $ 155,754 $ 120,602

PROPERTY AND EQUIPMENT, NET (Ta

PROPERTY AND EQUIPMENT, NET (Tables)	6 Months Ended
	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
Schedule of Property, Plant and Equipment	Property and equipment consists of the following (in thousands): June 30, 2022 December 31, 2021 Furniture and fixtures $ 2,560 $ 2,147 Computer equipment 2,687 2,201 Vehicles 822 822 Equipment 4,271 3,572 Leasehold improvements 6,743 5,138 Plotters 2,509 2,132 Construction in Progress 78 117 Total property and equipment 19,670 16,129 Less: accumulated depreciation 7,501 6,231 Property and equipment, net $ 12,169 $ 9,898

INTANGIBLE ASSETS, NET (Tables)

INTANGIBLE ASSETS, NET (Tables)	6 Months Ended
	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Intangible assets consists of the following (in thousands): June 30, 2022 December 31, 2021 Trademarks $ 539 $ 500 Software 3,982 3,431 Trade names 1,463 2,579 Contractual and customer relationships 30,950 31,326 Non-compete 454 459 Other 676 693 Total cost 38,064 38,988 Less: Accumulated amortization 8,287 6,255 Intangible assets, net $ 29,777 $ 32,733

GOODWILL (Tables)

GOODWILL (Tables)	6 Months Ended
	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The following table summarizes goodwill transactions for the six months ended June 30, 2022 and 2021 (in thousands): Balance at December 31, 2021 $ 25,655 Open period adjustments for 2021 acquisitions not yet finalized (153) Foreign Exchange (431) Balance at June 30, 2022 $ 25,071 Balance at December 31, 2020 $ 4,472 Additions 11,272 Foreign Exchange 83 Balance at June 30, 2021 $ 15,827

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Jun. 30, 2022
Inventory Disclosure [Abstract]
Schedule of Inventory	The components of inventory are summarized as follows (in thousands): June 30, 2022 December 31, 2021 Raw materials $ 12,537 $ 2,699 Work in process 4,054 180 Finished goods 57,551 49,057 $ 74,142 $ 51,936

DEBT (Tables)

DEBT (Tables)	6 Months Ended
	Jun. 30, 2022
Debt Disclosure [Abstract]
Schedule of Notes Payable	Notes payable are summarized as follows (in thousands): Weighted Average Interest Rate Matures June 30, 2022 December 31, 2021 Face value of acquisition notes payable 2.61% 2023 161 458 Unamortized discount (2) (7) Current portion (159) (375) Total long-term debt $ — $ 76

ACCOUNTS PAYABLE AND ACCRUED _2

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2022
Accounts Payable and Accrued Liabilities [Abstract]
Schedule of Accounts Payable and Accrued Liabilities	The following table presents significant accounts payable and accrued liability balances as of the periods ending (in thousands): June 30, 2022 December 31, 2021 Trade payables $ 29,523 $ 25,175 Payroll liabilities 2,394 3,385 Contract liabilities 1,058 818 Acquisition holdback payments 1,300 2,007 Other liabilities 2,312 1,530 $ 36,587 $ 32,915

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2022
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Liabilities Measured on Recurring Basis	Liabilities measured at fair value on a recurring basis as of the dates noted below are as follows (in thousands): June 30, 2022 December 31, 2021 Level 3: Contingent Liabilities $ 1,119 $ 2,665

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table reconciles basic and diluted weighted average shares used in the computation of earnings per share (in thousands except per share values): Three Months Ended June 30, Six Months Ended June 30, Numerator 2022 2021 2022 2021 Net income $ 11,902 $ 10,186 $ 19,706 $ 17,033 Denominator Weighted average basic shares 27,613 27,613 27,613 27,613 Dilutive effect of restricted stock units — — — — Weighted average diluted shares 27,613 27,613 27,613 27,613 Earnings per share Basic $ 0.43 $ 0.37 $ 0.71 $ 0.62 Diluted $ 0.43 $ 0.37 $ 0.71 $ 0.62

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES - Ownership Percentages and Functional Currencies (Details)	Jun. 30, 2022
XPEL, Ltd.
Noncontrolling Interest [Line Items]
Ownership percentage	100%
XPEL Canada Corp.
Noncontrolling Interest [Line Items]
Ownership percentage	100%
XPEL B.V.
Noncontrolling Interest [Line Items]
Ownership percentage	100%
XPEL Germany GmbH
Noncontrolling Interest [Line Items]
Ownership percentage	100%
XPEL de Mexico S. de R.L. de C.V.
Noncontrolling Interest [Line Items]
Ownership percentage	100%
XPEL Acquisition Corp.
Noncontrolling Interest [Line Items]
Ownership percentage	100%
Protex Canada, Inc.
Noncontrolling Interest [Line Items]
Ownership percentage	100%
Apogee Corp.
Noncontrolling Interest [Line Items]
Ownership percentage	100%
XPEL Slovakia
Noncontrolling Interest [Line Items]
Ownership percentage	100%
XPEL France
Noncontrolling Interest [Line Items]
Ownership percentage	100%
XPEL Spain
Noncontrolling Interest [Line Items]
Ownership percentage	100%
PermaPlate Film, LLC
Noncontrolling Interest [Line Items]
Ownership percentage	100%
1 One Armor, Inc.
Noncontrolling Interest [Line Items]
Ownership percentage	100%
TintNet, Inc.
Noncontrolling Interest [Line Items]
Ownership percentage	100%
North 1 Technologies, Inc.
Noncontrolling Interest [Line Items]
Ownership percentage	100%
1716808 Alberta, Ltd. o/a Shadow Tint
Noncontrolling Interest [Line Items]
Ownership percentage	100%
6873391 Canada, Ltd. o/a Shadow Shield
Noncontrolling Interest [Line Items]
Ownership percentage	100%
invisiFRAME, Ltd.
Noncontrolling Interest [Line Items]
Ownership percentage	100%

SIGNIFICANT ACCOUNTING POLICI_5

SIGNIFICANT ACCOUNTING POLICIES - Segment Reporting (Details)	6 Months Ended
	Jun. 30, 2022 segment
Accounting Policies [Abstract]
Number of operating segments	1

SIGNIFICANT ACCOUNTING POLICI_6

SIGNIFICANT ACCOUNTING POLICIES - Accounts Receivable (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Accounting Policies [Abstract]
Allowance for doubtful accounts included in accounts receivable	$ 0.3	$ 0.3

SIGNIFICANT ACCOUNTING POLICI_7

SIGNIFICANT ACCOUNTING POLICIES - Provisions and Warranties (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Accounting Policies [Abstract]
Warranty liability	$ 202	$ 75
Movement in Standard Product Warranty Accrual [Roll Forward]
Warranty liability, beginning balance	75	52
Warranties assumed in period	295	398
Payments	(168)	(375)
Warranty liability, ending balance	$ 202	$ 75

REVENUE - Transactions Within C

REVENUE - Transactions Within Contract Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2022	Mar. 31, 2022
Movement in Deferred Revenue [Roll Forward]
Beginning contract liabilities	$ 441	$ 818
Revenue recognized related to payments included in the beginning balance	(387)	(556)
Payments received for which performance obligations have not been satisfied	1,012	181
Effect of foreign currency translation	(8)	(2)
Ending contract liabilities	$ 1,058	$ 441

REVENUE - Disaggregation of Rev

REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation of Revenue [Line Items]
Total revenue	$ 83,890	$ 68,736	$ 155,754	$ 120,602
Product
Disaggregation of Revenue [Line Items]
Total revenue	67,040	58,667	125,137	103,599
Paint protection film
Disaggregation of Revenue [Line Items]
Total revenue	48,275	45,245	92,236	81,030
Window film
Disaggregation of Revenue [Line Items]
Total revenue	15,786	11,084	27,320	18,243
Other
Disaggregation of Revenue [Line Items]
Total revenue	2,979	2,338	5,581	4,326
Service
Disaggregation of Revenue [Line Items]
Total revenue	16,850	10,069	30,617	17,003
Software
Disaggregation of Revenue [Line Items]
Total revenue	1,247	1,055	2,453	2,033
Cutbank credits
Disaggregation of Revenue [Line Items]
Total revenue	4,178	3,386	7,108	6,022
Installation labor
Disaggregation of Revenue [Line Items]
Total revenue	11,048	5,358	20,303	8,473
Training
Disaggregation of Revenue [Line Items]
Total revenue	306	270	655	475
Other
Disaggregation of Revenue [Line Items]
Total revenue	$ 71	$ 0	$ 98	$ 0

REVENUE - Revenue Estimate By G

REVENUE - Revenue Estimate By Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation of Revenue [Line Items]
Total revenue	$ 83,890	$ 68,736	$ 155,754	$ 120,602
United States
Disaggregation of Revenue [Line Items]
Total revenue	49,166	34,296	90,753	59,901
China
Disaggregation of Revenue [Line Items]
Total revenue	7,904	12,626	16,763	23,331
Canada
Disaggregation of Revenue [Line Items]
Total revenue	10,877	8,877	18,727	13,823
Continental Europe
Disaggregation of Revenue [Line Items]
Total revenue	6,944	5,215	12,607	9,539
United Kingdom
Disaggregation of Revenue [Line Items]
Total revenue	2,595	2,133	5,022	3,919
Middle East/Africa
Disaggregation of Revenue [Line Items]
Total revenue	2,654	2,414	4,703	4,376
Asia Pacific
Disaggregation of Revenue [Line Items]
Total revenue	1,977	2,056	4,009	3,648
Latin America
Disaggregation of Revenue [Line Items]
Total revenue	1,359	1,029	2,565	1,946
Other
Disaggregation of Revenue [Line Items]
Total revenue	$ 414	$ 90	$ 605	$ 119

REVENUE - Narrative (Details)

REVENUE - Narrative (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Largest Customers | Customer Concentration Risk | Revenue from Contract with Customer Benchmark
Disaggregation of Revenue [Line Items]
Concentration risk percentage	9.40%	18.40%	10.80%	19.30%

PROPERTY AND EQUIPMENT, NET - S

PROPERTY AND EQUIPMENT, NET - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 19,670	$ 16,129
Less: accumulated depreciation	7,501	6,231
Property and equipment, net	12,169	9,898
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment	2,560	2,147
Computer equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	2,687	2,201
Vehicles
Property, Plant and Equipment [Line Items]
Total property and equipment	822	822
Equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	4,271	3,572
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment	6,743	5,138
Plotters
Property, Plant and Equipment [Line Items]
Total property and equipment	2,509	2,132
Construction in Progress
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 78	$ 117

PROPERTY AND EQUIPMENT, NET - N

PROPERTY AND EQUIPMENT, NET - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 800	$ 400	$ 1,596	$ 803

INTANGIBLE ASSETS, NET - Schedu

INTANGIBLE ASSETS, NET - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Total cost	$ 38,064	$ 38,988
Less: Accumulated amortization	8,287	6,255
Intangible assets, net	29,777	32,733
Trademarks
Finite-Lived Intangible Assets [Line Items]
Total cost	539	500
Software
Finite-Lived Intangible Assets [Line Items]
Total cost	3,982	3,431
Trade names
Finite-Lived Intangible Assets [Line Items]
Total cost	1,463	2,579
Contractual and customer relationships
Finite-Lived Intangible Assets [Line Items]
Total cost	30,950	31,326
Non-compete
Finite-Lived Intangible Assets [Line Items]
Total cost	454	459
Other
Finite-Lived Intangible Assets [Line Items]
Total cost	$ 676	$ 693

INTANGIBLE ASSETS, NET - Narrat

INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 1,100	$ 400	$ 2,131	$ 685

GOODWILL - Schedule of Goodwill

GOODWILL - Schedule of Goodwill (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Goodwill [Roll Forward]
Goodwill beginning balance	$ 25,655	$ 4,472
Open period adjustments for 2021 acquisitions not yet finalized	(153)
Additions		11,272
Foreign Exchange	(431)	83
Goodwill ending balance	$ 25,071	$ 15,827

GOODWILL - Narrative (Details)

GOODWILL - Narrative (Details) - business		12 Months Ended
	Oct. 01, 2021	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Number of businesses acquired		7
Number of businesses for which purchase price remain preliminary	5

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 12,537	$ 2,699
Work in process	4,054	180
Finished goods	57,551	49,057
Inventory, net	$ 74,142	$ 51,936

DEBT - Narrative (Details)

DEBT - Narrative (Details) - Line of Credit - Revolving Credit Facility	3 Months Ended	6 Months Ended
	Jun. 30, 2022 USD ($) covenant	Jun. 30, 2022 USD ($) covenant	Jun. 30, 2022 CAD ($) covenant	Dec. 31, 2021 USD ($)
Texas Partners Bank
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 75,000,000	$ 75,000,000
Line of credit facility, unused capacity, commitment fee percentage		0.25%
Interest rate	4%	4%	4%	2.50%
Interest payment	$ 300,000	$ 500,000
Amount outstanding	$ 32,000,000	$ 32,000,000		$ 25,000,000
Number of covenants | covenant	2	2	2
Debt instrument, covenant, funded debt to EBITDA ratio, maximum	3.50	3.50	3.50
Covenant, debt service coverage ratio required, minimum	1.25	1.25	1.25
Texas Partners Bank | Scenario One
Line of Credit Facility [Line Items]
Debt instrument, EBITDA ratio (equal or less than)	2	2	2
HSBC Bank Canada
Line of Credit Facility [Line Items]
Maximum borrowing capacity			$ 4,500,000
Amount outstanding	$ 0	$ 0		$ 0
Prime Rate | Texas Partners Bank | Scenario One
Line of Credit Facility [Line Items]
Basis spread on prime rate		0.75%
Prime Rate | Texas Partners Bank | Scenario Two
Line of Credit Facility [Line Items]
Basis spread on prime rate		0.25%
Prime Rate | HSBC Bank Canada
Line of Credit Facility [Line Items]
Basis spread on prime rate		0.25%

DEBT - Schedule of Notes Payabl

DEBT - Schedule of Notes Payable (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Unamortized discount	$ (2)	$ (7)
Current portion	(159)	(375)
Total long-term debt	$ 0	76
Face value of acquisition notes payable
Debt Instrument [Line Items]
Weighted Average Interest Rate	2.61%
Face value of acquisition notes payable	$ 161	$ 458

ACCOUNTS PAYABLE AND ACCRUED _3

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES - Schedule of Accounts Payable and Accrued Liability (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Accounts Payable and Accrued Liabilities [Abstract]
Trade payables	$ 29,523		$ 25,175
Payroll liabilities	2,394		3,385
Contract liabilities	1,058	$ 441	818
Acquisition holdback payments	1,300		2,007
Other liabilities	2,312		1,530
Accounts payable and accrued liabilities	$ 36,587		$ 32,915

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Fair Value, Option, Quantitative Disclosures [Line Items]
Contingent liability, period decrease	$ 300	$ 300
Fair Value, Inputs, Level 3 | Fair Value, Recurring
Fair Value, Option, Quantitative Disclosures [Line Items]
Contingent Liabilities	$ 1,119	$ 1,119	$ 2,665

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Numerator
Net income	$ 11,902	$ 10,186	$ 19,706	$ 17,033
Denominator
Weighted average basic shares (in shares)	27,613	27,613	27,613	27,613
Dilutive effect of restricted stock units (in shares)	0	0	0	0
Weighted average diluted shares (in shares)	27,613	27,613	27,613	27,613
Earnings per share
Basic (in dollars per share)	$ 0.43	$ 0.37	$ 0.71	$ 0.62
Diluted (in dollars per share)	$ 0.43	$ 0.37	$ 0.71	$ 0.62

ACQUISITIONS OF BUSINESSES - (D

ACQUISITIONS OF BUSINESSES - (Details) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2021 business
Business Acquisition [Line Items]
Number of businesses acquired | business			7
Reduction in estimate of goodwill		$ 153
Business acquisition reduction in amortization expense	$ 100	$ 100
invisiFRAME, Ltd.
Business Acquisition [Line Items]
Reduction in purchase price	900
Business acquisition reduction in net identifiable intangible assets	1,100
Reduction in estimate of goodwill	100
Business acquisition reduction in deferred tax liabilities	300
Reduction in contingent liabilities	$ 900