Turning Point Brands, Inc.

Good morning and welcome to the Turning Point Brand's first quarter 2026 earnings conference call. All participants will be in a listen-only mode. All lines have been placed on mute to prevent any background noise. Should you need operator assistance today, please press star zero. After today's presentation, there will be an opportunity to ask questions. Please note that this event is being recorded. I would now like to turn the conference over to Mr. Andrew Flynn, Chief Financial Officer. Please go ahead, sir.

Good morning, everyone. Earlier today, we issued a press release covering our first quarter results, available in the investor relations section of our website at www.turningpointbrands.com. During this call, we'll discuss consolidated and segment operating results, the operating environment, and our progress against our strategic plan. Before we begin, please refer to forward-looking statements and risk factors in our press release and SEC filings. We'll also reference certain non-GAAP financial measures, reconciliations, and explanations are included in today's earnings release. With that, I'll turn the call over to our CEO, Bram Purdy.

Thanks, Andrew. Good morning, everybody, and thank you for joining our call. We started the year with strong momentum, led by accelerating growth in modern oil, with growth in net sales up 167% and 133% year-over-year, and 30% and 26% sequentially. These results are driven by ongoing growth in both brands' B2C platforms, free's early expansion into larger, higher-volume chain accounts, and ALP's very early move into bricks and mortar. In the quarter, Modern Oral accounted for 42% of our total revenue, up from 21% in Q1 2025. Before we dive into details of the quarter, I want to step back and frame the opportunity in front of Turning Point Brands. We believe we are in the midst of a greater than $50 billion generational shift in nicotine consumption, and we are positioning the business to capture meaningful share of nicotine users in this evolving high-barrier category. We are strengthening that position through foundational investments in our sales force, marketing, and commercial capabilities. These investments are critical to building a durable growth platform that can scale into a leading player in the post-cigarette nicotine market over time. While this infrastructure will ultimately allow us to compete across the modern nicotine ecosystem, our priority today is clear, winning in nicotine pouches. We believe the nicotine pouch category is still in its nascent stages of development and can become the dominant revenue and profit driver of the company over time. As we've said before, We expect the market to consolidate around a limited number of scale brands, and we are increasingly confident that free and out will be among them. Our confidence is grounded in execution. We continue to see encouraging consumer response across both free and out, supported by product quality, brand positioning, and repeat purchasing behaviors. Our outsized share of direct consumer sales coupled with our continued market share gains in bricks and mortar are evidence that our plan is working in the early innings. Based on our Q1 performance, we believe our results captured mid-single-digit category share of both gross and net sales, giving confidence that we are on track to achieve our long-term goal of double-digit market share by the end of the decade. We are using that momentum to build scale across channels. Free continues to expand into larger regional and national convenience chains, while Alpen's moved from a strong direct consumer base into retail faster than we originally expected. We've had several notable chain wins, driving confidence in our growth. We expect our chain store count to increase 70% by the end of 2026 versus the prior year. As you know, we are building an operational foundation to further support scale in modern oral. Commissioning our renewable manufacturing facility is an important step in localizing production, improving supply control, and reducing freight and tariff exposure over time. As we build production, we expect that work to strengthen unit economics and support margin improvement as domestic inventory moves through the P&L. At scale, we believe our margins should approach 70% in this category by the end of the decade. We also continue to invest in the commercial infrastructure needed to support growth, including Salesforce expansion, chain account support, enhanced consumer visibility, and manufacturing capabilities. In 2026, we plan to continue investing in our Salesforce and marketing to secure chain placement, build brand awareness, and support our growing distribution footprint. Based on achieving our sales and financial objectives, we expect total sales and marketing investment for the year to range from 80 million to 105 million. Given the strong gross sales growth we have experienced, we are confident that these investments will provide attractive returns for investors over the long term. In short, we are making front-loaded investments in a category where acquiring brand-oriented adult consumers can drive repeat purchasing and strong margins over extended periods. Over time, We believe our investments in physical execution, particularly Salesforce expansion, distribution support, and retail presence, will become a more important source of competitive advantage. Overall, we are encouraged by the momentum we are seeing, the progress we are making, and the platform we are building to scale profitably. With that, I'll hand the call over to Summer to walk through the progress of our key go-to-market initiatives.