22nd Century (XXII) AI Stock Analysis

• Market Cap: $4.88M
• Dividend Yield: N/A
• Average Volume (3M): 2.49M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.23
• Revenue Growth: -34.81%
• EPS Growth: 99.30%
• Country: US
• Employees: 56
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Tobacco
• EPS (TTM): -1.06
• Shares Outstanding: 3,781,492
• 10 Day Avg. Volume: 328,967
• 30 Day Avg. Volume: 2,485,312
• PEG Ratio: -0.02
• Price to Book (P/B): 4.46
• Price to Sales (P/S): 1.51
• P/FCF Ratio: -1.23
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: -1.19
• Enterprise Value/Ebitda: -0.36
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: $1.00 ▲(25.00% Upside)

22nd Century's overall stock score is primarily impacted by its weak financial performance, with persistent losses and negative cash flow. Technical analysis also indicates a bearish trend, further weighing down the score. While the earnings call provided some optimism with strategic shifts and debt reduction, the company's valuation remains unattractive due to a negative P/E ratio and lack of dividends. The path to profitability is uncertain, making the stock a high-risk investment.

22nd Century Business Overview & Revenue Model

Company Description

22nd Century Group, Inc. (XXII) is a biotechnology company focused on the development of innovative solutions for the tobacco and hemp industries. The company specializes in genetic engineering and plant biotechnology, aiming to create low-nicotine tobacco products designed to reduce dependence on nicotine. Additionally, 22nd Century is involved in the production and commercialization of hemp-derived products, including cannabinoid extracts and related applications. The company operates primarily in the sectors of biotechnology, agriculture, and health.

How the Company Makes Money

22nd Century generates revenue through several key streams. Primarily, the company earns income from the sale of its proprietary low-nicotine tobacco products and related technologies to tobacco manufacturers. This includes licensing agreements and royalties from the use of its patented genetic modifications. Furthermore, 22nd Century has developed a portfolio of hemp-derived products, which contributes additional revenue through direct sales and partnerships with other companies in the hemp and cannabinoid markets. Significant partnerships with major tobacco companies and ongoing collaborations in research and development help bolster its revenue potential, alongside the company's focus on regulatory compliance and product innovation to meet market demands.

22nd Century Financial Statement Overview

Summary

22nd Century faces significant financial challenges across all verticals. The income statement shows declining revenues and persistent losses, while the balance sheet reflects high leverage and negative equity returns. Cash flow remains negative, with limited signs of improvement. The company needs to address operational inefficiencies and improve revenue generation to stabilize its financial position.

Income Statement

The income statement reveals significant challenges for 22nd Century. The company has experienced declining revenue, with a negative revenue growth rate of -10.66% in the TTM. Margins are deeply negative, with a gross profit margin of -16.03% and a net profit margin of -41.95%, indicating substantial losses. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. Overall, the income statement suggests a struggling financial performance with no immediate signs of profitability.

Balance Sheet

The balance sheet shows a mixed picture. The debt-to-equity ratio has improved to 0.43 in the TTM from 2.15 in the previous year, indicating better leverage management. However, the return on equity is significantly negative at -170.04%, reflecting poor returns for shareholders. The equity ratio stands at 8.44%, suggesting a low proportion of equity financing. While debt levels are manageable, the negative equity and returns highlight financial instability.

Cash Flow

Cash flow analysis indicates ongoing cash flow challenges. The operating cash flow is negative, and the free cash flow growth rate is slightly positive at 6.68%, but this is from a negative base. The operating cash flow to net income ratio is negative, suggesting cash flow issues relative to net losses. The free cash flow to net income ratio is close to 1, indicating that free cash flow is largely in line with net losses. Overall, cash flow remains a concern with limited improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.36M	11.88M	32.20M	40.50M	30.95M	28.11M
Gross Profit	-3.56M	-2.40M	-8.70M	1.85M	1.49M	1.44M
EBITDA	-11.78M	-12.11M	-40.41M	-32.89M	-31.00M	-18.07M
Net Income	-6.80M	-15.16M	-140.78M	-59.80M	-32.61M	-19.71M
Balance Sheet
Total Assets	32.37M	21.67M	27.50M	114.65M	75.95M	51.69M
Cash, Cash Equivalents and Short-Term Investments	4.85M	4.42M	2.06M	20.40M	48.74M	22.34M
Total Debt	1.18M	8.62M	16.38M	4.65M	2.34M	786.00K
Total Liabilities	11.26M	17.66M	35.91M	18.68M	9.88M	7.58M
Stockholders Equity	21.10M	4.01M	-8.41M	95.97M	66.07M	44.11M
Cash Flow
Free Cash Flow	-14.98M	-14.51M	-60.60M	-56.14M	-23.91M	-16.14M
Operating Cash Flow	-14.87M	-14.35M	-54.99M	-51.71M	-22.84M	-15.62M
Investing Cash Flow	130.00K	-139.00K	16.82M	22.58M	-27.73M	16.47M
Financing Cash Flow	14.24M	16.85M	37.21M	30.82M	50.88M	-304.00K

22nd Century Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: 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 0.8 is below the 20-day moving average (MA) of 1.24, below the 50-day MA of 1.48, and below the 200-day MA of 17.00, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 24.43 is Positive, neither overbought nor oversold. The STOCH value of 9.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XXII.

22nd Century Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UVV	68 Neutral	$1.31B	11.94	7.72%	6.26%	3.01%	-7.14%
TPB	67 Neutral	$1.94B	35.74	22.54%	0.29%	6.71%	8.16%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
ISPR	43 Neutral	$95.08M	-2.41	-254.99%	―	-20.13%	-88.66%
XXII	41 Neutral	$4.88M	>-0.01	-133.50%	―	-34.81%	99.30%
GNLN	38 Underperform	$4.48M	―	-240.32%	―	-78.46%	83.71%
KAVL	31 Underperform	$5.56M	―	-68.63%	―	-88.85%	68.28%

22nd Century Corporate Events

22nd Century Group’s Q3 2025: Financial Resilience and Strategic Growth

22nd Century Group, Inc. is a pioneering company in the tobacco industry, focusing on tobacco harm reduction through its innovative low-nicotine products. The company recently reported its third-quarter 2025 financial results, highlighting significant improvements in its balance sheet and strategic advancements in its product offerings. Key financial metrics revealed a slight decrease in net revenues to $4.0 million, with a gross loss of $1.1 million. Despite an operating loss of $3.2 million, the company achieved a consolidated net income of $5.5 million, largely due to a $9.5 million insurance settlement. The company ended the quarter with $4.8 million in cash and zero long-term debt, positioning itself strongly for future growth. Looking ahead, 22nd Century Group aims to expand its market presence and continue its leadership in the tobacco harm reduction movement, leveraging its proprietary technologies and strategic partnerships.

22nd Century Group’s Earnings Call: Strategic Gains Amid Challenges

The recent earnings call of 22nd Century Group painted a picture of cautious optimism, highlighting both significant strategic progress and ongoing financial challenges. The company has made notable achievements, such as becoming debt-free and expanding its higher-margin branded products. However, it continues to grapple with ongoing losses and a decline in revenue, leaving the timeline to profitability uncertain. Despite these challenges, the overall sentiment expressed during the call was one of cautious optimism, with a focus on strategic improvements and financial strengthening.

22nd Century Signs $25M Sales Agreement for Expansion

On November 4, 2025, 22nd Century Group, Inc. entered into a Sales Agreement with Needham & Company, LLC to issue and sell shares of common stock up to $25 million, intending to use the proceeds for corporate purposes including the expansion of its VLN® products. The company also reported its third quarter 2025 financial results, highlighting a significant balance sheet improvement with no outstanding debt and a $9.5 million insurance settlement. The company is expanding its market reach with VLN® products, increasing store counts, and securing new distribution agreements, positioning itself for future growth in the tobacco industry.

The most recent analyst rating on (XXII) stock is a Sell with a $1.50 price target. To see the full list of analyst forecasts on 22nd Century stock, see the XXII Stock Forecast page.

22nd Century Settles Insurance Litigation for $9.5M

On September 18, 2025, 22nd Century Group, Inc. settled its litigation with its insurer regarding the November 2022 fire at its Grass Valley manufacturing facility, resulting in a $9.5 million cash payment. This settlement allows the company to transition from survival capital to growth capital, positioning it to focus on profitability by 2026 and expand distribution for its branded products.

The most recent analyst rating on (XXII) stock is a Sell with a $2.00 price target. To see the full list of analyst forecasts on 22nd Century stock, see the XXII Stock Forecast page.

22nd Century Announces Full Debt Repayment

On September 18, 2025, 22nd Century Group, Inc. announced the full repayment of its senior secured debt, totaling $3.9 million, which was completed ahead of its maturity date. This financial move, following the closing of its Series A convertible preferred stock offering, results in a debt-free balance sheet and positions the company for growth by reducing ongoing cash needs and operating costs. The company plans to use its improved financial position to expand its inventory of very low nicotine tobacco leaf, supporting the production of over one million cartons of VLN products, and to focus on the growth of its branded products and intellectual property portfolio.

The most recent analyst rating on (XXII) stock is a Sell with a $2.00 price target. To see the full list of analyst forecasts on 22nd Century stock, see the XXII Stock Forecast page.

22nd Century Group’s Earnings Call: Strategic Shifts Amid Challenges

In the recent earnings call, 22nd Century Group conveyed a mixed sentiment. While the company is making strategic moves towards high-margin products and has launched its VLN products, challenges such as delayed profitability and potential cash flow issues loom large.

22nd Century Group Expands VLN® Product Line Amid Financial Challenges

22nd Century Group, Inc., a leader in the tobacco harm reduction sector, focuses on developing reduced nicotine content tobacco products, including its flagship VLN® cigarettes, which are designed to help smokers control their nicotine consumption.