Turning Point Brands (TPB) Q4 2025 earnings summary

Executive summary

• Q4 net sales rose 29% year-over-year to $121 million, driven by 266% growth in Modern Oral segment, now 34% of total sales.

• Adjusted EBITDA increased 14% to $30 million in Q4, with a margin of 24.8%.

• Full-year 2025 net sales reached $463.1 million, with net income up 46.1% to $58.2 million.

• White pouch brands FRĒ and ALP saw significant sales growth and expanded distribution.

• Strategic investments prioritized Modern Oral, while legacy brands continued to generate strong cash flow.

Financial highlights

• Q4 revenue: $121 million, up 29% year-over-year; Modern Oral net revenue: $41.3 million, up 266% year-over-year.

• Stoker's segment Q4 net sales: $81 million, up 70% year-over-year; Zig-Zag segment Q4 net sales: $40 million, down 13%.

• Q4 gross profit: $67.7 million, up 29.1%; gross margin: 55.9%, flat versus last year.

• Free cash flow: $19.2 million; CapEx: $3.3 million for Q4; ending cash at $222.8 million.

• Q4 SG&A expenses increased 38.2% year-over-year to $47.7 million, driven by Modern Oral investments and higher freight costs.

Outlook and guidance

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

• Q1 2026 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.