22nd Century Group Preliminarily Reports Third Quarter Financial Results
Revenue Grew 66% to $4.8 Million; Gross Profit Turned Positive at $0.4 Million
MOCKSVILLE, N.C., Oct. 22, 2026 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (Nasdaq: XXII), the only low nicotine tobacco company in the world, today announced select, preliminary and unaudited financial results and operating metrics for the third quarter ended September 30, 2026. The company anticipates releasing third quarter 2026 earnings on or before November 13, 2026, and will host a conference call for investors and financial analysts. The final date and details of the conference call will separately be released.
Preliminary Results
Preliminary unaudited financial results reflect continuing operations, excluding discontinued operations. All figures reported below are preliminary and subject to change.
- The Company expects third quarter 2026 net revenues of approximately $4.8 million compared with $2.9 million in the second quarter of 2026, an increase of 66%.
- The Company expects third quarter 2026 gross profit of approximately $0.4 million, compared to a loss of $(0.3) million in the second quarter of 2026.
- The company expects third quarter of 2026 operating expenses of $3.0 million, consistent with the second quarter of 2026.
- The company expects third quarter of 2026 operating loss of $2.6 million, compared to $3.3 million in the second quarter of 2026.
- The company expects third quarter of 2026 net loss of $2.6 million, compared to net loss of $3.3 million in the second quarter of 2026.
- The company expects third quarter of 2026 adjusted EBITDA loss of $2.2 million, compared to a loss of $3.5 million in the second quarter of 2026.
- Common shares outstanding as of October 22, 2026 are 3,416,441 and no warrants remain outstanding.
- Cash and equivalents were $3.9 million at quarter end.
“The third quarter marked another period of disciplined execution as we continued to increase consumer awareness and strengthen the commercial foundation for our Pinnacle VLN® and 22nd Century VLN® low nicotine cigarettes,” said Larry Firestone, Chief Executive Officer of 22nd Century Group. “At retail, the growth in our same-store sales reports for Q3 2026 compared to Q2 2026 for the Pinnacle brand, both Pinnacle VLN® and Pinnacle Pure cigarette products reinforced our belief that the market is looking for alternatives that change their smoking practice.”
Firestone added, "Today’s consumers are demonstrating through their early adoption of our VLN® low nicotine cigarettes that a path to a low nicotine category in the market is being developed. It is our anticipation that multiple brands will adopt and carry a VLN® branded set of sku’s in the future to pair with their standard brands. We believe that the future of smoking will include a low nicotine cigarette category of which we are the first and only player at the moment. The future of smoking is here. It’s VLN®.”
Preliminary Financial Information
This news release includes financial information that is preliminary and has been prepared internally by management, and has not been audited, reviewed or compiled by our independent registered public accounting firm. 22nd Century Group’s actual results remain subject to the completion of management’s final review and other closing and audit procedures and may differ materially from such financial information included in this news release due to the completion of our financial closing procedures, audit procedures and final adjustments. These preliminary estimates are not a comprehensive statement of our financial results for the third quarter 2026 and should not be viewed as a substitute for full financial statements prepared in accordance with GAAP. Accordingly, you should not place undue reliance on these preliminary financial results.
About 22nd Century Group, Inc.
22nd Century Group is pioneering the Tobacco Harm Reduction and Nicotine Reduction Movements by enabling smokers to take control of their nicotine consumption.
Our Technology is Tobacco
Our proprietary non-GMO reduced nicotine tobacco plants were developed using our patented technologies that regulate alkaloid biosynthesis activities resulting in a tobacco plant that contains 95% less nicotine than traditional tobacco plants. Our extensive patent portfolio has been developed to ensure that our high-quality tobacco can be grown commercially at scale. We continue to develop our intellectual property to ensure our ongoing leadership in the tobacco harm reduction movement.
Our Products
We created our flagship product, the VLN® cigarette using our low nicotine tobacco, to give traditional cigarette smokers an authentic and familiar alternative in the form of a combustible cigarette that helps them take control of their nicotine consumption. VLN® cigarettes have 95% less nicotine compared to traditional cigarettes and have been proven to allow consumers to greatly reduce their nicotine consumption.
VLN® and Helps You Smoke Less® are registered trademarks of 22nd Century Limited LLC.
Learn more at xxiicentury.com, on X (formerly Twitter), on LinkedIn, and on YouTube.
Learn more about VLN® at tryvln.com and pinnaclevln.com.
Cautionary Note Regarding Forward-Looking Statements
Except for historical information, all of the statements, expectations, and assumptions contained in this press release are forward-looking statements, including but not limited to our full year business outlook. Forward-looking statements typically contain terms such as “anticipate,” “believe,” “consider,” “continue,” “could,” “estimate,” “expect,” “explore,” “foresee,” “goal,” “guidance,” “intend,” “likely,” “may,” “plan,” “potential,” “predict,” “preliminary,” “probable,” “project,” “promising,” “seek,” “should,” “will,” “would,” and similar expressions. Forward-looking statements include, but are not limited to, statements regarding (i) our expectations regarding regulatory enforcement, including our ability to receive an exemption from new regulations, and (ii) our financial and operating performance. Actual results might differ materially from those explicit or implicit in forward-looking statements. Important factors that could cause actual results to differ materially are set forth in “Risk Factors” in the Company’s Annual Report on Form 10-K filed on March 26, 2026 and Quarterly Reports on Form 10-Q filed May 7, 2026 and August 14, 2026. All information provided in this release is as of the date hereof, and the Company assumes no obligation to and does not intend to update these forward-looking statements, except as required by law.
Notes regarding Non-GAAP Financial Information
In addition to the Company’s reported results in accordance with generally accepted accounting principles in the United States of America (“GAAP”), the Company provides EBITDA and Adjusted EBITDA.
In order to calculate EBITDA, the Company adjusts net (loss) income by adding back interest expense (income), provision (benefit) for income taxes, and depreciation and amortization expense. Adjusted EBITDA consists of EBITDA adjusted by the Company for certain non-cash and/or non-operating expenses, including adding back equity-based employee compensation expense, restructuring and restructuring-related charges such as impairment, acquisition and transaction costs, and other unusual or infrequently occurring items, if applicable, such as inventory reserves and adjustments, gains or losses on disposal of property, plant and equipment, and gains or losses on investments.
The Company believes that the presentation of EBITDA and Adjusted EBITDA are important financial measures that supplement discussion and analysis of its financial condition and results of operations and enhances an understanding of its operating performance. While management considers EBITDA and Adjusted EBITDA to be important, these financial performance measures should be considered in addition to, but not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP, such as operating (loss) income, net (loss) income and cash flows from operations. Adjusted EBITDA is susceptible to varying calculations and the Company’s measurement of Adjusted EBITDA may not be comparable to those of other companies.
Investor Relations & Media Contact
Daniel Otto
Chief Financial Officer & Investor Relations
22nd Century Group
investorrelations@xxiicentury.com
