Turning Point Brands, Inc.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 2 March 2026: press release. Guidance figures: 3 new. The quarter’s numbers.

Read the filing

Key takeaways

• Q4 net sales rose 29.2%: Q4 2025 net sales rose 29.2% to $121.0 million from $93.7 million; gross profit rose 29.1% to $67.7 million. Source
• Modern Oral sales more than quadrupled: Modern Oral net sales were 34% of Q4 total company net sales, up from 12% in Q4 2024. The prior release put the Q3 share at 30.8%. Source
• Full-year net sales and profit up: Full-year net sales rose 28.4% to $463.1 million, gross profit 31.1% to $264.3 million and net income 46.1% to $58.2 million. Source
• Stoker's Q4 sales up 69.5%: Stoker's segment net sales rose 69.5% to $81.0 million, 67% of total net sales in the quarter, with triple-digit Modern Oral sales growth. Source
• Zig-Zag Q4 sales down 12.8%: Zig-Zag segment net sales fell 12.8% to $40.0 million, 33% of total net sales. US declines were partly offset by growth in Canadian sales. Source
• SG&A rose 38.2% year on year: Q4 SG&A rose 38.2% from a year earlier and 7.2% sequentially to $47.7 million, including Modern Oral sales and marketing investment and higher outbound freight. Source
• Stoker's Q4 margin fell on mix: Stoker's Q4 gross margin was 56.6%, down 115 basis points, which management attributed primarily to mix. Segment gross profit rose 66.2% to $45.8 million. Source
• Year-end cash and net debt: Year-end cash was $222.8 million and net debt $77.2 million. Total liquidity was $290.1 million, including $68.1 million of revolver capacity. Source

“We are excited by the growth of the modern oral category and the strong performance of our FRE and ALP brands.”

Graham Purdy, President and CEO

Guidance

What changed from last quarter

• New guidance: The release gives 2026 guidance for Modern Oral gross and net revenue. The prior release gave 2025 guidance only. Source
• New guidance: The release gives first-quarter 2026 adjusted EBITDA guidance of $24-$27 million, which the prior release did not include. Source
• New: The adjusted EBITDA reconciliation adds manufacturing start-up costs ($0.6 million), a tariff adjustment ($2.0 million) and non-cash asset impairment ($5.8 million) in Q4. None appeared in the Q3 reconciliation. Source

Results and growth drivers

• Q4 net sales rose 29.2%: Q4 2025 net sales rose 29.2% to $121.0 million from $93.7 million; gross profit rose 29.1% to $67.7 million. Source
• Modern Oral sales more than quadrupled: Modern Oral net sales were 34% of Q4 total company net sales, up from 12% in Q4 2024. The prior release put the Q3 share at 30.8%. Source
• Adjusted EBITDA up 14%: Adjusted EBITDA rose 14.4% to $30.0 million. Q4 diluted EPS was $0.42 against $0.13; adjusted diluted EPS was $0.95 against $0.98. Source
• Full-year net sales and profit up: Full-year net sales rose 28.4% to $463.1 million, gross profit 31.1% to $264.3 million and net income 46.1% to $58.2 million. Source
• Full-year diluted EPS higher: Full-year diluted EPS was $3.11 against $2.14. Adjusted diluted EPS was $3.96 against $3.49, per the company's Schedule B reconciliation. Source

Segments and regions

• Stoker's Q4 sales up 69.5%: Stoker's segment net sales rose 69.5% to $81.0 million, 67% of total net sales in the quarter, with triple-digit Modern Oral sales growth. Source
• Zig-Zag Q4 sales down 12.8%: Zig-Zag segment net sales fell 12.8% to $40.0 million, 33% of total net sales. US declines were partly offset by growth in Canadian sales. Source
• Zig-Zag full-year sales down 7.2%: Full-year Zig-Zag net sales fell 7.2% to $178.5 million, with low-double-digit US declines partly offset by low-double-digit Canadian growth. Source
• Stoker's full-year sales up 69.1%: Full-year Stoker's net sales rose 69.1% to $284.6 million, with high-single-digit growth in legacy Stoker's products. Source

“We are well positioned to achieve double-digit share of the category over time, while our legacy brands continue to generate durable cash flows that provide strong funding for investment in future growth.”

Graham Purdy, President and CEO

Demand and sales momentum

• Products sold in 220,000 outlets: Products are sold in more than 220,000 retail outlets in North America, and on sites including zigzag.com, frepouch.com and alppouch.com. Source
• Modern Oral sales rose from Q3: The prior release reported Q3 Modern Oral net sales of $36.7 million. Q4 Modern Oral net sales were $41.3 million.
• Q4 spending built distribution: Management said fourth-quarter investment focused on sales and marketing to support distribution and brand building. Source

Costs and SG&A

• SG&A rose 38.2% year on year: Q4 SG&A rose 38.2% from a year earlier and 7.2% sequentially to $47.7 million, including Modern Oral sales and marketing investment and higher outbound freight. Source
• Transaction costs fell year on year: Q4 transaction-related costs were $0.4 million against $1.1 million a year earlier. Adjusted EBITDA excludes these costs. Source
• ERP transition freight treated as non-recurring: Full-year outbound freight of $0.8 million linked to the ERP transition was treated as non-recurring and added back to adjusted EBITDA. Source

Margins and mix

• Stoker's Q4 margin fell on mix: Stoker's Q4 gross margin was 56.6%, down 115 basis points, which management attributed primarily to mix. Segment gross profit rose 66.2% to $45.8 million. Source
• Zig-Zag Q4 margin edged up: Zig-Zag Q4 gross margin was 54.6%, up 40 basis points, while segment gross profit fell 12.1% to $21.8 million. Source
• Stoker's full-year margin rose: Full-year Stoker's gross margin rose 275 basis points to 59.2%, and segment gross profit rose 77.3% to $168.4 million. Source
• Zig-Zag full-year margin fell: Full-year Zig-Zag gross margin fell 170 basis points to 53.7%, and segment gross profit fell 10.0% to $95.9 million. Source

Regulatory and PMTA

• PMTA spend doubled year on year: Q4 FDA PMTA-related expenses were $1.1 million against $0.5 million a year earlier, to support the compliance roadmap for Modern Oral growth. Source
• PMTA reviews take years: The company said PMTA applications can take multiple years, and that only two product lines are currently subject to the PMTA process. Source
• Full-year PMTA costs excluded: Full-year FDA PMTA costs of $4.8 million were excluded from adjusted EBITDA. The company does not expect more PMTA applications after the two pending ones. Source

Capital, cash and shareholder returns

• Year-end cash and net debt: Year-end cash was $222.8 million and net debt $77.2 million. Total liquidity was $290.1 million, including $68.1 million of revolver capacity. Source
• Notes refinanced in the year: Cash flows show $250.0 million paid on 2026 Senior Notes and $300.0 million of 2036 Notes proceeds. The Q3 release labelled the $300.0 million as 2032 Notes. Source
• Equity and interchange inflows: Full-year financing inflows included $97.5 million of at-the-market offering proceeds and $11.0 million under the interchange subscription agreement. Source
• Capital spending more than doubled: Capital expenditures were $13.5 million for the year, against $4.6 million in 2024. Source
• Operating cash flow lower: Operating cash flow from continuing operations was $57.4 million for the year, against $61.0 million in 2024. Source
• No buybacks in 2025: No common stock was repurchased in 2025, against $5.1 million in 2024. Dividends paid were $5.5 million for the year. Source

Coming up, as management said on 2 March 2026

• First-quarter 2026 adjusted EBITDA expected: Management expects Q1 2026 adjusted EBITDA of $24-$27 million, including investment in Modern Oral sales, marketing and trade promotions. Source

Figures management reported

Risks management discussed

• Regulatory: Certain product lines need FDA marketing authorization. The PMTA footnote says continued sales are permitted while applications are pending. Source
• External: Cost of goods sold included a $2.0 million tariff-related adjustment in Q4 to reflect prevailing tariff rates, excluded from adjusted EBITDA. Source
• Financial: Q4 included a $5.8 million non-cash asset impairment, and $6.7 million for the year, of goodwill, intangible and investment assets. Source

Earlier plans management reported on

• Met: Management said Zig-Zag performance for Q4 and the year was in line with its expectations. Source
• Not stated: Management described the Clipper wind-down as planned, alongside allocating sales and marketing resources to white pouch. No progress update was given. Source

Other quarters

• Q3 FY2026 earnings call
• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q3 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.