The company continues to struggle with unit economics, reporting a negative gross margin of -17.7% in 2026Q1 as production costs consistently outpace revenue generation.
22nd Century Group, Inc. (XXII) annual income statement — 20-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 |
|---|
| Sales/Revenue | 9.52M | 7.05M | 11.88M | 32.2M | 40.5M | 30.95M | 28.11M | 25.83M | 26.43M | 16.6M | 12.28M | 8.52M | 528.99K | 7.28M | 18.77K | 1.01M | 0 | 0 | 0 | 0 | 0 |
| Revenue Growth % | 7.42% | -40.66% | -63.12% | -20.49% | 30.87% | 10.09% | 8.82% | -2.25% | 59.19% | 35.18% | 44.1% | 1510.99% | -92.73% | 38666.35% | -98.15% | - | - | - | - | - | - |
| Cost of Goods Sold | 12.34M | 10.19M | 14.28M | 40.9M | 38.65M | 29.46M | 26.67M | 25.82M | 25.53M | 17.31M | 12.71M | 9.1M | 498.44K | 461.67K | 67.97K | 418.17K | 2.71K | 0 | 0 | 0 | 0 |
| COGS % of Revenue | - | 144.5% | 120.21% | 127% | 95.44% | 95.2% | 94.88% | 99.94% | 96.6% | 104.26% | 103.5% | 106.81% | 94.22% | 6.34% | 362.01% | 41.32% | - | - | - | - | - |
| Gross Profit | -2.82M | -3.14M | -2.4M | -8.7M | 1.85M | 1.49M | 1.44M | 15K | 898.99K | -707.91K | -429.7K | -580.56K | 30.55K | 6.82M | -49.19K | 593.97K | -2.71K | 0 | 0 | 0 | 0 |
| Gross Margin % | -29.66% | -44.5% | -20.21% | -27% | 4.56% | 4.8% | 5.12% | 0.06% | 3.4% | -4.26% | -3.5% | -6.81% | 5.78% | 93.66% | -262.01% | 58.68% | - | - | - | - | - |
| Gross Profit Growth % | - | -30.71% | 72.4% | -570.82% | 24.29% | 3.34% | 9486.67% | -98.33% | 226.99% | -64.75% | 25.99% | -2000.06% | -99.55% | 13957.36% | -108.28% | 21993.48% | - | - | - | - | - |
| Operating Expenses | 9.37M | 8.28M | 11.55M | 36.23M | 35.48M | 29.9M | 20.62M | 23.58M | 24.92M | 12.59M | 10.96M | 11.46M | 11.77M | 5M | 3.19M | 4.35M | 78.57K | 52.86K | 82.15K | 29.2K | 59.79K |
| OpEx % of Revenue | - | 117.45% | 97.24% | 112.52% | 87.61% | 96.61% | 73.36% | 91.28% | 94.29% | 75.85% | 89.24% | 134.51% | 2224.52% | 68.76% | 17017.08% | 429.73% | - | - | - | - | - |
| Selling, General & Admin | 8.49M | 7.59M | 10.29M | 31.83M | 32.23M | 25.91M | 14.97M | 12.95M | 8.59M | 8.28M | 7.78M | 9.12M | 8.88M | 4.12M | 2.27M | 2.07M | 78.57K | 52.86K | 82.15K | 29.2K | 59.79K |
| SG&A % of Revenue | - | 107.69% | 86.61% | 98.83% | 79.58% | 83.71% | 53.26% | 50.15% | 32.49% | 49.87% | 63.31% | 106.99% | 1678.49% | 56.55% | 12076.3% | 204.67% | - | - | - | - | - |
| Research & Development | 782K | 688K | 1.13M | 2.64M | 3.58M | 3.91M | 4.13M | 8.06M | 14.99M | 3.37M | 2.34M | 1.67M | 1.25M | 744.23K | 729.23K | 2.1M | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 9.76% | 9.54% | 8.21% | 8.83% | 12.64% | 14.68% | 31.2% | 56.72% | 20.28% | 19.06% | 19.59% | 236.11% | 10.23% | 3884.02% | 207.28% | - | - | - | - | - |
| Other Operating Expenses | 96K | 0 | 130K | 1.76M | -327K | 78K | 1.52M | 2.57M | 1.34M | 947K | 842.18K | 676.29K | 1.64M | 122.02K | 198.41K | 179.95K | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -12.2M | -11.42M | -13.95M | -44.93M | -33.63M | -28.41M | -19.18M | -23.57M | -24.02M | -13.3M | -11.39M | -12.04M | -11.74M | 1.81M | -3.24M | -3.76M | -81.28K | -52.86K | -82.15K | -29.2K | -59.79K |
| Operating Margin % | -128.17% | -161.95% | -117.44% | -139.52% | -83.05% | -91.81% | -68.24% | -91.22% | -90.89% | -80.12% | -92.74% | -141.33% | -2218.75% | 24.9% | -17279.09% | -371.05% | - | - | - | - | - |
| Operating Income Growth % | - | 18.16% | 68.95% | -33.58% | -18.38% | -48.11% | 18.6% | 1.88% | -80.59% | -16.79% | 5.45% | -2.61% | -747.58% | 155.87% | 13.62% | -4520.55% | -53.76% | 35.65% | -181.3% | 51.16% | - |
| EBITDA | -11.22M | -10.26M | -12.69M | -40.07M | -30.04M | -26.88M | -17.66M | -21.93M | -22.68M | -12.35M | -10.55M | -11.27M | -11.24M | 1.96M | -3.05M | -3.58M | -81.28K | -52.86K | -82.15K | -29.2K | -59.79K |
| EBITDA Margin % | -117.9% | -145.54% | -106.85% | -124.43% | -74.18% | -86.84% | -62.81% | -84.89% | -85.81% | -74.41% | -85.88% | -132.24% | -2125.12% | 26.88% | -16222.33% | -353.27% | - | - | - | - | - |
| EBITDA Growth % | 4.98% | 19.17% | 68.33% | -33.38% | -11.79% | -52.22% | 19.49% | 3.3% | -83.57% | -17.14% | 6.42% | -0.25% | -674.51% | 164.24% | 14.82% | -4299.15% | -53.76% | 35.65% | -181.3% | 51.16% | - |
| D&A (Non-Cash Add-back) | 977K | 1.16M | 1.26M | 4.86M | 3.59M | 1.54M | 1.53M | 1.64M | 1.34M | 947K | 842.18K | 774.31K | 495.3K | 144.29K | 198.41K | 179.95K | 0 | 0 | 0 | 0 | 0 |
| EBIT | -12.25M | -11.69M | -13.37M | -45.27M | -36.48M | -32.54M | -19.6M | -26.5M | -7.96M | -13M | -11.54M | -10.98M | -15.59M | -25.4M | -5.24M | -1.24M | -81.28K | -52.85K | -82.15K | -29.67K | -59.79K |
| Net Interest Income | -447K | -1.37M | -2.02M | -9.15M | 258K | 263K | 1.68M | 1.01M | 1.06M | 85.99K | -20.86K | -21.78K | 23.29K | -748.61K | -1.49M | -104K | -8.65K | -2.61K | 0 | 0 | 0 |
| Interest Income | 127K | 83K | 72K | 219K | 313K | 321K | 1.75M | 1.07M | 1.07M | 115.1K | 16.89K | 31.2K | 30.38K | 0 | 0 | 0 | 0 | 15 | 0 | 0 | 0 |
| Interest Expense | 574K | 1.46M | 2.09M | 9.37M | 55K | 58K | 72K | 56K | 10.94K | 29.1K | 37.74K | 52.98K | 7.09K | 748.61K | 1.49M | 104K | 8.65K | 2.62K | 0 | 0 | 0 |
| Other Income/Expense | -630K | -1.73M | -1.51M | -9.71M | -2.9M | -4.18M | -490K | -2.99M | 16.05M | 270.75K | -193.58K | 1.01M | -3.83M | -27.97M | -3.49M | 3.75M | -8.65K | -2.61K | 0 | -470 | 0 |
| Pretax Income | -12.82M | -13.14M | -15.46M | -54.64M | -36.53M | -32.59M | -19.67M | -26.56M | -7.97M | -13.03M | -11.58M | -11.03M | -15.6M | -26.15M | -6.74M | -1.35M | -89.93K | -55.47K | -82.15K | -29.67K | -59.79K |
| Pretax Margin % | -134.79% | -186.48% | -130.2% | -169.67% | -90.2% | -105.32% | -69.98% | -102.81% | -30.15% | -78.49% | -94.31% | -129.45% | -2948.13% | -359.33% | -35881.42% | -133.77% | - | - | - | - | - |
| Income Tax | 87K | -28K | 30K | 47K | 21K | 14K | 38K | 0 | 15M | 0 | 0 | -42.7K | -94.07K | 0 | -1.46K | 1.35M | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | -0.68% | 0.21% | -0.19% | -0.09% | -0.06% | -0.04% | -0.19% | 0% | -188.34% | 0% | 0% | 0.39% | 0.6% | 0% | 0.02% | -100% | 0% | 0% | 0% | 0% | 0% |
| Net Income | -3.93M | -5.05M | -15.16M | -140.78M | -59.8M | -32.61M | -19.71M | -26.56M | -7.97M | -13.03M | -11.58M | -11.03M | -15.6M | -26.15M | -6.74M | -1.35M | -89.93K | -55.47K | -82.15K | -29.67K | -59.79K |
| Net Margin % | -41.26% | -71.7% | -127.66% | -437.14% | -147.65% | -105.37% | -70.12% | -102.81% | -30.15% | -78.49% | -94.31% | -129.45% | -2948.13% | -359.33% | -35873.67% | -133.77% | - | - | - | - | - |
| Net Income Growth % | 75.54% | 66.67% | 89.23% | -135.41% | -83.39% | -65.44% | 25.78% | -233.35% | 38.85% | -12.5% | -4.98% | 29.26% | 40.37% | -288.3% | -397.47% | -1405.46% | -62.13% | 32.48% | -176.85% | 50.37% | - |
| Net Income (Continuing) | -12.91M | -13.12M | -15.49M | -54.69M | -36.55M | -32.61M | -19.71M | -26.56M | -7.97M | -13.03M | -11.58M | -11.03M | -15.6M | -26.15M | -6.74M | -1.35M | -89.93K | -55.47K | -82.15K | -29.67K | -59.79K |
| Discontinued Operations | 653K | 8.06M | 331K | -86.09M | -23.25M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5.98K | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -18.76 | -52.88 | -60017.00 | -999999.00 | -999999.00 | -999999.00 | -999999.00 | -999999.00 | -716398.00 | -999999.00 | -999999.00 | -999999.00 | -999999.00 | -999999.00 | -999999.00 | -558900.00 | -40179.00 | -40179.00 | -40179.00 | -40179.00 | -281258.00 |
| EPS Growth % | 99.6% | 99.91% | 98.89% | 89.57% | -2128.31% | -47.52% | 32.93% | -229.19% | 50.7% | 13.33% | 6.25% | 38.46% | 56.67% | -172.73% | -340% | -1291.03% | 0% | 0% | 0% | 85.71% | - |
| EPS (Basic) | - | -52.88 | -60017.00 | -999999.00 | -999999.00 | -999999.00 | -999999.00 | -999999.00 | -716398.00 | -999999.00 | -999999.00 | -999999.00 | -999999.00 | -999999.00 | -999999.00 | -558900.00 | -40179.00 | -40179.00 | -40179.00 | -40179.00 | -281258.00 |
| Diluted Shares Outstanding | 209.24K | 184.07K | 424 | 28 | 18 | 14 | 12 | 11 | 11 | 9 | 7 | 6 | 5 | 4 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Basic Shares Outstanding | 209.24K | 184.07K | 424 | 28 | 18 | 14 | 12 | 11 | 11 | 9 | 7 | 6 | 5 | 4 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying XXII stock.
For fiscal year 2025, 22nd Century Group, Inc. (XXII) reported total revenue of $7.0M.
22nd Century Group, Inc. (XXII) reported a net loss of $5.1M for the fiscal year ending 2025.
22nd Century Group, Inc. (XXII) reported an operating income of $-11.4M, resulting in an operating profit margin of -162.0%. This margin reflects the operational efficiency of the business before interest and taxes.
22nd Century Group, Inc. (XXII) generated $-3.1M in gross profit for the year, representing a gross profit margin of -44.5%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Imminent liquidity and solvency risk
Metrics are mathematically derived from official filings.
Volatile Revenue Amid Strategic Pivot
As reported in recent financial filings, 22nd Century Group has experienced extreme revenue volatility, with quarterly figures swinging from negative values in late 2023 to $4.1 million in 2026Q1, reflecting the inherent instability of a business model currently struggling to transition toward proprietary Very Low Nicotine products.
The erratic revenue trajectory suggests that the company lacks a stable commercial foundation, likely exacerbated by the decline of its legacy contract manufacturing business. Investors should monitor whether the recent uptick in revenue represents a sustainable shift or merely the noise of a business lacking consistent market demand.
Structural Deficit in Unit Economics
Based on the company's reported figures, the gross margin has remained consistently negative, reaching -79.6% in 2025Q4, which indicates that the cost of producing tobacco products currently exceeds the revenue generated, signaling a fundamental failure to achieve the necessary scale for profitable operations in this industry.
This persistent negative gross margin implies that the company is effectively subsidizing every unit sold, a model that is unsustainable without a massive increase in volume or a radical reduction in production costs. The inability to achieve positive margins suggests that the current manufacturing footprint is significantly underutilized.
Operating Leverage Constrained by Losses
According to the income statement data, operating expenses continue to dwarf gross profit, resulting in an operating margin of -74.0% in 2026Q1, which demonstrates that the company has failed to achieve the operating leverage required to cover its fixed overhead through its current revenue-generating activities.
The high SG&A relative to revenue suggests that the company is maintaining a cost structure that is disproportionate to its current commercial footprint. Without a significant inflection in top-line growth, the company appears trapped in a cycle of high fixed costs that continue to erode shareholder value.
Regulatory Dependency Masks Operational Failure
While the company highlights its FDA MRTP status as a competitive moat, the financial data suggests that this regulatory achievement has not translated into commercial viability, as evidenced by the persistent net losses and the company's reliance on external financing to sustain its ongoing operations.
Short-sellers would likely focus on the fact that the company's primary value proposition is entirely contingent on speculative federal mandates rather than organic consumer demand. The lack of a clear path to profitability suggests that the business may be fundamentally unviable in its current form regardless of regulatory tailwinds.