Liquidity is under significant pressure, highlighted by a 2026Q1 free cash flow margin of -76.6% and a questionable $9.7 million share repurchase that occurred despite ongoing operational cash burn.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 |
|---|
| Cash from Operations | -7.85M | -7.72M | -14.35M | -54.99M | -51.71M | -22.84M | -15.62M | -14.59M | -17.84M | -12.07M | -9.89M | -7.32M | -6.58M | 3.86M | -1.76M | -3.45M | -32K | -87.59K | -42.45K | -33.55K | -43.19K |
| Operating CF Margin % | - | -109.56% | -120.77% | -170.75% | -127.69% | -73.8% | -55.57% | -56.47% | -67.52% | -72.7% | -80.52% | -85.92% | -1244.39% | 52.98% | -9397.84% | -340.81% | - | - | - | - | - |
| Operating CF Growth % | 149.51% | 46.16% | 73.91% | -6.33% | -126.43% | -46.21% | -7.08% | 18.25% | -47.86% | -22.06% | -35.04% | -11.23% | -270.72% | 318.53% | 48.85% | -10678.12% | 63.46% | -106.33% | -26.54% | 22.32% | - |
| Net Income | -3.99M | -5.05M | -15.16M | -140.78M | -59.8M | -32.61M | -19.71M | -26.56M | -7.97M | -13.03M | -11.58M | -11.03M | -15.6M | -26.15M | -6.74M | -1.35M | -89.93K | -55.47K | -82.15K | -29.67K | -59.79K |
| Depreciation & Amortization | 1.11M | 1.16M | 1.26M | 4.86M | 3.59M | 1.54M | 1.53M | 1.64M | 1.34M | 947K | 842.18K | 774.31K | 495.3K | 144.29K | 198.41K | 179.95K | 0 | 0 | 0 | 0 | 0 |
| Stock-Based Compensation | 238K | 421K | 380K | 2.68M | 5.49M | 3.98M | 1.65M | 3.54M | 3.19M | 941.65K | 911.38K | 3.59M | 4.52M | 2.36M | 1.22M | 376.44K | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 7K | 7K | 8K | 434K | -434K | 7.39M | 2.87M | 0 | -14.87M | -255.38K | 317.72K | 36.26K | 3.85M | 27.34M | 2M | -2.48M | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 10.23M | 2.32M | -4M | 79.55M | 11.01M | -2.4M | -326K | 6.15M | 10.94K | 29.1K | 37.74K | 45.12K | 624.32K | 664.98K | 1.45M | 60K | 0 | 0 | 0 | 0 | 0 |
| Working Capital Changes | -6.33M | -6.57M | 3.17M | -1.74M | -11.57M | -733K | -1.63M | 639K | 448.67K | -701.64K | -415.18K | -731.12K | -482.74K | -501.26K | 100.13K | -241.47K | 57.93K | -32.12K | 39.7K | -3.88K | 16.6K |
| Change in Receivables | -436K | -1.88M | -30K | -18K | -2.88M | 1.57M | -1.29M | 4K | 85.77K | -906.07K | 10.24K | -61.23K | -308.45K | 124.58K | 0 | 572.66K | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -1.57M | -2.05M | 6.71M | -5.92M | -8.79M | -1.16M | -289K | -207K | 333.59K | -129.23K | -531.36K | -701.53K | -620.66K | -175.75K | -552.4K | -369.46K | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -2.98M | -2.66M | -1.17M | 4.75M | 416K | 11K | -936K | -732K | 323.07K | 473.8K | -136.3K | 86.33K | 625.39K | -629.1K | 705.41K | -222.66K | 49.27K | -34.74K | 0 | -3.88K | 0 |
| Cash from Investing | -493K | -505K | -139K | 16.82M | 22.58M | -27.73M | 16.47M | 4.55M | 15.15M | -60.59M | -553.77K | -450.66K | -2.71M | -3.74M | -162.77K | -607.3K | 0 | 0 | 0 | 0 | -4.33K |
| Capital Expenditures | -863K | -61K | -141K | -4.66M | -4.43M | -1.07M | -522K | -527K | -1.11M | -1.61M | -553.77K | -450.66K | -2.39M | -3.74M | -162.77K | -607.3K | 0 | 0 | 0 | 0 | 0 |
| CapEx % of Revenue | 9.72% | 0.87% | 1.19% | 14.46% | 10.94% | 3.46% | 1.86% | 2.04% | 4.18% | 9.68% | 4.51% | 5.29% | 451.7% | 51.42% | 866.97% | 60% | - | - | - | - | - |
| Acquisitions | 770K | 0 | 0 | 411K | -1.98M | 326K | 468K | -12M | 656.99K | 0 | 0 | 0 | -950K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | -444K | 2K | 2.82M | 409K | -326K | -462K | -399K | -656.99K | -59.43M | -356.54K | -413.18K | -845.5K | -290.34K | -162.77K | 0 | 0 | 0 | 0 | 0 | -4.33K |
| Cash from Financing | 16.75M | 10.96M | 16.85M | 37.21M | 30.82M | 50.88M | -304K | 9.92M | -355.39K | 62.85M | 20.15M | 5.13M | 9.86M | 5.72M | 1.68M | 4.31M | 32.33K | 80K | 50K | 5.47K | 63.65K |
| Debt Issued (Net) | -3.73M | 6.01M | -1.59M | 3.93M | -1.66M | 49K | -354K | -700K | -800K | -333.33K | -333.33K | -333.33K | 0 | -1.62M | 225K | 1.07M | 32.33K | 80K | 0 | 5.47K | 0 |
| Equity Issued (Net) | 20.51M | 5.08M | 16.13M | 27.72M | 35M | 40M | 50K | 0 | 0 | 50.73M | 20.48M | -34.5K | 9.32M | 0 | 1.47M | 3.29M | 0 | 0 | 50K | 0 | 50K |
| Dividends Paid | -589K | 0 | -10.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -9.65M | 0 | 0 | -178K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -34.5K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 561K | -130K | 12.61M | 5.56M | -2.52M | 10.83M | 0 | 10.62M | 444.61K | 12.45M | 196 | 5.5M | 538.72K | 7.34M | -17.34K | -56.85K | 0 | 0 | 0 | 0 | 13.65K |
| Net Change in Cash | 8.41M | 2.73M | 2.36M | -962K | 1.68M | 307K | 544K | -120K | -3.05M | -9.81M | 9.71M | -2.64M | 572.09K | 5.83M | -252.06K | 251.94K | 323 | -7.59K | 7.55K | -28.08K | 16.13K |
| Free Cash Flow | -7.94M | -8.6M | -14.51M | -60.6M | -56.14M | -23.91M | -16.14M | -15.68M | -18.95M | -13.68M | -10.44M | -7.77M | -8.97M | 113.05K | -1.93M | -4.06M | -32K | -87.59K | -42.45K | -33.55K | -43.19K |
| FCF Margin % | -89.44% | -121.97% | -122.12% | -188.19% | -138.62% | -77.26% | -57.43% | -60.7% | -71.71% | -82.38% | -85.03% | -91.2% | -1696.1% | 1.55% | -10264.81% | -400.81% | - | - | - | - | - |
| FCF Growth % | 48.03% | 40.73% | 76.06% | -7.95% | -134.81% | -48.11% | -2.95% | 17.26% | -38.57% | -30.97% | -34.34% | 13.37% | -8036.84% | 105.87% | 52.49% | -12575.69% | 63.46% | -106.33% | -26.54% | 22.32% | - |
| FCF per Share | -13.34 | -46.71 | -34186.09 | -999999.00 | -999999.00 | -999999.00 | -999999.00 | -999999.00 | -999999.00 | -999999.00 | -999999.00 | -999999.00 | -999999.00 | 28958.65 | - | -0.15 | - | - | - | - | - |
| FCF Conversion (FCF/Net Income) | 1.99x | 1.53x | 0.95x | 0.39x | 0.86x | 0.70x | 0.79x | 0.55x | 2.24x | 0.93x | 0.85x | 0.66x | 0.42x | -0.15x | 0.26x | 2.55x | 0.36x | 1.58x | 0.52x | 1.13x | 0.72x |
| Interest Paid | 0 | 0 | 722K | 1.31M | 34K | 0 | 0 | 3K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 22K | 40K | 14K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Imminent liquidity and solvency
As reported in recent financial statements, 22nd Century Group's operating cash flow frequently tracks net income closely, yet the persistent negative OCF/NI ratios, such as the 4.24 figure in 2024Q2, suggest that accounting accruals provide little relief from the underlying cash burn of the business.
The tight correlation between net losses and operating cash outflows indicates that the company lacks non-cash charges sufficient to bridge the gap between accounting profitability and cash reality. Investors should interpret this as a sign that the business is consuming cash at a rate nearly identical to its reported losses, leaving no room for operational error.
Based on the provided cash flow data, the company has failed to generate positive free cash flow in nine of the last ten quarters, with the 2026Q1 FCF margin of -76.6% highlighting a structural inability to fund operations through internal revenue generation.
The consistent negative FCF trajectory underscores a business model that remains fundamentally unproven at its current scale. Without a clear path to positive margins, the company appears reliant on external capital to sustain its ongoing research and manufacturing activities.
According to quarterly filings, working capital changes have been highly erratic, swinging from a $10.6 million outflow in 2025Q3 to a $5.2 million inflow in 2025Q4, which suggests significant instability in inventory management and the timing of trade payables relative to revenue recognition.
This volatility may indicate that the company is struggling to manage its supply chain effectively while attempting to pivot its product strategy. Such fluctuations in working capital often mask the true underlying cash burn, warranting further investigation into the sustainability of these short-term liquidity adjustments.
As evidenced by the $9.7 million share repurchase in 2026Q1 despite a $3.1 million operating cash outflow, the company's capital deployment strategy appears disconnected from its precarious liquidity position, raising questions about the long-term stewardship of remaining cash reserves.
The decision to prioritize share repurchases while the core business is burning cash suggests a potential misalignment between management's capital allocation and the company's survival needs. Investors should monitor whether these outflows further accelerate the depletion of the company's limited $7.1 million cash balance.
Based on the provided data, the company's cash flow statement obscures the true cost of maintaining its FDA MRTP status, as these expenses are likely embedded within operating outflows rather than being clearly delineated as essential maintenance capital for the firm's primary competitive moat.
The lack of transparency regarding the specific cash costs required to sustain regulatory compliance makes it difficult to determine the 'break-even' point for the business. This ambiguity suggests that the company may be underestimating the ongoing financial burden required to keep its proprietary products authorized for sale.
Quick answers to the most common questions about buying XXII stock.
22nd Century Group, Inc. (XXII) generated $-7.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
22nd Century Group, Inc. (XXII) reported negative free cash flow of $8.6M in 2025, indicating capital requirements exceeded cash from operations.
22nd Century Group, Inc. (XXII) spent $0.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.