Turning Point Brands Reports 266% Surge in Modern Oral Sales

By Chris Stiles • Monday, March 02 10:45 • Permanent Link

Turning Point Brands, a manufacturer, marketer, and distributor of branded consumer products, has reported its financial results for the fourth quarter and full year ended December 31, 2025. The company's modern oral net sales surged by 266% to $41.3 million in the fourth quarter of 2025, accounting for 34% of total company net sales, up from 12% in the same period in 2024.

In the fourth quarter of 2025, total consolidated net sales increased by 29.2% to $121.0 million compared to the same period in 2024. Stoker's segment net sales increased by 69.5%, while Zig-Zag segment net sales decreased by 12.8%. Gross profit also saw a significant increase of 29.1% to $67.7 million, and net income surged by 239.8% to $8.2 million. Adjusted EBITDA increased by 14% to $30.0 million.

For the full year 2025, total consolidated net sales increased by 28.4% to $463.1 million compared to 2024. Stoker’s segment net sales increased by 69.1%, while Zig-Zag segment net sales decreased by 7.2%. Gross profit increased by 31.1% to $264.3 million, and net income increased by 46.1% to $58.2 million. Adjusted EBITDA also increased by 14.4% to $119.5 million.

The company's president and CEO, Graham Purdy, expressed excitement about the growth of the modern oral category and the strong performance of the company's fre and alp brands, positioning them well to achieve a double-digit share of the category over time.

Stoker’s segment net sales for the fourth quarter increased by 69.5% to $81.0 million, driven by triple-digit growth in modern oral sales and single-digit growth in legacy Stoker’s products. Zig-Zag segment net sales decreased by 12.8% to $40.0 million, with declines in US sales partially offset by growth in Canadian sales.

Looking ahead, management expects full-year 2026 modern oral gross revenue of $220-$240 million and net revenue of $180-$190 million. They also anticipate first-quarter 2026 adjusted EBITDA of $24-$27 million, inclusive of investment in modern oral sales, marketing, and trade promotions.

As of December 31, 2025, the company had ending cash of $222.8 million and net debt of $77.2 million, with total liquidity of $290.1 million.

This press release does not include any non-GAAP financial measures and emphasizes the company's focus on growth and investment in future growth opportunities. Following these announcements, the company's shares moved 0.8%, and are now trading at a price of $118.95. For more information, read the company's full 8-K submission here.

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