TPB earnings analysis
What we found in TPB's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
- 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.
- 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.
- 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.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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.
- 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.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.18
- Gross margin
- 65.5%
- Operating margin
- 11.7%
- Segment
- Zig-Zag products: $35.381 million, down 24.8% year over year
- Segment
- Stoker's products: $107.579 million, up 54.5% year over year
What they said about what is next.
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.
The filing reads about the same as the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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