22nd Century Group, Inc.

For Q1 2026, net revenue was $4.1 million, up approximately 16.1% sequentially from $3.5 million in Q4 2025. Gross loss was $0.6 million versus a gross loss of $0.8 million in Q4 2025. Operating loss was $3 million, net loss from continuing operations was $3 million, and adjusted EBITDA was negative $2.6 million. The company did not provide full-year revenue or EPS guidance on the call; instead, management said it expects further traction in 2026 as distribution expands, with a target of more than 5,000 retail locations by year-end and potentially stronger commercial momentum in the back half of the year.

Larry Firestone said 2026 is now “100% focused on execution and growth,” centered on expanding retail outlets, increasing points of distribution, and investing in marketing and merchandising to build adult smoker adoption of VLN. He framed VLN as a disruptive, FDA-authorized cigarette designed to help smokers reduce nicotine dependence, and repeatedly stressed that the company’s job is now to turn early distribution wins into broader consumer pull. His tone was confident and mission-driven, while acknowledging that the company is still in its infancy and will face market headwinds.

Dan Otto said sequential improvement was visible but that revenue and profitability are still below target. He cited Q1 revenue of $4.1 million, gross loss of $0.6 million, operating loss of $3 million, net loss from continuing operations of $3 million, and adjusted EBITDA of negative $2.6 million; he also noted cash and cash equivalents of $9.5 million at quarter-end. On capital allocation, he said spending remains disciplined and directed toward distribution growth, VLN commercial support, marketing initiatives, and the reduced nicotine pipeline, with a focus on improving mix and gross margin as the business scales.

There was no analyst Q&A section in the transcript, so no specific external questions were addressed. Management’s main clarifications instead came in prepared remarks: they said early shipments were intentionally limited while stores were stocked, educated, and activated, and that new marketing efforts should help sales lift. They also highlighted planned expansion into New York, New Jersey, Southern California, and the Southeast, with initial shipments there expected in late Q3 and early Q4.