22nd Century Group Preliminarily Reports Fourth Quarter and Full Year 2025 Financial Results
Rhea-AI Summary
22nd Century Group (Nasdaq: XXII) preliminarily reported fourth-quarter and full-year 2025 results. Key figures: 2025 revenue $17.6M (down from $24.4M in 2024), 2025 net loss $13.1M, cash $7.1M at year-end and zero long-term debt. Inventory rose to $4.3M.
The company expects audited results on or before March 31, 2026, and will host a conference call. Results are preliminary and subject to year-end audit adjustments.
Positive
- Ended 2025 debt free with zero long-term debt
- Cash balance $7.1M at year end
- Operating loss narrowed to $11.6M in 2025 from $14.0M in 2024
Negative
- Revenue declined to $17.6M in 2025 from $24.4M in 2024 (≈28%)
- Gross loss increased to $3.1M in 2025 from $2.4M in 2024
- Inventory increased to $4.3M from $2.0M at prior quarter end, tying up working capital
Key Figures
Market Reality Check
Peers on Argus
XXII is down 8.36% while key peers are mixed: KAVL up 16.2%, GNLN up 1.01%, TPB down 0.42%, UVV down 0.34%. Momentum scanner peers SDOT and GV are both up, underscoring that XXII’s move is stock-specific rather than sector-driven.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Aug 14 | Q2 2025 earnings | Negative | -10.1% | Revenue fell to $4.1M with $3.3M net loss and EBITDA pressure. |
| May 13 | Q1 2025 earnings | Positive | +7.5% | Net revenues rose 50% to $6.0M and losses narrowed versus Q4. |
| Mar 20 | FY/Q4 2024 results | Negative | -2.6% | Net revenues declined to $4.0M with higher gross and net losses. |
| Nov 12 | Q3 2024 earnings | Negative | -2.4% | Revenues decreased to $5.9M and net loss expanded to $3.6M. |
| Aug 13 | Q2 2024 earnings | Positive | -3.8% | Revenues rose to $7.9M and losses narrowed, but shares fell. |
Earnings releases have typically led to negative reactions, even when metrics showed operational improvement; only one of the last five earnings events saw a positive price move.
Recent earnings history for 22nd Century shows a mix of revenue growth and decline but persistent losses. In Q2 2024 and Q1 2025, revenues increased and losses narrowed, yet only Q1 2025 produced a positive +7.48% reaction. Later quarters, including Q2 2025, saw revenue decline and deeper losses, with reactions such as -10.11%. Today’s preliminary 2025 results continue the theme of ongoing losses amid restructuring and VLN® expansion, fitting this earnings-driven pattern.
Historical Comparison
Past earnings headlines moved XXII by an average of -2.3%, usually skewing negative even when operational metrics improved, framing today’s prelim results in a similar light.
Earnings updates trace a path from 2024 restructuring and VLN® rebranding toward 2025 efforts to scale reduced‑nicotine products while working to narrow recurring losses.
Regulatory & Risk Context
An effective Form S-3 allows resale of up to 8,588,811 warrant-related shares via cashless exercise. This does not add cash but can dilute EPS and ownership as additional registered shares enter the tradable float.
Market Pulse Summary
This announcement presents preliminary 2025 results showing net revenues of $17.6M, down from $24.4M in 2024, but with narrowed operating and net losses and year-end cash of $7.1M and no debt. Historically, earnings updates have often led to negative share reactions despite operational progress. Investors may watch subsequent audited results, VLN® volume trends, and the impact of the effective S‑3 covering 8,588,811 resale shares on future dilution and capital needs.
Key Terms
gaap financial
AI-generated analysis. Not financial advice.
Balance sheet strength, ended 2025 with
Continued VLN® commercial expansion drives shift toward higher margin proprietary branded products
MOCKSVILLE, N.C., Feb. 20, 2026 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (Nasdaq: XXII), the only tobacco products company that has for 27 years led and continues to lead the fight against the harms of smoking driven by nicotine addiction, today announced select, preliminary and unaudited financial results and operating metrics for the fourth quarter and full year ended December 31, 2025. The company anticipates releasing fourth quarter and full year 2025 earnings on or before March 31, 2026, and will host a conference call for investors and financial analysts. The final date and details of the conference call will separately be released.
Preliminary Results
All figures reported below are preliminary and subject to change as a result of the year end audit process and reflect continuing operations, excluding discontinued operations.
- The Company expects fourth quarter 2025 net revenues of approximately
$3.6 million compared with$4.0 million in the third quarter of 2025. The Company expects 2025 net revenues of approximately$17.6 million compared with 2024 net revenues of$24.4 million . - Total cartons shipped during the fourth quarter 2025 were approximately 0.3 million, compared with 0.5 million cartons shipped in the third quarter of 2025. Total cartons shipped during 2025 were approximately 2.1 million, compared with 2.1 million in 2024.
- The Company expects fourth quarter 2025 gross loss of approximately
$0.8 million , compared to$1.1 million in the third quarter of 2025.The Company expects 2025 gross loss of approximately$3.1 million compared to$2.4 million in 2024. - The Company expects fourth quarter 2025 operating loss of approximately
$2.8 million , compared to$3.2 million in the third quarter of 2025. The Company expects 2025 operating loss of$11.6 million compared with$14.0 million in 2024. - The Company expects net loss from continuing operations of approximately
$2.8 million , compared to net loss from continuing operations of$3.8 million in the third quarter of 2025. The Company expects 2025 net loss from continuing operations of approximately$13.1 million compared to$15.5 million in 2024. - Cash and equivalents were
$7.1 million at year end. Additionally, the Company had zero long-term debt, having extinguished its remaining senior secured debt in full during 2025. - The Company expanded on-hand inventory quantities during the fourth quarter, increasing to
$4.3 million from$2.0 million at third quarter end, reflecting harvest of the 2025 in reduced nicotine content tobacco leaf crop.
“I am pleased with the steps taken during 2025 including exiting the unprofitable high volume revenues streams to improve our financial footing. We ended the year debt free, with an improved cost efficient operating model and we are well-funded for our near-term needs as we continue transitioning into growth.” said Larry Firestone, Chief Executive Officer of 22nd Century Group. As we enter 2026, we do so with a clear strategic focus and a much stronger financial and operational foundation and will begin to see the groundwork laid after our fourth quarter launch of VLN® and Partner VLN® brands in the market which will begin to take shape in our financial results. Our priorities include expanding VLN® product distribution and consumer awareness, continuing disciplined cost management and capital allocation, advancing toward profitability as higher-margin revenues scale. We remain aligned and actively engaged with the FDA and public-health stakeholders that drive health and wellness initiatives for smokers.”
Preliminary Financial Information
This news release includes financial information that is preliminary and has been prepared internally by management, and has not been audited, reviewed or compiled by our independent registered public accounting firm. 22nd Century Group’s actual results remain subject to the completion of management’s final review and other closing and audit procedures and may differ materially from such financial information included in this news release due to the completion of our financial closing procedures, audit procedures and final adjustments. These preliminary estimates are not a comprehensive statement of our financial results for the fourth quarter or full fiscal year ended December 31, 2025, and should not be viewed as a substitute for full financial statements prepared in accordance with GAAP. Accordingly, you should not place undue reliance on these preliminary financial results.
About 22nd Century Group, Inc.
22nd Century Group is pioneering the tobacco harm reduction movement by enabling smokers to take control of their nicotine consumption.
Our Technology is Tobacco
Our proprietary non-GMO reduced nicotine tobacco plants were developed using our patented technologies that regulate alkaloid biosynthesis activities resulting in a tobacco plant that contains
Our Products
We created our flagship product, the VLN® cigarette using our low nicotine tobacco, to give traditional cigarette smokers an authentic and familiar alternative in the form of a combustible cigarette that helps them take control of their nicotine consumption. VLN® cigarettes have
VLN® and Helps You Smoke Less® are registered trademarks of 22nd Century Limited LLC.
Learn more at xxiicentury.com, on X (formerly Twitter), on LinkedIn, and on YouTube.
Learn more about VLN® at tryvln.com.
Cautionary Note Regarding Forward-Looking Statements
Except for historical information, all of the statements, expectations, and assumptions contained in this press release are forward-looking statements, including but not limited to our full year business outlook. Forward-looking statements typically contain terms such as “anticipate,” “believe,” “consider,” “continue,” “could,” “estimate,” “expect,” “explore,” “foresee,” “goal,” “guidance,” “intend,” “likely,” “may,” “plan,” “potential,” “predict,” “preliminary,” “probable,” “project,” “promising,” “seek,” “should,” “will,” “would,” and similar expressions. Forward-looking statements include, but are not limited to, statements regarding (i) our expected results of operations for the quarter and year ended December 31, 2025, (ii) our cost reduction initiatives, (iii) our expectations regarding regulatory enforcement, including our ability to receive an exemption from new regulations, and (iv) our financial and operating performance. Actual results might differ materially from those explicit or implicit in forward-looking statements. Important factors that could cause actual results to differ materially are set forth in “Risk Factors” in the Company’s Annual Report on Form 10-K filed on March 20, 2025, and Quarterly Reports on Form 10-Q on May 13, 2025, August 14, 2025, and November 4, 2025. All information provided in this release is as of the date hereof, and the Company assumes no obligation to and does not intend to update these forward-looking statements, except as required by law.
Investor Relations & Media Contact
Matt Kreps
Investor Relations
22nd Century Group
investorrelations@xxiicentury.com
214-597-8200
FAQ
What were 22nd Century Group (XXII) preliminary revenues for 2025 and how do they compare to 2024?
How much cash did 22nd Century Group (XXII) report at year-end 2025 and does it have debt?
What was 22nd Century Group's (XXII) full-year net loss for 2025 and how did it change from 2024?
Why did 22nd Century Group (XXII) report higher inventory at the end of 2025?
When will 22nd Century Group (XXII) release audited fourth-quarter and full-year 2025 results and host its earnings call?
