Loading...
•
Jun 30, 2025
22nd Century Group Q2 2025 Earnings Report
22nd Century Group reported a sequential revenue decline and widened losses in Q2 2025 amid continued strategic shift to branded products.
Key Takeaways
22nd Century Group posted $4.08 million in revenue in Q2 2025, down from $6.0 million in Q1. Net loss remained flat at $3.3 million, while adjusted EBITDA loss widened slightly to $2.64 million. Revenue from VLN® was negative due to return accruals, while filtered cigars and cigarillos showed sequential growth. The company continues expanding its low-nicotine product distribution and has reduced debt significantly.
Net revenue declined to $4.08 million from $6.0 million in Q1 2025.
Net loss held steady at $3.3 million with diluted EPS of $(13.16).
Adjusted EBITDA loss was $2.64 million, slightly worse than Q1.
Net debt dropped to $707,000 as the company cut total debt by $3.4 million YTD.
Revenue by Segment
Forward Guidance
22nd Century expects growth in VLN® partner brands and expanded product distribution to drive profitable growth in the second half of 2025.
Positive Outlook
- Expanded state authorization for VLN® and partner brands.
- Pinnacle VLN® shipments began to nearly 1,000 store locations.
- VLN® portfolio now includes three distinct branded product lines.
- Debt reduced by $3.4 million year-to-date.
- Moist snuff and additional VLN® formats expected to launch in H2 2025.
Challenges Ahead
- Sequential revenue declined $1.9 million vs. Q1.
- VLN® sales reported negative net revenue due to return accruals.
- Gross margin remained negative for the quarter.
- Operating expenses increased to $2.3 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...