Turning Point Brands Q3 2026 net sales rise 27% as pouch brands grow

Turning Point Brands raised third-quarter 2026 net sales 27% to $151.1 million, but net income fell 81.4% to $3.9 million as it spent heavily to push nicotine pouches.

The Louisville-based company said Modern Oral gross sales more than doubled in percentage terms, up 114.2%, and net sales rose 102.9%. That category supplied 49.2% of total company net sales in the quarter ended September 30, 2026.

Chief executive David Glazek, in the company’s results statement, linked the growth to investment in the FRE and ALP pouch brands. He said the spending is widening distribution and consumer engagement in what he described as a rapidly growing nicotine pouch category.

Stoker’s now carries three-quarters of group sales

The Stoker’s segment, which houses Modern Oral alongside the company’s other tobacco products, lifted net sales 52.0% and accounted for 75% of group net sales.

Segment gross profit rose 41.5% from the prior year, but the gross margin slipped to 56.0% from 60.2% a year earlier. The company attributed the decline mainly to a product mix shifting toward Modern Oral.

Zig-Zag moved the other way. Segment net sales fell 15.5% to $37.3 million, gross profit fell 15.6% to $21.4 million, and margin was essentially flat at 57.4% against 57.5%.

Prior-year dollar figures for the Modern Oral and Stoker’s sales and profit lines are not given in the results statement, which reports those comparisons as percentages only.

Selling costs grew faster than sales

Adjusted EBITDA fell 41.3% to $18.4 million.

The company held $251.3 million in cash at September 30, 2026 and reported net debt of $48.7 million. It bought back 167,161 shares during the quarter for $10.0 million at an average of $59.82, and listed total liquidity of $322.8 million including $71.5 million of asset-backed revolver capacity.

Guidance was last reset on 21 September

Turning Point reaffirmed the full-year 2026 outlook it updated on September 21, 2026: Modern Oral gross sales of $330–350 million, Modern Oral net sales of $260–270 million, and adjusted EBITDA of $70–80 million.

What this means for suppliers and distributors

The results show where Turning Point is putting money: pouch capacity, distribution and retail presence for FRE and ALP, with Zig-Zag contracting. Suppliers to the pouch side face a buyer scaling volumes and pressing on cost as mix shifts, since segment margin already fell to 56.0%.

Zig-Zag’s 15.5% sales decline suggests order volumes tied to that paper and accessories line are contracting, even if the segment remains the higher-margin business at 57.4%, based on gross margin as a share of net sales. This is VapeBrief’s analysis, not company guidance.

The company’s next dated step is its quarterly filing on Form 10-Q for the period ended September 30, 2026, to which it directs readers for full results.

Questions readers ask

How much did Turning Point Brands' Modern Oral sales grow in Q3 2026?

Gross sales rose 114.2% and net sales rose 102.9%, according to the company's results statement, which reports those changes as percentages without prior-year dollar amounts. Modern Oral contributed 49.2% of total company net sales.

Why did Turning Point Brands' net income fall in Q3 2026?

Net income attributable to the company fell 81.4% to $3.9 million while SG&A expenses rose 69.1% to $75.3 million. The company attributed the spending to Modern Oral sales and marketing investment and higher outbound freight costs.

What full-year 2026 guidance did Turning Point Brands reaffirm?

Modern Oral gross sales of $330–350 million, Modern Oral net sales of $260–270 million, and adjusted EBITDA of $70–80 million. The company says the guidance was updated on September 21, 2026.