Turning Point Brands Reports 25.1% Revenue Growth to $116.6 Million in Latest Quarter

Turning Point Brands, Inc. reported significant financial growth in its latest quarterly results, with net sales reaching $116.6 million for the three months ended June 30, 2025, a 25.1% increase from $93.2 million in the same period last year. The company's profitability also improved, with net income attributable to Turning Point Brands rising to $14.5 million, up 11.0% from $13.0 million in the prior year. For the first half of 2025, net sales totaled $223.1 million, a 26.5% increase compared to $176.3 million in the first half of 2024, while net income for the same period increased by 15.2% to $28.9 million.

The growth was primarily driven by the Stoker’s products segment, which saw a 62.9% increase in sales, amounting to $69.6 million, largely due to a 48.3% increase in sales volume and a favorable product mix. In contrast, the Zig-Zag products segment experienced a decline in sales, dropping 6.9% to $47.0 million, attributed to decreased sales in cigar products and U.S. papers and wraps. The overall gross profit for the quarter increased by 32.2% to $66.6 million, with gross profit margins improving to 57.1% from 54.1% year-over-year.

Operationally, Turning Point Brands has made strategic moves, including the divestiture of its Creative Distribution Solutions segment, which was completed on January 2, 2025. This transaction involved contributing 100% of the subsidiary to General Wireless Operations, Inc. in exchange for a 49% equity stake in the joint venture. The company continues to focus on expanding its product offerings and market presence, with its products now available in approximately 220,000 retail locations across North America.

The company’s balance sheet reflects a strong liquidity position, with cash and cash equivalents increasing to $109.9 million as of June 30, 2025, compared to $46.2 million at the end of 2024. Total assets rose to $595.8 million, up from $493.4 million, driven by increases in accounts receivable and inventory. However, total liabilities also increased to $371.0 million, primarily due to the issuance of $300 million in new senior secured notes due in 2032, which were used to redeem the previous 2026 notes.

Looking ahead, Turning Point Brands anticipates continued growth driven by its Stoker’s products segment and ongoing investments in product development and market expansion. The company remains cautious about potential regulatory changes affecting the tobacco industry and the impact of inflation on consumer purchasing power. Nonetheless, management believes that its strategic initiatives and strong cash flow generation will support its growth objectives in the coming quarters.