Turning Point Brands, Inc.

Good morning and welcome to the Turning Point Brands second quarter 2025 earnings conference call. All participants are in a listen only mode. All lines have been placed on mute to prevent any background noise. Should you need assistance, please signal a conference specialist by pressing the star and the number zero. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. It is now my pleasure to turn the conference call over to Andrew Flynn, Chief Financial Officer. Please go ahead.

Good morning, everyone. A short while ago we issued a press release covering our Q2 results. This release is located in the IR section of our website at .TurningPointBrands.com. During this call, we will discuss our consolidated and segment operating results and provide some perspective on the operating environment and progress against our strategic plan. As is customary, I direct your attention to discussion of forward looking and cautionary statements in today's press release and the risk factors that are finalized with the Securities and Exchange Commission. On the call today, we will reference certain non-GAAP financial measures. These measures and reconciliations to GAAP are in today's earnings release, along with reasons why management believes they provide useful information. I will now turn the call over to our CEO, Graham Pardee.

Thanks, Andrew. Good morning, everyone, and thank you for joining our call. Our consolidated second quarter results were better than expected and demonstrated continued progress against our plan. Revenue increased 25% to $116.6 million for the quarter, including $30.1 million in modern oral revenue. Modern oral now accounts for 26% of our total revenue. Adjusted EBITDAI increased 15% to $30.5 million for the quarter. We are increasing our adjusted EBITDAI guidance to a range of $110 million to $114 million, up from $108 million to $113 million. Inclusive of significant sales and marketing investments. We are increasing full year consolidated nicotine pouch sales guidance to a range of $100 million to $110 million, up from $80 million to $95 million. This includes both free and out. We are particularly pleased with the growth of our white nicotine pouch brands. Their long lasting, vibrant flavor options, comfortable mouthfeel, and flexible nicotine levels have resonated with consumers, and we continue building free presence in bricks and mortar. During the quarter, white pouch sales increased by nearly eight times year over year and was up 35% sequentially. We believe out is now one of the top DTC pouch brands in America and is poised to expand into retail sooner than initially expected. We believe the nicotine pouch space, like most other nicotine businesses, will ultimately feature five to six widely distributed brands that command most of the market. Analysts' expectations for the size of the category differ, but most now believe it will approach $10 billion in manufacturers revenue by the end of the decade. Our Q2 performance supports our long term target of double digit market share in the category. In order to best position the company to capitalize on this multi-billion dollar opportunity, we have made and will continue to make significant investments in the business in refining our route to market strategy to prioritize white pouch while continuing to generate strong cash flow from our Heritage brands. As we mentioned last quarter, key investment initiatives include reallocating sales and marketing resources, increasing the headcount of our sales force, improving our online presence, ramping up investment in chain accounts, and developing US manufacturing. We have been particularly encouraged by our ability to identify and onboard new sales talent. Our goal is to approximately double the size of our 2024 sales force by the end of 2026. So far, we are ahead of schedule and pleased with initial results. The rest of the Stoker segment portfolio also performed better than expected in the quarter. Overall, Stoker's revenue increased 63% to about $70 million, reflecting a 3% decline in loose leaf, a 4% increase in MST, and as Afer mentioned, our modern oil revenue increased by nearly eight times. During the first quarter, zigzag revenue was down .9% to 47 million, but essentially flat sequentially, despite our focus on the white pouch category during the quarter. For modeling purposes, people should recall that in the second half of the year, we will continue to face difficult year over year comps due to the wind down of our Clipper business and the de-emphasis of the cigar category. With that, I'll hand the call over to Summer to walk through the progress of our key -to-market initiatives.