Turning Point Raises Modern Oral Sales Outlook Again

The Tip Desk · August 4, 2026 · 3 min read

Modern Oral net sales reached $68.4 million, or 48% of company net sales, as the company lifted full-year Modern Oral net sales guidance to $260 million–$270 million.

Turning Point Brands, Inc. (TPB), a manufacturer of branded alternative smoking products, raised its full-year Modern Oral sales outlook for a second consecutive quarter after Modern Oral net sales reached $68.4 million in the second quarter, or 48% of company net sales, up from 26% a year earlier.

The company now projects full-year Modern Oral net sales of $260 million–$270 million, up from a prior range of $210 million–$225 million, and Modern Oral gross sales of $330 million–$350 million, up from $280 million–$300 million. It also projected full-year Adjusted EBITDA of $70 million–$90 million, inclusive of Modern Oral sales, marketing and trade-promotion investment.

Modern Oral net sales growth slowed to 128% from 133% in the first quarter, when Modern Oral net sales were $52.0 million and 42% of total company net sales. Modern Oral gross revenue increased 149% to $87.0 million.

Total consolidated net sales increased 22.6% to $142.9 million, accelerating from a 16.8% increase to $124.3 million in the first quarter. Stoker’s, which accounted for 75% of total net sales, rose to $107.6 million, up from a 48.1% increase to $87.6 million in the first quarter. Stoker’s growth was driven by triple-digit growth in Modern Oral net sales.

Zig-Zag net sales decreased 24.8% to $35.4 million, a deeper year-over-year decline than the 22.4% drop to $36.7 million in the first quarter. Zig-Zag accounted for 25% of total net sales.

Gross profit increased 40.6% to $93.7 million, including a tariff refund. Adjusting for out-of-period cost of goods sold related to the refund, gross profit was $81.5 million. Stoker’s segment gross profit increased 63.3% to $71.1 million; after the tariff adjustment, it increased 40.7% to $61.2 million. Adjusted Stoker’s gross profit as a percentage of net sales decreased to 56.9% from 62.5% a year earlier, a decrease attributed to higher chain penetration. Zig-Zag segment gross profit decreased 2.1% to $22.6 million; after the tariff adjustment, it was $20.3 million, and adjusted Zig-Zag gross profit as a percentage of net sales increased to 57.3% from 49.1% a year earlier, driven primarily by product mix.

Net income attributable to Turning Point Brands decreased 75.2% to $3.6 million, after a 19.0% decrease to $11.7 million in the first quarter. Diluted earnings were $0.18 a share and adjusted diluted earnings $0.23 a share. Adjusted EBITDA decreased 50.0% to $15.2 million, after a 6.5% decrease to $25.9 million in the first quarter.

Consolidated selling, general and administrative expenses increased 91.1% to $76.9 million, a faster increase than the 53.2% rise to $55.8 million in the first quarter. The increase included Modern Oral-related sales and marketing investments and increased outbound freight costs.

President and CEO Graham Purdy said the company delivered another strong quarter highlighted by continued growth in Modern Oral, and that investments in retail distribution, commercial capabilities and brand development were translating into stronger consumer adoption and expanding market access for FRE and ALP.

As of June 30, 2026, ending cash was $268.3 million and net debt was $31.7 million, inclusive of approximately $59.6 million of equity raised during the quarter. Total liquidity was $339.0 million, including $70.7 million of availability on an asset-backed revolving credit facility.

Turning Point Brands remains a manufacturer, marketer and distributor of branded consumer products including Zig-Zag, Stoker’s, FRE and ALP, with products available in more than 220,000 retail outlets in North America.