22nd Century Group Stock Earnings Reports

22nd Century Group reported Q3 2025 results while outlining a strategic shift from low-margin CMO manufacturing toward higher‑margin branded products and licensing of its very low nicotine (VLN) technology. Management completed balance sheet repairs during the quarter: senior secured debt was repaid, an insurance recovery (~$9.5M) was realized post-quarter, and cash was increased (cash on hand reported at $4.8M at quarter end, rising to ~ $14M post-quarter). The company is now debt‑free and has an ATM sales agent agreement (up to $25M) as an optional, opportunistic capital tool. Shipments of newly branded and partner VLN products totaled roughly 6,000 cartons YTD through October, with an additional ~14,000 cartons of natural style cigarettes; VLN and partner VLN products are currently in ~1,500 stores across 21 states and authorized in ~40 states. Management expects rate‑of‑sale data to begin in early 2026 and is targeting sequential margin improvement in Q4 2025 and into 2026 as branded SKUs scale. The long‑term thesis centers on driving tobacco harm reduction via VLN cigarettes and filtered cigars, expanding distribution, licensing VLN leaf/technology to other manufacturers, and achieving breakeven as branded volumes ramp (management cited a breakeven target tied to ~500,000 cartons of natural+VLN vs. >12M cartons under the old CMO model). Financial highlights: Q3 net revenue ~$4.0M, gross loss ~$1.1M, net loss from continuing operations ~$3.8M, adjusted EBITDA loss ~$2.9M; consolidated EPS benefited from the insurance settlement recognized in Q3. Key near‑term investor milestones include store expansion, state authorizations, rate-of-sale metrics in early 2026, and progress toward EBITDA breakeven (management indicated a line-of-sight to Q2 2026).