Turning Point Brands Reports Strong Q2 2025 Financial Results

By Hao Liu • Wednesday, August 06 15:30 • Permanent Link

Turning Point Brands, Inc. ("TPB" or "the company") has released its financial results for the second quarter ended June 30, 2025. The results show significant growth and positive performance across various metrics compared to the same period in the previous year.

Key highlights include: Total consolidated net sales for Q2 2025 increased by 25.1% to $116.6 million, with the Modern Oral segment's net sales experiencing an exceptional 651% increase year-over-year, reaching $30.1 million and accounting for 26% of total net sales. Adjusted EBITDA for Q2 2025 reached $30.5 million, marking a 14.8% increase over the prior year. The company has raised its 2025 adjusted EBITDA guidance to $110.0 – 114.0 million, up from the previous range of $108.0 – 113.0 million. Full-year consolidated Modern Oral sales guidance has also been increased to $100.0 – 110.0 million, up from the previous range of $80.0 – 95.0 million.

In the Stoker's segment, net sales increased by 62.9% to $69.6 million, driven by strong growth in Modern Oral sales and mid-single-digit growth in MST offset by low single-digit declines in looseleaf. Total Stoker's products segment volume increased by 48.3%, while price/product mix increased by 14.5%. Gross profit in this segment increased by 85.0% from the previous year.

However, in the Zig-Zag segment, net sales decreased by 6.9% to $47.0 million, though they were close to flat sequentially. Zig-Zag segment gross profit decreased by 14.0% to $23.1 million, with gross margin decreasing by 410 basis points to 49.1% driven by product mix.

The company's outlook for 2025 includes an increase in full-year projected Modern Oral sales and adjusted EBITDA guidance. The full-year 2025 projected Modern Oral sales have been raised to $100.0 – 110.0 million, and the adjusted EBITDA guidance has been increased to $110.0 – 114.0 million.

These results demonstrate strong growth and positive performance in key segments, driving the company to increase its guidance for the year. Today the company's shares have moved 14.25% to a price of $92.70. Check out the company's full 8-K submission here.

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