Turning Point Brands Falls As Zig-Zag Sales Decline Offsets Modern Oral Surge

by | Mar 2, 2026 | General

Turning Point Brands, Inc. (NYSE:TPB) shares are trading lower on Monday after the company reported fourth-quarter 2025 results.

“We are well positioned to achieve double-digit share” of the modern oral category, according to Turning Point CEO Graham Purdy. Legacy brands, such as FRE and ALP, continue to generate durable cash flows, he added.

Earnings Snapshot

  • Net sales rose 29.2% year over year (Y/Y) to $121 million, beating the consensus estimate of $120.3 million.
  • By segment, Stoker’s segment sales increased 69.5% Y/Y, aided by significant growth in Modern Oral sales (+266% Y/Y) and single-digit growth in legacy Stoker’s products.
  • However, Zig-Zag segment sales fell 12.8% Y/Y in the quarter owing to a decline in U.S. sales.
  • Gross Profit increased 29.1% Y/Y to $67.7 million and adjusted EBITDA upped 14.4% Y/Y to $30 million in the quarter.
  • Adjusted EPS of 95 cents per share exceeded the consensus estimate of 88 cents.
  • As of December 31, the company’s cash position stood at $222.8 million.

Dividend Boost

Last month, Turning Point raised its quarterly dividend from 7 cents to 8 cents per share.

The dividend is payable on April 10, to shareholders of record as on March 20.

Outlook

The company projects FY26 Modern Oral segment net revenue of $180 million-$190 million.

The company sees first quarter adjusted EBITDA of $24 million-$27 million, inclusive of investment in Modern Oral sales, marketing, and trade promotions.

Price Action: TPB shares are down over 16.5% at the last check on Monday.

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