At 19:50 EDT, trading for 22nd Century (XXII, Financial) was paused as the market awaits a forthcoming announcement. The details of the news remain undisclosed, prompting the halt to ensure fair trading conditions once the information is released. Investors are advised to stay alert for further updates regarding this development.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for 22nd Century Group Inc (XXII, Financial) is $12.00 with a high estimate of $12.00 and a low estimate of $12.00. The average target implies an upside of 18.55% from the current price of $10.12. More detailed estimate data can be found on the 22nd Century Group Inc (XXII) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, 22nd Century Group Inc's (XXII, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for 22nd Century Group Inc (XXII, Financial) in one year is $26.01, suggesting a upside of 156.96% from the current price of $10.122299. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the 22nd Century Group Inc (XXII) Summary page.
XXII Key Business Developments
Release Date: May 13, 2025
- Net Revenue: $6 million in Q1 2025, a 50% increase from $4 million in Q4 2024.
- Gross Margin: Loss of $0.6 million, improved by 50% from the prior quarter.
- Total Cartons Sold: 476,000, a 41% increase from 338,000 in Q4 2024.
- Total Operating Expenses: $2 million, the lowest quarterly amount since the turnaround began.
- Net Loss from Continuing Operations: Improved to $3.3 million from $4.2 million in the preceding quarter.
- EPS: Loss of $1.89 per share, improved from a loss of $10.59 per share.
- Adjusted EBITDA: Loss of $2.3 million, improved from a loss of $3.9 million in Q4 2024.
- Outstanding Debt: Reduced to $3.9 million with debt for equity conversions and cash payments.
- Cash Used in Operations: $2.9 million in Q1 2025.
- Capital Raise: Gross proceeds of approximately $5.4 million with an additional option for $3.3 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- 22nd Century Group Inc (XXII, Financial) reported a 50% sequential increase in net revenue for the first quarter of 2025, reaching $6 million.
- The company has successfully restructured its business model, focusing on reduced nicotine premium products and value-focused CMO brands, which are expected to drive future growth.
- The relaunch of VLN-branded products aims to cater to consumers who wish to control their nicotine consumption, presenting a significant growth opportunity.
- The company has reduced its operating expenses to the lowest quarterly amount since the turnaround began, indicating improved fiscal responsibility.
- 22nd Century Group Inc (XXII) has made progress in reducing its outstanding debt, with a remaining principal balance of $3.9 million, and has secured additional capital to support its growth strategy.
Negative Points
- The company reported a gross margin loss of $0.6 million for the first quarter of 2025, although this was an improvement from the previous quarter.
- 22nd Century Group Inc (XXII) is still in the process of gaining state approvals for its products, which is a lengthy and sequential process that could delay growth.
- The company is facing challenges in the turbulent tobacco market, including price pressures and regulatory uncertainties.
- There is a significant increase in accounts receivable, which impacts the company's net working capital and could indicate potential cash flow issues.
- The company is involved in a lawsuit against Dorchester Insurance Company, which could result in financial and operational distractions.
