Turning Point Reaffirms 2026 Outlook After Oral Mix Shift

The Tip Desk · November 12, 2026 · 3 min read

Third-quarter Modern Oral net sales reached $74.4 million, or 49.2% of the company’s $151.1 million of net sales, as the nicotine-pouch maker held its full-year ranges.

Turning Point Brands, Inc. (TPB), a manufacturer of alternative smoking accessories and nicotine pouches, posted $151.1 million of consolidated net sales for the third quarter ended September 30, 2026, a 27.0% increase that accelerated from 22.6% growth in the second quarter.

Modern Oral net sales rose 102.9% to $74.4 million, and Modern Oral gross sales increased 114.2% to $93.9 million. Modern Oral net sales growth slowed from 128% in the second quarter, when net sales were $68.4 million. The second-quarter release reported Modern Oral gross revenue growth of 149%. Modern Oral accounted for 49.2% of total company net sales, up from 48% in the second quarter.

Stoker’s, which represented 75% of total net sales, posted segment net sales of $113.8 million, a 52.0% increase. The company said the rise was driven by triple-digit growth in Modern Oral. Stoker’s gross profit increased 41.5% to $63.7 million. Gross profit as a percentage of Stoker’s net sales fell to 56.0% from 60.2% a year earlier, which the company attributed primarily to a shift in product mix toward Modern Oral.

Zig-Zag, 25% of total net sales, recorded segment net sales of $37.3 million, down 15.5%. Second-quarter Zig-Zag net sales were $35.4 million, down 3.5% from the first quarter. The second-quarter release separately reported a 24.8% year-over-year decline. Zig-Zag gross profit decreased 15.6% to $21.4 million. Gross profit as a percentage of Zig-Zag net sales was 57.4%.

Consolidated gross profit increased 20.9% to $85.2 million, which the company said was driven by Modern Oral growth.

Net income attributable to Turning Point Brands fell 81.4% to $3.9 million, or $0.19 a share, from $1.13 a share a year earlier. Adjusted diluted EPS was $0.41. Adjusted EBITDA decreased 41.3% to $18.4 million, which the company said included increased sales and marketing investments.

Consolidated selling, general and administrative expenses increased 69.1% to $75.3 million, inclusive of Modern Oral-related sales and marketing investments and increased outbound freight costs.

Chief Executive Officer David Glazek said the company delivered continued growth in Modern Oral and progress across heritage brands, and that investments in FRE and ALP are expanding distribution and strengthening consumer engagement.

The company reaffirmed full-year 2026 guidance, last updated on September 21, 2026: Modern Oral gross sales of $330 million to $350 million, Modern Oral net sales of $260 million to $270 million, and adjusted EBITDA of $70 million to $80 million. The second-quarter release had announced a guidance update.

Ending cash was $251.3 million and net debt was $48.7 million as of September 30, 2026. Total liquidity was $322.8 million, including $71.5 million of asset-backed revolving credit facility capacity. During the quarter the company repurchased 167,161 shares for $10.0 million at an average price of $59.82 a share.