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Dec 31, 2025
Turning Point Brands Q4 2025 Earnings Report
Turning Point Brands reported its fourth quarter 2025 financial results, highlighting significant growth in the Modern Oral category and a substantial increase in net income.
Key Takeaways
Turning Point Brands saw a 29.2% increase in net sales for Q4 2025, driven by the explosive growth of its Modern Oral products within the Stoker's segment. While the Zig-Zag segment faced headwinds from the Clipper business wind-down, the company achieved strong adjusted EBITDA growth and maintained a robust liquidity position.
Modern Oral net sales surged 266% to $41.3 million, now representing 34% of total company sales.
Stoker's segment net sales grew 69.5% to $81.0 million, fueled by triple-digit Modern Oral growth.
Zig-Zag segment net sales declined 12.8% due to the planned wind-down of the Clipper business.
Net income attributable to the company increased 239.8% to $8.2 million compared to the prior year period.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company provided a positive outlook for 2026, specifically targeting significant growth in the Modern Oral category while managing investments in brand building.
Positive Outlook
- FY 2026 Modern Oral Net Revenue expected between $180-$190 million.
- FY 2026 Modern Oral Gross Revenue expected between $220-$240 million.
- Strong durable cash flows from legacy brands to fund future growth.
- Positioned to achieve double-digit share of the modern oral category over time.
- Continued growth in Canadian sales for the Zig-Zag segment.
Challenges Ahead
- Q1 2026 Adjusted EBITDA expected to be $24-$27 million, reflecting heavy investment.
- Planned wind-down of the Clipper business impacting Zig-Zag segment sales.
- Increased outbound freight costs impacting SG&A.
- Ongoing FDA PMTA-related expenses for compliance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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