Turning Point Brands, Inc. reported fourth‑quarter and full‑year 2025 results on March 2, 2026. Net sales rose 29.2% year‑over‑year to $121.0 million, driven by a 266% jump in Modern Oral net revenue to $41.3 million, a 69.5% increase in Stoker’s products to $81.0 million, and a 12.8% decline in Zig‑Zag sales to $40.0 million.
The company posted a reported diluted earnings per share of $0.42, missing the consensus estimate of $0.87. Adjusted diluted EPS was $0.95, beating the consensus of $0.88 by $0.07. The reported EPS miss reflects higher SG&A expenses and freight costs associated with the company’s investment in Modern Oral sales and marketing, while the adjusted EPS beat is largely attributable to the strong mix shift toward the high‑margin Modern Oral segment and disciplined cost management.
Gross margin remained flat at 55.9% year‑over‑year, while SG&A increased due to planned investment in Modern Oral marketing and higher outbound freight charges. Operating income reached $30 million, up 14% from the prior year, supported by the revenue growth in Modern Oral and Stoker’s products.
For 2026, management guided Modern Oral gross revenue to $220‑$240 million and net revenue to $180‑$190 million. First‑quarter 2026 adjusted EBITDA is projected at $24‑$27 million, a sequential decline of about 15% that reflects the ongoing investment required to scale the new product line.
CEO Graham Purdy said the company was pleased with the momentum, noting revenue up 29% and Modern Oral net revenue of $41.3 million. CFO Andrew Flynn highlighted continued investment in sales and marketing to support that expansion.
Investors reacted negatively to the earnings release, focusing on the reported EPS miss and the sequential decline in adjusted EBITDA, despite the revenue beat and adjusted EPS beat.
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