22nd Century Group Inc (XXII) Q1 2025 Earnings Call Highlights: Revenue Surge and Strategic ...

GuruFocus News

Wed, May 14, 2025, 12:04 AM 4 min read

• Net Revenue: $6 cardinal successful Q1 2025, a 50% summation from $4 cardinal successful Q4 2024.

• Gross Margin: Loss of $0.6 million, improved by 50% from the anterior quarter.

• Total Cartons Sold: 476,000, a 41% summation from 338,000 successful Q4 2024.

• Total Operating Expenses: $2 million, the lowest quarterly magnitude since the turnaround began.

• Net Loss from Continuing Operations: Improved to $3.3 cardinal from $4.2 cardinal successful the preceding quarter.

• EPS: Loss of $1.89 per share, improved from a nonaccomplishment of $10.59 per share.

• Adjusted EBITDA: Loss of $2.3 million, improved from a nonaccomplishment of $3.9 cardinal successful Q4 2024.

• Outstanding Debt: Reduced to $3.9 cardinal with indebtedness for equity conversions and currency payments.

• Cash Used successful Operations: $2.9 cardinal successful Q1 2025.

• Capital Raise: Gross proceeds of astir $5.4 cardinal with an further enactment for $3.3 million.

• Warning! GuruFocus has detected 4 Warning Signs with XXII.

Release Date: May 13, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• 22nd Century Group Inc (NASDAQ:XXII) reported a 50% sequential summation successful nett gross for the archetypal 4th of 2025, reaching $6 million.

• The institution has successfully restructured its concern model, focusing connected reduced nicotine premium products and value-focused CMO brands, which are expected to thrust aboriginal growth.

• The relaunch of VLN-branded products aims to cater to consumers who privation to power their nicotine consumption, presenting a important maturation opportunity.

• The institution has reduced its operating expenses to the lowest quarterly magnitude since the turnaround began, indicating improved fiscal responsibility.

• 22nd Century Group Inc (NASDAQ:XXII) has made advancement successful reducing its outstanding debt, with a remaining main equilibrium of $3.9 million, and has secured further superior to enactment its maturation strategy.

• The institution reported a gross borderline nonaccomplishment of $0.6 cardinal for the archetypal 4th of 2025, though this was an betterment from the erstwhile quarter.

• 22nd Century Group Inc (NASDAQ:XXII) is inactive successful the process of gaining authorities approvals for its products, which is simply a lengthy and sequential process that could hold growth.

• The institution is facing challenges successful the turbulent baccy market, including terms pressures and regulatory uncertainties.

• There is simply a important summation successful accounts receivable, which impacts the company's nett moving superior and could bespeak imaginable currency travel issues.

• The institution is progressive successful a suit against Dorchester Insurance Company, which could effect successful fiscal and operational distractions.