10-Q · May 8, 2026
Turning Point Brands reported Q1 2026 results with total revenue of $124.3 million, surpassing consensus estimates of $115.8 million, while EPS was $0.76, exceeding expectations of $0.70. The Stoker's products segment…
Earnings analysis · 10-Q
TPB earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
TPB posted a strong Q2 top-line result, with revenue up 22.6% to $142.960 million, powered by $38.4 million of modern oral growth. However, the $36.7 million increase in SG&A outweighed gross-profit expansion, reducing…
Read full summary
TPB posted a strong Q2 top-line result, with revenue up 22.6% to $142.960 million, powered by $38.4 million of modern oral growth. However, the $36.7 million increase in SG&A outweighed gross-profit expansion, reducing operating income 36.5% to $16.713 million and GAAP diluted EPS to $0.18 from $0.79 a year earlier. Liquidity improved, with cash reaching $268.3 million, but first-half operating cash flow fell to $4.1 million amid inventory and working-capital investment; Q2 margins also benefited from a $12.3 million tariff-refund cost reduction.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.18
What stood out
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Revenue rose 22.6%, while EPS fell sharply
Q2 net sales rose $26.3 million, or 22.6%, year over year to $142.960 million. This was also up from $124 million in Q1 2026, although GAAP diluted EPS of $0.18 declined from $0.79 in Q2 2025.
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Modern Oral drove Stoker's growth
Stoker's sales increased $38.0 million, or 54.5%, to $107.579 million, driven principally by $38.4 million of modern-oral-product growth. The segment supplied 75% of consolidated Q2 sales.
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Gross margin expanded to 65.5%
Gross profit increased $27.1 million, or 40.6%, to $93.704 million and gross margin expanded 8.4 points to 65.5%. Drivers included modern oral mix and a $12.3 million cost-of-sales reduction from tariff refunds.
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Liquidity strengthened materially
Cash rose $45.5 million from $222.8 million at year-end to $268.3 million, while the company had no ABL borrowings and $70.7 million of availability. The company also retains $200.0 million of repurchase authority.
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Tariff refund provided a one-time benefit
The company received approximately $17.8 million in IEEPA tariff refunds in June, including $12.3 million recognized as a reduction in cost of sales and $5.5 million that had been capitalized on the balance sheet.
What to watch
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Expense growth sharply compressed margins
Operating income fell $9.6 million, or 36.5%, to $16.713 million despite 22.6% sales growth; operating margin contracted 10.9 points to 11.7% as SG&A rose $36.7 million, or 91.1%, to $76.991 million.
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Zig-Zag contraction and Clipper rollover
Zig-Zag sales declined $11.6 million, or 24.8%, to $35.381 million, including declines of $4.7 million in U.S. papers and wraps, $6.2 million in Clipper lighters, and $1.0 million in Canadian products. Management does not expect meaningful future Clipper revenue after prior-year inventory sales.
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Cash conversion weakened as inventory built
Operating cash flow dropped $25.2 million year over year to $4.1 million for the first six months, principally reflecting $14.0 million of working-capital use and a $15.2 million decline in net income net of non-cash items. Inventory increased $25.4 million to $133.4 million.
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No formal risk-factor update; tariff uncertainty remains
The filing reports no material changes to 2025 10-K risk factors, but tariff policy remains an active exposure: the company paid approximately $17.9 million of IEEPA tariffs, while the administration may impose additional tariffs under Section 122.
Management's outlook
The 10-Q provides no explicit quantitative revenue or EPS guidance. Management states it expects ample liquidity for foreseeable operating cash requirements, with $268.3 million of cash and $70.7 million of ABL availability at June 30, 2026.
Earlier filings 4
10-K · March 2, 2026
Turning Point Brands delivered strong top-line expansion in 2025 with revenue rising from $361.0M in 2024 to $463.0M in 2025 (+$102.0M, +28.3%) while maintaining leading category positions (Zig‑Zag ~33% rolling paper…
10-Q · May 7, 2025
Turning Point Brands reported strong top-line and EPS growth for the quarter ended March 31, 2025: net sales of $106,436,000 (up from $83,064,000 in Q1 2024) and diluted EPS of $0.79 (up from $0.63). Operating income…
10-K · March 6, 2025
Turning Point Brands emphasizes an asset-light, brand-led strategy focused on two continuing reportable segments (Zig-Zag and Stoker’s) with a widespread North American distribution footprint (approximately 220,000…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.