22nd Century Q2 revenue falls on product shift

22nd Century

13/08/2026 11:14

Overview
U.S. low-nicotine tobacco firm's Q2 revenue fell 30% yr/yr to $2.9 mln
Adjusted EBITDA loss widened to $3.5 mln from $2.6 mln yr/yr
Revenue decline reflects shift from low-priced exports to higher-margin VLN products

Outlook
Company targets expanding VLN retail distribution to about 5,000 outlets by year-end 2026
Company expects natural style cigarette expansion to accelerate revenue and margin growth in H2 2026
22nd Century aims to advance toward EBITDA breakeven as higher-margin revenues scale

Result Drivers
SHIFT TO HIGHER-MARGIN PRODUCTS - Co said revenue decline was due to moving away from high-volume, low-priced export customers toward higher-margin VLN products
RETAIL EXPANSION - Co expanded Pinnacle VLN retail distribution into about 150 additional stores in metro New York and northern New Jersey and launched in California
PROMOTIONAL IMPACT - VLN net revenue increase was offset by price promotions and accruals for product returns and exchanges

Company press release: ID:nGNX26Fyw2

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
$2.90 mln
 

Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the tobacco peer group is "buy"
Wall Street's median 12-month price target for 22nd Century Group Inc is $2,700.00, about 62,545% above its August 12 closing price of $4.31

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)