Turning Point Brands slightly beats Q4 revenue estimates on growth in modern oral sales

Turning Point Brands

02/03/2026 13:10

Overview

Consumer products maker's Q4 2025 revenue rose 29.2%, slightly beating analyst expectations

Adjusted EPS for Q4 2025 beat analyst expectations

Modern Oral net sales increased 266% yr/yr, accounting for 34% of total sales

Outlook

Turning Point expects 2026 Modern Oral gross revenue of $220-$240 mln and Net Revenue of $180-$190 million

Company anticipates Q1 2026 adjusted EBITDA of $24-$27 mln

Result Drivers

MODERN ORAL GROWTH - Modern Oral net sales surged 266% to $41.3 mln, making up 34% of total sales, driven by strong performance of FRE and ALP brands

STOKER'S SEGMENT GROWTH - Stoker's segment net sales rose 69.5%, driven by triple-digit growth in Modern Oral sales and single-digit growth in legacy products

ZIG-ZAG DECLINE - Zig-Zag segment net sales fell 12.8% due to planned wind-down of Clipper business and resource reallocation

Company press release: ID:nBw583W7ba

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Slight Beat*
$121.01 mln
$120.26 mln (4 Analysts)
Q4 Adjusted EPS
Beat
$0.95
$0.88 (3 Analysts)
Q4 Net Income
$11.64 mln
Q4 Gross Profit
$67.65 mln
Q4 Operating income
$19.93 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the tobacco peer group is "buy"

Wall Street's median 12-month price target for Turning Point Brands Inc is $122.50, about 10.6% below its February 27 closing price of $136.99

The stock recently traded at 33 times the next 12-month earnings vs. a P/E of 24 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)