Turning Point Brands, Inc. (“TPB” or “the Company”) (NYSE: TPB), a manufacturer, marketer and distributor of branded consumer products, including alternative smoking accessories and consumables with active ingredients, today announced financial results for the third quarter ended September 30, 2026.

Q3 2026 Financial Highlights

(All results reflect comparisons to prior-year period)

  • Total Consolidated Net Sales increased 27.0% to $151.1 million

    • Stoker’s segment Net Sales increased 52.0%

    • Zig-Zag segment Net Sales decreased 15.5%

  • Gross Profit increased 20.9% to $85.2 million driven by Modern Oral growth

  • Net Income decreased 81.4% to $3.9 million

  • Adjusted EBITDA decreased 41.3% to $18.4 million, net of increased sales and marketing investments (see Schedule A for a reconciliation to Net Income)

  • Diluted EPS of $0.19 and Adjusted Diluted EPS of $0.41 compared to $1.13 and $1.05 respectively (see Schedule B for a reconciliation to Diluted EPS)

“I have been involved with Turning Point Brands for nearly 14 years and have never been more optimistic about its future. I am very excited to serve as CEO at such an important time. I have tremendous confidence in our team, our brands, and our strategy,” said David Glazek, Chief Executive Officer. “We delivered another quarter of strong results, highlighted by continued growth in Modern Oral and progress across our heritage brands. Our investments in FRE and ALP are expanding distribution, strengthening consumer engagement, and positioning us to become a leading player in the rapidly growing nicotine pouch category. We remain focused on this transformative opportunity to maximize long-term shareholder value.”

Stoker’s Products Segment (75% of total net sales in the quarter)

For the third quarter, Stoker’s segment net sales increased 52.0% from the prior year to $113.8 million, driven by triple-digit growth in Modern Oral. Stoker’s segment gross profit increased 41.5% from the prior year to $63.7 million. Gross profit as a percentage of net sales decreased to 56.0% for the three months ended September 30, 2026, from 60.2% for the three months ended September 30, 2025, primarily driven by a shift in product mix toward Modern Oral.

Zig-Zag Products Segment (25% of total net sales in the quarter)

For the third quarter, Zig-Zag segment net sales decreased 15.5% from the prior year to $37.3 million. Zig-Zag segment gross profit decreased 15.6% from the prior year to $21.4 million. Gross profit as a percentage of net sales decreased to 57.4% for the three months ended September 30, 2026, from 57.5% for the three months ended September 30, 2025.

Liquidity and Capital Allocation

Investment in the quarter focused on sales and marketing efforts to support distribution and brand building. Consolidated selling, general and administrative (“SG&A”) expenses increased 69.1% from the prior year to $75.3 million, inclusive of Modern Oral-related sales and marketing investments and increased outbound freight costs.

As of September 30, 2026, ending cash was $251.3 million and net debt was $48.7 million. During the quarter, the Company repurchased 167,161 shares for a total cost of $10.0M at an average price per share of $59.82. The Company ended the quarter with total liquidity of $322.8 million, which includes $71.5 million of asset backed revolving credit facility capacity.

2026 Outlook

Reaffirming 2026 full-year guidance, which was updated on September 21, 2026.

  • Full year Modern Oral Gross Sales of $330-$350 million

  • Full year Modern Oral Net Sales of $260-$270 million

  • Full Year Adjusted EBITDA to $70-$80 million

Earnings Conference Call

As previously disclosed, a conference call with the investment community to review TPB’s financial results has been scheduled for 9:00 a.m. Eastern on Monday, November 9, 2026.

Investment community participants should dial in 10 minutes ahead of time using the toll-free number (833)-461-5787 (international participants should call (+44 7418 372077) and follow the audio prompts after typing in the event ID: 633 308 822. A live listen-only webcast of the call will be available at this link https://events.q4inc.com/attendee/633308822 as well as on the Events and Presentations section of the investor relations portion of the Company website (www.turningpointbrands.com). A replay of the webcast will be available on the site two hours following the call.

Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with generally accepted accounting principles in the United States (GAAP), this press release includes certain non-GAAP financial measures including EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS and Adjusted Operating Income (Loss). A reconciliation of these non-GAAP financial measures accompanies this release.

About Turning Point Brands, Inc.

Turning Point Brands, Inc. (NYSE: TPB) is a manufacturer, marketer and distributor of branded consumer products including alternative smoking accessories and consumables with active ingredients through its iconic brand portfolio, including Zig-Zag®, Stoker’s®, FRE®, and ALP®. TPB’s products are available in more than 220,000 retail outlets in North America and on sites such as www.zigzag.com, www.frepouch.com, and www.alppouch.com. For the latest news and information about TPB and its brands, please visit www.turningpointbrands.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may generally be identified by the use of words such as “anticipate,” “believe,” “expect,” “intend,” “plan” and “will” or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. As a result, these statements are not guarantees of future performance and actual events may differ materially from those expressed in or suggested by the forward-looking statements. Any forward-looking statement made by TPB in this press release, its reports filed with the Securities and Exchange Commission (the “SEC”) and other public statements made from time-to-time speak only as of the date made. New risks and uncertainties come up from time to time, and it is impossible for TPB to predict or identify all such events or how they may affect it. TPB has no obligation, and does not intend, to update any forward-looking statements after the date hereof, except as required by federal securities laws. Factors that could cause these differences include, but are not limited to, those included in the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed by the Company with the SEC. These statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995.

This press release contains TPB’s preliminary determinations and current expectations, and such information is inherently uncertain. The preliminary estimates provided herein have been prepared by, and are the responsibility of, management and are subject to completion of TPB’s customary quarter-end closing and review procedures and third-party review. As a result, TPB’s reported information in its Quarterly Report on Form 10-Q for the quarter ended September 30, 2026 may differ from this information, and any such differences may be material. In addition, the information furnished above does not include all of the information regarding TPB’s financial condition and results of operations for the quarter ending September 30, 2026 that may be important to readers. As a result, readers are cautioned not to place undue reliance on the information furnished in this press release and should view this information in the context of TPB’s full third quarter 2026 results when such results are disclosed by TPB in its Quarterly Report on Form 10-Q for the quarter ended September 30, 2026.

Financial Statements Follow on Subsequent Pages

Turning Point Brands, Inc.
Consolidated Statements of Income
(dollars in thousands except share data)
(unaudited)
 

Three Months Ended September 30,
 

2026

  

2025
Net sales  

$

151,096

 

  

$

118,979

 
Cost of sales  

 

65,921

 

  

 

48,552

 
Gross profit  

 

85,175

 

  

 

70,427

 
Selling, general, and administrative expenses  

 

75,305

 

  

 

44,542

 
Operating income  

 

9,870

 

  

 

25,885

 
Other expense (income), net  

 

63

 

  

 

(4,941

)
Interest expense, net  

 

4,241

 

  

 

3,531

 
Investment gain  

 

(145

)

  

 

(817

)
Income from equity method investment  

 

(2,551

)

  

 

(2,117

)
Income before income taxes  

 

8,262

 

  

 

30,229

 
Income tax expense  

 

1,414

 

  

 

6,472

 
Consolidated net income  

 

6,848

 

  

 

23,757

 
Net income attributable to non-controlling interest  

 

2,918

 

  

 

2,677

 
Net income attributable to Turning Point Brands, Inc.  

$

3,930

 

  

$

21,080

 
     
Basic income per common share:    
Net income attributable to Turning Point Brands, Inc.  

$

0.20

 

  

$

1.16

 
Diluted income per common share:    
Net income attributable to Turning Point Brands, Inc.  

$

0.19

 

  

$

1.13

 
Weighted average common shares outstanding:    
Basic  

 

20,027,021

 

  

 

18,246,722

 
Diluted  

 

20,278,788

 

  

 

18,708,665

 
Turning Point Brands, Inc.
Consolidated Balance Sheets
(dollars in thousands except share data)
(unaudited)
 

September 30,

  

December 31,
ASSETS  

2026

  

2025
Current assets:    
Cash  

$

251,290

 

  

$

222,760

 
Accounts receivable, net of allowances of $203 in 2026 and $206 in 2025  

 

24,160

 

  

 

25,726

 
Inventories, net  

 

139,380

 

  

 

107,989

 
Other current assets  

 

63,173

 

  

 

60,675

 
Total current assets  

 

478,003

 

  

 

417,150

 
Property, plant, and equipment, net  

 

40,481

 

  

 

36,247

 
Right of use assets  

 

14,885

 

  

 

14,480

 
Deferred financing costs, net  

 

697

 

  

 

1,180

 
Goodwill  

 

135,839

 

  

 

136,097

 
Other intangible assets, net  

 

63,114

 

  

 

64,042

 
Master Settlement Agreement (MSA) escrow deposits  

 

28,902

 

  

 

29,887

 
Other assets  

 

84,730

 

  

 

64,667

 
Total assets  

$

846,651

 

  

$

763,750

 
     
LIABILITIES AND STOCKHOLDERS’ EQUITY    
Current liabilities:    
Accounts payable  

$

27,314

 

  

$

20,420

 
Accrued liabilities  

 

54,686

 

  

 

54,587

 
Total current liabilities  

 

82,000

 

  

 

75,007

 
Deferred tax liabilities, net  

 

10,493

 

  

 

8,289

 
Notes payable and long-term debt  

 

294,405

 

  

 

293,625

 
Other long-term liabilities  

 

–

 

  

 

4,138

 
Lease liabilities  

 

10,088

 

  

 

10,708

 
Total liabilities  

 

396,986

 

  

 

391,767

 
     
Stockholders’ equity:    
Preferred stock, $0.01 par value; authorized shares 40,000,000; issued and outstanding shares -0-  

 

–

 

  

 

–

 
Common stock, voting, $0.01 par value; authorized shares, 190,000,000; 20,833,181 issued shares and 19,881,761 outstanding shares at September 30, 2026, and 20,589,527 issued shares and 19,132,384 outstanding shares at December 31, 2025  

 

225

 

  

 

216

 
Common stock, nonvoting, $0.01 par value; authorized shares, 10,000,000; issued and outstanding shares -0-  

 

–

 

  

 

–

 
Additional paid-in capital  

 

242,240

 

  

 

203,627

 
Cost of repurchased common stock (951,420 shares at September 30, 2026 and 1,457,143 shares at December 31, 2025)  

 

(31,171

)

  

 

(47,637

)
Accumulated other comprehensive loss  

 

(2,455

)

  

 

(1,563

)
Accumulated earnings  

 

214,035

 

  

 

199,661

 
Non-controlling interest  

 

26,791

 

  

 

17,679

 
Total stockholders’ equity  

 

449,665

 

  

 

371,983

 
Total liabilities and stockholders’ equity  

$

846,651

 

  

$

763,750

 
Turning Point Brands, Inc.
Consolidated Statements of Cash Flows
(dollars in thousands)
(unaudited)
 

Nine Months Ended September 30,
 

2026

 

2025
Cash flows from operating activities:    
Consolidated net income  

$

31,091

 

  

$

56,508

 
Adjustments to reconcile net income to net cash provided by operating activities:    
Loss on extinguishment of debt  

 

–

 

  

 

1,235

 
(Gain) loss on sale of property, plant, and equipment  

 

(3

)

  

 

47

 
Loss on MSA investments  

 

9

 

  

 

–

 
Income from equity method investment  

 

(8,208

)

  

 

(2,328

)
Loss (gain) on investments, net  

 

1,224

 

  

 

(484

)
Depreciation and other amortization expense  

 

6,026

 

  

 

4,489

 
Amortization of other intangible assets  

 

963

 

  

 

918

 
Amortization of deferred financing costs  

 

1,263

 

  

 

1,293

 
Deferred income tax expense  

 

2,369

 

  

 

4,690

 
Stock compensation expense  

 

6,559

 

  

 

5,176

 
Noncash lease income  

 

(2,462

)

  

 

(1,205

)
Changes in operating assets and liabilities:    
Accounts receivable  

 

1,198

 

  

 

(18,251

)
Inventories  

 

(31,614

)

  

 

(16,412

)
Other current assets  

 

(7,547

)

  

 

(19,409

)
Other assets  

 

(699

)

  

 

(10,978

)
Accounts payable  

 

5,573

 

  

 

12,709

 
Accrued liabilities and other  

 

3,707

 

  

 

14,517

 
Net cash provided by operating activities  

$

9,449

 

  

$

32,515

 
     
Cash flows from investing activities:    
Capital expenditures  

$

(7,112

)

  

$

(10,182

)
Payment for equity investments  

 

(1,450

)

  

 

(2,783

)
Purchases of investments  

 

(10,768

)

  

 

(12,876

)
Proceeds from sale of investments  

 

3,850

 

  

 

5,459

 
MSA escrow deposits, net  

 

256

 

  

 

(2

)
Purchase of option agreement  

 

(7,047

)

  

 

(8,000

)
Net cash used in investing activities  

$

(22,271

)

  

$

(28,384

)
Turning Point Brands, Inc.
Consolidated Statements of Cash Flows
(dollars in thousands)
(unaudited)
 

Nine Months Ended September 30,
 

2026

 

2025
Cash flows from financing activities:    
Redemption of 2026 Notes  

$

–

 

  

$

(250,000

)
Proceeds from 2032 Notes  

 

–

 

  

 

300,000

 
Equity offering proceeds  

 

59,549

 

  

 

97,499

 
Tax distribution  

 

(2,500

)

  

 

–

 
Interchange subscription agreement proceeds  

 

–

 

  

 

11,000

 
Cost of repurchased stock  

 

(10,000

)

  

 

–

 
Payment of dividends  

 

(4,830

)

  

 

(4,089

)
Payment of financing costs  

 

–

 

  

 

(7,285

)
Exercise of options  

 

324

 

  

 

6,106

 
Redemption of options  

 

–

 

  

 

(33

)
Issuance of restricted stock units  

 

–

 

  

 

2

 
Redemption of restricted stock units  

 

(332

)

  

 

(2,324

)
Issuance of performance based restricted stock units  

 

2

 

  

 

(1

)
Redemption of performance based restricted stock units  

 

(1,014

)

  

 

(2,625

)
Net cash provided by financing activities  

$

41,199

 

  

$

148,250

 
     
Net increase in cash  

$

28,377

 

  

$

152,381

 
Effect of foreign currency translation on cash  

$

157

 

  

$

(182

)
     
Cash, beginning of period:    
Unrestricted  

$

222,760

 

  

$

48,941

 
Restricted  

 

1,914

 

  

 

1,961

 
Total cash at beginning of period  

$

224,674

 

  

$

50,902

 
     
Cash, end of period:    
Unrestricted  

$

251,290

 

  

$

201,189

 
Restricted  

 

1,918

 

  

 

1,912

 
Total cash at end of period  

$

253,208

 

  

$

203,101

 

Non-GAAP Financial Measures

To supplement our financial information presented in accordance with generally accepted accounting principles in the United States, or U.S. GAAP, we use non-U.S. GAAP financial measures, including EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, and Adjusted Operating Income (Loss). We believe Adjusted EBITDA provides useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, and Adjusted Operating Income (Loss) are used by management to compare our performance to that of prior periods for trend analyses and planning purposes and are presented to our board of directors. We believe that EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, and Adjusted Operating Income (Loss) are appropriate measures of operating performance because they eliminate the impact of expenses that do not relate to business performance.

We define “EBITDA” as net income before interest expense, gain (loss) on extinguishment of debt, income tax expense, depreciation, amortization. We define “Adjusted EBITDA” as net income before interest expense, gain (loss) on extinguishment of debt, income tax expense, depreciation, amortization, other non-cash items and other items that we do not consider ordinary course in our evaluation of ongoing operating performance. We define “Adjusted Net Income” as net income excluding items that we do not consider ordinary course in our evaluation of ongoing operating performance. We define “Adjusted Diluted EPS” as diluted earnings per share excluding items that we do not consider ordinary course in our evaluation of ongoing operating performance. We define “Adjusted Operating Income (Loss)” as operating income (loss) excluding other non-cash items and other items that we do not consider ordinary course in our evaluation of ongoing operating performance.

Non-U.S. GAAP measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with U.S. GAAP. EBITDA, Adjusted Net Income, Adjusted EBITDA, Adjusted Diluted EPS, and Adjusted Operating Income (Loss) exclude significant expenses that are required by U.S. GAAP to be recorded in our financial statements and is subject to inherent limitations. In addition, other companies in our industry may calculate this non-U.S. GAAP measure differently than we do or may not calculate it at all, limiting its usefulness as a comparative measure.

In accordance with SEC rules, we have provided, in the supplemental information attached, a reconciliation of the non-GAAP measures to the next directly comparable GAAP measures.

Schedule A    
     
Turning Point Brands, Inc.
Reconciliation of GAAP Net Income to Adjusted EBITDA
(dollars in thousands)
(unaudited)
 

Three Months Ended
 

September 30,
 

2026

 

2025
Net income attributable to Turning Point Brands, Inc.  

$

3,930

  

$

21,080

 
Add:    
Interest expense, net  

 

4,346

  

 

3,653

 
Income tax expense  

 

1,698

  

 

6,694

 
Depreciation expense  

 

1,075

  

 

814

 
Amortization expense  

 

1,456

  

 

1,132

 
EBITDA  

$

12,505

  

$

33,373

 
Components of Adjusted EBITDA    
Corporate restructuring (a)  

 

268

  

 

233

 
Stock based compensation (b)  

 

920

  

 

1,884

 
Transactional expenses and strategic initiatives (c)  

 

164

  

 

820

 
Non-recurring legal (d)  

 

649

  

 

437

 
FDA PMTA (e)  

 

3,151

  

 

482

 
Mark-to-market loss (gain) on Canadian inter-company note (f)  

 

88

  

 

(10

)
Manufacturing start-up costs (g)  

 

593

  

 

–

 
Honorarium (h)  

 

63

  

 

255

 
Gain on investment (i)  

 

–

  

 

(678

)
ERC refund (j)  

 

–

  

 

(5,451

)
Adjusted EBITDA  

$

18,401

  

$

31,345

 
 
(a)   Represents costs associated with corporate restructuring, including severance and early retirement.
(b)   Represents non-cash stock options, restricted stock, PRSUs, etc.
(c)   Represents the fees incurred for transaction expenses.
(d)   Represents legal expenses incurred in connection with litigation related to an insurance claim.
(e)   Represents costs associated with applications related to FDA premarket tobacco product application (“PMTA”).
(f)   Represents a mark-to-market loss (gain) attributable to foreign exchange fluctuation.
(g)   Represents non-recurring expenses incurred during the start-up of manufacturing lines.
(h)   Represents an honorarium gift included in other expense, net.
(i)   Represents gain on investments.
(j)   Represents an employee retention credit refund received included in other expense (income), net.
Schedule B
         
Turning Point Brands
Reconciliation of GAAP Net Income to Adjusted Net Income and Diluted EPS to Adjusted Diluted EPS
(dollars in thousands except share data)
(unaudited)
         
  Three Months Ended   Three Months Ended
  September 30, 2026   September 30, 2025
  Adjusted Net Income   Adjusted Diluted EPS   Adjusted Net Income   Adjusted Diluted EPS
GAAP Net Income and Diluted EPS  

$

3,930

 

  

$

0.19

 

  

$

21,080

 

  

$

1.13

 
         
Corporate restructuring (a)  

 

222

 

  

 

0.01

 

  

 

183

 

  

 

0.01

 
Stock based compensation (b)  

 

763

 

  

 

0.04

 

  

 

1,481

 

  

 

0.08

 
Transactional expenses and strategic initiatives (c)  

 

136

 

  

 

0.01

 

  

 

644

 

  

 

0.03

 
Non-recurring legal (d)  

 

538

 

  

 

0.03

 

  

 

343

 

  

 

0.02

 
FDA PMTA (e)  

 

2,612

 

  

 

0.13

 

  

 

379

 

  

 

0.02

 
Mark-to-market loss (gain) on Canadian inter-company note (f)  

 

73

 

  

 

0.00

 

  

 

(8

)

  

 

(0.00

)
Manufacturing start-up costs (g)  

 

492

 

  

 

0.02

 

  

 

–

 

  

 

–

 
Honorarium (h)  

 

52

 

  

 

0.00

 

  

 

200

 

  

 

0.01

 
Gain on investment (i)  

 

–

 

  

 

–

 

  

 

(533

)

  

 

(0.03

)
ERC refund (j)  

 

–

 

  

 

–

 

  

 

(4,284

)

  

 

(0.23

)
Tax benefit (k)  

 

(506

)

  

 

(0.02

)

  

 

113

 

  

 

0.01

 
Adjusted Net Income and Adjusted Diluted EPS  

$

8,312

 

  

$

0.41

 

  

$

19,598

 

  

$

1.05

 
         
Totals may not foot due to rounding
(a)   Represents costs associated with corporate restructuring, including severance and early retirement.
(b)   Represents non-cash stock options, restricted stock, PRSUs, etc.
(c)   Represents the fees incurred for transaction expenses.
(d)   Represents legal expenses incurred in connection with litigation related to an insurance claim.
(e)   Represents costs associated with applications related to FDA premarket tobacco product application (“PMTA”).
(f)   Represents a mark-to-market loss (gain) attributable to foreign exchange fluctuation.
(g)   Represents non-recurring expenses incurred during the start-up of manufacturing lines.
(h)   Represents an honorarium gift included in other expense, net.
(i)   Represents gain on investments.
(j)   Represents an employee retention credit refund received included in other expense (income), net.
(k)   Represents adjustment from quarterly tax rate to quarterly projected tax rate of 20.5% in 2026 and 21.0% in 2025.

 

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