Turning Point Brands reported second-quarter net sales increased 22.6% to $142.9 million, driven by continued momentum in its modern oral nicotine business. Modern oral gross revenue surged 149% to $87 million, while net sales rose 128% to $68.4 million, accounting for 48% of total company net sales compared with 26% a year earlier. The company said growth in its FRE and ALP nicotine pouch brands supported stronger retail distribution and market penetration, prompting it to raise its full-year modern oral sales guidance.
Despite the strong top-line performance, net income fell 75.2% to $3.6 million and adjusted EBITDA declined 50% to $15.2 million as the company increased sales and marketing investments to support its expanding nicotine pouch business. Turning Point now expects 2026 modern oral gross sales of $330 million to $350 million, up from its previous forecast of $280 million to $300 million, and modern oral net sales of $260 million to $270 million, reflecting confidence in continued category growth.