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22nd Century (XXII) AI Stock Analysis

1,812 Followers
XXII

22nd Century

(NASDAQ:XXII)

Select Model
Rating:39Underperform
Price Target:$1.00â–²(29.87% Upside)
Action:reiterated
Date:11/13/26

The score is primarily constrained by continued losses, negative cash flow, and weak technical momentum. Retail growth and improving quarterly results provide some upside potential, but ongoing funding needs and dilution risk keep the overall profile near the bottom of the scoring range.

Positive Factors
Improved Capital StructureThe materially lower leverage and restored positive equity provide a stronger financial foundation than in prior periods. A cleaner capital structure can improve resilience, reduce balance-sheet pressure, and give management more flexibility to support commercialization while addressing ongoing operating losses.
Negative Factors
Persistent Cash BurnContinued negative operating and free cash flow means the business is not yet self-funding its operations. Persistent cash consumption can constrain investment in products and distribution, increase dependence on external capital, and raise execution risk until profitability and cash conversion improve.

22nd Century (XXII) vs. SPDR S&P 500 ETF (SPY)

-100%-75%-50%-25%0%25%XXII-100.00%SPY+14.55%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
$448.66K
Dividend Yield
―
Average Volume (3M)
754.94K
Price to Earnings (P/E)
0.0
Beta (1Y)
2.64
Revenue Growth
-27.44%
EPS Growth
99.95%
Country
US
Employees
32
Sector
Consumer Defensive
Sector Strength
62
Industry
Tobacco

22nd Century Business Overview & Revenue Model

Company Description

22nd Century Group, Inc. is an agricultural biotechnology firm dedicated to mitigating the risks associated with tobacco use and improving health and wellness through advanced plant science. The company serves the life science and consumer product se...

How the Company Makes Money

The company’s primary monetization approach has been generating revenue from the sale of tobacco products (including reduced-nicotine cigarettes) and from commercial arrangements tied to its plant-technology intellectual property (e.g., licensing, te...

22nd Century Earnings Call Summary

Earnings Call Date:May 07, 2026(Q1-2026)|% Change Since:-99.92%|Next Earnings Date:Nov 16, 2026
Earnings Call SentimentNeutral

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.

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

Revenue and losses have improved from distressed levels, but the company remains unprofitable with persistently negative operating and free cash flow. Low leverage is a mitigating factor, but the financial profile remains fragile.

Income Statement

24Negative

Balance Sheet

45Neutral

Cash Flow

28Negative
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue9.52M7.05M11.88M32.20M40.50M30.95M
Gross Profit-2.82M-3.14M-2.40M-8.70M1.85M1.49M
EBITDA-11.19M-10.53M-12.11M-40.41M-32.89M-31.00M
Net Income-3.93M-5.05M-15.16M-140.78M-59.80M-32.61M
Balance Sheet
Total Assets26.17M27.02M21.67M27.50M114.65M75.95M
Cash, Cash Equivalents and Short-Term Investments6.06M7.15M4.42M2.06M20.40M48.74M
Total Debt1.30M4.21M8.62M16.38M4.65M2.34M
Total Liabilities7.53M11.27M17.66M35.91M18.68M9.88M
Stockholders Equity18.64M15.76M4.01M-8.41M95.97M66.07M
Cash Flow
Free Cash Flow-8.38M-8.60M-14.51M-60.60M-56.14M-23.91M
Operating Cash Flow-8.36M-7.72M-14.35M-54.99M-51.71M-22.84M
Investing Cash Flow-1.53M-505.00K-139.00K16.82M22.58M-27.73M
Financing Cash Flow12.87M10.96M16.85M37.21M30.82M50.88M

22nd Century Technical Analysis

Technical Analysis SentimentNegative
Last Price0.77

Price Trends

50DMA49.17Negative
100DMA140.01Negative
200DMA1546.65Negative

Market Momentum

MACD-14.82Negative
RSI16.45Positive
STOCH3.45Positive

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 0.77 is below the 20-day moving average (MA) of 5.90, below the 50-day MA of 49.17, and below the 200-day MA of 1546.65, indicating a bearish trend. The MACD of -14.82 indicates Negative momentum. The RSI at 16.45 is Positive, neither overbought nor oversold. The STOCH value of 3.45 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 33 risk factors in its most recent earnings report. 22nd Century reported the most risks in the "Finance & Corporate" category.

Higher RiskSector Avg.Lower RiskFinance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

3 New Risks
1.Our securities are currently listed on the Nasdaq. If Nasdaq delists our securities from trading on its exchange, we could face significant material adverse consequences, including:Q3, 2024
2.Our securities are currently listed on the Nasdaq. If Nasdaq delists our securities from trading on its exchange, we could face significant material adverse consequences, including:Q2, 2024
3.Our securities are currently listed on the Nasdaq. If Nasdaq delists our securities from trading on its exchange, we could face significant material adverse consequences, including:Q1, 2024

22nd Century Peers Comparison

Overall Rating

UnderperformOutperform
Sector (62)

Financial Indicators

XXII against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
TPBTPB65Neutral$1.11B39.126.97%0.57%23.78%-51.37%
Sector *62Neutral$20.33B14.63-3.31%3.23%1.93%-12.26%
ISPRISPR57Neutral$100.51M-2.64165.45%―-21.35%2.18%
UVVUVV42Neutral$940.75M-377.70-0.17%8.74%-8.88%-102.19%
GNLNGNLN39Underperform$670.93K-0.00-314.86%―-66.96%99.54%
XXIIXXII39Underperform$716.12K0.00-20.47%―-27.44%99.95%
KAVLKAVL37Underperform$345.78K-0.02-9999.00%―-75.31%-17.46%

* Consumer Defensive Sector Average

Performance Comparison

-100%-50%0%50%XXIIUVVTPBGNLNKAVLISPRDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
XXII and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
XXII22nd Century Group0.77-15271.22-99.99%
UVVUniversal Corporation37.77-11.04-22.62%
TPBTurning Point Brands Inc55.55-44.97-44.74%
GNLNGreenlane Holdings0.89-21.59-96.06%
KAVLKaival Brands Innovations Group Inc0.02-0.44-95.61%
ISPRIspire Technology, Inc.1.69-0.36-17.56%

22nd Century Corporate Events

Regulatory Filings and ComplianceStock Split

22nd Century Announces 1-for-58 Reverse Stock Split

Neutral
Nov 3, 2026

On November 3, 2026, 22nd Century Group announced a 1-for-58 reverse stock split as a measure to restore compliance with NASDAQ Capital Market continued-listing standards. The announcement set the effective time at 12:01 a.m. Eastern time on November...

Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance

22nd Century Expands Sales Agreement, Adds Clear Street

Positive
Oct 28, 2026

On October 27, 2026, 22nd Century Group, Inc. amended its existing sales agreement originally executed with Needham & Company LLC on November 4, 2025 and previously amended on March 31, 2026. The new amendment adds Clear Street LLC as an additional s...

Private Placements and FinancingRegulatory Filings and Compliance

22nd Century Group Expands At-The-Market Stock Offering

Negative
Oct 23, 2026

On October 23, 2026, 22nd Century Group, Inc. filed a prospectus supplement with the Securities and Exchange Commission, enabling the company to sell up to $18.8 million of its common stock under an at-the-market offering through Needham & Company, L...

Business Operations and StrategyFinancial Disclosures

22nd Century Reports Strong Q3 Revenue and Profitability Gains

Positive
Oct 22, 2026

On October 22, 2026, 22nd Century Group preliminarily reported unaudited financial results for the third quarter ended September 30, 2026, highlighting sharp revenue growth and improved profitability metrics from continuing operations. Net revenue ro...

Business Operations and StrategyFinancial DisclosuresProduct-Related Announcements

22nd Century Expands Low-Nicotine Cigarette Retail Footprint

Positive
Sep 1, 2026

In a mid-year shareholder letter dated September 1, 2026, 22nd Century reported progress in expanding its low-nicotine VLN® and Pinnacle cigarette brands, with products now in about 2,000 U.S. retail outlets and a goal of roughly 5,000 by year-end, i...

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.

Date of analysis: Nov 13, 2026