XPEL (XPEL) 10-Q 8 Nov 24 2024 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2024	Nov. 08, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
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	711 Broadway St., Suite 320
Entity Address, City or Town	San Antonio
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	78215
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		27,647,640
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001767258
Current Fiscal Year End Date	--12-31

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current
Cash and cash equivalents	$ 20,986	$ 11,609
Accounts receivable, net	29,583	24,111
Inventory, net	101,592	106,509
Prepaid expenses and other current assets	6,296	3,529
Income tax receivable	264	696
Total current assets	158,721	146,454
Property and equipment, net	17,851	16,980
Right-of-use lease assets	18,380	15,459
Intangible assets, net	33,601	34,905
Other non-current assets	1,141	782
Goodwill	43,347	37,461
Total assets	273,041	252,041
Current
Current portion of notes payable	66	62
Current portion lease liabilities	4,820	3,966
Accounts payable and accrued liabilities	31,634	32,444
Total current liabilities	36,520	36,472
Deferred tax liability, net	1,252	2,658
Other long-term liabilities	1,077	890
Borrowings on line of credit	0	19,000
Non-current portion of lease liabilities	15,205	12,715
Non-current portion of notes payable	260	317
Total liabilities	54,314	72,052
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; 27,647,223 and 27,630,025 issued and outstanding, respectively	28	28
Additional paid-in-capital	14,700	12,546
Accumulated other comprehensive loss	(1,216)	(1,209)
Retained earnings	205,215	168,624
Total stockholders’ equity	218,727	179,989
Total liabilities and stockholders’ equity	$ 273,041	$ 252,041

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2024	Dec. 31, 2023
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)	27,647,223	27,647,223
Common stock shares outstanding (in shares)	27,630,025	27,630,025

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenue
Total revenue	$ 112,852	$ 102,677	$ 312,873	$ 290,755
Cost of Sales
Total cost of sales	64,936	61,148	179,216	169,273
Gross Margin	47,916	41,529	133,657	121,482
Operating Expenses
Sales and marketing	10,637	7,730	31,308	22,554
General and administrative	18,892	16,170	55,547	46,180
Total operating expenses	29,529	23,900	86,855	68,734
Operating Income	18,387	17,629	46,802	52,748
Interest expense	97	85	962	946
Foreign currency exchange (gain)/loss	(332)	398	216	419
Income before income taxes	18,622	17,146	45,624	51,383
Income tax expense	3,730	3,490	9,033	10,553
Net income	$ 14,892	$ 13,656	$ 36,591	$ 40,830
Earnings per share
Basic (in dollar per share)	$ 0.54	$ 0.49	$ 1.32	$ 1.48
Diluted (in dollar per share)	$ 0.54	$ 0.49	$ 1.32	$ 1.48
Weighted Average Number of Common Shares
Basic (in shares)	27,642,000	27,623,000	27,636,000	27,620,000
Diluted (in shares)	27,644,000	27,644,000	27,639,000	27,634,000
Product revenue
Revenue
Total revenue	$ 86,950	$ 81,125	$ 237,002	$ 229,339
Cost of Sales
Total cost of sales	53,967	51,876	147,376	143,613
Service revenue
Revenue
Total revenue	25,902	21,552	75,871	61,416
Cost of Sales
Total cost of sales	$ 10,969	$ 9,272	$ 31,840	$ 25,660

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Other comprehensive income
Net income	$ 14,892	$ 13,656	$ 36,591	$ 40,830
Foreign currency translation	1,150	(731)	(7)	24
Total comprehensive income	$ 16,042	$ 12,926	$ 36,584	$ 40,854

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, 2022		27,616,000
Beginning balance at Dec. 31, 2022	$ 124,722	$ 28	$ 11,073	$ 115,824	$ (2,203)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	40,830			40,830
Foreign currency translation	24				24
Stock-based compensation (in shares)		13,000
Stock-based compensation	$ 977		977
Ending balance (in shares) at Sep. 30, 2023	27,629,000	27,629,000
Ending balance at Sep. 30, 2023	$ 166,553	$ 28	12,050	156,654	(2,179)
Beginning balance (in shares) at Jun. 30, 2023		27,620,000
Beginning balance at Jun. 30, 2023	153,308	$ 28	11,730	142,998	(1,448)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	13,656			13,656
Foreign currency translation	(731)				(731)
Stock-based compensation (in shares)		9,000
Stock-based compensation	$ 320		320
Ending balance (in shares) at Sep. 30, 2023	27,629,000	27,629,000
Ending balance at Sep. 30, 2023	$ 166,553	$ 28	12,050	156,654	(2,179)
Beginning balance (in shares) at Dec. 31, 2023	27,630,025	27,630,000
Beginning balance at Dec. 31, 2023	$ 179,989	$ 28	12,546	168,624	(1,209)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	36,591			36,591
Foreign currency translation	(7)				(7)
Stock-based compensation (in shares)		17,000
Stock-based compensation	$ 2,154		2,154
Ending balance (in shares) at Sep. 30, 2024	27,630,025	27,647,000
Ending balance at Sep. 30, 2024	$ 218,727	$ 28	14,700	205,215	(1,216)
Beginning balance (in shares) at Jun. 30, 2024		27,638,000
Beginning balance at Jun. 30, 2024	201,911	$ 28	13,926	190,323	(2,366)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	14,892			14,892
Foreign currency translation	1,150				1,150
Stock-based compensation (in shares)		9,000
Stock-based compensation	$ 774		774
Ending balance (in shares) at Sep. 30, 2024	27,630,025	27,647,000
Ending balance at Sep. 30, 2024	$ 218,727	$ 28	$ 14,700	$ 205,215	$ (1,216)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities
Net income	$ 36,591	$ 40,830
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property, plant and equipment	4,308	3,229
Amortization of intangible assets	4,327	3,660
Gain on sale of property and equipment	(35)	(11)
Stock compensation	2,329	1,144
Provision for credit losses	279	216
Deferred income tax	(1,414)	(844)
Changes in assets and liabilities:
Accounts receivable, net	(5,475)	(9,483)
Inventory, net	5,174	(11,583)
Prepaid expenses and other current assets	(2,785)	(7,288)
Income taxes receivable and payable	370	320
Accounts payable and accrued liabilities	(2,172)	18,311
Net cash provided by operating activities	41,497	38,501
Cash flows used in investing activities
Purchase of property, plant and equipment	(5,085)	(4,741)
Proceeds from sale of property and equipment	40	20
Acquisition of businesses, net of cash acquired	(6,520)	(4,697)
Development of intangible assets	(1,421)	(798)
Net cash used in investing activities	(12,986)	(10,216)
Cash flows from financing activities
Net payments on revolving line of credit	(19,000)	(26,000)
RSUs withheld in lieu of payroll taxes	(175)	(167)
Repayments of notes payable	(44)	(77)
Net cash used in financing activities	(19,219)	(26,244)
Net change in cash and cash equivalents	9,292	2,041
Foreign exchange impact on cash and cash equivalents	85	277
Increase in cash and cash equivalents during the period	9,377	2,318
Cash and cash equivalents at beginning of period	11,609	8,056
Cash and cash equivalents at end of period	20,986	10,374
Supplemental schedule of non-cash activities
Non-cash lease financing	6,210	1,847
Issuance of common stock for vested restricted stock units	900	874
Supplemental cash flow information
Cash paid for income taxes	10,256	11,144
Cash paid for interest	$ 995	$ 1,000

INTERIM FINANCIAL INFORMATION

INTERIM FINANCIAL INFORMATION	9 Months Ended
	Sep. 30, 2024
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, 2023, which has been derived from audited financial statements, and (b) unaudited interim condensed consolidated financial statements as of and for the three and nine months ended September 30, 2024 and 2023 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 for the year ended December 31, 2023 as filed with the SEC on February 28, 2024 (the "Annual Report") and with the Management's Discussion and Analysis of Financial Condition and Results of Operations section appearing elsewhere in this Report.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2024
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 commercial/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 ("U.S.") Dollar. The assets and liabilities of each of its wholly-owned 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 loss in the accompanying consolidated balance sheets. Segment Reporting - Management has concluded that our chief operating decision maker (“CODM”) is our chief executive officer. The Company’s CODM reviews the entire organization’s consolidated results 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 with U.S. GAAP requires management to make judgments and estimates and form assumptions that affect the reported amounts of assets and liabilities as of 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 allowances for expected credit losses of $0.2 million and $0.2 million as of September 30, 2024 and December 31, 2023, 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 - We provide a warranty on our products. Liability under the warranty policy is based on a review of historical warranty claims. Adjustments are made to the accruals as claims and data experience warrant. Our liability for warranties as of September 30, 2024 and December 31, 2023 was $0.7 million and $0.4 million, respectively. The following tables present a summary of our accrued warranty liabilities for the nine months ended September 30, 2024 and the twelve months ended December 31, 2023 (in thousands): 2024 Warranty liability, January 1 $ 422 Warranties assumed in period 1,246 Payments (990) Warranty liability, September 30 $ 678 2023 Warranty liability, January 1 $ 234 Warranties assumed in period 768 Payments (580) Warranty liability, December 31 $ 422 Recent Accounting Pronouncements Issued and Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, “Improvements to Reportable Segment Disclosures” which makes certain updates to segment reporting. This standard will become effective for our annual reporting for the year beginning January 1, 2024 and for our interim reporting for interim periods beginning January 1, 2025. We do not anticipate implementation of this standard will have a material impact on our financial statements. In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures”, which makes certain updates to income tax disclosures. This standard becomes effective for our fiscal year beginning January 1, 2025. We do not anticipate implementation of this standard will have a material impact on our financial statements.

REVENUE

REVENUE	9 Months Ended
	Sep. 30, 2024
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. Revenue from product and services sales is recognized when control of the goods, or benefit of the service, is furnished to the customer. This 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 those present are immaterial. Discounts provided by the Company to customers at the time of sale are recognized as a reduction in sales as the products are sold. Warranty obligations associated with the sale of our 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 be one year or less. Under its contracts with customers, the Company stands ready to deliver product upon receipt of a 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 does require 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 the Accounting Standards Codification Topic 606 ("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 due within 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 nine months ended September 30, 2024 (in thousands): Balance, December 31, 2023 $ 761 Revenue recognized related to payments included in the December 31, 2023 balance (696) Payments received for which performance obligations have not been satisfied 276 Effect of foreign currency translation (4) Balance, March 31, 2024 337 Revenue recognized related to payments included in the March 31, 2024 balance (284) Payments received for which performance obligations have not been satisfied 935 Effect of foreign currency translation (3) Balance, June 30, 2024 985 Revenue recognized related to payments included in the June 30, 2024 balance (926) Payments received for which performance obligations have not been satisfied 643 Effect of foreign currency translation 22 Balance, September 30, 2024 $ 724 The table below sets forth the disaggregation of revenue by product category for the periods indicated below (in thousands): Three Months Ended Nine Months Ended 2024 2023 2024 2023 Product Revenue Paint protection film $ 60,545 $ 58,977 $ 166,870 $ 165,016 Window film 22,627 18,762 59,195 54,055 Other 3,778 3,386 10,937 10,268 Total $ 86,950 $ 81,125 $ 237,002 $ 229,339 Service Revenue Software $ 2,041 $ 1,652 $ 5,959 $ 4,656 Cutbank credits 4,500 4,524 13,300 13,253 Installation labor 18,925 14,852 55,090 41,781 Training and other 436 524 1,522 1,726 Total $ 25,902 $ 21,552 $ 75,871 $ 61,416 Total $ 112,852 $ 102,677 $ 312,873 $ 290,755 Because many of our 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 our estimate of sales by geographic regions based on our understanding of ultimate product destination based on customer interactions, customer locations and other factors (in thousands): Three Months Ended Nine Months Ended 2024 2023 2024 2023 United States $ 64,565 $ 59,002 $ 181,515 $ 169,228 Canada 14,415 11,471 38,769 31,914 China 9,058 10,242 14,910 24,992 Continental Europe 9,058 8,705 30,629 26,354 United Kingdom 3,548 3,499 10,723 10,220 Middle East/Africa 5,286 3,909 15,231 11,514 Asia Pacific 4,095 3,233 12,179 9,192 Latin America 2,827 2,325 8,917 6,617 Other — 291 — 724 Total $ 112,852 $ 102,677 $ 312,873 $ 290,755

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET	9 Months Ended
	Sep. 30, 2024
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT, NET	PROPERTY AND EQUIPMENT, NET Property and equipment consists of the following (in thousands): September 30, 2024 December 31, 2023 Furniture and fixtures $ 4,439 $ 3,844 Computer equipment 5,148 4,743 Vehicles 1,012 1,141 Equipment 6,031 5,685 Leasehold improvements 11,969 10,921 Plotters 4,884 4,315 Construction in Progress 378 201 Total property and equipment 33,861 30,850 Less: accumulated depreciation 16,010 13,870 Property and equipment, net $ 17,851 $ 16,980 Depreciation expense for the three months ended September 30, 2024 and 2023 was $1.5 million and $1.2 million, respectively. For the nine months ended September 30, 2024 and 2023, depreciation expense was $4.3 million and $3.2 million, respectively.

INTANGIBLE ASSETS, NET

INTANGIBLE ASSETS, NET	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS, NET	INTANGIBLE ASSETS, NET Intangible assets consists of the following (in thousands): September 30, 2024 December 31, 2023 Trademarks $ 1,145 $ 864 Software 7,284 5,919 Trade name 2,030 1,918 Contractual and customer relationships 41,890 40,866 Non-compete 441 447 Other 741 510 Total at cost 53,531 50,524 Less: Accumulated amortization 19,930 15,619 Intangible assets, net $ 33,601 $ 34,905

GOODWILL

GOODWILL	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL	GOODWILL The following table summarizes goodwill transactions for the nine months ended September 30, 2024 and 2023 (in thousands): 2023 Balance at December 31, 2022 $ 26,763 Additions and purchase price allocation adjustments 10,422 Foreign exchange 276 Balance at December 31, 2023 $ 37,461 2024 Balance at December 31, 2023 $ 37,461 Additions and purchase price allocation adjustments 5,861 Foreign exchange 25 Balance at September 30, 2024 $ 43,347 Refer to Note 13 for discussion of recent acquisitions.

INVENTORIES

INVENTORIES	9 Months Ended
	Sep. 30, 2024
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES The components of inventory are summarized as follows (in thousands): September 30, 2024 December 31, 2023 Raw materials $ 12,109 $ 22,308 Work in process 956 6,230 Finished goods 88,527 77,971 $ 101,592 $ 106,509

DEBT

DEBT	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
DEBT	DEBT REVOLVING FACILITIES The Company has a revolving credit facility providing for secured revolving loans and letters of credit in an aggregate amount of up to $125 million, which is subject to the terms of a credit agreement dated April 6, 2023 (the "Credit Agreement"). As of September 30, 2024, no balance was outstanding under the Credit Agreement. At December 31, 2023, the Company had an outstanding balance of $19 million under the Credit Agreement. Borrowings under the Credit Agreement bear interest, at XPEL’s option, at a rate equal to either (a) Base Rate or (b) Adjusted Term SOFR. In addition to the applicable interest rate, the Credit Agreement includes a commitment fee ranging from 0.20% to 0.25% per annum for the unused portion of the aggregate commitment and an applicable margin ranging from 0.00% to 0.50% for Base Rate Loans and 1.00% to 1.50% for Adjusted Term SOFR Loans. At September 30, 2024, these rates were 8.0% and 6.3%, respectively. Both the margin applicable to the interest rate and the commitment fee are dependent on XPEL’s Consolidated Total Leverage Ratio. The Credit Agreement's maturity date is April 6, 2026. All capitalized terms in this description of the Credit Agreement that are not otherwise defined in this report have the meaning assigned to them in the Credit Agreement. Obligations under the Credit Agreement are secured by a first priority perfected security interest, subject to certain permitted encumbrances, in all of XPEL’s material property and assets. The terms of the Credit Agreement include certain affirmative and negative covenants that require, among other things, XPEL to maintain legal existence and remain in good standing, comply with applicable laws, maintain accounting records, deliver financial statements and certifications on a timely basis, pay taxes as required by law, and maintain insurance coverage, as well as to forgo certain specified future activities that might otherwise encumber XPEL. The Credit Agreement provides for two financial covenants, as follows: As of the last day of each fiscal quarter: 1. XPEL shall not allow its Consolidated Total Leverage Ratio to exceed 3.50 to 1.00, and 2. XPEL shall not allow its Consolidated Interest Coverage Ratio to be less than 3.00 to 1.00 The Company also has a CAD $4.5 million revolving credit facility through HSBC Bank 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 September 30, 2024 and December 31, 2023, no balance was outstanding on this line of credit. As of September 30, 2024 and December 31, 2023, the Company was in compliance with all debt covenants.

ACCOUNTS PAYABLE AND ACCRUED LI

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	9 Months Ended
	Sep. 30, 2024
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): September 30, 2024 December 31, 2023 Trade payables $ 21,878 $ 24,233 Payroll liabilities 4,589 4,296 Contract liabilities 724 761 Acquisition holdback payments 628 868 Other liabilities 3,815 2,286 $ 31,634 $ 32,444

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Sep. 30, 2024
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 has contingent liabilities related to future internal performance milestones. The fair value of these liabilities was determined using a Monte Carlo Simulation based on the probability and timing of certain future payments under these arrangements. 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): September 30, 2024 December 31, 2023 Level 3: Contingent Liabilities $ 1,091 $ 815 Decreases in the fair value of level 3 contingent liabilities are reflected in general and administrative expenses in the Consolidated Statements of Income for the three and nine months ended September 30, 2024.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES In the ordinary course of business activities, the Company may be contingently liable for litigation and claims including those pertaining to 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 class action or other 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	9 Months Ended
	Sep. 30, 2024
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 September 30, Nine Months Ended September 30, Numerator 2024 2023 2024 2023 Net income $ 14,892 $ 13,656 $ 36,591 $ 40,830 Denominator Weighted average basic shares 27,642 27,623 27,636 27,620 Dilutive effect of restricted stock units 2 21 3 14 Weighted average diluted shares 27,644 27,644 27,639 27,634 Earnings per share Basic $ 0.54 $ 0.49 $ 1.32 $ 1.48 Diluted $ 0.54 $ 0.49 $ 1.32 $ 1.48

ACQUISITIONS OF BUSINESSES

ACQUISITIONS OF BUSINESSES	9 Months Ended
	Sep. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
ACQUISITIONS OF BUSINESSES	ACQUISITIONS OF BUSINESSES During 2024, we have acquired certain companies for an aggregate purchase price of $8.0 million. These acquisitions were primarily completed to increase the geographical footprint of our installation service businesses and to expand our product offerings into new applications. Our valuation models related to the contingent liabilities, identified intangible assets, and goodwill included in these acquisitions are not yet finalized and these figures are presented on a preliminary basis. Accounting for these items will be finalized within 12 months of each acquisition date. Purchase price allocations for other acquired items is finalized. Accordingly, the total preliminary purchase price for acquisitions completed during the nine months ended September 30, 2024 is as follows (in thousands): Aggregate Purchase Price Cash 1 $ 7,276 Contingent consideration 700 $ 7,976 Aggregate Allocation Cash $ 231 Other Working Capital 445 Property, equipment, and operating lease assets 2,927 Trade name 2 288 Acquired patterns 2 222 Customer Relationships 2 1,099 Goodwill 3 5,595 Operating lease liabilities (2,831) $ 7,976 1 Total cash consideration is comprised of amounts paid on closing dates plus holdback amounts to be paid in the future net of working capital deficiencies to be reclaimed from seller. 2 The weighted average useful life of acquired amortizable intangible assets is 9 years. 3 The full value of this acquired goodwill is expected to be tax deductible. Acquisitions completed during the nine months ended September 30, 2024 have not yet contributed substantially to our consolidated operating results. The following unaudited pro forma financial information presents our results, including expenses relating to the amortization of intangibles purchased, as if the acquisitions completed during the nine months ended September 30, 2024 had occurred on January 1, 2024 and 2023, respectively (in thousands): Nine Months Ended September 30, 2024 2023 Revenue $ 316,671 $ 297,444 Net income $ 36,848 $ 41,134 The unaudited consolidated pro forma combined financial information does not purport to be indicative of the results which would have been obtained had the acquisitions been completed as of the beginning of the earliest period presented or of results that may be obtained in the future. In addition, this financial information does not include any benefits that may result from the acquisition due to synergies that may be derived from the elimination of any duplicative costs. Valuations and purchase price allocations for acquisitions completed in the latter half of 2023 have been finalized with minor changes to goodwill and other acquired intangible assets.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 14,892	$ 13,656	$ 36,591	$ 40,830

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended	9 Months Ended
	Sep. 30, 2024 shares	Sep. 30, 2024 shares
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Ryan Pape [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On August 20, 2024 Ryan Pape, Chairman of the Board, President and Chief Executive Officer of the Company adopted a 10b5-1 plan which is designed to satisfy the affirmative defense of Rule 10b5-1(c). This plan allows for Mr. Pape's orderly distribution of 53,544 shares of the Company's Common Stock during the period from November 19, 2024 to April 30, 2025.
Name	Ryan Pape
Title	President and Chief Executive Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	August 20, 2024
Expiration Date	April 30, 2025
Arrangement Duration	162 days
Aggregate Available	53,544	53,544

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation
Segment Reporting	Segment Reporting - Management has concluded that our chief operating decision maker (“CODM”) is our chief executive officer. The Company’s CODM reviews the entire organization’s consolidated results 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	Use of Estimates - The preparation of these condensed consolidated financial statements in conformity with U.S. GAAP requires management to make judgments and estimates and form assumptions that affect the reported amounts of assets and liabilities as of 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 allowances for expected credit losses of $0.2 million and $0.2 million as of September 30, 2024 and December 31, 2023, 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
Provisions and Warranties	Provisions and Warranties -
Recent Accounting Pronouncements Issued and Not Yet Adopted	Recent Accounting Pronouncements Issued and Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, “Improvements to Reportable Segment Disclosures” which makes certain updates to segment reporting. This standard will become effective for our annual reporting for the year beginning January 1, 2024 and for our interim reporting for interim periods beginning January 1, 2025. We do not anticipate implementation of this standard will have a material impact on our financial statements. In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures”, which makes certain updates to income tax disclosures. This standard becomes effective for our fiscal year beginning January 1, 2025. We do not anticipate implementation of this standard will have a material impact on our 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. Revenue from product and services sales is recognized when control of the goods, or benefit of the service, is furnished to the customer. This 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 those present are immaterial. Discounts provided by the Company to customers at the time of sale are recognized as a reduction in sales as the products are sold. Warranty obligations associated with the sale of our 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 be one year or less. Under its contracts with customers, the Company stands ready to deliver product upon receipt of a 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 does require 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 the Accounting Standards Codification Topic 606 ("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 due within 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 has contingent liabilities related to future internal performance milestones. The fair value of these liabilities was determined using a Monte Carlo Simulation based on the probability and timing of certain future payments under these arrangements. These liabilities are accounted for as Level 3 liabilities within the fair value hierarchy.

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Schedule of Product Warranty Liability	The following tables present a summary of our accrued warranty liabilities for the nine months ended September 30, 2024 and the twelve months ended December 31, 2023 (in thousands): 2024 Warranty liability, January 1 $ 422 Warranties assumed in period 1,246 Payments (990) Warranty liability, September 30 $ 678 2023 Warranty liability, January 1 $ 234 Warranties assumed in period 768 Payments (580) Warranty liability, December 31 $ 422

REVENUE (Tables)

REVENUE (Tables)	9 Months Ended
	Sep. 30, 2024
Revenue from Contract with Customer [Abstract]
Schedule of Transactions Within Contract Liabilities	The following table summarizes transactions within contract liabilities for the three and nine months ended September 30, 2024 (in thousands): Balance, December 31, 2023 $ 761 Revenue recognized related to payments included in the December 31, 2023 balance (696) Payments received for which performance obligations have not been satisfied 276 Effect of foreign currency translation (4) Balance, March 31, 2024 337 Revenue recognized related to payments included in the March 31, 2024 balance (284) Payments received for which performance obligations have not been satisfied 935 Effect of foreign currency translation (3) Balance, June 30, 2024 985 Revenue recognized related to payments included in the June 30, 2024 balance (926) Payments received for which performance obligations have not been satisfied 643 Effect of foreign currency translation 22 Balance, September 30, 2024 $ 724
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 Nine Months Ended 2024 2023 2024 2023 Product Revenue Paint protection film $ 60,545 $ 58,977 $ 166,870 $ 165,016 Window film 22,627 18,762 59,195 54,055 Other 3,778 3,386 10,937 10,268 Total $ 86,950 $ 81,125 $ 237,002 $ 229,339 Service Revenue Software $ 2,041 $ 1,652 $ 5,959 $ 4,656 Cutbank credits 4,500 4,524 13,300 13,253 Installation labor 18,925 14,852 55,090 41,781 Training and other 436 524 1,522 1,726 Total $ 25,902 $ 21,552 $ 75,871 $ 61,416 Total $ 112,852 $ 102,677 $ 312,873 $ 290,755
Schedule of Revenue Estimate by Geographic Areas	The following table represents our estimate of sales by geographic regions based on our understanding of ultimate product destination based on customer interactions, customer locations and other factors (in thousands): Three Months Ended Nine Months Ended 2024 2023 2024 2023 United States $ 64,565 $ 59,002 $ 181,515 $ 169,228 Canada 14,415 11,471 38,769 31,914 China 9,058 10,242 14,910 24,992 Continental Europe 9,058 8,705 30,629 26,354 United Kingdom 3,548 3,499 10,723 10,220 Middle East/Africa 5,286 3,909 15,231 11,514 Asia Pacific 4,095 3,233 12,179 9,192 Latin America 2,827 2,325 8,917 6,617 Other — 291 — 724 Total $ 112,852 $ 102,677 $ 312,873 $ 290,755

PROPERTY AND EQUIPMENT, NET (Ta

PROPERTY AND EQUIPMENT, NET (Tables)	9 Months Ended
	Sep. 30, 2024
Property, Plant and Equipment [Abstract]
Schedule of Property, Plant and Equipment	Property and equipment consists of the following (in thousands): September 30, 2024 December 31, 2023 Furniture and fixtures $ 4,439 $ 3,844 Computer equipment 5,148 4,743 Vehicles 1,012 1,141 Equipment 6,031 5,685 Leasehold improvements 11,969 10,921 Plotters 4,884 4,315 Construction in Progress 378 201 Total property and equipment 33,861 30,850 Less: accumulated depreciation 16,010 13,870 Property and equipment, net $ 17,851 $ 16,980

INTANGIBLE ASSETS, NET (Tables)

INTANGIBLE ASSETS, NET (Tables)	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Intangible assets consists of the following (in thousands): September 30, 2024 December 31, 2023 Trademarks $ 1,145 $ 864 Software 7,284 5,919 Trade name 2,030 1,918 Contractual and customer relationships 41,890 40,866 Non-compete 441 447 Other 741 510 Total at cost 53,531 50,524 Less: Accumulated amortization 19,930 15,619 Intangible assets, net $ 33,601 $ 34,905

GOODWILL (Tables)

GOODWILL (Tables)	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The following table summarizes goodwill transactions for the nine months ended September 30, 2024 and 2023 (in thousands): 2023 Balance at December 31, 2022 $ 26,763 Additions and purchase price allocation adjustments 10,422 Foreign exchange 276 Balance at December 31, 2023 $ 37,461 2024 Balance at December 31, 2023 $ 37,461 Additions and purchase price allocation adjustments 5,861 Foreign exchange 25 Balance at September 30, 2024 $ 43,347

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Sep. 30, 2024
Inventory Disclosure [Abstract]
Schedule of Inventory	The components of inventory are summarized as follows (in thousands): September 30, 2024 December 31, 2023 Raw materials $ 12,109 $ 22,308 Work in process 956 6,230 Finished goods 88,527 77,971 $ 101,592 $ 106,509

ACCOUNTS PAYABLE AND ACCRUED _2

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables)	9 Months Ended
	Sep. 30, 2024
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): September 30, 2024 December 31, 2023 Trade payables $ 21,878 $ 24,233 Payroll liabilities 4,589 4,296 Contract liabilities 724 761 Acquisition holdback payments 628 868 Other liabilities 3,815 2,286 $ 31,634 $ 32,444

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 30, 2024
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): September 30, 2024 December 31, 2023 Level 3: Contingent Liabilities $ 1,091 $ 815

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2024
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 September 30, Nine Months Ended September 30, Numerator 2024 2023 2024 2023 Net income $ 14,892 $ 13,656 $ 36,591 $ 40,830 Denominator Weighted average basic shares 27,642 27,623 27,636 27,620 Dilutive effect of restricted stock units 2 21 3 14 Weighted average diluted shares 27,644 27,644 27,639 27,634 Earnings per share Basic $ 0.54 $ 0.49 $ 1.32 $ 1.48 Diluted $ 0.54 $ 0.49 $ 1.32 $ 1.48

ACQUISITIONS OF BUSINESSES (Tab

ACQUISITIONS OF BUSINESSES (Tables)	9 Months Ended
	Sep. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	Purchase price allocations for other acquired items is finalized. Accordingly, the total preliminary purchase price for acquisitions completed during the nine months ended September 30, 2024 is as follows (in thousands): Aggregate Purchase Price Cash 1 $ 7,276 Contingent consideration 700 $ 7,976 Aggregate Allocation Cash $ 231 Other Working Capital 445 Property, equipment, and operating lease assets 2,927 Trade name 2 288 Acquired patterns 2 222 Customer Relationships 2 1,099 Goodwill 3 5,595 Operating lease liabilities (2,831) $ 7,976 1 Total cash consideration is comprised of amounts paid on closing dates plus holdback amounts to be paid in the future net of working capital deficiencies to be reclaimed from seller. 2 The weighted average useful life of acquired amortizable intangible assets is 9 years. 3 The full value of this acquired goodwill is expected to be tax deductible.
Schedule of Pro Forma Information	The following unaudited pro forma financial information presents our results, including expenses relating to the amortization of intangibles purchased, as if the acquisitions completed during the nine months ended September 30, 2024 had occurred on January 1, 2024 and 2023, respectively (in thousands): Nine Months Ended September 30, 2024 2023 Revenue $ 316,671 $ 297,444 Net income $ 36,848 $ 41,134

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES - Segment Reporting Narrative (Details)	9 Months Ended
	Sep. 30, 2024 segment
Accounting Policies [Abstract]
Number of operating segments	1

SIGNIFICANT ACCOUNTING POLICI_5

SIGNIFICANT ACCOUNTING POLICIES - Accounts Receivable Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Accounting Policies [Abstract]
Allowance for doubtful accounts receivable	$ 0.2	$ 0.2

SIGNIFICANT ACCOUNTING POLICI_6

SIGNIFICANT ACCOUNTING POLICIES - Provisions and Warranties (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Accounting Policies [Abstract]
Warranty liability	$ 678	$ 422
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Warranty liability, beginning balance	422	234
Warranties assumed in period	1,246	768
Payments	(990)	(580)
Warranty liability, ending balance	$ 678	$ 422

REVENUE - Schedule of Transacti

REVENUE - Schedule of Transactions Within Contract Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024
Change in Contract with Customer, Liability [Abstract]
Beginning contract liabilities	$ 985	$ 337	$ 761
Revenue recognized related to payments	(926)	(284)	(696)
Payments received for which performance obligations have not been satisfied	643	935	276
Effect of foreign currency translation	22	(3)	(4)
Ending contract liabilities	$ 724	$ 985	$ 337

REVENUE - Disaggregation of Rev

REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Total revenue	$ 112,852	$ 102,677	$ 312,873	$ 290,755
Product revenue
Disaggregation of Revenue [Line Items]
Total revenue	86,950	81,125	237,002	229,339
Paint protection film
Disaggregation of Revenue [Line Items]
Total revenue	60,545	58,977	166,870	165,016
Window film
Disaggregation of Revenue [Line Items]
Total revenue	22,627	18,762	59,195	54,055
Other
Disaggregation of Revenue [Line Items]
Total revenue	3,778	3,386	10,937	10,268
Service revenue
Disaggregation of Revenue [Line Items]
Total revenue	25,902	21,552	75,871	61,416
Software
Disaggregation of Revenue [Line Items]
Total revenue	2,041	1,652	5,959	4,656
Cutbank credits
Disaggregation of Revenue [Line Items]
Total revenue	4,500	4,524	13,300	13,253
Installation labor
Disaggregation of Revenue [Line Items]
Total revenue	18,925	14,852	55,090	41,781
Training and other
Disaggregation of Revenue [Line Items]
Total revenue	$ 436	$ 524	$ 1,522	$ 1,726

REVENUE - Revenue Estimate By G

REVENUE - Revenue Estimate By Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Total revenue	$ 112,852	$ 102,677	$ 312,873	$ 290,755
United States
Disaggregation of Revenue [Line Items]
Total revenue	64,565	59,002	181,515	169,228
Canada
Disaggregation of Revenue [Line Items]
Total revenue	14,415	11,471	38,769	31,914
China
Disaggregation of Revenue [Line Items]
Total revenue	9,058	10,242	14,910	24,992
Continental Europe
Disaggregation of Revenue [Line Items]
Total revenue	9,058	8,705	30,629	26,354
United Kingdom
Disaggregation of Revenue [Line Items]
Total revenue	3,548	3,499	10,723	10,220
Middle East/Africa
Disaggregation of Revenue [Line Items]
Total revenue	5,286	3,909	15,231	11,514
Asia Pacific
Disaggregation of Revenue [Line Items]
Total revenue	4,095	3,233	12,179	9,192
Latin America
Disaggregation of Revenue [Line Items]
Total revenue	2,827	2,325	8,917	6,617
Other
Disaggregation of Revenue [Line Items]
Total revenue	$ 0	$ 291	$ 0	$ 724

PROPERTY AND EQUIPMENT, NET - S

PROPERTY AND EQUIPMENT, NET - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 33,861	$ 30,850
Less: accumulated depreciation	16,010	13,870
Property and equipment, net	17,851	16,980
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment	4,439	3,844
Computer equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	5,148	4,743
Vehicles
Property, Plant and Equipment [Line Items]
Total property and equipment	1,012	1,141
Equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	6,031	5,685
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment	11,969	10,921
Plotters
Property, Plant and Equipment [Line Items]
Total property and equipment	4,884	4,315
Construction in Progress
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 378	$ 201

PROPERTY AND EQUIPMENT, NET - N

PROPERTY AND EQUIPMENT, NET - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 1,500	$ 1,200	$ 4,308	$ 3,229

INTANGIBLE ASSETS, NET - Schedu

INTANGIBLE ASSETS, NET - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Total at cost	$ 53,531	$ 50,524
Less: Accumulated amortization	19,930	15,619
Intangible assets, net	33,601	34,905
Trademarks
Finite-Lived Intangible Assets [Line Items]
Total at cost	1,145	864
Software
Finite-Lived Intangible Assets [Line Items]
Total at cost	7,284	5,919
Trade name
Finite-Lived Intangible Assets [Line Items]
Total at cost	2,030	1,918
Contractual and customer relationships
Finite-Lived Intangible Assets [Line Items]
Total at cost	41,890	40,866
Non-compete
Finite-Lived Intangible Assets [Line Items]
Total at cost	441	447
Other
Finite-Lived Intangible Assets [Line Items]
Total at cost	$ 741	$ 510

INTANGIBLE ASSETS, NET - Narrat

INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 1,500	$ 1,300	$ 4,327	$ 3,660

GOODWILL - Schedule of Goodwill

GOODWILL - Schedule of Goodwill (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Goodwill [Roll Forward]
Goodwill beginning balance	$ 37,461	$ 26,763
Additions and purchase price allocation adjustments	5,861	10,422
Foreign exchange	25	276
Goodwill ending balance	$ 43,347	$ 37,461

INVENTORIES - Schedule of Inven

INVENTORIES - Schedule of Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 12,109	$ 22,308
Work in process	956	6,230
Finished goods	88,527	77,971
Inventory, net	$ 101,592	$ 106,509

DEBT (Details)

DEBT (Details)	9 Months Ended
	Sep. 30, 2024 USD ($) covenant	Sep. 30, 2024 CAD ($) covenant	Dec. 31, 2023 USD ($)	Apr. 06, 2023
Line of Credit Facility [Line Items]
Number of covenants | covenant	2	2
Revolving Credit Facility | Line of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 125,000,000
Amount outstanding	0		$ 19,000,000
Covenant, interest coverage ratio, minimum				3.50
Covenant, leverage ratio, maximum				3
Revolving Credit Facility | Line of Credit | HSBC Bank Canada
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 4,500,000
Amount outstanding	$ 0		$ 0
Revolving Credit Facility | Line of Credit | Base Rate
Line of Credit Facility [Line Items]
Line of credit facility interest rate (equal to or less than)	8%	8%
Revolving Credit Facility | Line of Credit | Secured Overnight Financing Rate (SOFR)
Line of Credit Facility [Line Items]
Line of credit facility interest rate (equal to or less than)	6.30%	6.30%
Revolving Credit Facility | Line of Credit | Prime Rate | HSBC Bank Canada
Line of Credit Facility [Line Items]
Basis spread on prime rate	0.25%
Revolving Credit Facility | Line of Credit | Minimum
Line of Credit Facility [Line Items]
Commitment fee percentage	0.20%
Revolving Credit Facility | Line of Credit | Minimum | Base Rate
Line of Credit Facility [Line Items]
Basis spread on prime rate	0%
Revolving Credit Facility | Line of Credit | Minimum | Secured Overnight Financing Rate (SOFR)
Line of Credit Facility [Line Items]
Basis spread on prime rate	1%
Revolving Credit Facility | Line of Credit | Maximum
Line of Credit Facility [Line Items]
Commitment fee percentage	0.25%
Revolving Credit Facility | Line of Credit | Maximum | Base Rate
Line of Credit Facility [Line Items]
Basis spread on prime rate	0.50%
Revolving Credit Facility | Line of Credit | Maximum | Secured Overnight Financing Rate (SOFR)
Line of Credit Facility [Line Items]
Basis spread on prime rate	1.50%

ACCOUNTS PAYABLE AND ACCRUED _3

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES - Schedule of Accounts Payable and Accrued Liability (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Dec. 31, 2023
Accounts Payable and Accrued Liabilities [Abstract]
Trade payables	$ 21,878			$ 24,233
Payroll liabilities	4,589			4,296
Contract liabilities	724	$ 985	$ 337	761
Acquisition holdback payments	628			868
Other liabilities	3,815			2,286
Accounts payable and accrued liabilities	$ 31,634			$ 32,444

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Fair Value, Inputs, Level 3 | Fair Value, Recurring
Fair Value, Option, Quantitative Disclosures [Line Items]
Contingent Liabilities	$ 1,091	$ 815

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Numerator
Net income	$ 14,892	$ 13,656	$ 36,591	$ 40,830
Denominator
Weighted average basic shares (in shares)	27,642,000	27,623,000	27,636,000	27,620,000
Dilutive effect of restricted stock units (in shares)	2,000	21,000	3,000	14,000
Weighted average diluted shares (in shares)	27,644,000	27,644,000	27,639,000	27,634,000
Earnings per share
Basic (in dollar per share)	$ 0.54	$ 0.49	$ 1.32	$ 1.48
Diluted (in dollar per share)	$ 0.54	$ 0.49	$ 1.32	$ 1.48

ACQUISITIONS OF BUSINESSES - Na

ACQUISITIONS OF BUSINESSES - Narrative (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
2024 Acquisitions
Business Acquisition [Line Items]
Purchase price	$ 7,976

ACQUISITIONS OF BUSINESSES - Sc

ACQUISITIONS OF BUSINESSES - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
Aggregate Allocation
Goodwill	$ 43,347	$ 37,461	$ 26,763
2024 Acquisitions
Aggregate Purchase Price
Cash	7,276
Contingent consideration	700
Purchase price	7,976
Aggregate Allocation
Cash	231
Other Working Capital	445
Property, equipment, and operating lease assets	2,927
Goodwill	5,595
Operating lease liabilities	(2,831)
Assets acquired and liabilities assumed, net	$ 7,976
Weighted average useful life	9 years
2024 Acquisitions | Trade name
Aggregate Allocation
Intangible assets	$ 288
2024 Acquisitions | Acquired patterns
Aggregate Allocation
Intangible assets	222
2024 Acquisitions | Customer Relationships
Aggregate Allocation
Intangible assets	$ 1,099

ACQUISITIONS OF BUSINESSES - Pr

ACQUISITIONS OF BUSINESSES - Pro Forma Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Revenue	$ 316,671	$ 297,444
Net income	$ 36,848	$ 41,134