XPEL, Inc. experienced a significant pre-market plunge of 11.23% on Wednesday, following the release of its latest quarterly financial results.

The sharp decline appears to be driven by the company's fourth-quarter 2025 revenue of $122.3 million, which, despite growing 13.7% year-over-year, fell short of the analyst consensus estimate of $125.01 million. Concurrently, the company provided its revenue outlook for the first quarter of 2026, projecting it to be in the range of approximately $112 million to $114 million.

While the company reported strong operational performance with a 37.6% increase in EBITDA and highlighted significant growth in its China business and service revenue, the market reaction focused on the revenue miss against expectations and the forward-looking guidance.