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Business Wire
06-08-2025
- Business
- Business Wire
Turning Point Brands Announces Second Quarter 2025 Results
LOUISVILLE, Ky.--(BUSINESS WIRE)-- 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 second quarter ended June 30, 2025. Modern Oral Net Sales for Q2 2025 increased 651% (or nearly 8x) year-over-year to $30.1 million, and now accounts for 26% of total Net Sales Share Q2 2025 vs. Q2 2024 Total consolidated Net Sales increased 25.1% to $116.6 million Stoker's segment Net Sales increased 62.9% Zig-Zag segment Net Sales decreased 6.9% Gross Profit increased 32.2% to $66.6 million Net Income increased 11.3% to $14.5 million Adjusted EBITDA increased 14.8% to $30.5 million (see Schedule A for a reconciliation to net income) Adjusted Net Income increased 4.5% to $18.0 million (see Schedule B for a reconciliation to net income) Diluted EPS of $0.79 and Adjusted Diluted EPS of $0.98 compared to $0.68 and $0.89, respectively, in the same period one year ago (see Schedule B for a reconciliation to Diluted EPS) Graham Purdy, President and CEO, commented, 'Our consolidated second quarter results were better than expected. Modern Oral sales were $30.1 million, increasing by 35% versus prior quarter and up 651% against the prior year. Stoker's MST and looseleaf showed modest gains with Zig-Zag flat sequentially.' Stoker's Products Segment (60% of total net sales in the quarter) For the second quarter, Stoker's segment net sales increased 62.9% from the prior year to $69.6 million, driven by strong growth in Modern Oral sales, mid-single-digit growth in MST offset by low single-digit declines in looseleaf. For the second quarter, total Stoker's Products segment volume increased 48.3%, while price / product mix increased 14.5%. Stoker's segment gross profit increased 85.0% from the prior year, and 27.8% sequentially from Q1 2025 to $43.5 million. Gross margin increased 750 basis points from the prior year and 500 basis points sequentially to 62.5%. Zig-Zag Products Segment (40% of total net sales in the quarter) For the second quarter, Zig-Zag segment net sales decreased 6.9% to $47.0 million against prior year, but close to flat sequentially. Zig-Zag segment gross profit decreased 14.0% to $23.1 million. Gross margin decreased 410 basis points to 49.1% driven by product mix. Performance Measures in the Second Quarter Second quarter 2025 consolidated selling, general and administrative ('SG&A') expenses were $40.3 million compared to $29.2 million in the second quarter of 2024 primarily driven by white pouch-related SG&A that was not in the prior year period, as well as increased outbound freight and sales and marketing investments. Second quarter SG&A included the following notable items: $1.7 million of FDA PMTA-related expenses for Modern Oral products compared to $1.0 million in the prior year period; and $0.6 million of transaction-related costs compared to $0.1 million in the prior year period. $0.8 million of non-recurring freight costs compared to $0.0 million in the prior year period. $0.5 million of non-recurring legal costs in connection with litigation related to an insurance claim compared to $0.0 million in the prior year period. Total gross debt as of June 30, 2025 was $300.0 million. Net debt (total gross debt less unrestricted cash) as of June 30, 2025 was $190.1 million. The Company ended the quarter with total liquidity of $176.4 million, comprised of $109.9 million in cash and $66.5 million of availability under its asset backed revolving credit facility. 2025 Outlook The Company is increasing full-year 2025 projected Modern Oral sales to $100.0 – 110.0 million (from $80.0 – 95.0 million). The Company is increasing full-year 2025 Adjusted EBITDA guidance to $110.0 – 114.0 million (from $108.0 – 113.0 million). Earnings Conference Call As previously disclosed, a conference call with the investment community to review TPB's financial results has been scheduled for 9:30 a.m. Eastern on Wednesday, August 6, 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 ( A replay of the webcast will be available on the site 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 For the latest news and information about TPB and its brands, please visit Forward-Looking Statements This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may generally be identified by the use of words such as "anticipate," "believe," "expect," "intend," "plan" and "will" or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. As a result, these statements are not guarantees of future performance and actual events may differ materially from those expressed in or suggested by the forward-looking statements. Any forward-looking statement made by TPB in this press release, its reports filed with the Securities and Exchange Commission (the 'SEC') and other public statements made from time-to-time speak only as of the date made. New risks and uncertainties come up from time to time, and it is impossible for TPB to predict or identify all such events or how they may affect it. TPB has no obligation, and does not intend, to update any forward-looking statements after the date hereof, except as required by federal securities laws. Factors that could cause these differences include, but are not limited to, those included in the Company's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed by the Company with the SEC. These statements constitute the Company's cautionary statements under the Private Securities Litigation Reform Act of 1995. This press release contains TPB's preliminary determinations and current expectations, and such information is inherently uncertain. The preliminary estimates provided herein have been prepared by, and are the responsibility of, management and are subject to completion of TPB's customary quarter-end closing and review procedures and third-party review. As a result, TPB's reported information in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 may differ from this information, and any such differences may be material. In addition, the information furnished above does not include all of the information regarding TPB's financial condition and results of operations for the quarter ending June 30, 2025 that may be important to readers. As a result, readers are cautioned not to place undue reliance on the information furnished in this press release and should view this information in the context of TPB's full second quarter 2025 results when such results are disclosed by TPB in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 Financial Statements Follow on Subsequent Pages Three Months Ended June 30, 2025 2024 Net sales $ 116,634 $ 93,225 Cost of sales 50,011 42,827 Gross profit 66,623 50,398 Selling, general, and administrative expenses 40,296 29,200 Other operating income - (1,674 ) Operating income 26,327 22,872 Interest expense, net 5,140 3,042 Investment (gain) loss (17 ) 2,439 Income from continuing operations before income taxes 21,204 17,391 Income tax expense 4,244 4,430 Income from continuing operations 16,960 12,961 Loss from discontinued operations, net of tax - (41 ) Consolidated net income 16,960 12,920 Net income (loss) attributable to non-controlling interest 2,480 (87 ) Net income attributable to Turning Point Brands, Inc. $ 14,480 $ 13,007 Basic income per common share: Continuing operations $ 0.81 $ 0.74 Discontinued operations - - Net income attributable to Turning Point Brands, Inc. $ 0.81 $ 0.74 Diluted income per common share: Continuing operations $ 0.79 $ 0.68 Discontinued operations - - Net income attributable to Turning Point Brands, Inc. $ 0.79 $ 0.68 Weighted average common shares outstanding: Basic 17,920,567 17,656,732 Diluted 18,321,913 20,156,854 Expand Turning Point Brands, Inc. Consolidated Balance Sheets (dollars in thousands except share data) (unaudited) June 30, December 31, ASSETS 2025 2024 Current assets: Cash $ 109,925 $ 46,158 Accounts receivable, net of allowances of $157 in 2025 and $66 in 2024 30,056 9,624 Inventories, net 105,009 96,253 Current assets held for sale - 11,470 Other current assets 40,227 34,700 Total current assets 285,217 198,205 Property, plant, and equipment, net 30,982 26,337 Deferred tax assets, net - 995 Right of use assets 10,577 11,610 Deferred financing costs, net 1,501 1,823 Goodwill 136,104 135,932 Other intangible assets, net 64,650 65,254 Master Settlement Agreement (MSA) escrow deposits 29,574 28,676 Noncurrent assets held for sale - 3,859 Other assets 37,183 20,662 Total assets $ 595,788 $ 493,353 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 26,169 $ 11,675 Accrued liabilities 41,340 31,096 Current liabilities held for sale - 2,049 Total current liabilities 67,509 44,820 Deferred tax liabilities, net 1,974 - Notes payable and long-term debt 293,138 248,604 Lease liabilities 8,344 9,549 Total liabilities $ 370,965 $ 302,973 Commitments and contingencies Stockholders' equity: Preferred stock, $0.01 par value; authorized shares 40,000,000; issued and outstanding shares -0- - - Common stock, voting, $0.01 par value; authorized shares, 190,000,000; 20,492,267 issued shares and 18,020,862 outstanding shares at June 30, 2025, and 20,200,886 issued shares and 17,729,481 outstanding shares at December 31, 2024 205 202 Common stock, nonvoting, $0.01 par value; authorized shares, 10,000,000; issued and outstanding shares -0- - - Additional paid-in capital 130,245 126,662 Cost of repurchased common stock (2,471,405 shares at June 30, 2025 and December 31, 2024) (83,144 ) (83,144 ) Accumulated other comprehensive loss (2,010 ) (2,903 ) Accumulated earnings 173,280 147,164 Non-controlling interest 6,247 2,399 Total stockholders' equity 224,823 190,380 Total liabilities and stockholders' equity $ 595,788 $ 493,353 Expand Turning Point Brands, Inc. Consolidated Statements of Cash Flows (dollars in thousands) (unaudited) Six Months Ended June 30, 2025 2024 Cash flows from operating activities: Consolidated net income $ 32,751 $ 25,099 Loss from discontinued operations, net of tax - 43 Adjustments to reconcile net income to net cash provided by operating activities: Loss on extinguishment of debt 1,235 - Loss on sale of property, plant, and equipment 45 7 Loss on investments 194 2,722 Depreciation and other amortization expense 2,893 1,743 Amortization of other intangible assets 612 610 Amortization of deferred financing costs 872 1,393 Deferred income tax expense 2,716 363 Stock compensation expense 3,292 3,951 Noncash lease income (728 ) (85 ) Loss on MSA investments - 6 Changes in operating assets and liabilities: Accounts receivable (20,504 ) (2,563 ) Inventories (8,604 ) (5,145 ) Other current assets (5,486 ) 3,088 Other assets (4,087 ) (279 ) Accounts payable 14,187 3,154 Accrued liabilities and other 9,842 (3,033 ) Operating cash flows from continuing operations 29,230 31,074 Operating cash flows from discontinued operations - 5,003 Net cash provided by operating activities $ 29,230 $ 36,077 Cash flows from investing activities: Capital expenditures $ (6,176 ) $ (2,858 ) Proceeds on the sale of property, plant and equipment - 2 Payment for equity investments (2,783 ) - Purchases of investments (4,079 ) (7,934 ) Proceeds from sale of investments 4,460 3,314 Purchases of non-marketable equity investments - (500 ) MSA escrow deposits, net (48 ) 4 Investing cash flows from continuing operations (8,626 ) (7,972 ) Investing cash flows from discontinued operations - - Net cash used in investing activities $ (8,626 ) $ (7,972 ) Cash flows from financing activities: Redemption of 2026 Notes $ (250,000 ) $ - Proceeds from 2032 Notes 300,000 - Payment of dividends (2,731 ) (2,407 ) Payment of financing costs (7,251 ) (133 ) Exercise of options 4,921 900 Redemption of options (33 ) (4 ) Redemption of restricted stock units (1,970 ) (840 ) Redemption of performance based restricted stock units (2,624 ) (1,212 ) Common stock repurchased - (3,051 ) Financing cash flows from continuing operations 40,312 (6,747 ) Financing cash flows from discontinued operations - - Net cash provided by (used in) financing activities $ 40,312 $ (6,747 ) Net increase in cash $ 60,916 $ 21,358 Effect of foreign currency translation on cash $ 20 $ (76 ) Cash, beginning of period: Unrestricted $ 48,941 $ 117,886 Restricted 1,961 4,929 Total cash at beginning of period $ 50,902 $ 122,815 Cash, end of period: Unrestricted $ 109,925 $ 142,159 Restricted 1,913 1,938 Total cash at end of period $ 111,838 $ 144,097 Expand Non-GAAP Financial Measures To supplement our financial information presented in accordance with generally accepted accounting principles in the United States, or U.S. GAAP, we use non-U.S. GAAP financial measures, including EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, and Adjusted Operating Income . We believe Adjusted EBITDA provides useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, and Adjusted Operating Income are used by management to compare our performance to that of prior periods for trend analyses and planning purposes and are presented to our board of directors. We believe that EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, and Adjusted Operating Income are appropriate measures of operating performance because they eliminate the impact of expenses that do not relate to business performance. We define 'EBITDA' as net income before interest expense, gain (loss) on extinguishment of debt, income tax expense, depreciation, amortization. We define 'Adjusted EBITDA' as net income before interest expense, gain (loss) on extinguishment of debt, income tax expense, depreciation, amortization, other non-cash items and other items that we do not consider ordinary course in our evaluation of ongoing operating performance. We define 'Adjusted Net Income' as net income excluding items that we do not consider ordinary course in our evaluation of ongoing operating performance. We define 'Adjusted Diluted EPS' as diluted earnings per share excluding items that we do not consider ordinary course in our evaluation of ongoing operating performance. We define 'Adjusted Operating Income' as operating income excluding other non-cash items and other items that we do not consider ordinary course in our evaluation of ongoing operating performance. Non-U.S. GAAP measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with U.S. GAAP. EBITDA, Adjusted Net Income, Adjusted EBITDA, Adjusted Diluted EPS, and Adjusted Operating Income exclude significant expenses that are required by U.S. GAAP to be recorded in our financial statements and is subject to inherent limitations. In addition, other companies in our industry may calculate this non-U.S. GAAP measure differently than we do or may not calculate it at all, limiting its usefulness as a comparative measure. In accordance with SEC rules, we have provided, in the supplemental information attached, a reconciliation of the non-GAAP measures to the next directly comparable GAAP measures. Totals may not foot due to rounding (a) Represents costs associated with corporate restructuring, including severance and early retirement. (b) Represents cost associated with scoping and mobilization of new ERP and CRM systems and cost of duplicative ERP licenses. (c) Represents non-cash stock options, restricted stock, PRSUs, etc. (d) Represents the fees incurred for transaction expenses. (e) Represents elevated non-recurring outbound freight costs due to ERP transition (f) Represents legal expenses incurred in connection with litigation related to an insurance claim. (g) Represents costs associated with applications related to FDA premarket tobacco product application ('PMTA'). The PMTA regime requires the Company to submit an application to the FDA to receive marketing authorization to continue to sell certain of its product lines with continued sales permitted during the pendency of the applications. The application is a onetime resource-intensive process for each covered product line; however, due to the nature of the implementation process for those product lines already in the market, applications can take multiple years to complete rather than the typical one-time submission. The Company currently has only two product lines currently subject to the PMTA process, having utilized other regulatory pathway options available for our other product lines. The Company does not expect to submit additional PMTA applications for any new product lines after the submission for the remaining two are complete. (h) Represents a mark-to-market gain attributable to foreign exchange fluctuation. (i) Represents impairment of investment assets. (j) Represents gain on investments. Expand Schedule B Turning Point Brands Reconciliation of GAAP Net Income to Adjusted Net Income and Diluted EPS to Adjusted Diluted EPS (dollars in thousands except share data) (unaudited) Three Months Ended Three Months Ended June 30, 2025 June 30, 2024 Income from continuing operations before income taxes Income tax expense (m) Net income attributable to non-controlling interest Net Income Diluted EPS Income from continuing operations before income taxes Income tax expense (m) Loss from discontinued operations, net of tax (n) Net income attributable to non-controlling interest Net Income Diluted EPS GAAP Net Income and Diluted EPS $ 21,204 $ 4,244 $ 2,480 $ 14,480 $ 0.79 $ 17,391 $ 4,430 $ 41 $ (87 ) $ 13,007 $ 0.68 Loss on discontinued operations (a) - - - - - - - (41 ) - 41 0.00 Corporate restructuring (b) - - - - - 283 72 - - 211 0.01 ERP/CRM (c) - - - - - 489 125 - - 364 0.02 Stock options, restricted stock, and incentives expense (d) 1,628 326 - 1,302 0.07 1,889 481 - - 1,408 0.07 Transactional expenses and strategic initiatives (e) 569 114 - 455 0.02 97 25 - - 72 0.00 Non - recurring freight (f) 837 168 - 669 0.04 - - - - - - Non - recurring legal (g) 504 101 - 403 0.02 - - - - - - FDA PMTA (h) 1,651 330 - 1,321 0.07 997 254 - - 743 0.04 Mark-to-market gain on Canadian inter-company note (i) (665 ) (133 ) - (532 ) (0.03 ) - - - - - - Non-cash asset impairment (j) 908 182 - 726 0.04 2,722 693 - - 2,029 0.10 Gain on investment (k) (714 ) (143 ) - (571 ) (0.03 ) - - - - - - Federal excise tax refund (l) - - - - - (1,674 ) (426 ) - - (1,248 ) (0.06 ) Tax benefit (m) - 265 - (265 ) (0.01 ) - (578 ) - - 578 0.03 Expand (a) Represents loss on discontinued operations. (b) Represents costs associated with corporate restructuring, including severance and early retirement. (c) Represents cost associated with scoping and mobilization of new ERP and CRM systems and cost of duplicative ERP licenses. (d) Represents non-cash stock options, restricted stock, PRSUs, etc. (e) Represents the fees incurred for transaction expenses. (f) Represents elevated non-recurring outbound freight costs due to ERP transition (g) Represents legal expenses incurred in connection with litigation related to an insurance claim. (h) Represents costs associated with applications related to FDA premarket tobacco product application ("PMTA"). The PMTA regime requires the Company to submit an application to the FDA to receive marketing authorization to continue to sell certain of its product lines with continued sales permitted during the pendency of the applications. The application is a onetime resource-intensive process for each covered product line; however, due to the nature of the implementation process for those product lines already in the market, applications can take multiple years to complete rather than the typical one-time submission. The Company currently has only two product lines currently subject to the PMTA process, having utilized other regulatory pathway options available for our other product lines. The Company does not expect to submit additional PMTA applications for any new product lines after the submission for the remaining two are complete. (i) Represents adjustment from quarterly tax rate to quarterly projected tax rate of 21% in 2025 and 23% in 2024. (j) Represents impairment of investment assets. (k) Represents gain on investments. (l) Represents a federal excise tax refund included in other operating income. (m) Income tax expense calculated using the effective tax rate for the quarter of 20.0% in 2025 and 25.5% in 2024. Expand Schedule C Turning Point Brands, Inc. Reconciliation of GAAP Operating Income to Adjusted Operating Income (dollars in thousands) (unaudited) Consolidated Zig-Zag Products Stoker's Products 2nd Quarter 2nd Quarter 2nd Quarter 2nd Quarter 2nd Quarter 2nd Quarter 2025 2024 2025 2024 2025 2024 Net sales $ 116,634 $ 93,225 $ 47,018 $ 50,482 $ 69,616 $ 42,743 Gross profit $ 66,623 $ 50,398 $ 23,099 $ 26,873 $ 43,524 $ 23,525 Operating income $ 26,327 $ 22,872 $ 14,741 $ 18,260 $ 30,079 $ 17,862 Adjustments: Corporate restructuring - 283 - - - - ERP/CRM - 489 - - - - Transactional expenses and strategic initiatives 569 97 - - - - Non - recurring freight 837 - 92 - 745 - Non - recurring legal 504 - - - - - FDA PMTA 1,651 997 - - - - Mark-to-market gain on Canadian inter-company note (665 ) - - - - - Federal excise tax refund - (1,674 ) - (1,674 ) - - Expand
Business Upturn
09-07-2025
- Business
- Business Upturn
Zig-Zag Launches New Premium Natural Leaf Cigar Line – Zig-Zag Woods
By GlobeNewswire Published on July 9, 2025, 02:53 IST Los Angeles, California, July 08, 2025 (GLOBE NEWSWIRE) — Zig-Zag Launches New Premium Natural Leaf Cigar Line – Zig-Zag Woods Slow-Burning, Boldly Flavored, and Value-Priced for High Turnover in Convenience and Smoke Shop Channels Zig-Zag, a heritage brand trusted by millions, proudly announces the launch of Zig-Zag Woods, a new line of premium natural leaf cigars crafted for today's adult cigar consumer and strategically designed for convenience stores and smoke shops. With more than 58% of consumers referring to rough-cut cigars as 'woods', this launch meets consumer expectations with a name and format that resonates. Zig-Zag Woods features a slow-burning, all-natural leaf wrap filled with premium rough-cut tobacco, delivering a rich and smooth smoking experience. With bold flavor profiles and recognizable Zig-Zag branding, this line is engineered for fast sell-through and high margins. Over 300 million rough-cut cigars are sold annually (MSA), demonstrating the strength of this segment, and Zig-Zag Woods is primed to compete and win. Product Offering: 5 Varieties: Natural Silk & Berries Sweet Aromatic Crème Royale Velvet Pre-Priced: $1.39 for 2 cigars $1.39 for 2 cigars Packaging Configuration: 15 pouches per carton 24 cartons per case Whether your customers prefer the boldness of Sweet Aromatic or the smoothness of Velvet, Zig-Zag Woods provides a flavor for every taste. With its competitive price point, premium quality, and shelf-ready format, Zig-Zag Woods is primed to become a top seller in the natural leaf cigar segment. 'Customers have been asking for a premium value-added product that moves quickly and satisfies customers. Zig-Zag Woods is our answer,' said Jessica Chesney, SBM of Marketing at Zig-Zag. 'We've combined quality, flavor variety, and value into a package that's a win for both consumers and the trade.' Now Shipping Nationwide Zig-Zag Woods are now available for wholesale and retail ordering. For more information, promotional assets, or to place an order, contact Zig-Zag customer service at (800) 331-5962 [email protected] or visit TPB Marketplace. About Zig-Zag Zig-Zag is a market leader in premium tobacco and smoking accessories, known for its authenticity, innovation, and quality. With a legacy spanning over 140 years, Zig-Zag continues to evolve with consumer trends while delivering reliable products to its retail partners. Zig-Zag is exclusively distributed by Turning Point Brands (NYSE: TPB), a manufacturer, marketer, and distributor of branded consumer products. Attachment Zig-Zag Launches New Premium Natural Leaf Cigar Line – Zig-Zag Woods Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. Business Upturn takes no editorial responsibility for the same. Ahmedabad Plane Crash GlobeNewswire provides press release distribution services globally, with substantial operations in North America and Europe.
Yahoo
23-04-2025
- Business
- Yahoo
Turning Point Brands to Host Q1 Conference Call
LOUISVILLE, Ky., April 23, 2025--(BUSINESS WIRE)--Turning Point Brands, Inc. (NYSE: TPB) announced the date and time for its conference call to review 1st quarter 2025 results. The conference call will be on Wednesday, May 7, 2025 at 9:30 a.m. Eastern. Interested analysts and professional investors can register and participate through one of these call-in numbers: (800) 715-9871 (U.S., toll-free)(646) 307-1963 (International)Event ID: 6640134 Participants should dial in at least 10 minutes in advance and follow the audio prompts after typing in the Event ID. The call will also be broadcast live as a listen-only webcast from the investor relations section of the company's website at The replay of the webcast will be available on the site two hours following the call. About Turning Point Brands, Inc. Turning Point Brands, Inc. (NYSE: TPB) is a manufacturer, marketer and distributor of branded consumer products including alternative smoking accessories and consumables with active ingredients through its iconic brand portfolio, including Zig-Zag®, Stoker's®, FRE®, and ALP®. TPB's products are available in more than 220,000 retail outlets in North America and on sites such as and For the latest news and information about TPB and its brands, please visit View source version on Contacts ir@ Sign in to access your portfolio
Yahoo
22-03-2025
- Business
- Yahoo
TPB, ACB and JAZZ: Three Pot Stocks Flowering With Potential Upside
After bursting onto the scene several years ago with considerable fanfare, much of the hype about cannabis stocks has quietly died down, and share prices have largely followed suit. Here, we'll examine three profitable and cheap cannabis-related stocks that offer investors long-term value and potential upside: Turning Point Brands (TPB), Aurora Cannabis (ACB), and Jazz Pharmaceuticals (JAZZ). Easily identify stocks' risks and opportunities. Discover stocks' market position with detailed competitor analyses. Having been illegal for decades, cannabis is seeing the light of day following spates of deregulation across the U.S., Canada, Australia, and Europe over the past decade. Cannabis stocks, otherwise known as pot stocks, have understandably emerged to mop up the huge pent-up demand for cannabis products. Whether it be medicinal, industrial, or recreational, the cannabis market is now a commercial entity being monetized across the U.S. and Canada. In the U.S., after an initial sentiment boost following legalization, the cannabis market has cooled. The AdvisorShares Pure US Cannabis ETF (MJUS), which tracks U.S. cannabis stocks, traded at over $50 a share in early 2021 but now trades for just $2.68. Tilray Brands (TLRY), one of the earliest and most hyped pure-play publicly traded cannabis companies, traded for over $145 a share in late 2018 but today is priced at less than a dollar. It's hard to understate how poorly many of these pure-play cannabis stocks have performed. While it has been a difficult space to invest in, the industry still harbors potential — recreational marijuana is now legal in 24 U.S. states (plus Washington D.C.), while medical marijuana is legal in 39 (that said, it's important to note that it is still classified as a Schedule 1 Drug by the Federal Government). Grand View Research predicts the global legal cannabis market will grow to $102 billion by 2030, suitable for an impressive 25.5% CAGR. For investors still interested in the industry and gaining exposure to the space, the good news is that the sector has matured, and there are plenty of innovative ways to invest in it rather than speculating on questionable stocks with little earnings. Turning Point Brands (TPB) is an interesting way to enter the cannabis space. While it is not a pure-play cannabis company, it sells Zig-Zag rolling papers and is part of the industry. It is also included in New Cannabis Ventures' Global Cannabis Stock Index. Unlike many of its peers, it has performed quite well, nearly doubling over the past year. However, unlike some of these peers, Turning Point is profitable, and even after this massive rally, it is actually reasonably cheap, trading for under 19x 2025 earnings estimates, a slight discount to the broader market. Turning Point offers both momentum and value and has much potential going forward. In addition to rolling papers, the company sells nicotine pouches under the FRE brand. Most notably, last year, Turning Point launched a high-profile 50/50 joint venture with Tucker Carlson Media to start a new nicotine pouch brand called ALP. This move garnered significant publicity as Tucker Carlson has a significant following as one of the most popular (if polarizing) figures in U.S. media, giving ALP a large platform and high visibility. Nicotine pouches have rapidly gained popularity in recent years, with products like Zyn becoming a major hit for Philip Morris (PM). Between the popularity of nicotine pouches and Carlson's ability to sell ALP to his audience, ALP has a lot of growth potential going forward. I like Turning Point as a smart way to play the cannabis space because it offers strong diversification. Investors get exposure to cannabis through Zig-Zag and diversification into other revenue streams thanks to its nicotine pouch businesses. On Wall Street, TPB earns a Strong Buy consensus rating based on three Buys, zero Holds, and zero Sell ratings assigned in the past three months. The average analyst TPB stock price target of $81.67 implies a 43% upside potential from current levels. Aurora Cannabis was among the buzziest stocks of the initial cannabis stock boom, reaching nearly $150 a share in 2021. However, the stock has fallen precipitously since then, losing nearly 95% of its value over the past five years. However, there are some green shoots of life here. After years of losses, the stock is up nearly 20% over the past year. The company recently reported a record adjusted EBITDA of $7 million last quarter as its pivot from focusing on the Canadian recreational market to the more lucrative and high-margin international medical market began to bear fruit. This was evidenced by revenue from the global market surging 93% and surpassing Canadian revenue for the first time. In addition to becoming profitable, Aurora is also reasonably cheap—shares trade for a very reasonable 17.8x 2025 earnings. While this is still a speculative stock based on its spotty history, its valuation and swing to record profitability based on its strategic shift make it an intriguing speculative opportunity for risk-averse investors. Plus, sell-side analysts foresee monster upside potential ahead. Turning to Wall Street, ACB earns a Moderate Buy consensus rating based on two Buys, one Hold, and zero Sell ratings assigned in the past three months. The average analyst ACB stock price target of $7.10 implies a 58% upside potential from current levels. Lastly, let's examine Jazz Pharmaceuticals ($ JAZZ) as a different way to gain exposure to the cannabis market. To be clear, Jazz Pharmaceuticals is not a pure play on cannabis as it is a diversified biotech company with an $8.5 billion market cap. However, it offers significant exposure to cannabis thanks to its 2021 acquisition of GW Pharmaceuticals, which added CBD-based epilepsy drug Epidiolex to its portfolio. The successful drug is now approaching $1 billion in annual sales and is approved in dozens of countries worldwide. In addition to Epidiolex, Jazz's product portfolio includes many other drugs focused on sleep disorders and oncology. I like that this gives investors diversification and additional revenue streams outside of cannabis. What's more, shares of Jazz are pretty cheap. With analysts projecting the company to earn $23.42 per share in 2025, the stock trades for just six times 2025 earnings estimates. Turning to Wall Street, JAZZ earns a Strong Buy consensus rating based on seventeen Buys, one Hold, and zero Sell ratings assigned in the past three months. The average analyst JAZZ stock price target of $193.82 implies a 40% upside potential from current levels. While many cannabis stocks have developed a bad reputation after falling drastically from their lofty 2021 highs, there are pockets of value here if you know where to look. Many weaker players have gone by the wayside, while the stronger companies have matured and become more profitable. I like Turning Point Brands, Aurora Cannabis, and Jazz Pharmaceuticals as three attractive ways to play the market — all three are quite different, but what they have in common is that they are all profitable, and they all trade for inexpensive valuations. Furthermore, analysts project a significant potential upside of over 40% or more for all three over the next 12 months, highlighting their strong potential. Disclosure Questions or Comments about the article? Write to editor@ Sign in to access your portfolio
