22nd Century Group (NASDAQ:XXII) Announces Quarterly Earnings Results

22nd Century Group (NASDAQ:XXII) posted its 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. 22nd Century Group had a negative net margin of 28.74% and a negative return on equity of 120.94%. The company had revenue of $4.11 million for the quarter, compared to the consensus estimate of $4.61 million.

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 Performance

Shares of NASDAQ XXII opened at $0.71 on Friday. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.83 and a current ratio of 2.42. The firm has a market cap of $512,424.00, a price-to-earnings ratio of -0.00 and a beta of 0.77. The business’s 50-day simple moving average is $2.77 and its 200-day simple moving average is $9.75. 22nd Century Group has a 52 week low of $0.67 and a 52 week high of $448.50.

Institutional Investors Weigh In On 22nd Century Group

A hedge fund recently raised its position in 22nd Century Group stock. Anson Funds Management LP raised its stake in shares of 22nd Century Group, Inc (NASDAQ:XXII) by 677.1% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 763,212 shares of the biotechnology company’s stock after purchasing an additional 665,000 shares during the period. Anson Funds Management LP owned 149.65% of 22nd Century Group worth $588,000 as of its most recent SEC filing. 18.06% of the stock is owned by hedge funds and other institutional investors.

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.