Turning Point Brands, Inc. (NYSE: TPB) announced its financial results for the third quarter ended September 30, 2026, reporting a significant increase in consolidated net sales driven by its Modern Oral segment. Total consolidated net sales for the quarter increased 27.0% year-over-year to $151.1 million. The company’s Modern Oral segment, which includes the FRE and ALP brands, saw gross sales increase 114.2% to $93.9 million and net sales increase 102.9% to $74.4 million, accounting for 49.2% of total company net sales.
Within the company's two main product segments, Stoker’s reported a 52.0% increase in net sales to $113.8 million, while the Zig-Zag segment saw net sales decrease 15.5% to $37.3 million. Gross profit for the consolidated company increased 20.9% to $85.2 million, primarily driven by the growth in Modern Oral products. However, the company reported a decrease in net income, which fell 81.4% to $3.9 million for the quarter. Diluted earnings per share were $0.19, compared to $1.13 in the prior year.
The company noted that the decline in net income was attributable to increased sales and marketing investments in Modern Oral and higher outbound freight costs. Adjusted EBITDA decreased 41.3% to $18.4 million. As of September 30, 2026, the company reported ending cash of $251.3 million and net debt of $48.7 million. During the quarter, Turning Point Brands repurchased 167,161 shares of common stock at an average price of $59.82 per share for a total cost of $10.0 million.
Turning Point Brands reaffirmed its full-year 2026 guidance for Modern Oral, projecting gross sales of $330 million to $350 million and net sales of $260 million to $270 million. The company also maintained its full-year Adjusted EBITDA guidance of $70 million to $80 million.
