XXII earnings analysis
What we found in XXII's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
22nd Century Group’s second-quarter results were materially weaker than expected: revenue was $2.864 million versus $7.48 million consensus, and diluted EPS was $(15.60) versus $(0.30) expected. Gross loss improved to $(0.3) million, but the operating loss widened to $(3.3) million, producing an approximately -115.2% operating margin. The filing adds a material Nasdaq delisting risk, including a $1.00 minimum bid-price requirement and a $5 million market-value threshold, while providing no formal numeric financial guidance.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue materially missed estimates
- Second-quarter revenue was $2.864 million, versus the $7.48 million consensus estimate and approximately $4 million in 2025 Q2, indicating a material year-over-year decline.
- Gross loss improved sequentially
- Gross loss improved to $(0.3) million from the prior quarter, but revenue of $2.864 million implies an approximately -10.5% gross margin.
- VLN retail footprint continues to expand
- The company expanded its VLN® retail footprint to more than 2,000 stores across 20 states and is targeting approximately 5,000 outlets by year-end 2026.
- Disclosure controls remained effective
- Management reported effective disclosure controls as of June 30, 2026, and stated that there were no changes in internal control over financial reporting that materially affected, or were reasonably likely to materially affect, controls during the quarter.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Revenue decline and wider operating loss
- Diluted EPS from continuing operations was $(15.60), versus the $(0.30) consensus estimate, while operating loss widened to $(3.3) million on $2.864 million of revenue, implying an approximately -115.2% operating margin.
- Nasdaq delisting risk increased
- The company added a risk that Nasdaq could delist its common stock if the closing bid price remains below $1.00 for 30 consecutive business days or if market value of listed securities remains below $5 million for 30 consecutive business days.
- Financing and going-concern exposure
- The filing states that the company has received deficiency letters from Nasdaq during the past two years and may require additional capital to fund operations, satisfy obligations and continue as a going concern; delisting could make financing more expensive and dilutive.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-15.6
- Gross margin
- -10.5%
- Operating margin
- -115.2%
What they said about what is next.
No formal numeric revenue or EPS guidance was provided. The company is targeting expansion from more than 2,000 stores across 20 states to approximately 5,000 retail outlets by year-end 2026.
The filing reads worse than the one before it.
What came before.
- 10-Q · May 7, 2026
- 22nd Century Group, Inc. reported its Q1 2026 results, revealing a 31.1% decline in revenue to $4.105 million when compared to $5.956 million in the prior year, alongside a significant increase in EPS loss to -$5.07,…
- 10-K · March 26, 2026
- 22nd Century positions itself as the only U.S. manufacturer of full‑flavored combustible cigarettes with minimally or non‑addictive nicotine (VLN®) and an FDA MRTP authorization, while also operating a turnkey…
- 10-Q · November 4, 2025
- 22nd Century Group reported Q3 2025 net revenue of $4.011 million (down $1.935 million or 32.5% vs Q3 2024) and GAAP net income of $5.489 million driven by $9.252 million of income from discontinued operations.…
- 10-Q · August 14, 2025
- 22nd Century Group reported Q2 2025 revenue of $4,083 (thousands), down sharply from $7,947 in Q2 2024 and down versus the prior quarter ($5,956 in Q1 2025). Gross margin swung to a loss (gross (loss) profit $(635)) and…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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