Turning Point Brands reported third‑quarter 2025 revenue of $119.0 million, up 12.5% from $105.6 million in Q3 2024. The jump was driven by a 628% year‑over‑year increase in Modern Oral sales, which rose to $36.7 million and now accounts for roughly 31% of total revenue. Stoker’s segment grew 80.8% YoY to $74.8 million, while Zig‑Zag’s sales fell 10.5% to $44.2 million, a decline largely attributable to the wind‑down of its Clipper business.
Adjusted diluted earnings per share reached $1.27, beating the consensus estimate of $0.81 by $0.46 or 57%. The beat resulted from a combination of higher Modern Oral revenue, improved gross margins in Stoker’s (up 440 basis points to 60.2%) and Zig‑Zag (up 210 basis points to 57.5%), and disciplined cost management that kept operating expenses from eroding the margin advantage. Revenue also surpassed the $110.25 million consensus by $8.75 million, a 7.9% beat, reflecting strong demand for nicotine pouches and a successful shift in product mix.
Selling, general and administrative expenses increased 50.5% to $44.5 million, driven by investments in Modern Oral marketing, sales expansion, and higher outbound freight costs. Although the expense rise compressed operating income, the company’s focus on high‑margin Modern Oral products and scale efficiencies offset the impact, leaving adjusted EBITDA at $27.2 million for the quarter.
Management raised its full‑year 2025 Adjusted EBITDA guidance to $115 million–$120 million from the prior $110 million–$114 million, and lifted the Modern Oral sales outlook to $125 million–$130 million from $100 million–$110 million. The guidance increase signals confidence that the Modern Oral momentum will continue and that the company’s investment in U.S. white pouch production lines—expected to qualify in the first half of 2026—will support future growth.
CEO Graham Purdy said, “Our consolidated third‑quarter results exceeded expectations. Modern Oral sales were $36.7 million, increasing 22% versus the prior quarter and 628% over the prior year. We now expect to qualify our first U.S. white pouch production lines in the first half of 2026.” The statement underscores the company’s strategic pivot and the tangible progress toward expanding its manufacturing footprint.
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