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Jun 30
Turning Point Brands Q2 2025 Earnings Report
Turning Point Brands announced its second quarter 2025 results, reporting significant increases in net sales, gross profit, and net income, primarily driven by strong growth in Modern Oral sales.
Key Takeaways
Turning Point Brands delivered a strong second quarter in 2025, with total consolidated net sales increasing by 25.1% year-over-year to $116.6 million. This growth was largely fueled by an exceptional 651% increase in Modern Oral net sales, which reached $30.1 million. The company also saw a substantial rise in gross profit and adjusted EBITDA, leading to improved diluted EPS and adjusted diluted EPS.
Total consolidated Net Sales increased 25.1% year-over-year to $116.6 million.
Modern Oral Net Sales surged by 651% to $30.1 million, now representing 26% of total Net Sales.
Adjusted EBITDA grew by 14.8% to $30.5 million, exceeding prior year performance.
The company raised its full-year 2025 Adjusted EBITDA guidance to $110.0 – 114.0 million and Modern Oral sales guidance to $100.0 – 110.0 million.
Turning Point Brands
Turning Point Brands
Turning Point Brands Revenue by Segment
Revenue by Segment
Stoker's Products Sales Revenue
CapyFin.comZig-Zag Products Sales Revenue
CapyFin.com Forward Guidance
Turning Point Brands is increasing its full-year 2025 guidance for both Adjusted EBITDA and consolidated Modern Oral sales, reflecting confidence in continued strong performance.
Positive Outlook
- Increased 2025 Adjusted EBITDA guidance to $110.0 – 114.0 million (from $108.0 – 113.0 million).
- Increased full-year consolidated Modern Oral sales guidance to $100.0 – 110.0 million (from $80.0 – 95.0 million).
- Strong growth trajectory for Modern Oral products expected to continue.
- Management's confidence in exceeding previous financial targets.
- Positive outlook on overall company performance for the remainder of 2025.
Challenges Ahead
- No specific negative forward guidance was provided in the report.
- Increased SG&A expenses due to white pouch-related activities and increased freight/marketing investments.
- Ongoing FDA PMTA-related expenses for Modern Oral products.
- Non-recurring freight and legal costs impacting current quarter results.
- Zig-Zag segment net sales decreased year-over-year, indicating potential challenges in that segment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income