TPB · Turning Point Brands, Inc.

Turning Point Brands delivered strong top-line growth in Q1 2026, with consolidated net sales rising 16.8% to $124.3 million, primarily propelled by explosive 133% growth in Modern Oral net sales to $52.0 million, now comprising 42% of total sales versus 21% last year. This momentum in Stoker's segment, which grew 48.1% to $87.6 million (70% of total sales), offset a 22.4% decline in Zig-Zag segment sales to $36.7 million due to lower U.S. papers and wraps shipments. Gross profit increased 14.6% to $68.3 million, though margins faced pressure in Stoker's (54.0% vs. 57.5% prior year) from Modern Oral mix, while Zig-Zag margins improved to 57.1% on favorable product mix. Despite revenue gains, profitability softened with Adjusted EBITDA down 6.5% to $25.9 million and GAAP net income falling 19.0% to $11.7 million, reflecting 53.2% higher SG&A expenses to $55.8 million driven by Modern Oral sales/marketing investments and freight costs. Diluted EPS was $0.60 (GAAP) and $0.76 (adjusted), down from $0.79 and $0.91 year-ago. CEO Graham Purdy highlighted early-stage generational shift in nicotine consumption, with investments in brands, UFC partnership, and legacy cash flow supporting scaling. Balance sheet remains solid with $192.4 million cash, $101.4 million net debt, and $265.0 million liquidity. Notably, the company raised FY 2026 Modern Oral net sales guidance to $210-$225 million (from $180-$190 million) and introduced Adjusted EBITDA outlook of $70-$90 million, signaling confidence in category growth and execution.