Amendment to Current Report (Form 8-K/A)

Turning Point Brands Announces Third Quarter 2025 Results

LOUISVILLE, KY - Nov 5, 2025 - Turning Point Brands, Inc. ("TPB" or the "Company") (NYSE: TPB), a manufacturer, marketer and distributor of branded consumer products, including alternative smoking accessories and consumables with active ingredients, today announced financial results for the third quarter ended September 30, 2025.

Q3 2025 vs. Q3 2024

Graham Purdy, President and CEO, commented, "Our consolidated third quarter results exceeded expectations. Modern Oral sales were $36.7 million, increasing by 22% versus the prior quarter and 628% over the prior year. In addition, we now expect to qualify our first U.S. white pouch production lines in the first half of 2026."

Stoker's Products Segment (63% of total net sales in the quarter)

For the third quarter, Stoker's segment net sales increased 80.8% from the prior year to $74.8 million, driven by strong growth in Modern Oral sales, mid-single-digit growth in MST and low-single-digit growth in looseleaf.

Stoker's segment gross profit increased 95.2% from the prior year and 3.5% sequentially to $45.0 million. Gross margin increased 440 basis points from the prior year to 60.2%.

Zig-Zag Products Segment (37% of total net sales in the quarter)

For the third quarter, Zig-Zag segment net sales decreased 10.5% from the prior year and 6.1% sequentially to $44.2 million. Excluding the previously discussed wind-down of our Clipper business, Zig-Zag was up mid-single-digits sequentially, which slightly beat our expectations.

Zig-Zag segment gross profit decreased 7.1% from the prior year but increased 9.9% sequentially to $25.4 million. Gross margin increased 210 basis points from the prior year to 57.5%.

Performance Measures in the Third Quarter

Third quarter 2025 consolidated selling, general and administrative ("SG&A") expenses increased 50.5% from the prior year and 10.5% sequentially to $44.5 million, inclusive of increased Modern Oral-related sales and marketing investments and increased outbound freight costs.

Third quarter SG&A included the following notable items:

Total gross debt as of September 30, 2025 was $300.0 million. Net debt (total gross debt less unrestricted cash) as of September 30, 2025 was $98.8 million. The Company ended the quarter with total liquidity of $267.8 million, comprised of $201.2 million in cash and $66.6 million of availability under an asset backed revolving credit facility.

Consistent with the Company's policy of maintaining active buyback and sales authorizations to maximize capital markets flexibility, the Company plans to amend its ATM prospectus supplement and buyback authorization to provide for $200 million of capacity under each program. There are no current plans to transact under the updated authorizations.

2025 Outlook

The Company is increasing full-year 2025 Adjusted EBITDA guidance to $115.0 - 120.0 million (from $110.0 - 114.0 million) and projected full-year 2025 Modern Oral sales to $125.0 - 130.0 million (from $100.0 - 110.0 million).

Earnings Conference Call

As previously disclosed, a conference call with the investment community to review TPB's financial results has been scheduled for 8:30 a.m. Eastern on Wednesday, November 5, 2025. Investment community participants should dial in 10 minutes ahead of time using the toll-free number (800) 715-9871 (international participants should call (646) 307-1963) and follow the audio prompts after typing in the event ID: 6640134. A live listen-only webcast of the call will be available on the Events and Presentations section of the investor relations portion of the Company website (www.turningpointbrands.com). A replay of the webcast will be available on the website two hours following the call.

Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with generally accepted accounting principles in the United States (GAAP), this press release includes certain non-GAAP financial measures including EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS and Adjusted Operating Income (Loss). A reconciliation of these non-GAAP financial measures accompanies this release.

About Turning Point Brands, Inc.

Turning Point Brands (NYSE: TPB) is a manufacturer, marketer and distributor of branded consumer products including smoking accessories and consumables with active ingredients through its Zig-Zag®, Stoker's®, FRE®, and Alp Pouch® brands. TPB's products are available in more than 220,000 retail outlets in North America, and on sites such as www.zigzag.com. For the latest news and information about TPB and its brands, please visit www.turningpointbrands.com.