Turning Point Brands' stock tumbled 8.69% in pre-market trading, following the release of its fourth quarter and full year 2025 financial results.

The consumer products maker reported Q4 revenue of $121.01 million, slightly beating the consensus estimate of $120.26 million, while adjusted EPS of $0.95 also surpassed expectations. The quarter was driven by a 266% year-over-year surge in Modern Oral net sales, which now account for 34% of total sales. However, net sales in the Zig-Zag segment declined 12.8% due to the planned wind-down of the Clipper business.

Despite the strong Q4 performance, the company's 2026 outlook and valuation appear to have concerned investors. Turning Point provided a net revenue guidance range of $180-$190 million for 2026. Analyst notes indicate the stock recently traded at 33 times next 12-month earnings, a significant increase from a P/E of 24 three months ago, and the median 12-month price target of $122.50 was already approximately 10.6% below its recent closing price, suggesting limited near-term upside potential.