Turning Point Brands TPB Earnings Call Transcript

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Monday, March 2, 2026 astatine 9:00 a.m. ET

• Chief Executive Officer — Graham Purdy

• Chief Financial Officer — Andrew Flynn

• Chief Commercial Officer — Summer Frein

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Graham Purdy: Thanks, Andrew. Good morning, everyone, and convey you for joining our call. We are pleased with however the twelvemonth wrapped up and the momentum we built for 2026. Revenue accrued 29% to $121 cardinal for the 4th quarter, including $41.3 cardinal successful Modern Oral nett revenue. Adjusted EBITDA accrued 14% to $30 cardinal for the quarter. We are initiating 2026 Modern Oral gross gross guidance astatine a scope of $220 cardinal to $240 cardinal successful Modern Oral nett gross astatine a scope of $180 cardinal to $190 million.

As we've stated successful the past, we are ready, consenting and capable to summation our concern down our achromatic pouch brands and expect a information of that concern to beryllium accounted for arsenic contra gross nether GAAP. Accordingly, we deliberation it's invaluable for america to supply transparency into quality betwixt gross and nett to measure our advancement implicit time. Our absorption is connected gathering lasting user relationships that necessitate front-loaded investment. Once consumers participate the franchise, we thin to spot accordant repetition purchasing that supports gross implicit galore years. While this class is inactive successful the aboriginal stages, we judge the mean consumers with beingness worth could past decades.

In addition, we expect archetypal 4th 2026 consolidated adjusted EBITDA to beryllium betwixt $24 cardinal and $27 million. We are presently moving connected respective important and breathtaking income and selling initiatives and investments for achromatic pouch that marque it hard to accurately task EBITDA beyond Q1. Obviously, erstwhile looking backmost astatine 2025, we are astir pleased with the maturation of our achromatic nicotine pouch brands, they're long-lasting vibrant spirit options, comfy rima consciousness and flexible nicotine levels proceed to triumph with consumers. Both FRE and ALP person cultivated beardown marque identities that resonate with their respective user bases. During the quarter, nett achromatic pouch income accrued by 266% year-over-year and gross income accrued 337%.

We proceed to marque advancement expanding frost organisation to ample determination and nationalist c-store chains and ALP already 1 of the apical [ D2C ] pouch brands successful America, has started to look connected bricks-and-mortar shelves successful prime retailer tests. Recall that we initially expected ALP to beryllium exclusively D2C for each of 2025. Suffice it to say, we are pleased ALP's moving up of schedule, and we expect to importantly grow bricks-and-mortar organisation astir during Q2. We judge the nicotine pouch space, similar astir different nicotine businesses, volition yet diagnostic 5 to 6 wide distributed brands that bid astir of the market.