Turning Point Brands Earnings Call Transcripts
Fiscal Year 2026
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The company is aggressively expanding its modern oral nicotine brands, aiming for a 10% market share by the end of the decade through omni-channel growth, innovative products, and a multi-brand strategy. Financials show strong sales and EBITDA growth, with investments focused on scaling distribution and marketing.
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Modern Oral drove strong top-line growth, with sales up 128% year-over-year and now 48% of total revenue. Full-year guidance for Modern Oral was raised, while EBITDA remains flat due to increased investment. Regulatory progress and international expansion continue to support long-term growth.
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Modern Oral drove 17% sales growth and now represents 42% of revenue, with net sales up 133% year-over-year. Raised 2026 guidance for Modern Oral and EBITDA, reflecting strong chain wins and brand investments. Significant marketing and infrastructure spend expected to support long-term growth.
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The meeting confirmed a quorum, introduced board and management, and approved all proposals, including director elections, auditor ratification, and executive compensation. Questions unrelated to proposals will be addressed in the earnings call.
Fiscal Year 2025
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Q4 revenue rose 29% to $121M, led by Modern Oral's 266% net sales growth and strong Stoker's performance. 2026 guidance targets $220–$240M Modern Oral gross revenue, with continued investment in sales, marketing, and U.S. manufacturing.
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Q3 revenue grew 31% year-over-year to $119 million, driven by a 628% surge in modern oral sales. Adjusted EBITDA rose 17%, and full-year guidance for both EBITDA and nicotine pouch sales was raised. Strong investments and new product launches position the business for continued growth.
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Q2 revenue grew 25% to $116.6 million, driven by an 8x surge in Modern Oral sales and strong Stoker's performance. Adjusted EBITDA rose 15%, and full-year guidance for both EBITDA and nicotine pouch sales was raised. Gross margin improved, despite ongoing tariff and category headwinds.
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Q1 revenue grew 28% to $106.4M, driven by strong modern oral sales and a 12% rise in adjusted EBITDA. Full-year guidance for modern oral sales was raised, with significant investments planned to support growth amid tariff and FX headwinds.
Fiscal Year 2024
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Q4 and full-year 2024 saw double-digit revenue and EBITDA growth, driven by strong performance in Zig-Zag, Stoker's, and especially modern oral brands FRE and ALP. 2025 guidance anticipates continued growth, with modern oral expected to contribute $60–$80 million in revenue.
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Q3 results exceeded expectations with 11% adjusted EBITDA growth and raised full-year guidance. Zig-Zag and Stoker's segments delivered strong revenue gains, while FRE sales more than quadrupled year-over-year. Cash flow and liquidity remain robust.
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Q2 2024 saw sales rise 2.8% year-over-year and adjusted EBITDA up 7%, prompting a guidance increase for 2024. Zig-Zag and Stoker's delivered strong growth, while FRE sales more than tripled. Channel convergence and new product launches position the business for continued expansion.