Turning Point Brands reported a sharp first-quarter shift toward its modern oral business, with that category’s net sales jumping 133% year over year to $52.0 million and rising to 42% of total company net sales from 21% a year earlier.
Total consolidated net sales increased 16.8% to $124.3 million in the quarter ended March 31, 2026. The Stoker’s segment, which includes the company’s modern oral products, posted net sales of $87.6 million, up 48.1% from the prior-year period. Within that segment, gross profit rose 39.1% to $47.3 million.
The Zig-Zag segment moved in the opposite direction, with net sales falling 22.4% to $36.7 million. Gross profit for Zig-Zag declined 18.1% to $20.9 million.
At the company level, gross profit increased 14.6% to $68.3 million, while net income fell 19.0% to $11.7 million. Adjusted EBITDA decreased 6.5% to $25.9 million. Diluted earnings per share dropped to $0.60 from $0.79, and adjusted diluted EPS fell to $0.76 from $0.91.
Operating costs climbed faster than revenue. Selling, general and administrative expenses rose 53.2% to $55.8 million, driven by modern oral sales and marketing spending and higher outbound freight costs.
Turning Point ended the quarter with $192.4 million in cash, net debt of $101.4 million, and total liquidity of $265.0 million, including $72.6 million of asset-backed revolving credit facility capacity.
The company raised its full-year modern oral outlook. It now expects gross sales of $280 million to $300 million, up from a prior range of $220 million to $240 million, and net sales of $210 million to $225 million, up from $180 million to $190 million. It also introduced full-year adjusted EBITDA guidance of $70 million to $90 million. The market has reacted to these announcements by moving the company's shares 7.63% to a price of $87.46. If you want to know more, read the company's complete 8-K report here.
