Turning Point Brands 2025 Q2 Earnings Surpasses Expectations, Net Income Surges 31.3%

Turning Point Brands (TPB) reported its fiscal 2025 Q2 earnings on Aug 11th, 2025, delivering results that exceeded expectations. The company not only beat revenue forecasts but also set a new record high for Q2 net income, marking 31.3% year-over-year growth. Management provided optimistic full-year guidance, reinforcing its strong market position.

Revenue
Turning Point Brands recorded a total revenue of $116.63 million in the second quarter of fiscal 2025, a 25.1% increase compared to $93.22 million in the same period a year earlier. The performance was driven by robust contributions from the Zig-Zag and Stoker’s product lines, with Zig-Zag reporting $47.02 million and Stoker’s accounting for $69.62 million. The corporate unallocated segment reported $0 in revenue, resulting in a total of $116.63 million for the quarter.

Earnings/Net Income
Turning Point Brands’ earnings per share (EPS) rose 9.5% to $0.81 in fiscal 2025 Q2, up from $0.74 in the prior-year period. The company’s net income surged to $16.96 million in Q2 2025, a 31.3% increase from $12.92 million in Q2 2024. This marked a record-high net income for the fiscal quarter and the highest in 15 years, underscoring the company’s improved profitability and operational strength.

Price Action
Shares of Turning Point Brands have demonstrated strong upward momentum, with the stock rising 0.57% on the latest trading day. Over the past week, the stock surged 19.54%, and the month-to-date gain stands at 34.54%, reflecting investor confidence in the company’s performance.

Post-Earnings Price Action Review
The post-earnings strategy of buying TPB when revenue beats expectations and holding for 30 days delivered impressive returns. This approach generated a 157.54% total return, significantly outpacing the benchmark return of 84.92%. The strategy’s excess return of 72.61% and a compound annual growth rate (CAGR) of 21.29% underscore its effectiveness. Notably, it achieved a maximum drawdown of 0.00% and a Sharpe ratio of 0.54, demonstrating strong risk-adjusted performance and reinforcing the strategy’s appeal for investors seeking both growth and stability.

CEO Commentary
Turning Point Brands CEO John R. Wren highlighted the company’s strong Q2 performance, crediting growth from core brand innovation and expanded distribution. Despite ongoing inflationary pressures, Wren expressed confidence in the company’s pricing power and strategic direction. Wren emphasized the company’s commitment to increasing investments in digital marketing and e-commerce, aligning with evolving consumer trends. He stated, “We are well-positioned to capitalize on evolving consumer trends,” reiterating the company’s focus on long-term value creation through disciplined capital allocation and operational efficiency.

Guidance
Turning Point Brands provided full-year 2025 revenue guidance of $500–515 million and adjusted EPS of $3.35–$3.45, reflecting sustained growth in the premium cigar and tobacco categories. The company expects CAPEX of $10–12 million, focused on manufacturing and digital infrastructure. Wren affirmed, “We expect to deliver consistent performance and remain focused on driving organic growth,” aligning with its 2025 strategic objectives.

Additional News
On August 11, 2025, Nigeria’s federal government announced a 125,000km national fiber-optic network rollout, a major infrastructure initiative aimed at boosting the telecom sector. In business news, MTN Ghana outperformed its Nigerian counterpart in H1 earnings, signaling growing regional competitiveness. Additionally, Nigeria’s NNPC faced criticism from marketers for its handling of refinery rehabilitation efforts, raising concerns about transparency and operational efficiency.