Key Points
Modern Oral net sales increased 102.9% to $74.4 million, accounting for 49.2% of TPB's consolidated net sales. The figure covers the Modern Oral business associated with FRE and ALP, not either brand individually.
Consolidated net sales rose 27.0% to $151.1 million, while net income attributable to TPB fell 81.4% to $3.93 million. Adjusted EBITDA declined 41.3%.
SG&A expenses increased to $75.3 million. PMTA-related expenses reached approximately $3.15 million, while manufacturing start-up costs totaled about $593,000.
FRE is expanding in national and regional chains, while ALP is broadening independent and regional retail distribution. TPB expects chain-store footprint growth of more than 70% in 2026.
TPB holds a 50% ownership interest in ALP and consolidates its results. ALP plans to open its SoHo pop-up on November 13, with entry restricted to adults aged 21 and older.
2Firsts
November 11, 2026
US tobacco and nicotine products company Turning Point Brands, Inc. (NYSE: TPB) reported third-quarter Modern Oral net sales of $74.4 million on November 9, up 102.9% from a year earlier and accounting for 49.2% of consolidated net sales. Net income attributable to TPB fell 81.4% to $3.93 million as the company increased investment in nicotine pouch marketing, retail distribution and regulatory submissions.
TPB is expanding its US retail network through two nicotine pouch brands, FRE and ALP. FRE is securing additional placements in national and regional chains, while ALP is moving further into independent brick-and-mortar retail and pursuing regional and larger chain accounts.
Also on November 9, ALP announced a branded pop-up in Manhattan's SoHo neighborhood, scheduled to open on November 13, alongside a New York City marketing campaign extending into January 2027.
Modern Oral Net Sales Jump 103% to Nearly Half of Consolidated Revenue
For the quarter ended September 30, 2026, TPB reported consolidated net sales of $151.1 million, up 27.0% from $119.0 million a year earlier.
Modern Oral gross sales reached $93.9 million, an increase of 114.2%, while net sales rose 102.9% to $74.4 million.
Management said on the earnings call that Modern Oral gross and net sales increased approximately 8% and 9%, respectively, from the preceding quarter.
Modern Oral accounted for 49.2% of consolidated net sales, compared with approximately 31% a year earlier.
The business includes TPB's FRE and ALP nicotine pouch operations. The company did not provide separate quarterly net-sales figures for either brand.
The Stoker's segment, which includes Modern Oral and traditional smokeless tobacco products, generated $113.8 million in net sales, up 52.0%.
The heritage Stoker's business contributed approximately $39.0 million, an increase of about 3%.
The Zig-Zag segment, which largely consists of rolling papers and related smoking accessories, reported net sales of $37.3 million, down 15.5%.
Key quarterly financial results were:
| Metric | Q3 2026 | YoY Change |
|---|---|---|
| Consolidated net sales | $151.1 million | +27.0% |
| Modern Oral gross sales | $93.9 million | +114.2% |
| Modern Oral net sales | $74.4 million | +102.9% |
| Modern Oral share of consolidated net sales | 49.2% | About 31% in Q3 2025 |
| Stoker's segment net sales | $113.8 million | +52.0% |
| Zig-Zag segment net sales | $37.3 million | -15.5% |
| Consolidated gross profit | $85.2 million | +20.9% |
| Consolidated net income | $6.85 million | $23.76 million a year earlier |
| Net income attributable to TPB | $3.93 million | -81.4% |
| Adjusted EBITDA | $18.4 million | -41.3% |
Chief Executive Officer David Glazek said on the November 9 earnings call that TPB was using cash flow from its established businesses to increase investment in Modern Oral distribution, sales teams and manufacturing infrastructure.
Modern Oral net sales now represent nearly half of consolidated net sales, while revenue from the Zig-Zag segment declined.
FRE Expands Chain Distribution as ALP Builds Independent and Regional Retail Network
TPB is pursuing different distribution strategies for FRE and ALP.
Chief Revenue Officer Summer Frein said on the earnings call that FRE was securing additional placements at major US national and regional retail chains while expanding its product assortment at existing retail accounts.
Management said large chains typically roll out new products in stages based on scheduled shelf resets.
Securing a retail account or distribution agreement does not necessarily mean all stores within that chain immediately begin carrying the products.
ALP is at a different stage of retail expansion.
The brand initially focused on online sales before expanding into independent brick-and-mortar retailers. TPB is now increasing ALP's regional chain business and pursuing opportunities with larger national retailers.
The company expects its Modern Oral chain-store footprint to grow by more than 70% during 2026.
The forecast concerns the expansion of TPB's chain retail network, not its share of all US nicotine pouch retailers. It also does not establish that every newly secured location has completed product rollout.
To support the two brands' distribution expansion, TPB has increased investment in its sales force, in-store merchandising, retail services and marketing.
The company is also developing domestic US manufacturing operations, with production targeted to begin in 2027.
TPB separately identified approximately $593,000 in manufacturing start-up costs during the third quarter.
Management said the timing of production remains partly dependent on relevant FDA premarket reviews. No definitive start date has been announced.
TPB Owns 50% of ALP as SoHo Pop-Up Targets November 13 Opening
On November 9, ALP Supply Co. LLC announced plans for an ALP Saloon Pop-Up at 433 Broadway in Manhattan's SoHo neighborhood.
ALP's official website lists November 13 as the opening date, with operating hours from 11:30 a.m. to 6:30 p.m. daily.
Entry is restricted to people aged 21 and older, with a valid government-issued photo ID required. The pop-up will sell ALP nicotine pouch products and New York-exclusive branded merchandise.
ALP also plans outdoor advertising and marketing activities across Times Square and other parts of Manhattan from mid-November 2026 through January 2027.
The pop-up is styled around an Old West saloon theme.
ALP described the location as the first flagship-style retail space dedicated to a nicotine pouch brand in the United States. That characterization comes from the company and has not been independently verified as an industry first.
According to TPB's 2025 annual filing with the US Securities and Exchange Commission, a wholly owned TPB subsidiary invested $800,000 in September 2024 to acquire a 50% interest in ALP Supply Co. LLC. The other joint-venture partner is Last Country Ventures, LLC.
Under the agreement, TPB's subsidiary supplies products to ALP and provides warehousing and shipping services.
TPB also extended a $10 million credit facility to ALP.
TPB identifies ALP as a variable interest entity, or VIE, and determined that it has a controlling financial interest. ALP's assets, liabilities and operating results are therefore included in TPB's consolidated financial statements.
Although TPB owns half of ALP, the company's operating and financial arrangements require consolidation under the applicable accounting rules.
ALP was introduced to the US nicotine pouch market in November 2024 through an initiative involving TPB-related parties and a venture associated with American media personality Tucker Carlson.
Its initial product range included nicotine pouch strengths of 3 mg, 6 mg and 9 mg, with mint, wintergreen and fruit flavors.
According to ALP's November 9 announcement, the brand had previously concentrated marketing and distribution in rural US markets and had not actively expanded in New York City.
ALP Chief Executive Officer Lorenzo De Plano said the New York initiative would combine retail sales, brand presentation and citywide marketing.
As of November 11, ALP had not disclosed the pop-up's investment cost, projected sales or the number of permanent retail accounts expected to result from the campaign.
Attributable Profit Drops 81% as PMTA and Manufacturing Costs Increase
TPB reported sharply higher marketing, retail and regulatory expenditure alongside Modern Oral growth.
Third-quarter selling, general and administrative expenses increased 69.1% to $75.3 million from $44.5 million a year earlier.
The company attributed the increase primarily to marketing and sales investments for FRE and ALP, distribution support and higher outbound freight costs.
The earnings release's non-GAAP reconciliation also identified approximately $3.15 million in expenses related to premarket tobacco product applications (PMTAs) submitted to the FDA, compared with approximately $482,000 a year earlier.
TPB reported approximately $593,000 in manufacturing start-up costs during the quarter.
These items reflect regulatory filing and production preparation costs, but they should not be attributed entirely to ALP or added directly to SG&A without regard to their accounting classification.
Consolidated gross profit increased 20.9% to $85.2 million, while operating income declined to $9.87 million from $25.89 million a year earlier.
Consolidated net income totaled $6.85 million. Of that amount, $2.92 million was attributable to noncontrolling interests, leaving $3.93 million attributable to TPB shareholders.
Net income attributable to TPB was $21.08 million in the third quarter of 2025, resulting in an 81.4% year-over-year decline.
The comparison was also affected by certain items recorded in the prior-year period.
The company's non-GAAP reconciliation identified an approximately $5.45 million Employee Retention Credit refund in the third quarter of 2025, while the 2026 quarter included higher PMTA-related expenses and manufacturing start-up costs.
Adjusted EBITDA, a non-GAAP measure, declined 41.3% to $18.4 million.
At September 30, TPB held $251.3 million in cash and reported net debt of approximately $48.7 million.
Total liquidity stood at approximately $322.8 million, including about $71.5 million available under its asset-backed revolving credit facility.
The company also repurchased 167,161 shares during the quarter for approximately $10 million.
On November 9, TPB reaffirmed its full-year 2026 outlook:
| Full-Year Metric | 2026 Guidance |
|---|---|
| Modern Oral gross sales | $330 million–$350 million |
| Modern Oral net sales | $260 million–$270 million |
| Adjusted EBITDA | $70 million–$80 million |
These figures are company forecasts, not realized full-year results.
TPB expects further expansion of its Modern Oral retail network in 2026 and is targeting domestic manufacturing in 2027. The pace of retail rollout, ALP's New York campaign and FDA review of relevant products will remain factors in its subsequent operating performance.
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