Turning Point Brands, Inc. has reported its financial results for the third quarter ended September 30, 2025, showing significant growth across various key metrics compared to the same period in the previous year.
Consolidated net sales for Q3 2025 increased by an impressive 31.2% year-over-year to $119.0 million. Of this, modern oral net sales for the same quarter surged by an astonishing 627.6% year-over-year to $36.7 million, representing 30.8% of the total company net sales.
The company's adjusted EBITDA for Q3 2025 stood at $31.3 million, marking a robust 17.2% increase over the prior year. As a result, Turning Point Brands has raised its 2025 adjusted EBITDA guidance to $115.0 – 120.0 million, up from the previous range of $110.0 – 114.0 million.
Furthermore, the full-year modern oral sales guidance has also been revised upwards to $125.0 – 130.0 million, compared to the previous range of $100.0 – 110.0 million.
When comparing Q3 2025 to Q3 2024, the company witnessed an 80.8% increase in Stoker's segment net sales, reaching $74.8 million, driven by strong growth in modern oral sales, mid-single-digit growth in MST, and low-single-digit growth in looseleaf.
On the other hand, Zig-Zag segment net sales decreased by 10.5% from the prior year to $44.2 million, excluding the wind-down of the clipper business. However, Zig-Zag was up mid-single-digits sequentially.
The company's gross profit increased by 39.7% to $70.4 million, and net income surged by 70.3% to $21.1 million in Q3 2025. Adjusted net income also saw a notable 18.3% increase to $19.6 million.
In terms of financial position, the total gross debt as of September 30, 2025, was reported at $300.0 million, with the net debt standing at $98.8 million. Turning Point Brands ended the quarter with total liquidity of $267.8 million.
As a result of these announcements, the company's shares have moved 1.65% on the market, and are now trading at a price of $95.18. For the full picture, make sure to review Turning Point Brands's 8-K report.
