22nd Century Group (NASDAQ:XXII) Announces Earnings Results, Beats Expectations By $38.48 EPS

22nd Century Group (NASDAQ:XXII) posted its earnings results on Thursday. The biotechnology company reported $36.38 earnings per share for the quarter, beating analysts’ consensus estimates of ($2.10) by $38.48, FiscalAI reports. The company had revenue of $3.54 million for the quarter, compared to the consensus estimate of $4.05 million. 22nd Century Group had a negative return on equity of 184.33% and a negative net margin of 37.64%.

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

• 22nd Century exited restructuring with a strengthened balance sheet—management says they paid off all long-term debt and, after a recent financing, have over $10 million in cash to fund 2026 growth.
• Commercial rollout has begun—VLN combustible products are reported in 1,636 retail outlets across 23 states with initial shipments (about 8,800 newly branded VLN cartons in Q4) and management expects store count to more than double by year-end 2026.
• The company filed an MRTP renewal in December 2025 and plans additional PMTA/MRTP submissions, while noting the FDA’s low?nicotine proposed rule cites the company’s research, creating a potential regulatory tailwind if mandates advance.
• Revenues fell as the company shifted away from low?margin contract manufacturing—full?year 2025 revenue was about $17.6 million (down from $24.4M) and the business remains loss-making (continuing operations net loss ~$13.1 million), though management says margins should improve as branded VLN volumes scale.

22nd Century Group Price Performance

Shares of NASDAQ:XXII traded down $0.30 during midday trading on Thursday, hitting $2.99. The company had a trading volume of 20,951 shares, compared to its average volume of 31,195. The company has a market cap of $1.52 million, a price-to-earnings ratio of 0.00 and a beta of 1.03. 22nd Century Group has a 12-month low of $3.00 and a 12-month high of $841.80. The company has a fifty day moving average of $6.24 and a two-hundred day moving average of $14.50.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of 22nd Century Group in a research report on Monday, December 29th. One investment analyst has rated the stock with a Sell rating, According to data from MarketBeat, the stock currently has a consensus rating of “Sell”.

Institutional Trading of 22nd Century Group

A hedge fund recently bought a new stake in 22nd Century Group stock. Geode Capital Management LLC purchased a new position in 22nd Century Group, Inc (NASDAQ:XXII) in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 46,491 shares of the biotechnology company’s stock, valued at approximately $36,000. Geode Capital Management LLC owned approximately 9.12% of 22nd Century Group as of its most recent SEC filing. Institutional investors and hedge funds own 18.06% of the company’s stock.

22nd Century Group Company Profile

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.