Key Takeaways
- March 2, 2026: TPB released highlights from its fiscal 2025 fourth-quarter results;
- Q4 revenue: $121 million, up 29% year over year;
- Modern Oral net revenue: $41.3 million, up 266% year over year;
- Adjusted EBITDA: $30 million, up 14%, with a 24.8% margin;
- 2026 Modern Oral guidance: gross sales of $220–$240 million; net sales of $180–$190 million.
2Firsts, March 3, 2026
According to GuruFocus News, Turning Point Brands, a U.S. nicotine and tobacco-related consumer products company, released key highlights from its fiscal 2025 fourth-quarter results. The company said Q4 revenue increased 29% year over year to $121 million.
The company reported that adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization, EBITDA) rose 14% year over year to $30 million, representing a 24.8% margin. Gross margin was 55.9%, flat versus the same period last year. Q4 SG&A expenses were $47.7 million, up $3.1 million from the prior quarter.
By segment, the Stoker’s segment (including modern nicotine pouches, traditional oral tobacco, and chewing tobacco) posted Q4 net sales of $81 million, up 70% year over year. The Zig-Zag segment (rolling papers) recorded Q4 net sales of $40 million, down 13% year over year. The company said the Modern Oral segment posted Q4 net revenue of $41.3 million, up 266% year over year.
On cash flow and capital expenditures, the company reported Q4 free cash flow of $19.2 million. Quarterly capital expenditures (CapEx) were $3.3 million, and ending cash balance was $222.8 million.
The company also provided 2026 guidance: Modern Oral gross sales are projected at $220–$240 million, and Modern Oral net sales at $180–$190 million. It also guided for Q1 2026 EBITDA of $24–$27 million. The company further disclosed a forward-looking effective income tax rate range of 23%–26%, and a 2026 CapEx budget of $4–$5 million (excluding Modern Oral projects).
Regarding business progress and risk factors, the company said it is expanding its distribution network, with ALP nicotine pouches appearing in brick-and-mortar retail stores ahead of schedule. It also said it will make strategic investments in sales and marketing, including expanding its sales force and improving its online presence. The company noted that ongoing sales and marketing investments make it challenging to accurately forecast EBITDA beyond the first quarter, and warned that potential tax increases on nicotine pouches could affect pricing and promotional strategies. It also said elevated tariff rates have impacted gross margins in the Stoker’s segment.
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