22nd Century Group, Inc. (XXII) AI Stock Analysis
XXII AI stock analysis summary
AI Research22nd Century Group, Inc. (XXII) is an agricultural biotechnology company focused on tobacco harm reduction and plant science. In FY2025, revenue declined 40.7% to $7.0M, with a net income of -$5.1M and free cash flow of -$8.6M. The stock closed at $0.34 on October 16, 2026, marking a 1-year return of -99.9%.
- Market cap
- $239,188
- Revenue (TTM)
- $5.2M
- P/E
- 0.0x
- 1Y return
- -99.9% S&P 500 16.8%
- Avg. target
- $135.00 40198.5% vs last close
Bull case
- The company maintains a net cash position of $4.8M as of June 30, 2026, with total debt of $1.3M.
- Annual net losses narrowed from -$140.8M in FY2023 to -$5.1M in FY2025.
- The analyst mean price target of $135.00 stands well above the last close of $0.34.
Bear case
- Revenue contracted 40.7% in FY2025 to $7.0M, continuing a 5-year revenue CAGR of -24.2%.
- Operating cash flow remained negative at -$7.7M in FY2025, yielding negative free cash flow of -$8.6M.
- The stock has dropped 99.9% over the past year and trades 99.3% below its 200-day moving average.
What 22nd Century does
22nd Century Group, Inc. is an agricultural biotechnology company founded in 1998 and based in Buffalo, New York. It focuses on tobacco harm reduction by developing very low nicotine content tobacco and cigarettes, marketed under the VLN King and VLN Menthol King brands. The company also produces SPECTRUM research cigarettes formulated for independent clinical studies on nicotine and health. Additionally, 22nd Century Group engages in plant biotechnology across sectors, partnering with Keygene N.V. to develop hemp and cannabis plants with distinct cannabinoid profiles and agronomic traits for medical, therapeutic, and agricultural uses.
Growth and profitability
Revenue fell from $30.9M in FY2021 and $40.5M in FY2022 to $7.0M in FY2025, reflecting a 5-year revenue CAGR of -24.2% from FY2020 to FY2025. Gross margin shifted from 4.8% in FY2021 to -44.5% in FY2025, while operating margin was -162.0% in FY2025. Annual net income was -$32.6M in FY2021, -$140.8M in FY2023, and -$5.1M in FY2025. Over the trailing twelve months ended June 30, 2026, revenue stood at $5.2M with an operating margin of -247.8% and a net profit margin of -76.0%. In the latest quarter ended June 30, 2026, quarterly revenue dropped 40.4% year-over-year.
Balance sheet and cash flow
As of June 30, 2026, 22nd Century Group held $6.1M in cash and short-term investments and $1.3M in total debt, resulting in net cash of $4.8M. Total assets were $26.2M and shareholders' equity was $18.6M, with a current ratio of 2.61 and a debt-to-equity ratio of 0.07. In FY2025, operating cash flow was -$7.7M and capital expenditures were $875,000, leading to free cash flow of -$8.6M. The company reported $4.7M in dividends paid for FY2025.
Valuation and performance
With a market cap of $239,188 and an enterprise value of -$2.6M, XXII trades at a price-to-sales multiple of 0.0x and an EV-to-revenue multiple of 1.0x. Its price-to-book multiple is 0.1x. These compare to median multiples for US-listed Consumer Defensive peers of 0.7x for price-to-sales and 18.6x for trailing P/E. Over the past year, XXII recorded a return of -99.9%, compared to a 16.8% return for the S&P 500 (SPY). Over 5 years, the stock dropped 100.0% while the benchmark gained 83.0%.
What analysts expect
Wall Street analysts have a mean price target of $135.00 for XXII, compared to its last close of $0.34. The consensus EPS estimate for the current fiscal year ending December 31, 2026, is -$0.90, representing estimated EPS growth of 98.3%. Revenue estimates for both the current and next fiscal years stand at $0. Over the last 4 quarters, the company recorded 0 EPS beats. The next scheduled earnings date is November 3, 2026.
Key risks and what to watch
- Quarterly revenue declined 40.4% year-over-year in the period ended June 30, 2026.
- Operating margin was -247.8% over the trailing twelve months, showing ongoing operational deficits.
- The company has recorded 0 EPS beats over the past 4 quarters.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this XXII AI stock analysis
This page is an AI-written research summary of 22nd Century Group, Inc. (XXII). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: XXII income statement, XXII balance sheet, XXII key metrics, XXII analyst forecast, XXII chart. See the XXII stock overview for the latest quote and news.
XXII AI stock analysis FAQ
What brands does 22nd Century Group produce?
The company develops and sells very low nicotine content cigarettes under the VLN King and VLN Menthol King brand names, as well as SPECTRUM research cigarettes for independent clinical studies.
What was XXII's revenue and net income in FY2025?
In FY2025, 22nd Century Group generated $7.0M in revenue and reported a net income of -$5.1M.
What is 22nd Century Group's cash and debt position?
As of June 30, 2026, the company had $6.1M in cash and short-term investments, $1.3M in total debt, and net cash of $4.8M.
When is the next earnings release for XXII?
The company's next earnings date is November 3, 2026.