Cash conversion is volatile but cumulative OCF of $128.1M over ten quarters exceeds net income of $113.3M, with FCF rebounding to $26.2M in 2026Q2 (18.4% margin) after a -$27.4M dip in Q1, driven by working capital swings.
Turning Point Brands, Inc. (TPB) cash flow statement — 16-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'06 | Dec'05 | Dec'04 |
|---|
| Cash from Operations | 32.21M | 57.37M | 67.06M | 66.88M | 30.27M | 68.22M | 43.68M | 37.8M | 13.09M | 29.69M | 9.13M | 24.43M | 12.55M | 3.03M | -720K | 2M | 4.23M |
| Operating CF Margin % | - | 12.39% | 18.59% | 20.57% | 9.42% | 15.31% | 10.78% | 10.44% | 3.93% | 10.39% | 4.43% | 12.38% | 6.27% | 1.57% | -0.61% | 1.71% | 3.67% |
| Operating CF Growth % | -140.22% | -14.45% | 0.27% | 120.93% | -55.62% | 56.18% | 15.57% | 188.73% | -55.91% | 225.26% | -62.64% | 94.61% | 314.84% | 520.28% | -136% | -52.72% | - |
| Net Income | 44.55M | 68.15M | 48.03M | 38.07M | 31.09M | 51.26M | 38.19M | 13.77M | 25.29M | 19.65M | 26.91M | 9.15M | -29.41M | -1.61M | -12M | 10.1M | -34.9M |
| Depreciation & Amortization | 8.35M | 7.42M | 5.66M | 4.12M | 3.38M | 5.01M | 5.02M | 4.45M | 3.11M | 2.33M | 1.28M | 1.06M | 933K | 932K | 2.46M | 1.61M | 1.28M |
| Stock-Based Compensation | 9.32M | 6.97M | 7.24M | 6.56M | 5.27M | 7.56M | 2.55M | 0 | 1.41M | 720K | 180K | 234K | 585K | 234K | 0 | 0 | 0 |
| Deferred Taxes | 5.82M | 8.93M | 519K | 7.02M | -6.51M | -1.49M | 4.74M | -4.22M | 2.56M | 5.18M | -12.72M | 51K | 37K | 23K | 630K | 230K | 26.56M |
| Other Non-Cash Items | -4.9M | 1.93M | 10.7M | 8.41M | 24.23M | 7.01M | 4.06M | 2.69M | 3.33M | 7.34M | -745K | 11.57M | 52.87M | 7.54M | 2.77M | 5.82M | 63.76M |
| Working Capital Changes | -46.02M | -36.03M | -5.08M | 2.7M | -27.2M | -1.14M | -10.89M | 21.1M | -22.62M | -5.53M | -5.79M | 2.36M | -12.46M | -4.1M | 5.4M | -15.7M | -53.3M |
| Change in Receivables | 7.06M | -16.11M | 185K | -2.63M | -3.34M | 3.32M | -2.11M | -3.46M | 824K | -1.07M | 2.07M | -1.41M | 678K | 106K | 796K | 1.12M | 2.54M |
| Change in Inventory | -28.68M | -11.58M | -4.77M | 13.29M | -26.72M | -9K | -8M | 21.04M | -20.65M | 495K | -12.51M | 2.03M | 16M | -12.97M | 1.56M | 7.31M | 4.3M |
| Change in Payables | 7.98M | 8.6M | 3.69M | 100K | 1.51M | -2.37M | -5.06M | 6.61M | 2.52M | -5.7M | 3.63M | 1.78M | -10.12M | 11.48M | -4.42M | -733K | 1.73M |
| Cash from Investing | -34.64M | -31.67M | -10.51M | -5.91M | -18.79M | -58.84M | -64.82M | 15.9M | -24.67M | -1.93M | -26.83M | -2.03M | -1.31M | -723K | -1.68M | -4.79M | -3.32M |
| Capital Expenditures | -12.58M | -13.53M | -4.62M | -5.71M | -7.83M | -6.16M | -6.13M | -4.82M | -2.27M | -2.02M | -3.21M | -1.6M | -1.31M | -729K | -1.68M | -4.79M | -3.28M |
| CapEx % of Revenue | 2.48% | 2.92% | 1.28% | 1.76% | 2.44% | 1.38% | 1.51% | 1.33% | 0.68% | 0.71% | 1.56% | 0.81% | 0.66% | 0.38% | 1.43% | 4.1% | 2.84% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | -16.42M | -39.44M | -7.7M | -19.16M | 268K | -23.63M | 2K | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -4.85M | 33K | 51K | 3K | -9.96M | -19.61M | 3K | 29.84M | -3.51M | -1.6M | -29.06M | -428K | 0 | 6K | 0 | 0 | -40K |
| Cash from Financing | 160.72M | 148.27M | -128.15M | -49.51M | -43.3M | 57.07M | -29.34M | 67.97M | 9.93M | -28.02M | 15.73M | -26.03M | -38.15M | 10.64M | 3.68M | 960K | 1.13M |
| Debt Issued (Net) | 0 | 50M | -118.54M | -41.79M | -9M | 110.38M | -12.76M | 91.38M | 14.22M | -25.48M | -33.48M | -23.98M | -30.19M | 12.5M | 0 | 0 | 0 |
| Equity Issued (Net) | 171.64M | 116.03M | -6.26M | -995K | -29.22M | -38.68M | -10.19M | 726K | 0 | -1.76M | 49.66M | 0 | -1.44M | 0 | 0 | 0 | 0 |
| Dividends Paid | -6.06M | -5.52M | -4.91M | -4.5M | -4.25M | -4.1M | -3.8M | -3.53M | -2.32M | -768K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 626K | -33K | -6.26M | -995K | -29.22M | -38.68M | -10.19M | -12K | 0 | -2.74M | 0 | 0 | -1.44M | 0 | 0 | 0 | -65.08M |
| Other Financing | -4.86M | -12.23M | 1.56M | -2.22M | -829K | -10.53M | -2.59M | -20.61M | -1.97M | -4K | -450K | -2.05M | 0 | -1.86M | 3.68M | 1.33M | 1.13M |
| Net Change in Cash | 158.36M | 173.77M | -71.91M | 11.48M | -32.14M | 66.64M | -50.48M | 91.94M | -1.65M | -258K | -1.97M | -3.63M | -26.91M | 12.94M | 1.28M | -1.82M | 2.04M |
| Free Cash Flow | 19.63M | 43.84M | 62.44M | 61.17M | 22.59M | 62.06M | 37.54M | 32.98M | 10.82M | 27.67M | 5.92M | 22.83M | 11.24M | 2.3M | -2.4M | -2.79M | 950K |
| FCF Margin % | 3.87% | 9.47% | 17.31% | 18.82% | 7.03% | 13.93% | 9.27% | 9.11% | 3.25% | 9.68% | 2.87% | 11.57% | 5.61% | 1.19% | -2.04% | -2.39% | 0.82% |
| FCF Growth % | -62.44% | -29.78% | 2.07% | 170.83% | -63.6% | 65.31% | 13.84% | 204.72% | -60.88% | 367.3% | -74.06% | 103.11% | 389.29% | 195.71% | 13.98% | -393.68% | - |
| FCF per Share | 0.97 | 2.34 | 3.22 | 2.99 | 1.25 | 2.77 | 1.90 | 1.65 | 0.55 | 1.42 | 0.33 | 1.37 | 0.67 | 0.14 | -0.13 | -4.73 | 1.45 |
| FCF Conversion (FCF/Net Income) | 0.44x | 0.99x | 1.68x | 1.74x | 2.60x | 1.31x | 1.14x | 2.33x | 0.52x | 1.47x | 0.34x | 1.46x | -0.43x | -1.88x | 0.06x | 0.20x | -0.12x |
| Interest Paid | 0 | 20.45M | 17.49M | 18.05M | 18.72M | 12.54M | 11.46M | 0 | 14.24M | 15.83M | 34.55M | 23.16M | 38.15M | 36.45M | 0 | 0 | 0 |
| Taxes Paid | 0 | 10.38M | 21M | 12.45M | 13.37M | 16.06M | 3.38M | 0 | 3.21M | 1.81M | 623K | 1.03M | 332K | 463K | 0 | 0 | 0 |
Quick answers to the most common questions about buying TPB stock.
Turning Point Brands, Inc. (TPB) generated $57.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Turning Point Brands, Inc. (TPB) generated $43.8M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Turning Point Brands, Inc. (TPB) spent $13.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Turning Point Brands, Inc. (TPB) returned $5.5M to shareholders via cash dividends and spent $0.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Working capital volatility
Metrics are mathematically derived from official filings.
Cash Conversion Swings Sharply
TPB's operating cash flow to net income ratio swung from 7.32 in 2026Q2 to -1.91 in 2026Q1, per recent filings, indicating significant earnings quality volatility.
The OCF/NI ratio of 7.32 in 2026Q2 suggests that cash generation far exceeded reported net income, likely due to favorable working capital movements. However, the negative ratio in 2026Q1 indicates that net income was not backed by cash, as working capital consumed $37.9M. This inconsistency implies that earnings quality is heavily influenced by timing of working capital changes, warranting close monitoring.
FCF Rebound Masks Underlying Volatility
Free cash flow swung from -$27.4M in 2026Q1 to $26.2M in 2026Q2, as per the cash flow statement, with FCF margin improving to 18.4%.
The dramatic recovery in FCF is primarily driven by a $13.3M positive working capital change in 2026Q2, reversing the prior quarter's outflow. While the latest quarter shows robust cash generation, the erratic pattern suggests that FCF is not yet stable. Investors should assess whether this volatility stems from seasonal factors or structural issues in cash conversion.
Working Capital Drives Cash Flow Swings
Working capital changes ranged from -$37.9M in 2026Q1 to +$13.3M in 2026Q2, based on reported cash flow data, causing significant quarterly cash flow variability.
The large swings in working capital are the primary driver of TPB's volatile operating cash flow. The $37.9M outflow in 2026Q1 suggests a substantial build-up in inventory or receivables, while the subsequent inflow indicates a release. This pattern may reflect inventory management for new product launches or distribution changes, but it also highlights the company's sensitivity to working capital efficiency.
Light CapEx Underscores Asset-Light Model
Capital expenditures averaged only 2.1% of revenue over the last ten quarters, as per financial statements, indicating a low capital intensity business.
TPB's CapEx/Revenue ratio has remained consistently below 5%, with the latest quarter at 0.1%. This suggests that the company does not require heavy investment in fixed assets to grow, which is typical for a tobacco company with outsourced manufacturing. The low capital intensity supports high FCF conversion, but it also implies that growth must come from working capital efficiency or acquisitions rather than organic capacity expansion.
Capital Returns Modest Amid Cash Flow Flux
Dividends and buybacks totaled roughly $2.6M in 2026Q2, as per cash flow data, representing a modest payout relative to operating cash flow.
TPB returned approximately $2.6M to shareholders in 2026Q2, which is less than 10% of operating cash flow. The company appears to prioritize retaining cash to manage working capital swings, as evidenced by the volatile cash flow. While the dividend is consistent, buybacks are sporadic, suggesting management is cautious about returning capital given the cash flow variability.
Cumulative Cash Generation Exceeds Net Income
Over the last ten quarters, cumulative operating cash flow of $128.1M surpassed cumulative net income of $113.3M, according to reported figures, indicating positive cash conversion.
The cumulative OCF/NI ratio of 1.13 suggests that TPB has generated more cash than accounting earnings over the period, which is a positive signal for earnings quality. However, this is largely due to non-cash charges like D&A and SBC, which are added back. The gap is not extreme, but the quarterly volatility in working capital suggests that the cumulative figure may be flattered by timing differences.
What Could Invalidate the Base Case
The cash flow statement obscures the impact of stock-based compensation and potential working capital timing, as SBC averaged $2.0M per quarter, per reported data.
While SBC is a non-cash expense added back to operating cash flow, it represents a real economic cost to shareholders. Over the ten quarters, SBC totaled approximately $20M, which is not reflected in cash flow but dilutes existing shareholders. Additionally, the large working capital swings may be influenced by management's discretion in timing payments or collections, which could smooth or distort cash flow trends. Investors should monitor these factors when assessing the sustainability of cash generation.