Key Points New York City-based Findell Capital Management added 90,000 shares of Turning Point Brands for an estimated $8.9 million in the third quarter. The move marked a new position for Findell, which reported holding no shares of Turning Point Brands in the previous quarter. Turning Point Brands is not among the fund’s top five positions. These 10 stocks could mint the next wave of millionaires › New York City-based Findell Capital Management reported a new position in Turning Point Brands (N ...

Company Overview - Turning Point Brands, Inc. operates in the tobacco and alternative products sector, leveraging established brands like Zig-Zag and Stoker's [5] - The company employs a multi-segment strategy, serving both traditional tobacco consumers and those seeking alternative products [5] - Turning Point Brands generates revenue through the manufacture, marketing, and distribution of various branded consumer products, including rolling papers, moist snuff tobacco, and vapor products [7] Financial Performance - As of November 14, 2025, Turning Point Brands had a market capitalization of $1.93 billion and revenue of $435.72 million for the trailing twelve months (TTM) [3] - The company reported a net income of $52.37 million for the TTM [3] - In Q3, sales increased by 31% year over year to $119 million, with net income rising 70% to $21 million, resulting in diluted earnings per share of $1.13 compared to $0.68 in the prior year [8] Growth Drivers - A significant contributor to Turning Point Brands' success has been its Modern Oral line of nicotine pouches, which saw Q3 sales surge by 628% year over year to $37 million [9] - The company has raised its 2025 sales forecast for the Modern Oral line to between $125 million and $130 million, a substantial increase from the original guidance of $60 million to $80 million [9] Market Performance - As of November 14, 2025, shares of Turning Point Brands were priced at $101.22, reflecting a 75% increase over the past year, outperforming the S&P 500 by 62 percentage points [2] - The stock reached a 52-week high of $110.55 on November 5, 2025, indicating strong market performance [10]

Core Insights - Turning Point Brands, Inc. (TPB) has garnered attention from investors, with a price target of $110 set by Aaron Grey, indicating a potential upside of approximately 8.74% from its current trading price of $101.16 as of November 5, 2025 [1] Financial Performance - TPB reported impressive earnings per share (EPS) of $1.05 for Q3 2025, significantly exceeding the Zacks Consensus Estimate of $0.81, marking a year-over-year increase from $0.68 and an earnings surprise of +29.63% [2][6] - The company's revenue for the same quarter was $118.98 million, surpassing the Zacks Consensus Estimate by 5.90% and showing a substantial increase from $105.62 million in the previous year [3][6] Stock Performance - TPB's stock experienced a price change of $5.98, reflecting a percentage increase of 6.28%, with trading prices fluctuating between a low of $94.50 and a high of $110.33 on the reporting day [4] - Over the past year, TPB's stock reached a high of $110.35 and a low of $47.53, with a current market capitalization of approximately $1.82 billion and a trading volume of 1,379,296 shares [4] Dividend Announcement - The Board of Directors declared a regular quarterly dividend of $0.075 per common share, payable on January 9, 2026, to shareholders recorded as of December 19, 2025, reflecting the company's commitment to returning value to shareholders [5]

Company Overview - Turning Point Brands, Inc. (NYSE:TPB) specializes in manufacturing, marketing, and distributing branded consumer products, operating through segments like Stoker's and Zig-Zag [1] Recent Rating Update - Oppenheimer upgraded TPB to "Outperform" with a stock price of approximately $98.74, indicating expectations for better performance than the overall market [2][6] Financial Performance - In Q3 2025, TPB reported a 31.2% increase in total consolidated net sales, reaching $119 million compared to the same period in 2024, driven primarily by the Stoker's segment which saw an 80.8% increase in net sales [3][6] - The Zig-Zag segment experienced a 10% decline in net sales, indicating mixed performance across product lines [3] Stock Performance - TPB's stock price is currently at $101.23, reflecting a 6.36% increase or $6.05, with fluctuations between a low of $94.50 and a high of $110.33 on the same day [4][6] - Over the past year, TPB's stock reached a high of $110.35 and a low of $47.53, demonstrating significant volatility [4] Market Capitalization and Trading Volume - TPB's market capitalization is approximately $1.82 billion, with a trading volume of 1,379,296 shares on the NYSE, indicating strong market presence and investor interest [5]

Sales Performance - For the three months ended September 30, 2025, total net sales increased by $28.3 million, or 31.2%, compared to the prior year period, primarily driven by the Stoker's products segment [144]. - Zig-Zag products segment net sales decreased by $5.2 million, or 10.5%, due to declines in U.S. papers and wraps, and the Clipper lighter business [145]. - Stoker's products segment net sales increased by $33.4 million, or 80.8%, with sales volume increasing by 69.0% and price/product mix contributing an additional 11.8% [146]. - For the nine months ended September 30, 2025, consolidated net sales increased by $75.1 million, or 28.1%, compared to the prior year period, primarily driven by the Stoker's products segment [165]. - Net sales in the Zig-Zag products segment decreased by $8.1 million, or 5.5%, due to declines in U.S. papers and wraps, and cigar products [166]. - Net sales in the Stoker's products segment increased by $83.1 million, or 69.0%, with sales volume up 62.9% and price/product mix contributing an additional 6.1% [167]. - Net sales for Q3 2025 reached $118.979 million, a 31% increase from $90.704 million in Q3 2024 [217]. - For the nine months ended September 30, 2025, net sales totaled $342.049 million, a 28% increase from $266.993 million in the same period of 2024 [217]. Profitability - Consolidated gross profit increased by $20.0 million, or 39.7%, with gross profit as a percentage of net sales rising to 59.2% [147]. - Consolidated gross profit increased by $47.5 million, or 31.9%, with gross profit as a percentage of net sales rising to 57.5% [168]. - Gross profit for Q3 2025 was $70.427 million, compared to $50.395 million in Q3 2024, reflecting a 39.8% increase [217]. - Operating income for Q3 2025 was $25.885 million, up from $20.805 million in Q3 2024, representing a 24.5% increase [217]. - Consolidated net income from continuing operations increased by $11.2 million, or 89.7%, reaching $23.8 million [143]. - Consolidated net income for Q3 2025 was $23.757 million, compared to $12.525 million in Q3 2024, marking an increase of 89.5% [217]. - Net income attributable to Turning Point Brands, Inc. for the nine months ended September 30, 2025, was $50.0 million, compared to $37.6 million in the prior year [184]. - For the three months ended September 30, 2025, net income attributable to Turning Point Brands, Inc. was $21.1 million, compared to $12.4 million for the same period in 2024, representing an increase of 70% [188]. Expenses - Selling, general, and administrative expenses increased by $15.0 million, or 50.5%, primarily due to increased shipping and selling costs related to modern oral sales [150]. - Selling, general, and administrative expenses increased by $33.4 million, or 38.0%, primarily due to increased shipping and selling costs related to modern oral sales [171]. - Consolidated operating income increased by $5.1 million, or 24.4%, but operating income as a percentage of net sales decreased to 21.8% [152]. - Consolidated operating income increased by $12.5 million, or 19.8%, but as a percentage of net sales decreased to 22.0% [174]. Cash Flow and Liquidity - Cash provided by operating activities for the nine months ended September 30, 2025, was $32.5 million, a decrease of $12.4 million compared to the prior year period [196]. - Net cash used in investing activities for the nine months ended September 30, 2025, was $28.4 million, an increase of $19.3 million compared to the prior year period, mainly due to the purchase of an option to acquire the Canadian distribution business for $8 million [197]. - Net cash provided by financing activities for the nine months ended September 30, 2025, was $148.3 million, an increase of $275.8 million compared to the prior year period, driven by proceeds from the ATM Program of $97.5 million [198]. - The company expects to have ample liquidity to satisfy its operating cash requirements for the foreseeable future due to strong cash balance and free cash flow generation [192]. - As of September 30, 2025, the company had $201.2 million in cash and $66.6 million available under the 2023 ABL Facility, with no borrowings outstanding [191]. Debt and Financing - As of September 30, 2025, the Company had $293.4 million in long-term debt, consisting of the newly issued 2032 Notes [202]. - The Company closed a private offering of $250.0 million aggregate principal amount of 5.625% senior secured notes due 2026, with interest payable semi-annually [206]. - The company entered into an ATM Program to increase the aggregate dollar amount of shares of common stock it may sell by an additional $200 million, with gross proceeds of $100 million from shares sold between August 15, 2025, and September 11, 2025 [193]. - The 2023 ABL Facility allows the Company to draw up to $75.0 million, with a $40.0 million accordion feature, secured by all assets of the ABL Borrower [209]. - The Company incurred debt issuance costs of $7.1 million related to the 2032 Notes, amortized over the expected life of the notes [205]. - The Company has not drawn any borrowings under the 2023 ABL Facility but incurred debt issuance costs of $2.6 million related to it [214]. - The 2032 Notes Indenture includes covenants that restrict the Company from incurring additional indebtedness and paying dividends under certain conditions [204]. Assets and Liabilities - Total current assets as of September 30, 2025, were $396.436 million, compared to $349.405 million as of September 30, 2024 [218]. - Total liabilities as of September 30, 2025, were $384.695 million, an increase from $365.923 million as of September 30, 2024 [218]. - Cash and cash equivalents as of September 30, 2025, amounted to $201.189 million, up from $167.917 million in the previous year [218]. - Total stockholders' equity as of September 30, 2025, was $358.153 million, compared to $314.413 million as of September 30, 2024 [218]. - Current liabilities totaled $44,820 million, with accounts payable at $11,675 million [219]. - Goodwill on the balance sheet was recorded at $135,932 million [219]. Market and Economic Conditions - Inflation has negatively impacted purchasing power, but the company has managed to implement price increases where feasible [221]. - No material changes in exposure to foreign currency, credit risk, or interest rate sensitivity reported for the nine months ended September 30, 2025 [222][223][224].

Core Insights - Turning Point Brands (TPB) reported quarterly earnings of $1.05 per share, exceeding the Zacks Consensus Estimate of $0.81 per share, and up from $0.68 per share a year ago, representing an earnings surprise of +29.63% [1] - The company achieved revenues of $118.98 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 5.90% and increasing from $105.62 million year-over-year [2] - Turning Point Brands shares have increased approximately 58.4% year-to-date, significantly outperforming the S&P 500's gain of 15.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.79 on revenues of $113.3 million, and for the current fiscal year, it is $3.50 on revenues of $448.65 million [7] - The estimate revisions trend for Turning Point Brands was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Tobacco industry, to which Turning Point Brands belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of Turning Point Brands may be influenced by the overall industry outlook, as empirical research indicates a strong correlation between near-term stock movements and earnings estimate revisions [5]

Financial Data and Key Metrics Changes - Consolidated revenue increased by 31% to $119 million for Q3 2025, with adjusted EBITDA rising 17% to $31.3 million [7][17] - Gross margin improved to 59.2%, up 360 basis points year over year and 210 basis points sequentially [17] - Adjusted EBITDA guidance raised to a range of $115-$120 million, up from $110-$114 million [7][19] Business Line Data and Key Metrics Changes - Modern oral revenue, including Fre and On!, surged 628% year over year to $36.7 million [8][18] - Stoker's revenue increased by 81% to approximately $74.8 million, with MST sales up 6% and loose leaf sales up 4% [12][18] - Zig-Zag revenue decreased by 11% to $44.2 million, reflecting anticipated declines due to a focus on modern oral products [12][17] Market Data and Key Metrics Changes - White nicotine pouch brands now account for 31% of the business, up from 26% in Q2 and 6% a year ago [18] - Analysts expect the nicotine pouch category to approach or exceed $10 billion in manufacturers' revenue by the end of the decade [9] Company Strategy and Development Direction - The company is prioritizing investments in modern oral products while maintaining cash flow from heritage brands [10][11] - Key initiatives include reallocating sales and marketing resources, expanding international markets, and enhancing U.S. manufacturing capabilities [10][11] - The company aims to double the size of its sales force by the end of 2026 [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in the nicotine pouch market and the company's long-term target of achieving double-digit market share [9] - The company is focused on maintaining a balance between growth and profitability, with expectations of continued promotional activity in the market [66] Other Important Information - The company raised $100 million in gross proceeds under its at-the-market offering program to support growth initiatives [10][19] - The company plans to update its buyback authorizations to provide for $200 million of capacity under each program [10] Q&A Session Summary Question: Capacity and COGS for onshoring - Management indicated that onshoring will lead to immediate savings in inbound freight and tariff avoidance, with expected improvements in unit economics as production ramps up [22][24][25] Question: In-store market share for modern oral category - Management noted that while specific market share data is not disclosed, they are encouraged by the results of in-store selling as distribution expands [26][27] Question: Growth drivers for MST and loose leaf - Growth in MST and loose leaf was attributed to a combination of increased market share and favorable pricing, with significant opportunities for further gains [31][32] Question: Modern oral growth drivers for Fre and On! - Both brands experienced healthy growth, with On! dominating B2C and making inroads into brick-and-mortar accounts, while Fre had a strong quarter in both online and physical retail [33][35] Question: Promotional environment outlook - Management remains bullish on the category, anticipating continued promotional activity driven by larger competitors, while focusing on building brand connections with consumers [66]

Financial Performance - Consolidated net sales for Q3 2025 increased by 31.2% year-over-year to $119.0 million[6] - Modern Oral sales reached $36.7 million, a 627.6% increase year-over-year, accounting for 30.8% of total net sales[6] - Stoker's segment net sales increased by 80.8% year-over-year to $74.8 million, with gross profit rising by 95.2% to $45.0 million[4][5] - Net income increased by 70.3% to $21.1 million, with diluted EPS rising to $1.13 compared to $0.68 in the same period last year[6][19] - Consolidated net income for the nine months ended September 30, 2025, was $56,508,000, an increase from $37,459,000 in 2024, representing a growth of 51.4%[23] - For the three months ended September 30, 2025, the net income was $30,229,000, compared to $6,472,000 for the same period in 2024, representing a significant increase[31] - Adjusted net income for the same period was $28,201,000, up from $5,925,000 in 2024, indicating a strong performance improvement[31] EBITDA and Profitability - Adjusted EBITDA for Q3 2025 was $31.3 million, up 17.2% from the prior year, with full-year guidance increased to $115.0 – 120.0 million[6][11] - Total gross profit increased by 39.7% to $70.4 million, with a gross margin of 59.0%[6][19] - Adjusted EBITDA for the three months ended September 30, 2025, was $31,345,000, compared to $26,755,000 in 2024, indicating a growth of 17.5%[29] - Adjusted operating income for Q3 2025 was $27,847,000, compared to $23,260,000 in Q3 2024, showing a year-over-year increase of about 20%[33] Cash Flow and Liquidity - Total liquidity as of September 30, 2025, was $267.8 million, consisting of $201.2 million in cash and $66.6 million available under a revolving credit facility[9] - Operating cash flows from continuing operations for the nine months ended September 30, 2025, were $32,515,000, down from $44,908,000 in 2024, a decrease of 27.5%[23] - Net cash provided by operating activities decreased to $32,515,000 in 2025 from $49,321,000 in 2024, reflecting a decline of 34%[23] - The company reported a net increase in cash of $152,381,000 for the nine months ended September 30, 2025, compared to a decrease of $87,270,000 in 2024[23] - Total cash at the end of the period increased to $203,101,000 in 2025 from $35,516,000 in 2024, marking a significant increase of 471.5%[23] - The company’s unrestricted cash at the end of the period rose to $201,189,000 in 2025 from $33,557,000 in 2024, an increase of 497.5%[23] Capital Expenditures and Investments - Capital expenditures for the nine months ended September 30, 2025, were $10,182,000, significantly higher than $3,516,000 in 2024, an increase of 189.5%[23] - The company raised $97.5 million in net proceeds under its "At the Market" offering program to accelerate growth in Modern Oral products[6] - The company incurred a loss on extinguishment of debt amounting to $1,235,000 in 2025, while there was no such loss reported in 2024[23] Segment Performance - Zig-Zag segment net sales decreased by 10.5% year-over-year to $44.2 million, but showed mid-single-digit growth sequentially excluding the Clipper business wind-down[7] Regulatory and Compliance Costs - The FDA PMTA-related costs were $482,000 in Q3 2025, down from $1,242,000 in Q3 2024, suggesting improved efficiency in regulatory compliance[33] Other Financial Metrics - The effective tax rate for Q3 2025 was 21.4%, compared to 27.1% in Q3 2024, which positively impacted net income[32] - The company reported a loss on discontinued operations of $165,000 in Q3 2025, compared to a loss of $16,000 in Q3 2024, indicating challenges in this segment[31] - Total adjustments to GAAP operating income included corporate restructuring costs of $233,000 in Q3 2025, reflecting ongoing strategic initiatives[33] - The company incurred $1,884,000 in stock-based compensation for Q3 2025, compared to $1,769,000 in Q3 2024, indicating ongoing investment in employee incentives[31]

Core Insights - Turning Point Brands, Inc. reported a total consolidated net sales increase of 31.2% to $119.0 million for Q3 2025 compared to Q3 2024 [1] - The Stoker's segment experienced a significant net sales increase of 80.8% [1] - Conversely, the Zig-Zag segment saw a decrease in net sales by 10% [1] Financial Performance - Total consolidated net sales for Q3 2025 reached $119.0 million, marking a substantial growth of 31.2% year-over-year [1] - The Stoker's segment's net sales growth of 80.8% indicates strong performance and demand within this category [1] - The decline of 10% in the Zig-Zag segment's net sales suggests potential challenges or shifts in consumer preferences affecting this product line [1]

Core Points - Turning Point Brands, Inc. (TPB) will host a conference call to discuss its Q3 2025 results on November 5, 2025, at 8:30 a.m. Eastern [1] - The company has declared a regular quarterly dividend of $0.075 per common share, payable on October 10, 2025, to shareholders of record on September 19, 2025 [5] Company Overview - Turning Point Brands, Inc. is a manufacturer, marketer, and distributor of branded consumer products, including alternative smoking accessories and consumables with active ingredients [2] - The company's product portfolio includes well-known brands such as Zig-Zag®, Stoker's®, FRE®, and ALP®, available in over 220,000 retail outlets across North America [2]