Turning Point Brands posted a sharp split in second-quarter 2026 performance, with modern oral driving growth even as profitability fell.
Total consolidated net sales rose 22.6% from a year earlier to $142.9 million. Modern oral gross revenue jumped 149% to $87.0 million, while modern oral net sales climbed 128% to $68.4 million, lifting the category to 48% of total company net sales from 26% in the prior-year quarter.
The company’s Stoker’s segment, which accounted for 75% of quarterly net sales, increased 54.5% to $107.6 million, fueled by triple-digit growth in modern oral net sales. Segment gross profit rose 63.3% to $71.1 million. Adjusting for tariff-refund-related costs, gross profit was $61.2 million, up 40.7% from a year earlier.
Zig-Zag segment net sales fell 24.8% from the prior-year quarter to $35.4 million. Segment gross profit declined 2.1% to $22.6 million, though on an adjusted basis gross profit was $20.3 million.
Gross profit for the company as a whole increased 40.6% to $93.7 million, helped by modern oral growth and a tariff refund. Excluding the out-of-period cost of goods sold tied to that refund, gross profit was $81.5 million.
Operating expenses moved sharply higher. Selling, general and administrative expenses increased 91.1% to $76.9 million, reflecting modern oral sales and marketing spending and higher outbound freight costs.
Bottom-line results weakened. Net income fell 75.2% to $3.6 million. Adjusted EBITDA declined 50.0% to $15.2 million.
Per-share results also dropped. Diluted EPS was $0.18, down from $0.79 a year earlier, while adjusted diluted EPS fell to $0.23 from $0.98.
Cash and leverage shifted during the quarter. Ending cash was $268.3 million, net debt was $31.7 million, and total liquidity was $339.0 million, including $70.7 million of availability on the company’s asset-backed revolving credit facility. The quarter included about $59.6 million of equity raised.
For 2026, Turning Point Brands raised its modern oral outlook. It now projects full-year modern oral gross sales of $330 million to $350 million, up from $280 million to $300 million, and modern oral net sales of $260 million to $270 million, up from $210 million to $225 million. The company also reaffirmed its full-year adjusted EBITDA target at $70 million to $90 million. Today the company's shares have moved -0.66% to a price of $79.89. For the full picture, make sure to review Turning Point Brands's 8-K report.
