Turning Point Brands Modern Oral Sales Skyrocket 266% as Shares Drop 21%
Turning Point Brands posted Q4 net sales of $121.0M, up 29.2% year-over-year, with Modern Oral segment sales jumping 266% to $41.3M and adjusted EBITDA climbing 14% to $30.0M. Shares fell 21% after management forecast slower Modern Oral growth in 2026 and warned of margin impact from elevated marketing spend.
1. Strong Q4 and Full-Year 2025 Results
Turning Point Brands delivered Q4 net sales of $121.0 million, a 29.2% increase versus Q4 2024, driven by Modern Oral segment net sales of $41.3 million, up 266%. Adjusted EBITDA rose 14% to $30.0 million, while full-year 2025 net sales reached $463.1 million, up 28.4%, supported by triple-digit growth in its FRE and ALP brands. The company ended the period with $290.1 million in total liquidity.
2. 2026 Outlook and Market Reaction
Following the results, shares plunged 21% as management issued guidance for 2026 Modern Oral gross revenue of $220–240 million and net revenue of $180–190 million, signaling a slowdown from prior growth rates. Executives highlighted increased marketing and distribution investments that are expected to weigh on margins, while planning to expand the ALP brand into brick-and-mortar retail in Q2 2026 to drive broader consumer adoption.