Turning Point Brands (TPB) Q2 2026 earnings summary

Executive summary

• Modern Oral segment gross revenue surged 149% to $89 million and net sales rose 128% to $68.4 million, now 48% of total net sales, up from 26% year-over-year.

• Total consolidated net sales increased 23% year-over-year to $143 million for the quarter, driven by Modern Oral and strong Stoker's segment performance.

• Stoker's segment net sales grew 54.5% to $108 million, while Zig-Zag segment net sales fell 24.8% year-over-year.

• Net income attributable to the company dropped 75.2% year-over-year to $3.6 million for Q2 2026, with adjusted EBITDA down 50% to $15.2 million due to higher sales and marketing investments.

• Strategic focus remains on expanding retail distribution, scaling infrastructure, and investing in brand-building for Modern Oral, FRE, and ALP.

Financial highlights

• Q2 2026 net sales: $142.96 million (+22.6% YoY); gross profit: $93.7 million (+40.6% YoY), including a significant tariff refund.

• Adjusted gross profit was $81.5 million; adjusted gross margin was 57%.

• Diluted EPS for Q2 2026: $0.18 (down from $0.79 YoY); adjusted diluted EPS $0.23.

• SG&A expenses rose 91.1% to $76.9 million, driven by Modern Oral sales/marketing and higher freight costs.

• Ending cash was $268.3 million; total liquidity $339 million, including $59.6 million equity raised in the quarter.

Outlook and guidance

• Raised full-year 2026 Modern Oral gross sales guidance to $330–$350 million (from $280–$300 million) and net sales guidance to $260–$270 million (from $210–$225 million).

• Maintained full-year adjusted EBITDA guidance of $70–$90 million, inclusive of increased Modern Oral investments.

• CapEx for 2026 budgeted at $4–$5 million, excluding Modern Oral projects; additional $3–$5 million expected spend in 2026 to support PMTA applications.

• Ample liquidity is expected to support operating requirements, with $268.3 million cash and $70.7 million undrawn credit facility as of June 30, 2026.