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22nd Century
(NASDAQ:XXII)
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Rating:40Underperform
Price Target:
$0.07
▼(-97.83% Downside)
Action:Downgraded
Date:10/28/26
The score is held down primarily by weak financial performance (ongoing losses and cash burn) and very bearish technical conditions (deeply oversold readings and price far below key moving averages). Corporate events provide some offset from improving operating trends, but dilution/financing dependence remains a key risk, and valuation metrics offer little support due to a non-meaningful P/E and no dividend yield provided.
Positive Factors
Improving Q3 Commercial Traction
Q3's 66% sequential revenue increase and return to positive gross profit indicate improving commercial traction in the low-nicotine portfolio. If this progress persists, higher sales absorption and better gross economics could support a more durable path toward profitability over coming quarters.
Negative Factors
Persistent Unprofitable Operations
The company remains structurally unprofitable even after the TTM revenue rebound, with negative gross profit and deeply negative operating economics. Until pricing, product costs, and operating expenses produce sustained positive margins, growth may not translate into durable earnings or shareholder value.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Q3 Commercial Traction
Q3's 66% sequential revenue increase and return to positive gross profit indicate improving commercial traction in the low-nicotine portfolio. If this progress persists, higher sales absorption and better gross economics could support a more durable path toward profitability over coming quarters.
Read all positive factors
22nd Century (XXII) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.34M
Dividend YieldN/A
Average Volume (3M)22.35M
Price to Earnings (P/E)―
Beta (1Y)2.75
Revenue Growth-27.44%
EPS Growth99.95%
CountryUS
Employees32
SectorConsumer Defensive
Sector Strength42
IndustryTobacco
Share Statistics
EPS (TTM)-114.68
Shares Outstanding19,202,198
10 Day Avg. Volume66,518,053
30 Day Avg. Volume22,350,549
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)2.70
Price to Sales (P/S)6.03
P/FCF Ratio-4.95
Enterprise Value/Market Cap-2.59
Enterprise Value/Revenue-0.36
Enterprise Value/Gross Profit1.23
Enterprise Value/Ebitda0.31
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-18
Revenue Forecast (FY)$32.50M
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...
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,...
22nd Century Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 13, 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
52
Neutral
Cash Flow
9
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.52M | 7.05M | 11.88M | 32.20M | 40.50M | 30.95M |
| Gross Profit | -2.82M | -3.14M | -2.40M | -8.70M | 1.85M | 1.49M |
| 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 Assets | 26.17M | 27.02M | 21.67M | 27.50M | 114.65M | 75.95M |
| Cash, Cash Equivalents and Short-Term Investments | 6.06M | 7.15M | 4.42M | 2.06M | 20.40M | 48.74M |
| Total Debt | 1.30M | 4.21M | 8.62M | 16.38M | 4.65M | 2.34M |
| Total Liabilities | 7.53M | 11.27M | 17.66M | 35.91M | 18.68M | 9.88M |
| Stockholders Equity | 18.64M | 15.76M | 4.01M | -8.41M | 95.97M | 66.07M |
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 | -139.00K | 16.82M | 22.58M | -27.73M |
| Financing Cash Flow | 12.87M | 10.96M | 16.85M | 37.21M | 30.82M | 50.88M |
22nd Century Technical Analysis
Negative
3.04
Price Trends
1.45
Negative
2.96
Negative
37.64
Negative
Market Momentum
-0.41
Negative
16.46
Positive
0.88
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 3.04 is above the 20-day moving average (MA) of 0.46, above the 50-day MA of 1.45, and below the 200-day MA of 37.64, indicating a bearish trend. The MACD of -0.41 indicates Negative momentum. The RSI at 16.46 is Positive, neither overbought nor oversold. The STOCH value of 0.88 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.
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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $1.35B | 28.28 | 11.93% | 0.47% | 20.10% | -3.19% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
49 Neutral | $1.03B | 54.53 | 1.33% | 7.96% | -3.04% | -81.53% | |
44 Neutral | $77.97M | -2.30 | 453.73% | ― | -24.69% | 16.08% | |
43 Neutral | $451.27K | -0.02 | -9999.00% | ― | -75.31% | -17.46% | |
40 Underperform | $1.34M | ― | -20.47% | ― | -27.44% | 99.95% | |
40 Underperform | $1.13M | >-0.01 | -314.86% | ― | -66.96% | 99.54% |
* Consumer Defensive Sector Average
XXII
22nd Century
0.07
-452.93
-99.98%
UVV
Universal
41.44
-5.98
-12.61%
TPB
Turning Point Brands
67.31
-22.25
-24.84%
GNLN
Greenlane Holdings
1.63
-24.13
-93.67%
KAVL
Kaival Brands Innovations Group
0.02
-0.55
-96.00%
ISPR
Ispire Technology, Inc.
1.35
-0.52
-27.81%
22nd Century Corporate Events
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...
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,...
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...
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 yea...
Delistings and Listing ChangesPrivate Placements and FinancingRegulatory Filings and ComplianceShareholder MeetingsStock Split
22nd Century Shareholders Approve Reverse Split, Financing Plans
Positive
Aug 5, 2026
At a special meeting of stockholders held on August 5, 2026, 22nd Century Group, Inc. secured shareholder approval for a reverse stock split of its common shares at a wide ratio range, giving the board discretion to implement or abandon the measur...
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.