- 22nd Century Group, Inc. (NASDAQ:XXII) reported an EPS of -$1.89, missing the estimated -$1.10.
- The company exceeded revenue expectations with $5.96 million against an estimated $4.7 million.
- Despite financial challenges, XXII is expanding its product line and has a current ratio of 1.16, indicating short-term financial health.
22nd Century Group, Inc. (NASDAQ:XXII) is a company focused on reducing nicotine dependence through innovative products. It operates in the tobacco industry, aiming to provide alternatives with reduced nicotine content. The company competes with other tobacco giants but differentiates itself with its unique product offerings.
On May 13, 2025, XXII reported an earnings per share (EPS) of -$1.89, falling short of the estimated -$1.10. Despite this, the company exceeded revenue expectations, reporting $5.96 million against an estimated $4.7 million. This revenue growth is attributed to a 50% sequential increase in sales, driven by its 2025 growth strategy.
The company is actively expanding its product line, preparing to ship its first VLN® partner brand products with Smoker Friendly and other partners. It has also filed for new product authorizations across all 50 states, marking significant progress in its expansion efforts. The launch of Smoker Friendly Black Label cigarettes is another milestone.
Financially, XXII faces challenges, with a negative P/E ratio of -0.03, indicating a lack of profitability. The price-to-sales ratio of 0.11 suggests the stock is valued at 11 cents per dollar of sales. The enterprise value to sales ratio is 0.30, reflecting the company’s valuation relative to sales.
The company’s debt-to-equity ratio is 2.15, indicating more debt than equity. However, a current ratio of 1.16 shows a modest level of short-term financial health. Despite a negative earnings yield of -35.35%, XXII remains focused on expanding its VLN®, core CMO, and filtered cigar businesses throughout 2025.
