22nd Century (XXII)
NASDAQ:XXII
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22nd Century
(NASDAQ:XXII)
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Rating:44Neutral
Price Target:
$2.50
▲(228.95% Upside)
Action:ReiteratedDate:03/28/26
The score is held down primarily by persistently weak profitability and ongoing cash burn, alongside a strongly bearish technical setup. These are partially offset by balance-sheet improvement (debt reduction) and a cautiously optimistic earnings-call outlook centered on higher-margin product strategy and expanded distribution, but the timeline to sustainable profitability remains uncertain.
Positive Factors
Material Debt Reduction / Balance Sheet Repair
Substantially lower debt and a debt-free status materially reduce refinancing and interest risk, improving financial flexibility. This gives management runway to reallocate cash toward product launches and distribution expansion, making the path to sustained operations and investment less dependent on immediate capital markets.
Negative Factors
Persistent Negative Cash Flow
The business remains cash-burning despite improvement; multi-year negative operating and free cash flow mean the company cannot self-fund growth. Continued burn increases reliance on external capital, which can compress returns and force dilutive financings if margin improvement or volume gains do not materialize.
Read all positive and negative factors
Positive Factors
Negative Factors
Material Debt Reduction / Balance Sheet Repair
Substantially lower debt and a debt-free status materially reduce refinancing and interest risk, improving financial flexibility. This gives management runway to reallocate cash toward product launches and distribution expansion, making the path to sustained operations and investment less dependent on immediate capital markets.
Read all positive factors
22nd Century (XXII) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.50M
Dividend YieldN/A
Average Volume (3M)2.49M
Price to Earnings (P/E)―
Beta (1Y)2.46
Revenue Growth-34.81%
EPS Growth99.30%
CountryUS
Employees56
SectorConsumer Defensive
Sector Strength42
IndustryTobacco
Share Statistics
EPS (TTM)-5.89
Shares Outstanding662,023
10 Day Avg. Volume328,967
30 Day Avg. Volume2,485,312
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)0.13
Price to Sales (P/S)0.12
P/FCF Ratio-0.27
Enterprise Value/Market Cap-1.71
Enterprise Value/Revenue-0.15
Enterprise Value/Gross Profit0.72
Enterprise Value/Ebitda0.24
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.9
Revenue Forecast (FY)$32.50M
22nd Century Business Overview & Revenue Model
Company Description
22nd Century Group, Inc., an agricultural biotechnology company, focuses on tobacco harm reduction, reduced nicotine tobacco, and enhancing health and wellness through plant science for the life science and consumer products industries. It develop...
How the Company Makes Money
22nd Century makes money primarily through (1) sales of tobacco-related products and materials derived from its proprietary tobacco plant technology and (2) sales and services related to hemp/cannabis processing and ingredients when those operatio...
22nd Century Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant strategic progress and financial improvements, such as becoming debt-free and expanding higher-margin branded products. However, the company continues to face challenges with ongoing losses and a decline in revenue. While the balance sheet has strengthened, the timeline to profitability remains uncertain. The sentiment is cautiously optimistic with notable achievements but balanced by current financial challenges.Positive Updates
Debt-Free and Improved Balance Sheet
The company has significantly improved its balance sheet, becoming debt-free and is now funded with cash resources that have not been available over the past two years.
Negative Updates
Continued Losses
The company reported a gross profit loss of $1.1 million in Q3 2025, an increase from the $0.6 million loss in Q2 2025, due to lower volume and transition costs.
Read all updates
Q3-2025 Updates
Positive
Negative
Debt-Free and Improved Balance Sheet
The company has significantly improved its balance sheet, becoming debt-free and is now funded with cash resources that have not been available over the past two years.
Read all positive updates
Company Guidance
In the third quarter of 2025, 22nd Century Group's call highlighted significant advancements and strategic shifts aimed at enhancing profitability and market presence. The company closed the quarter with $4.8 million in cash, bolstered by an additional $9.5 million from an insurance settlement post-quarter, bringing total assets to $32.4 million. It achieved a debt-free status, repaying its senior secured credit facility, thus improving its liabilities to $11.3 million. Despite a net revenue dip to $4 million and a gross profit loss of $1.1 million, the focus is on transitioning from low-margin CMO business to higher-margin branded products, aiming for a breakeven target of 500,000 cartons annually. The company, now poised for growth, has executed cost-structure improvements in its manufacturing operations and expanded its VLN product distribution to approximately 1,500 stores across 21 states. The strategic emphasis on very low nicotine (VLN) products and natural style cigarettes is set to drive future profitability, with anticipated improvements in the fourth quarter and throughout 2026.22nd Century Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
46
Neutral
Cash Flow
22
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 17.59M | 11.88M | 32.20M | 40.50M | 30.95M |
| Gross Profit | -3.56M | -2.40M | -8.70M | 1.85M | 1.49M |
| EBITDA | -10.26M | -12.11M | -40.41M | -32.89M | -31.00M |
| Net Income | -5.05M | -15.16M | -140.78M | -59.80M | -32.61M |
Balance Sheet | |||||
| Total Assets | 27.02M | 21.67M | 27.50M | 114.65M | 75.95M |
| Cash, Cash Equivalents and Short-Term Investments | 7.15M | 4.42M | 2.06M | 20.40M | 48.74M |
| Total Debt | 4.21M | 8.62M | 16.38M | 4.65M | 2.34M |
| Total Liabilities | 11.27M | 17.66M | 35.91M | 18.68M | 9.88M |
| Stockholders Equity | 15.76M | 4.01M | -8.41M | 95.97M | 66.07M |
Cash Flow | |||||
| Free Cash Flow | -7.78M | -14.51M | -60.60M | -56.14M | -23.91M |
| Operating Cash Flow | -7.72M | -14.35M | -54.99M | -51.71M | -22.84M |
| Investing Cash Flow | -505.00K | -139.00K | 16.82M | 22.58M | -27.73M |
| Financing Cash Flow | 10.96M | 16.85M | 37.21M | 30.82M | 50.88M |
22nd Century Technical Analysis
Negative
0.76
Price Trends
5.15
Negative
9.75
Negative
27.62
Negative
Market Momentum
-0.87
Negative
17.69
Positive
15.63
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XXII, the sentiment is Negative. The current price of 0.76 is below the 20-day moving average (MA) of 3.31, below the 50-day MA of 5.15, and below the 200-day MA of 27.62, indicating a bearish trend. The MACD of -0.87 indicates Negative momentum. The RSI at 17.69 is Positive, neither overbought nor oversold. The STOCH value of 15.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XXII.
22nd Century Risk Analysis
22nd Century disclosed 39 risk factors in its most recent earnings report. 22nd Century reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
22nd Century Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
59 Neutral | $1.38B | 34.13 | 20.84% | 0.28% | 6.71% | 8.16% | |
56 Neutral | $1.31B | 9.94 | 5.81% | 6.15% | 3.01% | -7.14% | |
44 Neutral | $1.50M | -0.19 | -133.50% | ― | -34.81% | 99.30% | |
42 Neutral | $97.97M | -6.07 | -2384.12% | ― | -20.13% | -88.66% | |
40 Underperform | $1.77M | ― | -162.57% | ― | -78.46% | 83.71% | |
39 Underperform | $243.30K | -0.10 | -247.42% | ― | -88.85% | 68.28% |
* Consumer Defensive Sector Average
XXII
22nd Century
2.27
-377.24
-99.40%
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22nd Century Corporate Events
Private Placements and Financing
22nd Century Announces Series B Preferred Stock Financing
Neutral
Mar 20, 2026
On March 20, 2026, 22nd Century Group, Inc. entered into a securities purchase agreement with investors for a registered direct offering of up to $20 million in Series B Convertible Preferred Stock and accompanying warrants, following stockholder ...
Business Operations and StrategyDelistings and Listing ChangesFinancial DisclosuresShareholder MeetingsStock Split
22nd Century Shareholders Approve Measures to Support Listing
Neutral
Feb 20, 2026
On February 20, 2026, 22nd Century Group held a special shareholders’ meeting at which investors approved five key proposals aimed at preserving the company’s Nasdaq listing and funding flexibility. Stockholders authorized a reverse st...
Regulatory Filings and ComplianceStock Split
22nd Century Announces 1-for-15 Reverse Stock Split
Neutral
Jan 22, 2026
On January 22, 2026, 22nd Century Group, Inc. filed a Certificate of Amendment in Nevada to implement a 1-for-15 reverse stock split of its issued and outstanding common shares, a corporate action aimed solely at restoring and maintaining complian...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.