Q4 2025 Turning Point Brands Inc Earnings Call Transcript
Key Points
- Turning Point Brands Inc (TPB) reported a 29% increase in revenue for the fourth quarter, reaching $121 million.
- Adjusted EBITDA increased by 14% to $30 million for the quarter, indicating strong operational performance.
- The company's Modern Oral segment saw significant growth, with net sales increasing by 266% year over year.
- TPB is expanding its distribution network, with ALP starting to appear in bricks-and-mortar stores ahead of schedule.
- The company is making strategic investments in sales and marketing, including expanding its sales force and improving its online presence.
- Zig-Zag segment net sales declined by 13% year over year, reflecting a shift in focus towards Modern Oral products.
- The company anticipates challenges in accurately projecting EBITDA beyond Q1 due to ongoing investments in sales and marketing.
- There are concerns about potential tax hikes on nicotine pouches, which could impact pricing and promotional strategies.
- The company faces elevated tariff rates, which impacted the gross margins of the Stoker's segment.
- Despite strong growth, the company acknowledges that the investment in Modern Oral will be lumpy and may affect financial performance throughout the year.
Good morning, and welcome to the turning point brands fourth quarter 2025 earnings conference call. (Operator Instructions) Please note, this event is being recorded.
I would now like to turn the conference over to Andrew Flynn, Chief Financial Officer. Please go ahead.
Good morning, everyone. Earlier today, we issued a press release covering our fourth quarter results available in the Investor Relations section of our website at www.turningpointbrands.com. During this call, we'll discuss consolidated and segment operating results, the operating environment and our progress against our strategic plan. Before we begin, please refer to the forward-looking statements and risk factors in our press release and SEC filings. We'll also reference certain non-GAAP financial measures.
Reconciliations and explanations are included in today's earnings release.
With that, I'll turn the call over to our CEO,
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