22nd Century (XXII)
NASDAQ:XXII
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22nd Century
(NASDAQ:XXII)
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Rating:44Neutral
Price Target:
$0.65
▼(-14.47% Downside)
Action:Upgraded
Date:05/12/26
The score is held down primarily by weak financial quality (negative gross profit, ongoing operating losses, and continued cash burn) and very bearish technical signals (price far below major moving averages with negative momentum). The earnings call provides some support via improving sequential revenue/gross loss and concrete distribution expansion plans, but near-term profitability deterioration and execution risk keep the overall score low; valuation is constrained by negative earnings and no indicated dividend yield.
Positive Factors
Regulatory differentiation (FDA-authorized VLN)
FDA authorization and scientific recognition create a durable regulatory moat for the company's VLN product, enabling unique market positioning versus incumbents, facilitating retailer and partner acceptance, and supporting long-term adoption as public-health-aligned policies evolve.
Negative Factors
Persistent negative operating cash flow
Sustained negative operating and free cash flow means the business cannot self-fund growth today; reliance on external capital constrains long-term planning, limits investment pacing, and raises execution risk over the coming 2–6 months if cash generation doesn't turn positive.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulatory differentiation (FDA-authorized VLN)
FDA authorization and scientific recognition create a durable regulatory moat for the company's VLN product, enabling unique market positioning versus incumbents, facilitating retailer and partner acceptance, and supporting long-term adoption as public-health-aligned policies evolve.
Read all positive factors
22nd Century (XXII) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.99M
Dividend YieldN/A
Average Volume (3M)2.49M
Price to Earnings (P/E)―
Beta (1Y)2.28
Revenue Growth-34.08%
EPS Growth99.49%
CountryUS
Employees56
SectorConsumer Defensive
Sector Strength42
IndustryTobacco
Share Statistics
EPS (TTM)-214.80
Shares Outstanding4,455,649
10 Day Avg. Volume328,967
30 Day Avg. Volume2,485,312
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.13
Price to Sales (P/S)0.30
P/FCF Ratio-0.25
Enterprise Value/Market Cap-2.88
Enterprise Value/Revenue-0.97
Enterprise Value/Gross Profit2.64
Enterprise Value/Ebitda0.79
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:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 19, 2026
Earnings Call Sentiment Neutral
The call conveyed cautious optimism: management reported clear early commercial progress with sequential revenue growth, gross loss improvement, strategic retail distribution wins, regulatory validation (FDA authorization) and a stable cash position. However, material challenges remain — operating losses and negative adjusted EBITDA widened, profitability is below targets, low-margin contracts persist, and retail adoption is uneven. Management plans focused investments in marketing and distribution with a target of ~5,000 outlets by year-end, but execution risk and competitive headwinds mean near-term results may continue to be pressured.Positive Updates
Sequential Revenue Growth
Net revenue of $4.1M in Q1 2026, up from $3.5M in Q4 2025 — a sequential increase of approximately 16.1%.
Negative Updates
Ongoing Operating Losses
Operating loss was $3.0M in Q1 2026 versus $2.8M in Q4 2025 (increase of $0.2M, ~7.1% worse); net loss from continuing operations also $3.0M versus $2.8M prior quarter.
Read all updates
Q1-2026 Updates
Positive
Negative
Sequential Revenue Growth
Net revenue of $4.1M in Q1 2026, up from $3.5M in Q4 2025 — a sequential increase of approximately 16.1%.
Read all positive updates
Company Guidance
The company guided to a 2026 execution-focused plan centered on scaling retail distribution and investing in consumer marketing, with specific near-term targets and metrics: Q1 2026 revenue was $4.1M (up ~16.1% sequentially from $3.5M in Q4 2025), gross loss improved to $0.6M (from $0.8M), operating loss and net loss were each $3.0M (vs. $2.8M), adjusted EBITDA was negative $2.6M (vs. negative $2.4M), and cash and equivalents stood at $9.5M; commercial targets include expanding to more than 5,000 retail outlets by year-end 2026, adding roughly 200 outlets in New York/New Jersey/Southern California in Q2/Q3, initial Southeast shipments in late Q3/early Q4, hiring a VP of Marketing and additional sales/marketing headcount, exiting low/no-margin contracts and prioritizing capital toward distribution growth, VLN commercial support, marketing initiatives and the reduced-nicotine pipeline, with the company expecting stronger commercial momentum in the back half of 2026.22nd Century Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
58
Neutral
Cash Flow
10
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.88M | 7.05M | 11.88M | 32.20M | 40.50M | 30.95M |
| Gross Profit | -3.25M | -3.14M | -2.40M | -8.70M | 1.85M | 1.49M |
| EBITDA | -10.90M | -10.53M | -12.11M | -40.41M | -32.89M | -31.00M |
| Net Income | -3.99M | -5.05M | -15.16M | -140.78M | -59.80M | -32.61M |
Balance Sheet | ||||||
| Total Assets | 30.31M | 27.02M | 21.67M | 27.50M | 114.65M | 75.95M |
| Cash, Cash Equivalents and Short-Term Investments | 9.54M | 7.15M | 4.42M | 2.06M | 20.40M | 48.74M |
| Total Debt | 841.00K | 4.21M | 8.62M | 16.38M | 4.65M | 2.34M |
| Total Liabilities | 9.09M | 11.27M | 17.66M | 35.91M | 18.68M | 9.88M |
| Stockholders Equity | 21.22M | 15.76M | 4.01M | -8.41M | 95.97M | 66.07M |
Cash Flow | ||||||
| Free Cash Flow | -7.94M | -8.60M | -14.51M | -60.60M | -56.14M | -23.91M |
| Operating Cash Flow | -7.85M | -7.72M | -14.35M | -54.99M | -51.71M | -22.84M |
| Investing Cash Flow | -493.00K | -505.00K | -139.00K | 16.82M | 22.58M | -27.73M |
| Financing Cash Flow | 16.75M | 10.96M | 16.85M | 37.21M | 30.82M | 50.88M |
22nd Century Technical Analysis
Negative
0.76
Price Trends
2.10
Negative
5.36
Negative
14.23
Negative
Market Momentum
-0.48
Negative
20.80
Positive
41.50
Neutral
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 1.09, below the 50-day MA of 2.10, and below the 200-day MA of 14.23, indicating a bearish trend. The MACD of -0.48 indicates Negative momentum. The RSI at 20.80 is Positive, neither overbought nor oversold. The STOCH value of 41.50 is Neutral, 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 33 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% | |
62 Neutral | $1.73B | 35.73 | 17.29% | 0.28% | 16.10% | 26.07% | |
56 Neutral | $1.36B | 9.94 | 5.81% | 6.15% | -3.46% | -32.63% | |
49 Neutral | $92.70M | -2.77 | 0.84% | ― | -38.18% | -21.59% | |
47 Neutral | $724.14K | -0.10 | -247.42% | ― | -90.33% | 26.78% | |
44 Neutral | $2.99M | -0.10 | -133.50% | ― | -34.08% | 99.49% | |
41 Neutral | $2.28M | -0.16 | -162.57% | ― | -66.04% | 99.58% |
* Consumer Defensive Sector Average
XXII
22nd Century
0.63
-354.72
-99.82%
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22nd Century Corporate Events
Private Placements and FinancingRegulatory Filings and Compliance
22nd Century Files Prospectus for Potential ATM Stock Offering
Neutral
May 1, 2026
On May 1, 2026, 22nd Century Group, Inc. filed a prospectus supplement with the U.S. Securities and Exchange Commission to enable the sale of up to $6.4 million of its common stock under an existing sales agreement with Needham Company, LLC. As o...
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...
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.