Turning Point Brands (TPB) Q4 2025 earnings summary

Executive summary

• Q4 2025 net sales rose 29.2% year-over-year to $121.0 million, driven by Modern Oral segment growth, which saw net sales up 266% to $41.3 million and now accounts for 34% of total sales.

• Adjusted EBITDA increased 14.4% to $30.0 million in Q4 2025, with a margin of 24.8%.

• White pouch brands FRĒ and ALP expanded sales and distribution, with ALP entering brick-and-mortar ahead of schedule.

• Strategic investments prioritized Modern Oral growth while maintaining strong cash flow from legacy brands.

• Full-year 2025 net sales increased 28.4% to $463.1 million, and net income grew 46.1% to $58.2 million.

Financial highlights

• Q4 2025 gross profit increased 29.1% to $67.7 million; full-year gross profit rose 31.1% to $264.3 million.

• Stoker's segment Q4 net sales rose 69.5% to $81.0 million, now 67% of consolidated net sales.

• Zig-Zag segment Q4 net sales declined 13% to $40 million, as anticipated, with gross margin up 40 bps to 54.6%.

• SG&A expenses increased $3.1 million sequentially and 38.2% year-over-year to $47.7 million, driven by Modern Oral investments and higher freight costs.

• Free cash flow for Q4 was $19.2 million; quarter-end cash balance was $222.8 million.

Outlook and guidance

• FY 2026 Modern Oral gross revenue guidance: $220–$240 million; net revenue: $180–$190 million.

• Q1 2026 consolidated Adjusted EBITDA expected between $24 million and $27 million, including continued Modern Oral investment.

• Effective income tax rate projected at 23%–26% going forward.

• 2026 CapEx budgeted at $4–$5 million, plus $3–$5 million for Modern Oral PMTAs.