Turning Point Brands (NYSE:TPB) delivered a strong conclusion to fiscal 2025, reporting fourth-quarter net income of $8.2 million, or 42 cents per share.
On an adjusted basis, the Louisville, Kentucky-based company earned 95 cents per share, surpassing the 87-cent consensus estimate from analysts surveyed by Zacks Investment Research.
Total consolidated net sales for the quarter rose 29.2% to $121 million, compared to $93.7 million in the same period a year ago.
The results were primarily driven by the company's "Modern Oral" segment, which includes the FRE and ALP nicotine pouch brands.
Revenue in this category skyrocketed 266% to $41.3 million, now accounting for 34% of the company's total sales mix—up from just 12% in late 2024.
Performance across the company's legacy segments was mixed.
The Stoker’s segment saw net sales increase 69.5% to $81 million, benefiting from the rapid scaling of its oral nicotine products.
Conversely, the Zig-Zag segment, known for its iconic rolling papers and wraps, experienced a 12.8% decline in net sales as the company managed an intentional exit from certain low-margin clipper lighter businesses and navigated a shift in consumer inventory levels.
For the full year 2025, Turning Point Brands reported a net profit of $58.2 million, or $3.11 per share, on record revenue of $463.1 million.
Adjusted EBITDA for the year grew 14.4% to $119.5 million.