Revenue growth reached 16.8% in 2026Q1, though operating margins faced pressure, declining to 10.4% as SG&A expenses scaled faster than the 55.0% gross margin.
| 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 |
|---|
| Sales/Revenue | 480.9M | 463.06M | 360.66M | 325.06M | 321.23M | 445.47M | 405.11M | 361.99M | 332.68M | 285.78M | 206.23M | 197.26M | 200.33M | 193.3M | 117.6M | 116.9M | 115.3M |
| Revenue Growth % | 25.22% | 28.39% | 10.95% | 1.19% | -27.89% | 9.96% | 11.91% | 8.81% | 16.41% | 38.57% | 4.55% | -1.53% | 3.63% | 64.37% | 0.6% | 1.39% | - |
| Cost of Goods Sold | 207.91M | 198.75M | 159.09M | 142.12M | 143.4M | 227.64M | 215.12M | 201.87M | 190.12M | 160.91M | 105.87M | 100.96M | 107.17M | 103.04M | 53.3M | 56.7M | 58.6M |
| COGS % of Revenue | - | 42.92% | 44.11% | 43.72% | 44.64% | 51.1% | 53.1% | 55.77% | 57.15% | 56.31% | 51.34% | 51.18% | 53.49% | 53.31% | 45.32% | 48.5% | 50.82% |
| Gross Profit | 273M | 264.31M | 201.56M | 182.94M | 177.83M | 217.83M | 189.99M | 160.12M | 142.56M | 124.87M | 100.36M | 96.3M | 93.16M | 90.26M | 64.3M | 60.2M | 56.7M |
| Gross Margin % | 56.77% | 57.08% | 55.89% | 56.28% | 55.36% | 48.9% | 46.9% | 44.23% | 42.85% | 43.69% | 48.66% | 48.82% | 46.51% | 46.69% | 54.68% | 51.5% | 49.18% |
| Gross Profit Growth % | - | 31.13% | 10.18% | 2.87% | -18.36% | 14.66% | 18.66% | 12.32% | 14.17% | 24.43% | 4.22% | 3.36% | 3.22% | 40.37% | 6.81% | 6.17% | - |
| Operating Expenses | 187.98M | 168.99M | 114.85M | 102.76M | 98.58M | 127.51M | 125.56M | 132.89M | 94.08M | 75.37M | 56.77M | 51.78M | 45.11M | 46.85M | 48.4M | 44.3M | 37.5M |
| OpEx % of Revenue | - | 36.49% | 31.84% | 31.61% | 30.69% | 28.62% | 30.99% | 36.71% | 28.28% | 26.37% | 27.53% | 26.25% | 22.52% | 24.24% | 41.16% | 37.9% | 32.52% |
| Selling, General & Admin | 120.18M | 168.99M | 113.55M | 102.16M | 97.98M | 123.15M | 121.65M | 104.73M | 94.08M | 75.37M | 56.77M | 51.78M | 45.11M | 46.82M | 47.8M | 43.9M | 37M |
| SG&A % of Revenue | - | 36.49% | 31.48% | 31.43% | 30.5% | 27.65% | 30.03% | 28.93% | 28.28% | 26.37% | 27.53% | 26.25% | 22.52% | 24.22% | 40.65% | 37.55% | 32.09% |
| Research & Development | 0 | 0 | 1.3M | 600K | 600K | 1.1M | 1.3M | 2.5M | 2.5M | 2.3M | 1.8M | 1.4M | 1.2M | 949K | 0 | 0 | 0 |
| R&D % of Revenue | - | - | 0.36% | 0.18% | 0.19% | 0.25% | 0.32% | 0.69% | 0.75% | 0.8% | 0.87% | 0.71% | 0.6% | 0.49% | - | - | - |
| Other Operating Expenses | 2M | 0 | 0 | 0 | 0 | 3.26M | 2.62M | 25.66M | -131K | 0 | 0 | 0 | 0 | 27K | 600K | 400K | 500K |
| Operating Income | 85.02M | 95.33M | 86.72M | 80.18M | 79.25M | 90.32M | 64.43M | 27.23M | 48.48M | 49.5M | 43.59M | 44.51M | 48.06M | 43.41M | 15.9M | 15.9M | 19.2M |
| Operating Margin % | 17.68% | 20.59% | 24.04% | 24.67% | 24.67% | 20.28% | 15.9% | 7.52% | 14.57% | 17.32% | 21.13% | 22.57% | 23.99% | 22.46% | 13.52% | 13.6% | 16.65% |
| Operating Income Growth % | - | 9.93% | 8.16% | 1.18% | -12.26% | 40.19% | 136.6% | -43.84% | -2.05% | 13.57% | -2.08% | -7.38% | 10.7% | 173.03% | 0% | -17.19% | - |
| EBITDA | 92.9M | 102.74M | 92.38M | 84.3M | 82.63M | 95.33M | 69.44M | 31.32M | 51.59M | 51.83M | 44.87M | 45.57M | 48.99M | 44.34M | 18.36M | 17.51M | 20.48M |
| EBITDA Margin % | 19.32% | 22.19% | 25.61% | 25.93% | 25.72% | 21.4% | 17.14% | 8.65% | 15.51% | 18.14% | 21.76% | 23.1% | 24.45% | 22.94% | 15.61% | 14.98% | 17.76% |
| EBITDA Growth % | 2.39% | 11.22% | 9.59% | 2.02% | -13.33% | 37.28% | 121.73% | -39.3% | -0.45% | 15.51% | -1.54% | -6.98% | 10.47% | 141.53% | 4.85% | -14.5% | - |
| D&A (Non-Cash Add-back) | 7.88M | 7.42M | 5.66M | 4.12M | 3.38M | 5.01M | 5.02M | 4.09M | 3.11M | 2.33M | 1.28M | 1.06M | 933K | 932K | 2.46M | 1.61M | 1.28M |
| EBIT | 98.34M | 108.53M | 88.39M | 84.52M | 79.25M | 93.58M | 67.04M | 52.89M | 46.39M | 43.82M | 41.65M | 44.51M | 5.28M | 45.41M | -38.28M | -21.55M | -38.98M |
| Net Interest Income | -17.46M | -17.47M | -13.98M | -14.64M | -19.52M | -20.5M | -13.49M | -14.44M | -14.82M | -16.89M | -26.62M | -34.28M | -34.31M | -44.09M | 0 | 0 | 0 |
| Interest Income | 7.96M | 7.92M | 0 | 0 | 0 | 0 | 0 | 0 | 267K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 25.41M | 25.39M | 13.98M | 14.64M | 19.52M | 20.5M | 13.49M | 14.44M | 15.09M | 16.89M | 26.62M | 34.28M | 34.31M | 44.09M | -27.08M | -31.85M | -31.28M |
| Other Income/Expense | -8.57M | -12.18M | -21.76M | -18.11M | -37.18M | -25.02M | -14.28M | -8.13M | -16.91M | -22.75M | -28.68M | -34.28M | -77.09M | -44.53M | -27.1M | -5.6M | -26.9M |
| Pretax Income | 76.44M | 83.14M | 64.96M | 62.06M | 42.07M | 65.3M | 50.15M | 19.1M | 31.57M | 26.93M | 14.91M | 10.23M | -29.04M | -1.12M | -11.2M | 10.3M | -7.7M |
| Pretax Margin % | 15.9% | 17.95% | 18.01% | 19.09% | 13.1% | 14.66% | 12.38% | 5.28% | 9.49% | 9.42% | 7.23% | 5.18% | -14.49% | -0.58% | -9.52% | 8.81% | -6.68% |
| Income Tax | 10.14M | 14.99M | 16.93M | 24M | 10.98M | 14.04M | 11.96M | 2.86M | 6.29M | 7.28M | -12.01M | 1.08M | 370K | 486K | 850K | 228K | 17.4M |
| Effective Tax Rate % | 13.27% | 18.03% | 26.06% | 38.67% | 26.1% | 21.5% | 23.84% | 14.99% | 19.91% | 27.03% | -80.53% | 10.54% | -1.27% | -43.28% | -7.59% | 2.21% | -226.03% |
| Net Income | 55.44M | 58.16M | 39.81M | 38.46M | 11.64M | 52.06M | 38.19M | 16.23M | 25.29M | 20.21M | 26.91M | 16.68M | -29.41M | -1.61M | -12M | 10.1M | -34.9M |
| Net Margin % | 11.53% | 12.56% | 11.04% | 11.83% | 3.62% | 11.69% | 9.43% | 4.48% | 7.6% | 7.07% | 13.05% | 8.46% | -14.68% | -0.83% | -10.2% | 8.64% | -30.27% |
| Net Income Growth % | 31.39% | 46.11% | 3.5% | 230.4% | -77.64% | 36.31% | 135.27% | -35.81% | 25.14% | -24.91% | 61.35% | 156.72% | -1727.53% | 86.59% | -218.81% | 128.94% | - |
| Net Income (Continuing) | 66.3M | 68.15M | 48.03M | 38.07M | 31.09M | 51.26M | 38.19M | 16.23M | 25.29M | 19.65M | 26.91M | 9.15M | -29.41M | -1.61M | -12M | 10.1M | -34.9M |
| Discontinued Operations | 0 | 0 | -7.52M | -285K | -19.93M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 19.73M | 17.68M | 2.4M | 1.03M | 1.74M | 2.31M | 4.05M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.85 | 3.11 | 2.14 | 2.01 | 0.64 | 2.52 | 1.67 | 0.69 | 1.28 | 1.04 | 1.49 | 0.55 | -1.76 | -0.10 | -0.65 | 17.12 | -53.28 |
| EPS Growth % | 28.95% | 45.33% | 6.47% | 214.06% | -74.6% | 50.9% | 142.03% | -46.09% | 23.08% | -30.2% | 170.91% | 131.25% | -1727.62% | 85.18% | -103.8% | 132.13% | - |
| EPS (Basic) | - | 3.18 | 2.24 | 2.34 | 0.65 | 2.75 | 1.70 | 0.70 | 1.31 | 1.06 | 1.63 | 0.59 | -1.89 | -0.10 | -0.65 | 17.12 | -53.28 |
| Diluted Shares Outstanding | 19.47M | 18.73M | 19.36M | 20.47M | 18.06M | 22.38M | 19.73M | 20.04M | 19.83M | 19.51M | 18.02M | 16.7M | 16.7M | 16.7M | 18.4M | 590K | 655K |
| Basic Shares Outstanding | 19.21M | 18.31M | 17.73M | 17.58M | 17.9M | 18.92M | 19.4M | 19.63M | 19.36M | 18.99M | 16.47M | 15.54M | 15.54M | 15.54M | 18.4M | 590K | 655K |
| Dividend Payout Ratio | - | 9.49% | 12.32% | 11.69% | 36.51% | 7.87% | 9.96% | 21.75% | 9.17% | 3.8% | - | - | - | - | - | - | - |
Regulatory and PMTA uncertainty
As reported in recent financial filings, TPB achieved a 16.8% year-over-year revenue increase in 2026Q1, signaling a sustained recovery from the contraction observed in early 2024, likely driven by the resilient performance of the Zig-Zag and Stoker’s segments despite broader industry headwinds in the vapor category.
The return to double-digit top-line growth suggests that the company's core tobacco brands are successfully capturing market share, potentially benefiting from consumer trade-down behavior. Investors should monitor whether this growth trajectory remains durable or if it is merely a reflection of temporary wholesale inventory replenishment cycles.
Based on the latest income statement data, TPB maintained a gross margin of 55.0% in 2026Q1, demonstrating that the company retains significant pricing power within its core categories despite the inflationary pressures on raw material inputs and the inherent volatility of the NewGen product segment.
The stability of these margins suggests that the brand equity of Zig-Zag acts as a meaningful buffer against cost-push inflation. However, the slight compression from historical peaks warrants investigation into whether rising regulatory compliance costs are beginning to erode the profitability of the company's diversified portfolio.
According to the provided income statement, operating margins contracted to 10.4% in 2026Q1 from 16.5% in the prior quarter, indicating that SG&A expenses are currently scaling faster than gross profit, which may suggest a lack of immediate operating leverage during this specific phase of business expansion.
The sharp increase in SG&A expenses appears to be a primary driver of the recent margin compression, potentially reflecting higher marketing or regulatory spending. Analysts should evaluate whether these expenditures are strategic investments in market share or if they represent a structural increase in the company's fixed cost base.
As evidenced by the significant fluctuation in net income, which dropped from $19.9M in 2025Q4 to $11.7M in 2026Q1, the quality of earnings appears sensitive to non-operating items and periodic SG&A spikes, raising questions about the sustainability of bottom-line growth in the current regulatory environment.
The inconsistency in net income suggests that investors should look past headline EPS to understand the underlying cash-generating capability of the core business. The reliance on non-operating adjustments or irregular expense patterns may indicate that the company's earnings profile is more volatile than its stable revenue base implies.
Quick answers to the most common questions about buying TPB stock.
For fiscal year 2025, Turning Point Brands, Inc. (TPB) reported total revenue of $463.1M. This represents a 301.6% increase compared to $115.3M in 2004.
Turning Point Brands, Inc. (TPB) is profitable, generating $58.2M in net income for the fiscal year ending 2025 with a net profit margin of 12.6%.
Turning Point Brands, Inc. (TPB) reported an operating income of $95.3M, resulting in an operating profit margin of 20.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Turning Point Brands, Inc. (TPB) generated $264.3M in gross profit for the year, representing a gross profit margin of 57.1%. This demonstrates the company's core pricing power and production efficiency.