22nd Century Group (NASDAQ:XXII) Posts Quarterly Earnings Results, Misses Estimates By $3.87 EPS

22nd Century Group (NASDAQ:XXII) issued its quarterly earnings results on Thursday. The biotechnology company reported ($5.07) earnings per share for the quarter, missing the consensus estimate of ($1.20) by ($3.87), Zacks reports. The business had revenue of $4.11 million for the quarter, compared to the consensus estimate of $4.61 million. 22nd Century Group had a negative return on equity of 97.05% and a negative net margin of 25.34%.

Here are the key takeaways from 22nd Century Group’s conference call:

• Secured distribution with the U.S. #3 tobacco purveyor for Pinnacle VLN and limited placement with the #2 purveyor in Illinois, and plans to add ~200 outlets in NY/NJ/Southern California while targeting 5,000+ retail locations by the end of 2026.
• Q1 revenue improved sequentially to $4.1M (up ~16.1%) and gross loss narrowed to $0.6M, but the company reported an operating loss of $3.0M and adjusted EBITDA of negative $2.6M, reflecting continued unprofitable operations despite $9.5M in cash at quarter end.
• Management is hiring a VP of marketing and investing in consumer marketing, cross-promotions, and digital campaigns to drive VLN adoption, which should raise awareness but will increase near-term operating expenses.
• The company emphasizes that VLN is the only FDA-authorized low-nicotine cigarette and cites WHO and peer-reviewed studies as validation, positioning its product as a differentiated, regulation-aligned tobacco harm-reduction solution.
• Management is exiting low- or no-margin contracts, pursuing pricing adjustments, and shifting mix toward branded VLN products to improve gross margins and absorption as distribution scales.

22nd Century Group Stock Down 11.1%

XXII stock opened at $0.63 on Friday. The firm has a 50-day moving average price of $2.77 and a 200-day moving average price of $9.75. The stock has a market capitalization of $455,616.00, a P/E ratio of 0.00 and a beta of 0.77. The company has a current ratio of 2.42, a quick ratio of 1.83 and a debt-to-equity ratio of 0.03. 22nd Century Group has a 12 month low of $0.53 and a 12 month high of $434.67.

Analyst Ratings Changes

Separately, Weiss Ratings downgraded 22nd Century Group from a “sell (e+)” rating to a “sell (e)” rating in a report on Thursday. One equities research analyst has rated the stock with a Sell rating, According to data from MarketBeat, the stock presently has a consensus rating of “Sell”.

Institutional Trading of 22nd Century Group

An institutional investor recently bought a new position in 22nd Century Group stock. Geode Capital Management LLC bought a new stake in 22nd Century Group, Inc (NASDAQ:XXII) in the 4th quarter, according to its most recent 13F filing with the SEC. The firm bought 46,491 shares of the biotechnology company’s stock, valued at approximately $36,000. Geode Capital Management LLC owned 9.12% of 22nd Century Group at the end of the most recent reporting period. Hedge funds and other institutional investors own 18.06% of the company’s stock.

About 22nd Century Group

22nd Century Group, Inc, founded in 1998 and headquartered in New York, is a plant biotechnology company that applies proprietary breeding and gene modulation technologies to tobacco, hemp and related plant species. The company’s core mission is to develop and commercialize plant-based solutions that address public health, consumer wellness and agronomic needs. Its flagship reduced nicotine tobacco platform is engineered to deliver significantly lower levels of nicotine than conventional tobacco products while retaining the sensory characteristics sought by adult smokers.

Through its branded reduced nicotine tobacco products, marketed under the NEXT Generation™ portfolio, and its GenCanna® subsidiary focused on hemp cultivation and cannabinoid extraction, 22nd Century serves both commercial markets and contract research clients.