22nd Century results released on October 22, 2026, point to a 66% sequential increase in third-quarter revenue and a return to positive gross profit. The low-nicotine tobacco company expects revenue of approximately $4.8 million for the quarter ended September 30, compared with $2.9 million in the second quarter, while remaining loss-making overall. The figures are preliminary and unaudited.
Key Takeaways
- Expected gross profit turned positive at $0.4 million, versus a $0.3 million second-quarter loss.
- The preliminary net loss narrowed to $2.6 million from $3.3 million.
- Full third-quarter results are expected on or before November 13, 2026.
Table of Contents
- 22nd Century results show improvement below the revenue line
- Management points to retail growth in Pinnacle products
- Final financial review remains outstanding
- Conclusion
22nd Century results show improvement below the revenue line
The expected swing in gross profit represents a $0.7 million improvement from the second quarter. Operating expenses were approximately unchanged, allowing the stronger gross result to translate into a narrower operating loss.
Positive gross profit is not the same as overall profitability: the company still expects both operating and net losses for the quarter. Its adjusted EBITDA loss also narrowed, but that non-GAAP measure excludes certain expenses and is not a substitute for net income or cash flow.
The preliminary financial figures cover continuing operations and exclude discontinued operations. All quarterly comparisons in the announcement are against the second quarter of 2026, rather than the year-earlier period.
| Item | Details |
|---|---|
| Operating expenses | Q3 2026 preliminary: $3.0 million; Q2 2026: $3.0 million. |
| Operating loss | Q3 2026 preliminary: $2.6 million; Q2 2026: $3.3 million. |
| Net loss | Q3 2026 preliminary: $2.6 million; Q2 2026: $3.3 million. |
| Adjusted EBITDA loss | Q3 2026 preliminary: $2.2 million; Q2 2026: $3.5 million. |
| Cash and equivalents | $3.9 million at September 30, 2026. |
| Equity capitalization | 3,416,441 common shares outstanding and no warrants outstanding as of October 22, 2026. |
Management points to retail growth in Pinnacle products
Chief Executive Officer Larry Firestone said same-store sales reports for Pinnacle VLN and Pinnacle Pure cigarette products showed growth from the second quarter. The announcement did not quantify that increase or provide a product-by-product revenue breakdown.
Firestone also said he anticipates other brands adopting VLN-branded products alongside their standard offerings. That is management’s expectation for the category, not an announced agreement with additional brands.
The FDA’s explanation of authorized VLN nicotine claims identifies reduced-exposure marketing claims for VLN King and VLN Menthol King, including 95% less nicotine. The agency also recommends warning that less nicotine does not mean safer and that all cigarettes can cause disease and death.
Final financial review remains outstanding
Management prepared the estimates internally; the company’s independent accounting firm has not audited, reviewed or compiled them. Closing procedures and final adjustments could cause actual results to differ materially.
The company also disclosed its quarter-end cash balance and October 22 share count, with no warrants remaining outstanding. These are point-in-time figures, rather than forecasts of future funding needs.
22nd Century expects to release third-quarter earnings on or before November 13, 2026. It plans an investor and analyst conference call, with the final date and participation details to be announced separately.
Conclusion
The preliminary figures show stronger revenue and narrower losses, but not a return to overall profitability. The next scheduled milestone is the full third-quarter earnings release, expected on or before November 13, when investors can assess the finalized financial statements.
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