Cash generation remains volatile, evidenced by a $27.4 million free cash flow deficit in 2026Q1 driven by a $37.9 million working capital outflow, despite maintaining a low CapEx/Revenue ratio of 4.1%.
| 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 | 20.49M | 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 % | -259.28% | -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 | 55.44M | 58.16M | 48.03M | 38.46M | 11.16M | 51.26M | 33.04M | 13.77M | 25.29M | 19.65M | 26.91M | 9.15M | -29.41M | -1.61M | -12M | 10.1M | -34.9M |
| Depreciation & Amortization | 8.33M | 7.42M | 5.66M | 6.36M | 5.3M | 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 | 5.31M | 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 | 7.31M | 8.93M | 519K | 7.02M | -7.67M | -1.49M | 2.8M | -4.22M | 2.56M | 5.18M | -12.72M | 51K | 37K | 23K | 630K | 230K | 26.56M |
| Other Non-Cash Items | 6.13M | 11.92M | 10.7M | -2.9M | 42.74M | 7.01M | 10.8M | 2.69M | 3.33M | 7.34M | -745K | 11.57M | 52.87M | 7.54M | 2.77M | 5.82M | 63.76M |
| Working Capital Changes | -69.22M | -36.03M | -5.08M | 11.37M | -26.53M | -1.14M | -10.53M | 21.1M | -22.62M | -5.53M | -5.79M | 2.36M | -12.46M | -4.1M | 5.4M | -15.7M | -53.3M |
| Change in Receivables | -12.52M | -16.11M | 185K | -1.61M | -2.1M | 3.32M | -2.11M | -3.46M | 824K | -1.07M | 2.07M | -1.41M | 678K | 106K | 796K | 1.12M | 2.54M |
| Change in Inventory | -24.97M | -11.58M | -4.77M | 20.98M | -32.65M | -9K | -7.65M | 21.04M | -20.65M | 495K | -12.51M | 2.03M | 16M | -12.97M | 1.56M | 7.31M | 4.3M |
| Change in Payables | 8.81M | 8.6M | 3.69M | -14K | 1.24M | -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 | -34.29M | -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 | -16.48M | -13.53M | -4.62M | -5.71M | -7.68M | -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 | 3.43% | 2.92% | 1.28% | 1.76% | 2.39% | 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 | 62K | -16.42M | -39.44M | -7.58M | -19.16M | 268K | -23.63M | 2K | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 86K | -7.97M | 51K | 3K | -10.11M | -25.77M | -6.13M | 0 | -3.51M | -1.6M | -29.06M | -428K | 0 | 6K | 0 | 0 | -40K |
| Cash from Financing | 107.06M | 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) | -669K | 50M | -118.54M | -41.79M | -9M | 110.38M | -12.95M | 91.38M | 14.22M | -25.48M | -33.48M | -23.98M | -30.19M | 12.5M | 0 | 0 | 0 |
| Equity Issued (Net) | 116.91M | 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 | -5.8M | -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 | 1.5M | -33K | -6.26M | -995K | -29.22M | -38.68M | -10.19M | -12K | -623K | -2.74M | 0 | 0 | -1.44M | 0 | 0 | 0 | -65.08M |
| Other Financing | -3.37M | -12.23M | 1.56M | -2.22M | -829K | -10.53M | -2.4M | -20.61M | -1.97M | -4K | -450K | -2.05M | 0 | -1.86M | 3.68M | 1.33M | 1.13M |
| Net Change in Cash | 92.8M | 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 | 4.01M | 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 % | 0.83% | 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 % | -92.77% | -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 | 0.21 | 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) | 0.07x | 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 | 0 | 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 | 0 | 21M | 12.45M | 13.37M | 16.06M | 3.38M | 0 | 3.21M | 1.81M | 623K | 1.03M | 332K | 463K | 0 | 0 | 0 |
Regulatory and PMTA uncertainty
According to the latest quarterly data, TPB's operating cash flow of negative $22.3 million against $11.7 million in net income highlights a significant divergence, suggesting that reported earnings are currently failing to translate into actual cash generation due to substantial working capital outflows.
The negative OCF/NI ratio of -1.91 in 2026Q1 represents a sharp departure from historical norms, indicating that the company is currently consuming cash to support its operations rather than generating it. Investors should monitor whether this disconnect is a temporary result of inventory buildup or a more permanent shift in the cash conversion cycle.
As reported in financial statements, TPB's free cash flow trajectory has become increasingly erratic, swinging from a positive $24.3 million in 2025Q4 to a negative $27.4 million in 2026Q1, reflecting the underlying instability in the company's ability to fund operations through internal cash generation.
The FCF margin of -22.0% in the most recent quarter underscores the difficulty in maintaining consistent cash flow amidst fluctuating operational requirements. This volatility suggests that the company's cash position remains highly sensitive to quarterly shifts in working capital and potential regulatory-related expenditures.
Based on reported figures, working capital changes have become a primary source of cash flow volatility, with a $37.9 million outflow in 2026Q1 alone, which significantly offset the company's net income and highlights potential inefficiencies in inventory management or accounts receivable collection cycles.
The substantial negative working capital impact suggests that the company may be aggressively stocking inventory or facing delayed collections from its wholesale distribution partners. Such large swings warrant further investigation into whether these movements are strategic preparations for future demand or signs of channel-loading pressures.
As evidenced by the provided data, TPB maintains a disciplined approach to capital expenditure, with CapEx/Revenue ratios consistently hovering between 0.4% and 4.1%, indicating that the business model remains asset-light and does not require heavy reinvestment to maintain its core tobacco and rolling paper operations.
The relatively low capital intensity suggests that the company's cash flow issues are not driven by excessive infrastructure spending or maintenance requirements. Instead, the current cash flow strain appears to be purely operational or working-capital driven, rather than a result of an overly burdensome capital expenditure program.
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.