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22nd Century (XXII) AI Stock Analysis
22nd Century
(NASDAQ:XXII)
Low financial performance due to ongoing losses and cash burn weighs heavily on the score, compounded by weak technical indicators; positive corporate events on operational progress provide some offset, while valuation remains unappealing due to lack of profitability.
22nd Century (XXII) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $24.02K
- Dividend Yield
- ―
- Average Volume (3M)
- 11.01M
- Price to Earnings (P/E)
- 0.0
- Beta (1Y)
- 2.75
- 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
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.
Q1-2026 Updates
Positive Updates
Negative 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
Revenue declined sharply with negative gross profits and margins persisting, though TTM shows modest revenue growth and balance sheet equity recovery with reduced leverage; cash burn continues but is moderating.
Income Statement
15Very NegativeBalance Sheet
25NegativeCash Flow
18Very 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
Price Trends
Market Momentum
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 0.07 is below the 20-day moving average (MA) of 0.46, below 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.
Latest Risks Added
0 New Risks22nd Century Peers Comparison
Overall Rating
TPB65Neutral
UVV49Neutral
ISPR46Neutral- XXII43Neutral
KAVL42Neutral
GNLN38Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TPB | 65Neutral | $1.35B | 28.28 | 11.93% | 0.47% | 20.10% | -3.19% |
| Sector * | 62Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
| UVV | 49Neutral | $1.03B | 54.53 | 1.33% | 7.96% | -3.04% | -81.53% |
| ISPR | 46Neutral | $77.97M | -2.30 | 453.73% | ― | -24.69% | 16.08% |
| XXII | 43Neutral | $1.34M | 0.00 | -20.47% | ― | -27.44% | 99.95% |
| KAVL | 42Neutral | $451.27K | -0.02 | -9999.00% | ― | -75.31% | -17.46% |
| GNLN | 38Underperform | $1.13M | -0.01 | -314.86% | ― | -66.96% | 99.54% |
* Consumer Defensive Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| XXII | 22nd Century Group | 0.07 | -464.93 | -99.99% | |
| UVV | Universal Corporation | 41.44 | -6.05 | -12.75% | |
| TPB | Turning Point Brands Inc | 67.31 | -25.97 | -27.84% | |
| GNLN | Greenlane Holdings | 1.63 | -23.57 | -93.53% | |
| KAVL | Kaival Brands Innovations Group Inc | 0.02 | -0.52 | -95.73% | |
| ISPR | Ispire Technology, Inc. | 1.35 | -0.36 | -21.05% |
22nd Century Corporate Events
22nd Century Expands Sales Agreement, Adds Clear Street
PositiveOn 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 addition...
22nd Century Group Expands At-The-Market Stock Offering
NegativeOn 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 & Compan...
22nd Century Reports Strong Q3 Revenue and Profitability Gains
PositiveOn 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...
22nd Century Expands Low-Nicotine Cigarette Retail Footprint
PositiveIn 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-e...
22nd Century Shareholders Approve Reverse Split, Financing Plans
PositiveAt 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 measure t...
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: Oct 28, 2026