22nd Century Group, Inc.

xxiicentury.com

What Do They Do?

Manufactures and distributes reduced-nicotine cigarettes for adult smokers, and makes cigarettes and filtered cigars under contract for established tobacco brands.

How Do They Make Money?

Tobacco brands pay for contract-made cigarettes and filtered cigars; the company also sells VLN cigarettes. Some manufacturing contracts charge by units made, with payment generally due before shipment or within 21 days after shipment.

revenue

Segment	Share	How money arrives
Cigarettes	73%
Filtered Cigars	23%
Other tobacco products	2.5%
VLN Sold outright	0.8%	Sold outright

Who Are Their Customers?

Tobacco brands hire the company to make branded cigarettes and filtered cigars; its VLN cigarettes are sold through retail channels, with convenience stores an initial focus.

Do Revenues Turn Into Profits?

No. It lost $5.1M in FY2025.

Operating income, FY2025

−66% of revenue

▼ −17% (Loss) vs FY2024 (−$14M, −57%)

Net income, FY2025

−29% of revenue

▼ −67% (Loss) vs FY2024 (−$15.2M, −62%)

Free cash flow, FY2025

−44% of revenue

▼ −46% (Loss) vs FY2024 (−$14.5M, −59%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 30, 2026

Revenue: ▼ −30%; vs $4.1M in Q2 FY2025
Net income: ▼ −2% (Loss); vs −$3.4M in Q2 FY2025

Cigarettes share of revenue vs 66.5% in Q2 FY2025

Jul 2, 2026 Smoker Friendly gave notice ending its manufacturing agreement After the 180-day notice period, the company will stop making cigarette and cigar products for Smoker Friendly.

Shrinking. Revenue fell 43% in 4 years, from $30.9M in FY2021 to $17.6M in FY2025, about 13% a year.

Hemp and cannabis exit The earlier report described hemp-derived ingredients and consumer products; the latest says the company sold and exited its hemp/cannabis business and describes its operations as tobacco products.

VLN distribution through partner brands The earlier report described a VLN rollout through select Circle K stores; the latest describes offering VLN versions of existing client brands through those clients’ distribution channels.

Revenue over time

Cigarettes Filtered Cigars Other tobacco products VLN

$50M$25M$0

FY2023 FY2024 FY2025

Who Do They Compete With?

Competes with Pfizer, GlaxoSmithKline, Perrigo, Novartis International, Niconovum, Reynolds American, Philip Morris USA, ITG Brands, Vector Group, Philip Morris International, British American Tobacco, JT International, Imperial Brands, and China National Tobacco

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