22nd Century Q2 Revenue Falls 30% to $2.9M as Product Shift Bites
XXII sits 16% above its 52-week low of $3.61.
Summary
Q2 revenue dropped 30% year-over-year to $2.9 million, driven by a deliberate shift away from low-priced export customers toward higher-margin VLN products. Adjusted EBITDA loss widened to $3.5 million from $2.6 million, and net loss was $3.3 million. The company is expanding VLN retail distribution to about 5,000 outlets by year-end 2026, including new launches in California and 150 additional stores in metro New York and northern New Jersey. Management expects the natural style cigarette expansion to accelerate revenue and margin growth in H2 2026 and aims to move toward EBITDA breakeven as higher-margin revenues scale. This follows the 8-K filed earlier today with the same figures, but adds analyst context and the retail expansion targets. The one available analyst rating is 'buy' with a median price target of $2,700, though that target appears stale given the reverse split and current price of $4.31.
At the time of this announcement, XXII was trading at $4.19 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $1.5M. The 52-week trading range was $3.61 to $801.00. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.