Turning Point Brands Announces Third Quarter 2025 Results

LOUISVILLE, Ky.--( BUSINESS WIRE)-- Turning Point Brands, Inc. (“TPB” or the “Company”) (NYSE: TPB), a manufacturer, marketer and distributor of branded consumer products, including alternative smoking accessories and consumables with active ingredients, today announced financial results for the third quarter ended September 30, 2025.

Our consolidated third quarter results exceeded expectations. Modern Oral sales were $36.7 million, increasing by 22% versus the prior quarter and 628% over the prior year.

Q3 2025 vs. Q3 2024

Graham Purdy, President and CEO, commented, “Our consolidated third quarter results exceeded expectations. Modern Oral sales were $36.7 million, increasing by 22% versus the prior quarter and 628% over the prior year. In addition, we now expect to qualify our first U.S. white pouch production lines in the first half of 2026.”

Stoker’s Products Segment (63% of total net sales in the quarter)

For the third quarter, Stoker’s segment net sales increased 80.8% from the prior year to $74.8 million, driven by strong growth in Modern Oral sales, mid-single-digit growth in MST and low-single-digit growth in looseleaf.

Stoker’s segment gross profit increased 95.2% from the prior year and 3.5% sequentially to $45.0 million. Gross margin increased 440 basis points from the prior year to 60.2%.

Zig-Zag Products Segment (37% of total net sales in the quarter)

For the third quarter, Zig-Zag segment net sales decreased 10.5% from the prior year and 6.1% sequentially to $44.2 million. Excluding the previously discussed wind-down of our Clipper business, Zig-Zag was up mid-single-digits sequentially, which slightly beat our expectations.

Zig-Zag segment gross profit decreased 7.1% from the prior year but increased 9.9% sequentially to $25.4 million. Gross margin increased 210 basis points from the prior year to 57.5%.

Performance Measures in the Third Quarter

Third quarter 2025 consolidated selling, general and administrative (“SG&A”) expenses increased 50.5% from the prior year and 10.5% sequentially to $44.5 million, inclusive of increased Modern Oral-related sales and marketing investments and increased outbound freight costs.

Third quarter SG&A included the following notable items:

Total gross debt as of September 30, 2025 was $300.0 million. Net debt (total gross debt less unrestricted cash) as of September 30, 2025 was $98.8 million. The Company ended the quarter with total liquidity of $267.8 million, comprised of $201.2 million in cash and $66.6 million of availability under an asset backed revolving credit facility.

Consistent with the Company’s policy of maintaining active buyback and sales authorizations to maximize capital markets flexibility, the Company plans to amend its ATM prospectus supplement and buyback authorization to provide for $200 million of capacity under each program. There are no current plans to transact under the updated authorizations.

2025 Outlook

The Company is increasing full-year 2025 Adjusted EBITDA guidance to $115.0 – 120.0 million (from $110.0 – 114.0 million) and projected full-year 2025 Modern Oral sales to $125.0 – 130.0 million (from $100.0 – 110.0 million).

Earnings Conference Call

As previously disclosed, a conference call with the investment community to review TPB’s financial results has been scheduled for 8:30 a.m. Eastern on Wednesday, November 5, 2025. Investment community participants should dial in 10 minutes ahead of time using the toll-free number (800) 715-9871 (international participants should call (646) 307-1963) and follow the audio prompts after typing in the event ID: 6640134. A live listen-only webcast of the call will be available on the Events and Presentations section of the investor relations portion of the Company website ( www.turningpointbrands.com). A replay of the webcast will be available on the website two hours following the call.

Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with generally accepted accounting principles in the United States (GAAP), this press release includes certain non-GAAP financial measures including EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS and Adjusted Operating Income (Loss). A reconciliation of these non-GAAP financial measures accompanies this release.

About Turning Point Brands, Inc.

Turning Point Brands (NYSE: TPB) is a manufacturer, marketer and distributor of branded consumer products including smoking accessories and consumables with active ingredients through its Zig-Zag®, Stoker’s®, FRE®, and Alp Pouch® brands. TPB’s products are available in more than 220,000 retail outlets in North America, and on sites such as www.zigzag.com. For the latest news and information about TPB and its brands, please visit www.turningpointbrands.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may generally be identified by the use of words such as "anticipate," "believe," "expect," "intend," "plan" and "will" or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. As a result, these statements are not guarantees of future performance and actual events may differ materially from those expressed in or suggested by the forward-looking statements. Any forward-looking statement made by TPB in this press release, its reports filed with the Securities and Exchange Commission (the “SEC”) and other public statements made from time-to-time speak only as of the date made. New risks and uncertainties come up from time to time, and it is impossible for TPB to predict or identify all such events or how they may affect it. TPB has no obligation, and does not intend, to update any forward-looking statements after the date hereof, except as required by federal securities laws. Factors that could cause these differences include, but are not limited to, those included in the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed by the Company with the SEC. These statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995.

This press release contains TPB’s preliminary determinations and current expectations, and such information is inherently uncertain. The preliminary estimates provided herein have been prepared by, and are the responsibility of, management and are subject to completion of TPB's customary quarter-end closing and review procedures and third-party review. As a result, TPB's reported information in its Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 may differ from this information, and any such differences may be material. In addition, the information furnished above does not include all of the information regarding TPB's financial condition and results of operations for the quarter ending September 30, 2025 that may be important to readers. As a result, readers are cautioned not to place undue reliance on the information furnished in this press release and should view this information in the context of TPB's full third quarter 2025 results when such results are disclosed by TPB in its Quarterly Report on Form 10-Q for the quarter ended September 30, 2025.

Financial Statements Follow on Subsequent Pages

2025

2024

118,979

90,704

48,552

40,309

70,427

50,395

44,542

29,590

25,885

20,805

(4,941

)

3,531

3,831

(817

)

(143

)

(2,117

)

(60

)

30,229

17,177

6,472

4,652

23,757

12,525

(165

)

23,757

12,360

2,677

(16

)

21,080

12,376

1.16

0.70

1.16

0.70

1.13

0.68

1.13

0.68

18,246,722

17,722,855

18,708,665

18,448,720

2025

2024

201,189

46,158

27,792

9,624

112,790

96,253

11,470

54,665

34,700

396,436

198,205

33,880

26,337

995

12,915

11,610

1,341

1,823

136,068

135,932

64,344

65,254

29,762

28,676

3,859

68,102

20,662

742,848

493,353

24,599

11,675

46,738

31,096

2,049

71,337

44,820

3,971

293,364

248,604

6,182

9,841

9,549

384,695

302,973

216

202

200,376

126,662

(47,637

)

(83,144

)

(1,900

)

(2,903

)

192,895

147,164

14,203

2,399

358,153

190,380

742,848

493,353

Nine Months Ended September 30,

2025

2024

56,508

37,459

208

1,235

(484

)

2,722

(2,328

)

(217

)

4,489

3,182

918

913

1,293

1,947

4,690

349

5,176

5,720

(1,205

)

(317

)

(14

)

(18,251

)

(447

)

(16,412

)

(8,149

)

(19,409

)

1,422

(10,978

)

(814

)

12,709

4,565

14,517

(3,659

)

32,515

44,908

4,413

32,515

49,321

(10,182

)

(3,516

)

(2,783

)

(12,876

)

(8,865

)

5,459

4,520

(1,250

)

(8,000

)

(28,384

)

(9,064

)

(28,384

)

(9,064

)

(250,000

)

300,000

97,499

(118,541

)

11,000

(4,089

)

(3,644

)

(7,285

)

(133

)

6,106

1,341

(33

)

(328

)

(2,324

)

(840

)

(2,625

)

(1,212

)

(4,170

)

148,250

(127,527

)

148,250

(127,527

)

152,381

(87,270

)

(182

)

(29

)

48,941

117,886

1,961

4,929

50,902

122,815

201,189

33,557

1,912

1,959

203,101

35,516

Non-GAAP Financial Measures

To supplement our financial information presented in accordance with generally accepted accounting principles in the United States, or U.S. GAAP, we use non-U.S. GAAP financial measures, including EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, and Adjusted Operating Income. We believe Adjusted EBITDA provides useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, and Adjusted Operating Income are used by management to compare our performance to that of prior periods for trend analyses and planning purposes and are presented to our board of directors. We believe that EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, and Adjusted Operating Income are appropriate measures of operating performance because they eliminate the impact of expenses that do not relate to business performance.

We define “EBITDA” as net income before interest expense, gain (loss) on extinguishment of debt, income tax expense, depreciation, amortization. We define “Adjusted EBITDA” as net income before interest expense, gain (loss) on extinguishment of debt, income tax expense, depreciation, amortization, other non-cash items and other items that we do not consider ordinary course in our evaluation of ongoing operating performance. We define “Adjusted Net Income” as net income excluding items that we do not consider ordinary course in our evaluation of ongoing operating performance. We define “Adjusted Diluted EPS” as diluted earnings per share excluding items that we do not consider ordinary course in our evaluation of ongoing operating performance. We define “Adjusted Operating Income” as operating income excluding other non-cash items and other items that we do not consider ordinary course in our evaluation of ongoing operating performance.

Non-U.S. GAAP measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with U.S. GAAP. EBITDA, Adjusted Net Income, Adjusted EBITDA, Adjusted Diluted EPS, and Adjusted Operating Income exclude significant expenses that are required by U.S. GAAP to be recorded in our financial statements and is subject to inherent limitations. In addition, other companies in our industry may calculate this non-U.S. GAAP measure differently than we do or may not calculate it at all, limiting its usefulness as a comparative measure.

In accordance with SEC rules, we have provided, in the supplemental information attached, a reconciliation of the non-GAAP measures to the next directly comparable GAAP measures.

Three Months Ended

September 30,

2025

2024

21,080

12,376

3,653

3,831

6,694

4,652

814

943

1,132

729

33,373

22,531

233

186

154

1,884

1,769

820

873

437

482

1,242

(10

)

(678

)

(5,451

)

255

31,345

26,755

30,229

6,472

2,677

21,080

1.13

17,177

4,652

165

(16

)

12,376

0.68

(165

)

165

0.01

233

183

0.01

186

136

0.01

154

112

0.01

1,884

403

1,481

0.08

1,769

479

1,290

0.07

820

176

644

0.03

873

236

637

0.03

437

343

0.02

482

103

379

0.02

1,242

336

906

0.05

(10

)

(0.00

)

(678

)

(145

)

(533

)

(0.03

)

(5,451

)

(1,167

)

(4,284

)

(0.23

)

255

200

0.01

(113

)

113

0.01

(952

)

952

0.05

28,201

5,925

2,677

19,599

1.05

21,401

4,844

(16

)

16,573

0.91

2025

2024

2025

2024

2025

2024

118,979

90,704

44,154

49,324

74,825

41,380

70,427

50,395

25,386

27,324

45,041

23,071

25,885

20,805

15,581

17,378

29,270

17,162

233

186

154

820

873

437

482

1,242

(10

)

27,847

23,260

15,581

17,378

29,270

17,162