Turning Point Brands, Inc.
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Range $115 – $125
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About the company
Turning Point Brands, Inc. , along with its affiliated companies, is engaged in the creation, promotion, and distribution of a diverse array of branded consumer products. Its operations are structured into three distinct divisions: Zig-Zag Products, Stoker's Products, and NewGen Products.
- CEO
- Graham A. Purdy
- IPO
- 2016
- Employees
- 484
- HQ
- Louisville, KY, US
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Similar companies
Peers in the same neighborhood.
- Market Cap
- $1.69B
- P/E
- 36.73
- Fwd P/E
- 68.29
- PEG
- -11.29
- P/S
- 3.34
- P/B
- 4.04
- EV/EBITDA
- 17.40
- Div Yield
- 0.35%
- Gross Margin
- 59.16%
- Op Margin
- 14.87%
- Net Margin
- 8.78%
- ROE
- 11.93%
- ROIC
- 8.41%
Latest fiscal year · YoY change
- Revenue
- $463.06M+28.4%
- Gross Profit
- $264.31M+31.1%
- Op Income
- $95.33M
- Net Income
- $58.16M+46.1%
- EPS
- $3.18+42.0%
- OCF Growth
- -14.4%
- FCF Growth
- -29.8%
- 52W High
- $146.90
- 52W Low
- $65.80
- 50D MA
- $82.80
- 200D MA
- $95.70
- Beta
- 0.93
- RSI (14)
- 56
- Avg Volume
- 400.22K
Earnings call summaries
Pick a quarter — each call distilled into takeaways, results, and a bull vs bear read.
Turning Point Brands posted strong first-quarter growth, led by a surge in Modern Oral, and raised full-year Modern Oral and EBITDA guidance while continuing to invest heavily in sales, marketing, and retail expansion.· May 7, 2026
- Consolidated sales rose 17% year over year to $124.3 million, with adjusted EBITDA of $25.9 million at a 20.8% margin.
- Modern Oral was the clear growth engine: net sales were up 133% to $52 million and gross sales up 167% to $69 million; it was 42% of consolidated net sales versus 21% a year ago.
- The company raised full-year 2026 Modern Oral guidance to $280 million-$300 million gross sales and $210 million-$225 million net sales, and introduced EBITDA guidance of $70 million-$90 million.
- Management expects chain store count to increase 70% by year-end and said new chain wins should begin rolling out over the next few weeks, with more net sales pickup expected in the back half.
- Cash flow was negative in the quarter, but management said the company expects to be approximately cash flow breakeven for the rest of 2026.
First-quarter consolidated sales increased 17% year over year to $124.3 million. Gross profit was $68.3 million, up 14.6%, and gross margin was 55%, down 100 basis points year over year. Adjusted EBITDA was $25.9 million with a 20.8% margin. Modern Oral net sales rose 133% year over year to $52 million and gross sales rose 167% to $69 million; Modern Oral was 42% of consolidated net sales. Legacy Stoker’s brands net revenue declined 3.5% to $36 million, while Zig-Zag net sales fell 22% to $36.7 million. Free cash flow was negative $27.4 million and cash at quarter-end was $192.4 million. For full-year 2026, management raised Modern Oral gross sales guidance to $280 million-$300 million from $220 million-$240 million and net sales to $210 million-$225 million from $180 million-$190 million, and introduced EBITDA guidance of $70 million-$90 million. They also guided total sales and marketing investment to $80 million-$105 million, capital expenditures to $4 million-$5 million excluding Modern Oral projects, and an additional $3 million-$5 million for PMTAs.
Graham Purdy framed the quarter as early evidence of a long-term shift toward nicotine pouches and said TPB is positioning itself to capture share in what he called a greater than $50 billion opportunity. He emphasized that the company is prioritizing winning in nicotine pouches through investments in sales force, marketing, and manufacturing, while also saying the heritage business remains an important cash generator. His tone was upbeat and confident, but he repeatedly stressed disciplined investment and a long runway rather than near-term profitability maximization.
Andrew Flynn focused on the company’s financial bridge between strong growth and heavier investment. He said sales were up 17% to $124.3 million, gross profit rose to $68.3 million, adjusted EBITDA was $25.9 million, and free cash flow was negative $27.4 million because of trade, brand marketing, working capital, and U.S. manufacturing capex. He also detailed the spend outlook: sales and marketing investment of $80 million-$105 million, capex of $4 million-$5 million excluding Modern Oral, plus $3 million-$5 million for PMTAs, and said the company expects to be approximately cash flow breakeven for the rest of the year.
Analysts pressed management on the scale and timing of the new chain wins, the larger gross-vs-net sales guidance gap, and whether net sales would benefit more in the back half or in 2027. Management said some of the new chain placements will begin rolling out over the next few weeks, but full store resets will take time, and Andrew said net sales should see some pickup in the back half. Questions also focused on PMTA timing, Louisville manufacturing, and whether TKO sponsorship spending could pressure EBITDA further; management said PMTA is a rigorous process, Louisville equipment and throughput are progressing, and spending will remain judicious but flexible if it helps gain share.
The bullish case from the call is that Modern Oral is accelerating quickly, with both gross and net sales growing triple digits and management seeing strong consumer response, retail wins, and expanding distribution. Management also raised full-year guidance materially and expects the chain count to rise 70% by year-end, while positioning FRE and ALP as potential scaled brands in a consolidating category.
The main risks discussed were heavy investment pressure, negative free cash flow, and uncertain timing on when retail wins convert into sales. Management also flagged SG&A increases from sales force expansion, marketing, and freight, plus tariff pressure on Stoker’s margins and the ongoing PMTA process, which could all weigh on near-term profitability.
AI summary of the company's earnings call · Paraphrased · Not investment advice
- Free Float
- 93.7%
- Shares Outstanding
- 19.37M
- Float Shares
- 18.15M
of shares held by institutions
254 13F filers
Buy/sell ratio 8.00. Sells can include pre-scheduled 10b5-1 plan sales, not just discretionary selling.
Top institutional holders
Largest 13F positions, with quarter-over-quarter change.
| Holder | Shares | Δ Quarter |
|---|---|---|
| Blackrock, Inc. | 1.62M | ▲ 148.00K |
| Vanguard Group Inc | 1.45M | ▲ 61.31K |
| Divisadero Street Capital Management, LP | 1.27M | ▲ 969.73K |
| Thrivent Financial For Lutherans | 1.23M | ▲ 1.99K |
| First Trust Advisors LP | 975.44K | ▲ 285.53K |
| Vanguard Capital Management LLC | 822.50K | ▲ 6.34K |
| Copeland Capital Management, LLC | 690.32K | ▲ 283.12K |
| Maple Rock Capital Partners Inc. | 686.80K | ▲ 250.80K |
| American Century Companies Inc | 627.46K | ▲ 261.98K |
| Geode Capital Management, LLC | 621.51K | ▲ 20.55K |
| T. Rowe Price Investment Management, Inc. | 588.63K | ▲ 219.58K |
| Two Sigma Investments, LP | 568.20K | ▲ 53.24K |
Held by 185 ETFs
Biggest fund positions in TPB by dollar value.
Recent insider transactions
Who's buying, who's selling, and how much.
| Date | Insider | Type | Shares |
|---|---|---|---|
| May 11, 26 | Reddy Rohith | other | 1,295 |
| May 12, 26 | Wigginton Brian | sell | 4,000 |
| May 11, 26 | Wexler Lawrence | other | 1,295 |
| May 11, 26 | Shanahan Kathleen M | other | 1,295 |
| May 11, 26 | Usher Stephen | other | 1,295 |
| May 11, 26 | Diao H.C. Charles | other | 1,295 |
| May 11, 26 | Frushone Ashley Davis | other | 1,295 |
| May 11, 26 | Catsimatidis John A. Jr | other | 1,295 |
| May 11, 26 | Baxter Gregory H.A. | other | 1,295 |
| Mar 24, 26 | Purdy Graham | other | 8,638 |
A “Sell” may be a pre-scheduled 10b5-1 plan sale rather than a discretionary decision — read insider selling with that in mind.
Our TPB coverage
Recent articles, reports, and earnings notes.
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