Turning Point Brands Announces Fourth Quarter and Full Year 2025 Results

Turning Point Brands Announces Fourth Quarter and Full Year 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 fourth quarter and full year ended December 31, 2025.

We are excited by the growth of the modern oral category and the strong performance of our FRE and ALP brands. We are well positioned to achieve double-digit share of the category over time, while our legacy brands continue to generate durable cash flows.

Q4 2025 vs. Q4 2024

Diluted EPS of $0.42 and Adjusted Diluted EPS of $0.95 compared to $0.13 and $0.98 respectively, in the same period one year ago (see Schedule B for a reconciliation to Diluted EPS)

FY 2025 vs. FY 2024

Graham Purdy, President and CEO, commented “We are excited by the growth of the modern oral category and the strong performance of our FRE and ALP brands. We are well positioned to achieve double-digit share of the category over time, while our legacy brands continue to generate durable cash flows that provide strong funding for investment in future growth.”

Stoker’s Products Segment (67% of total net sales in the quarter)

For the fourth quarter, Stoker’s segment net sales increased 69.5% from the prior year to $81.0 million, driven by triple-digit growth in Modern Oral sales and single-digit growth in legacy Stoker’s products.

For the quarter, Stoker’s segment gross profit increased 66.2% from the prior year to $45.8 million. Gross margin decreased 115 basis points from the prior year to 56.6% driven primarily by mix.

For the full year, Stoker’s segment net sales increased 69.1% to $284.6 million, driven by triple-digit growth in Modern Oral sales and high-single-digit growth in legacy Stoker’s products.

For the full year, Stoker’s segment gross profit increased 77.3% to $168.4 million. Gross margin increased 275 basis points to 59.2%

Zig-Zag Products Segment (33% of total net sales in the quarter)

Zig-Zag performance for the fourth quarter and the year was in-line with our expectations given the planned wind-down of the Clipper business and allocation of sales and marketing resources to white pouch.

For the fourth quarter, Zig-Zag segment net sales decreased 12.8% from the prior year to $40.0 million driven by declines in US sales partially offset by growth in Canadian sales.

For the quarter, Zig-Zag segment gross profit decreased 12.1% from the prior year to $21.8 million. Gross margin increased 40 basis points from the prior year to 54.6%.

For the full year, Zig-Zag segment net sales decreased 7.2% from the prior year to $178.5 million driven by low-double-digit declines in US sales, partially offset by low-double-digit growth in Canada sales.

For the full year, Zig-Zag segment gross profit decreased 10.0% from the prior year to $95.9 million. Gross margin declined 170 basis points from the prior year to 53.7%.

Performance Measures in the Fourth Quarter

Investment in the fourth quarter focused on sales and marketing efforts to support distribution and brand building. In the fourth quarter consolidated selling, general and administrative (“SG&A”) expenses increased 38.2% from the prior year and 7.2% sequentially to $47.7 million, inclusive of Modern Oral-related sales and marketing investments and increased outbound freight costs.

Fourth quarter SG&A included the following notable items:

As of December 31, 2025, ending cash was $222.8 million and net debt was $77.2 million. The Company ended the quarter with total liquidity of $290.1 million, comprised of $222.8 million in cash and $68.1 million of asset backed revolving credit facility capacity.

2026 Outlook

Management currently expects full year 2026 Modern Oral Gross Revenue of $220-$240 million and Net Revenue of $180-$190 million. We currently expect Q1 2026 adjusted EBITDA of $24-$27 million, inclusive of investment in Modern Oral sales, marketing, and trade promotions.

Earnings Conference Call

As previously disclosed, a conference call with the investment community to review TPB’s financial results has been scheduled for 9:00 a.m. Eastern on Monday, March 2, 2026. 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 site 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, Inc. (NYSE: TPB) is a manufacturer, marketer and distributor of branded consumer products including alternative smoking accessories and consumables with active ingredients through its iconic brand portfolio, including Zig-Zag®, Stoker’s®, FRE®, and ALP®. TPB’s products are available in more than 220,000 retail outlets in North America and on sites such as www.zigzag.com, www.frepouch.com, and www.alppouch.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 Annual Report on Form 10-K for the year ended December 31, 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 year ending December 31, 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 year 2025 results when such results are disclosed by TPB in its Annual Report on Form 10-K for the year ended December 31, 2025.

Financial Statements Follow on Subsequent Pages

For the year ended December 31,

2025

2024

463,062

360,660

198,748

159,095

264,314

201,565

168,987

122,407

(1,674

)

95,327

80,832

(6,616

)

17,466

13,983

(1,060

)

2,203

1,159

(310

)

1,235

83,143

64,956

14,991

16,929

68,152

48,027

(7,517

)

68,152

40,510

9,987

701

58,165

39,809

3.18

2.67

(0.43

)

3.18

2.24

3.11

2.53

(0.39

)

3.11

2.14

18,314,047

17,734,239

18,730,635

19,362,806

Three Months Ended December 31,

2025

2024

121,013

93,667

53,359

41,249

67,654

52,418

47,728

34,533

19,926

17,885

(1,675

)

4,382

3,631

3,487

(146

)

(224

)

13,878

14,478

2,235

4,118

11,643

10,360

(7,309

)

11,643

3,051

3,434

635

8,209

2,416

0.43

0.55

(0.41

)

0.43

0.14

0.42

0.53

(0.40

)

0.42

0.13

19,089,275

17,708,460

19,536,807

18,251,876

December 31,

2025

2024

222,760

46,158

25,726

9,624

107,989

96,253

11,470

60,675

34,700

417,150

198,205

36,247

26,337

995

14,480

11,610

1,180

1,823

136,097

135,932

64,042

65,254

29,887

28,676

3,859

64,667

20,662

763,750

493,353

20,420

11,675

53,760

31,096

2,049

74,180

44,820

8,289

293,625

248,604

4,965

10,708

9,549

391,767

302,973

216

202

203,627

126,662

(47,637

)

(83,144

)

(1,563

)

(2,903

)

199,661

147,164

17,679

2,399

371,983

190,380

763,750

493,353

2025

2024

68,152

40,510

7,517

1,235

106

1,159

(310

)

(484

)

3,032

6,177

4,439

1,239

1,223

1,714

2,430

8,931

519

6,974

7,243

(1,797

)

(622

)

(14

)

(16,114

)

185

(11,584

)

(4,770

)

(25,413

)

(1,421

)

(4,835

)

(1,767

)

8,603

3,689

13,311

(1,000

)

57,374

60,958

6,104

Net cash provided by operating activities

57,374

67,062

(13,529

)

(4,623

)

(13,755

)

(10,857

)

6,363

5,420

(8,000

)

(2,783

)

(500

)

(31,671

)

(10,509

)

(31,671

)

(10,509

)

(118,541

)

(250,000

)

300,000

97,499

11,000

(5,519

)

(4,905

)

(7,285

)

(133

)

7,561

2,807

(33

)

(335

)

(2,324

)

(914

)

(2,626

)

(1,212

)

(5,051

)

148,274

(128,284

)

Net cash used in financing activities

148,274

(128,284

)

173,977

(71,731

)

(205

)

(182

)

48,941

117,886

1,961

4,929

50,902

122,815

222,760

48,941

1,914

1,961

224,674

50,902

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 (Loss). 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 (Loss) 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 (Loss) 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 (Loss)” as operating income (loss) 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 (Loss) 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.

For the Year Ended

December 31,

2025

2024

58,165

39,809

7,517

17,767

13,983

1,235

15,456

16,929

3,298

3,329

4,225

2,333

100,146

83,900

1,260

4,634

211

993

6,974

7,243

2,004

2,107

837

941

4,816

3,592

(513

)

942

6,738

2,722

(1,392

)

(5,451

)

318

642

1,991

(1,674

)

119,522

104,459

(a)

Represents costs associated with corporate restructuring, including severance and early retirement.

(b)

Represents cost associated with scoping and mobilization of new ERP and CRM systems and cost of duplicative ERP licenses.

(c)

Represents non-cash stock options, restricted stock, PSRUs, etc.

(d)

Represents the fees incurred for transaction expenses.

(e)

Represents elevated non-recurring outbound freight costs due to ERP transition.

(f)

Represents legal expenses incurred in connection with litigation related to an insurance claim.

(g)

Represents costs associated with applications related to FDA premarket tobacco production application ("PMTA").The PMTA regime requires the Company to submit an application to the FDA to receive marketing authorization to continue to sell certain of its product lines with continued sales permitted during the pendency of the applications. The application is a onetime resource-intensive process for each covered product line; however, due to the nature of the implementation process for those product lines already in the market, applications can take multiple years to complete rather than the typical one-time submission. The Company currently has only two product lines currently subject to the PMTA process, having utilized other regulatory pathway options available for our other product lines. The Company does not expect to submit additional PMTA applications for any new product lines after the submission for the pending two are complete.

(h)

Represents a mark-to-market loss attributable to foreign exchange fluctuation.

(i)

Represents impairment of goodwill, intangible and investment assets.

(j)

Represents gain on investments.

(k)

Represents an employee retention credit refund received which is included in other (income) expense, net.

(l)

Represents an honorarium gift included in other (income) expense, net.

(m)

Represents non-recurring expenses incurred during the start-up of manufacturing lines.

(n)

Represents adjustment to costs of goods sold to reflect prevailing tariff rates.

(o)

Represents a federal excise tax refund included in other operating income.

Three Months Ended

December 31,

2025

2024

8,209

2,416

7,309

4,574

3,631

2,478

4,118

814

831

1,222

736

17,297

19,041

1,027

2,904

212

1,798

1,523

438

1,107

1,092

512

(153

)

942

5,830

642

1,991

30,025

26,241

(a)

Represents costs associated with corporate restructuring, including severance and early retirement.

(b)

Represents cost associated with scoping and mobilization of new ERP and CRM systems and cost of duplicative ERP licenses.

(c)

Represents non-cash stock options, restricted stock, PSRUs, etc.

(d)

Represents the fees incurred for transaction expenses.

(e)

Represents elevated non-recurring outbound freight costs due to ERP transition.

(f)

Represents legal expenses incurred in connection with litigation related to an insurance claim.

(g)

(h)

Represents a mark-to-market loss attributable to foreign exchange fluctuation.

(i)

Represents impairment of goodwill, intangible and investment assets.

(j)

Represents gain on investments.

(k)

Represents an employee retention credit refund received which is included in other (income) expense, net.

(l)

Represents an honorarium gift included in other (income) expense, net.

(m)

Represents non-recurring expenses incurred during the start-up of manufacturing lines.

(n)

Represents adjustment to costs of goods sold to reflect prevailing tariff rates.

(o)

Represents a federal excise tax refund included in other operating income.

83,143

14,991

9,987

58,165

3.11

64,956

16,929

7,517

701

39,809

2.14

1,260

227

1,033

0.06

4,634

1,208

3,426

0.18

211

173

0.01

993

259

734

0.04

6,974

1,257

5,717

0.31

7,243

1,888

5,355

0.28

2,004

361

1,643

0.09

2,107

549

1,558

0.08

837

151

686

0.04

941

170

771

0.04

4,816

868

3,948

0.21

3,592

936

2,656

0.14

(513

)

(92

)

(421

)

(0.02

)

942

246

696

0.04

6,738

1,215

5,523

0.29

2,722

709

2,013

0.10

(1,392

)

(251

)

(1,141

)

(0.06

)

(5,451

)

(983

)

(4,468

)

(0.24

)

318

261

0.01

642

116

526

0.03

1,991

359

1,632

0.09

(1,674

)

(436

)

(1,238

)

(0.06

)

(123

)

123

0.01

(901

)

901

0.05

(9,970

)

9,970

0.51

102,519

18,362

9,987

74,170

3.96

85,515

21,386

(2,453

)

701

65,881

3.49

(a)

Represents costs associated with corporate restructuring, including severance and early retirement.

(b)

Represents cost associated with scoping and mobilization of new ERP and CRM systems and cost of duplicative ERP licenses.

(c)

Represents non-cash stock options, restricted stock, PSRUs, etc.

(d)

Represents the fees incurred for transaction expenses.

(e)

Represents elevated non-recurring outbound freight costs due to ERP transition.

(f)

Represents legal expenses incurred in connection with litigation related to an insurance claim.

(g)

(h)

Represents a mark-to-market loss attributable to foreign exchange fluctuation.

(i)

Represents impairment of goodwill, intangible and investment assets.

(j)

Represents gain on investments.

(k)

Represents an employee retention credit refund received which is included in other (income) expense, net.

(l)

Represents an honorarium gift included in other (income) expense, net.

(m)

Represents non-recurring expenses incurred during the start-up of manufacturing lines.

(n)

Represents adjustment to costs of goods sold to reflect prevailing tariff rates.

(o)

Represents a federal excise tax refund included in other operating income.

(p)

Represents adjustment from annual tax rate to annual tax rate of 18% in 2025 and 25% in 2024.

(q)

Represents loss on discontinued operations.

(r)

Income tax expense calculated using the effective tax rate for the year of 18.0% in 2025 and 26.1% in 2024.

(s)

Tax allocation for discontinued operations excluded from adjusted net income.

13,878

2,235

3,434

8,209

0.42

14,478

4,118

7,309

635

2,416

0.13

1,027

165

862

0.04

2,904

826

2,078

0.11

212

152

0.01

1,798

290

1,508

0.08

1,523

433

1,090

0.06

438

367

0.02

1,107

315

792

0.04

1,092

176

916

0.05

512

146

366

0.02

(153

)

(25

)

(128

)

(0.01

)

942

268

674

0.04

5,830

939

4,891

0.25

0.00

642

103

539

0.03

1,991

321

1,670

0.09

420

(420

)

(0.02

)

(725

)

725

0.04

(9,694

)

9,694

0.53

26,606

4,705

3,434

18,467

0.95

21,678

5,441

(2,385

)

635

17,987

0.98

(a)

Represents costs associated with corporate restructuring, including severance and early retirement.

(b)

Represents cost associated with scoping and mobilization of new ERP and CRM systems and cost of duplicative ERP licenses.

(c)

Represents non-cash stock options, restricted stock, PSRUs, etc.

(d)

Represents the fees incurred for transaction expenses.

(e)

Represents elevated non-recurring outbound freight costs due to ERP transition.

(f)

Represents legal expenses incurred in connection with litigation related to an insurance claim.

(g)

(h)

Represents a mark-to-market loss attributable to foreign exchange fluctuation.

(i)

Represents impairment of goodwill, intangible and investment assets.

(j)

Represents gain on investments.

(k)

Represents an employee retention credit refund received which is included in other (income) expense, net.

(l)

Represents an honorarium gift included in other (income) expense, net.

(m)

Represents non-recurring expenses incurred during the start-up of manufacturing lines.

(n)

Represents adjustment to costs of goods sold to reflect prevailing tariff rates.

(o)

Represents a federal excise tax refund included in other operating income.

(p)

Represents adjustment from annual tax rate to annual tax rate of 18% in 2025 and 25% in 2024.

(q)

Represents loss on discontinued operations.

(r)

Income tax expense calculated using the effective tax rate for the year of 18.0% in 2025 and 26.1% in 2024.

(s)

Tax allocation for discontinued operations excluded from adjusted net income.

463,062

360,660

178,478

192,394

284,584

168,266

264,314

201,565

95,901

106,585

168,413

94,980

95,327

80,832

58,941

66,697

109,105

68,272

1,260

4,634

211

993

2,004

2,107

837

941

4,816

3,592

(513

)

942

(513

)

942

(1,392

)

(5,451

)

318

642

1,991

(1,674

)

(1,674

)

100,991

91,426

58,428

65,965

109,747

68,272

121,013

93,667

40,038

45,891

80,975

47,776

67,654

52,418

21,846

24,848

45,808

27,570

19,801

17,885

12,260

13,059

25,851

17,852

1,027

2,904

212

438

1,107

1,092

512

(153

)

942

(153

)

942

642

1,991

24,901

23,562

12,107

14,001

26,493

17,852