Emerging Growth Research Releases Q3 2025 Update Report on 22nd Century Group

Core Insights - Emerging Growth Research released a quarterly update report on 22nd Century Group, highlighting a cash-rich balance sheet, full debt repayment, and a $9.5 million insurance settlement, along with a stabilized Contract Manufacturing Operations (CMO) [2][6] Financial Performance - 22nd Century Group fully repaid all remaining debt and settled a $9.5 million insurance-related legal case, resulting in a strengthened net cash position [6] - Q3 2025 revenue was $4.0 million, indicating stabilization after restructuring and the impact of a 2024 CMO price hike [6] - Gross profit declined to $(1.1) million due to increased excise taxes, despite improvements in per-unit margins [6] - Operating loss improved year-over-year to $(3.2) million as SG&A expenses were reduced [6] - Adjusted EBITDA remained stable at $(2.6) million compared to previous quarters [6] - Net cash increased to $14.0 million in Q3 2025, up from $(0.8) million in Q2 2025 [6] Strategic Outlook - Management is confident in achieving EBITDA breakeven by Q3 2026, driven by a higher-margin CMO mix and expansion of VLN® products [6] - The rollout of VLN® continues, with state registrations covering nearly all U.S. states and initial shipments underway [6]