Top Takeaways:
- Modern Oral Segment Drives Growth: Turning Point Brands reported a remarkable 651% year-over-year increase in net sales for its Modern Oral segment, reaching $30.1 million and accounting for 26% of total revenue.
- Overall Financial Performance Strong: The company achieved a 25.1% rise in total net sales to $116.6 million and an 11.3% increase in net income to $14.5 million.
- Updated Financial Outlook: TPB raised its full-year 2025 Adjusted EBITDA guidance to $110–114 million and increased its Modern Oral sales forecast to $100–110 million.
Turning Point Brands, Inc. (NYSE: TPB) announced robust financial results for the second quarter of 2025, highlighting significant growth in its Modern Oral segment and steady performance from legacy brands.
The company reported total net sales of $116.6 million, a 25.1% increase compared to the same period last year. Net income rose 11.3% to $14.5 million, while adjusted EBITDA grew 14.8% to $30.5 million. Adjusted net income reached $18 million.
Modern Oral sales surged 651% year-over-year to $30.1 million, now comprising 26% of TPB’s total revenue. The Stoker’s segment, bolstered by Modern Oral, experienced a 62.9% sales increase. However, the Zig-Zag segment saw a 6.9% decline due to product mix shifts.
CEO Graham Purdy attributed the strong results to aggressive growth in Modern Oral and resilience in legacy brands. “Our consolidated second quarter results were better than expected,” he said.
In response to the positive performance, TPB raised its full-year 2025 Modern Oral sales forecast to $100–110 million, up from the previous estimate of $80–95 million. The company also increased its Adjusted EBITDA guidance for 2025 to $110–114 million.
TPB ended the quarter with $190.1 million in net debt and $176.4 million in liquidity. The company declared a regular quarterly dividend of $0.075 per common share, payable on October 10 to shareholders of record on September 19.
For more details, a replay of the earnings call is available at turningpointbrands.com.
