Turning Point Brands, Inc. reported a significant increase in its financial performance for the fiscal year ending December 31, 2025, with total net sales reaching $463.1 million, a 28.4% increase from $360.7 million in 2024. This growth was primarily driven by a 69.1% surge in the Stoker's products segment, which generated $284.6 million in sales, largely attributed to the expansion of modern oral products. In contrast, the Zig-Zag products segment experienced a decline of 7.2%, with sales falling to $178.5 million, influenced by a decrease in U.S. papers and wraps.
The company's gross profit also saw a notable increase, rising to $264.3 million, up 31.1% from the previous year. The gross profit margin improved to 57.1%, compared to 55.9% in 2024, largely due to enhanced margins from modern oral products and moist snuff tobacco in the Stoker's segment. However, the Zig-Zag segment's gross profit decreased by 10.0%, reflecting challenges such as imposed tariffs and a shift in product mix towards lower-margin items.
Turning Point Brands underwent strategic changes during the year, including the divestiture of its Creative Distribution Solutions segment, which was classified as discontinued operations. This transaction, completed on January 2, 2025, involved contributing 100% of the subsidiary to General Wireless Operations, Inc. in exchange for a 49% equity stake. The company also expanded its joint venture with ALP Supply Co., LLC, focusing on the distribution of tobacco-free nicotine pouches, further diversifying its product offerings.
Operationally, the company reported a total employee headcount of 484 as of December 31, 2025, with a sales and marketing team of approximately 276 professionals. The company’s products are now available in around 220,000 retail locations across North America, with a growing presence in e-commerce and alternative retail channels. Despite the challenges posed by market conditions and regulatory environments, Turning Point Brands remains optimistic about future growth opportunities, particularly in the expanding cannabinoid market and through strategic acquisitions and product innovations.
Looking ahead, the company anticipates continued growth driven by its core brands, with a focus on expanding market share in both domestic and international markets. The management team is committed to leveraging its distribution network and enhancing operational efficiencies to navigate the evolving regulatory landscape and consumer preferences.
About Turning Point Brands, Inc.
Turning Point Brands, Inc. is a manufacturer, marketer, and distributor of branded consumer products in the tobacco and alternative smoking accessories sectors. Its core brands, Zig-Zag and Stoker’s, serve adult consumers through extensive North American distribution channels, including retail and e-commerce. The company emphasizes brand recognition, product innovation, regulatory expertise, and an asset-light business model to drive growth and market share.
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