SenesTech Reports Record Q2 2026 Revenue and Gross Margin as E-commerce Growth Accelerates
Rhea-AI Summary
SenesTech (NASDAQ: SNES) reported record Q2 2026 revenue of $770,000, up 56% from Q1 2026 and 23% year over year, driven by rapid e-commerce growth. E-commerce revenue reached a record $511,000, more than tripling sequentially and surpassing direct B2B revenue for the first time, with Amazon revenue jumping to $349,000 in the first full quarter of in-house management.
Gross profit rose to a record $567,000, with gross margin improving to a company-record 73.6%. Net loss was $1.8 million, better than Q1 2026 but higher than Q2 2025. Adjusted EBITDA loss was $1.4 million. Cash and equivalents totaled $5.1 million at June 30, 2026. July 2026 e-commerce revenue and subscription revenue each set new monthly records.
Positive
- Q2 2026 revenue up 56% QoQ to $770,000
- E-commerce revenue more than tripled QoQ to $511,000
- Amazon channel revenue rose to $349,000 from $61,000 QoQ
- Gross margin reached a record 73.6% in Q2 2026
- Gross profit increased to $567,000 from $409,000 YoY
- Cash and equivalents stood at $5.1 million at quarter end
Negative
- Net loss widened YoY to $1.83 million from $1.62 million
- Selling, general and administrative expenses rose to $2.05 million from $1.60 million
- Adjusted EBITDA loss increased YoY to $1.37 million from $1.24 million
- Cash and equivalents declined from $7.58 million at Dec. 31, 2025 to $5.08 million
- Stockholders' equity decreased to $6.05 million from $9.57 million at year-end 2025
AI-generated analysis. How Rhea-AI works. Not financial advice.
Revenue rose
Q2 2026 Financial Highlights
- Total revenue increased
56% to a record$770,000 $493,000 23% compared to$625,000 - First-half 2026 revenue increased
14% year over year to a record$1.26 million $1.11 million - E-commerce revenue, which includes both online DTC and online B2B channels, more than tripled to a record
$511,000 $179,000 186% , and increased206% compared to$167,000 - Amazon revenue increased more than fivefold to a record
$349,000 $61,000 - The Company's e-commerce website revenue increased
31% to$155,000 $118,000 - DTC subscription revenue increased
89% to a record$104,000 $55,000 142% compared to$43,000 117% to a record level at quarter end, further strengthening the Company's recurring revenue base and increasing revenue visibility. - Direct B2B revenue was
$259,000 $460,000 $180,000 - Evolve® revenue increased
27% to$662,000 $520,000 86% of product revenue, compared to83% in Q2 2025. ContraPest® revenue increased to$107,000 $105,000 43% from$75,000 - Gross profit increased
68% to a record$567,000 $338,000 39% compared to$409,000 - Gross margin increased to a company-record
73.6% in Q2 2026, compared to68.5% in Q1 2026 and65.5% in Q2 2025. The improvement reflected continued strength in the Company's e-commerce business, favorable supply costs, favorable product mix and disciplined pricing practices. - Net loss for Q2 2026 improved to
$1.8 million $2.1 million $1.6 million $273,000 - Adjusted EBITDA loss improved
15% to$1.4 million $1.6 million $1.2 million - Cash and cash equivalents totaled
$5.1 million
July 2026 E-Commerce Momentum Accelerates
- E-commerce revenue for July 2026 increased
19% to a record$245,000 $206,000 - Subscription-based revenue increased
22% to a record$53,000 $43,000
Recent Operational and Strategic Highlights
- Leadership and Commercial Organization Strengthened: Since Michael Edell became Chief Operating Officer in November 2025 and President and Chief Executive Officer in May 2026, SenesTech has rapidly advanced its strategic growth initiatives from planning to execution, including direct Amazon management, subscription expansion, the launch of its redesigned e-commerce website and a more focused B2B strategy. In June 2026, the Company appointed Jack Karabees as Executive Vice President of Sales to build a scalable commercial organization and deepen customer relationships across pest management, agriculture, municipalities, distributors and other targeted verticals.
- Amazon Transition Delivering Record Results: Amazon revenue increased more than fivefold to a record
$349,000 $61,000 $206,000 $148,000 - New E-Commerce Website Launched: SenesTech completed and launched its redesigned e-commerce website in July 2026. The new website was designed to reduce friction throughout the customer purchasing experience by simplifying product education, streamlining the checkout process and supporting subscription growth across both online DTC and online B2B channels. With the new website now in place, the Company is well positioned to launch its expanded digital marketing initiatives in August, providing a stronger platform to attract new customers, improve conversion rates and support long-term e-commerce growth.
- Expansion of Products and Services Offering: SenesTech expanded its products and services offering with the introduction of assessment services that combine field expertise, tracking products and AI-enabled analysis to help direct B2B customers better understand rodent infestations and develop the most effective rodent population management strategy. The offering complements the Company's existing implementation and deployment services and is expected to drive growth in both services revenue and product sales while strengthening customer relationships.
- Agricultural B2B Opportunity Demonstrates Encouraging Results: In July 2026, SenesTech reported successful results from the deployment of Evolve® at a 400-acre
Texas agricultural operation, where on-site observations indicated an estimated80% reduction in rodent activity and a substantial decline in damage to underground irrigation infrastructure. The Company believes the results provide an important commercial validation for its agricultural strategy and demonstrate the potential for repeatable opportunities in large-scale agricultural markets where rodent damage can create significant operating and maintenance costs. - International Distribution Expanded: SenesTech expanded international distribution of Evolve® through a new distribution agreement in
Bermuda , adding to its growing presence in theU.S. Virgin Islands andBelize . The expansion reflects the Company's disciplined strategy of pursuing international markets with attractive regulatory pathways and strong commercial potential while minimizing incremental investment.
Management Commentary
"We believe our second quarter results indicate that the strategy we put in place is working," said Michael Edell, President and Chief Executive Officer of SenesTech. "We achieved record quarterly revenue, record gross profit and record gross margin, driven by the continued execution of our e-commerce strategy across both online DTC and online B2B channels. During the quarter, Amazon completed its first full quarter under Company management, and subscriptions continued to grow rapidly. We view these milestones as early indicators of progress on our strategy of building a stronger direct relationship with our customers while creating a more predictable and recurring revenue base."
"While e-commerce is an important growth driver, it is only one part of our broader strategy. We continue to expand our targeted B2B opportunities, strengthen our sales organization under Jack Karabees, introduce new products and services, and leverage AI-enabled assessment tools to help customers better understand rodent infestations and develop more effective Integrated Pest Management (IPM) programs. By combining products, assessment services, implementation support and AI-enabled analysis, we are providing customers with more complete solutions while creating additional opportunities to grow both product and services revenue."
"The strategy is in place. The operational changes implemented over the past several quarters are beginning to translate into improved financial performance. Now it's about execution, growing revenue and continuing to build the business quarter after quarter, consistently and sustainably. We believe that a disciplined approach will accelerate our path toward profitability," Mr. Edell concluded.
"Our financial results continue to reflect the successful execution of the Company's strategy," said Tom Chesterman, Chief Financial Officer of SenesTech. "Record revenue, record gross profit and record gross margin demonstrate the progress we are making as we continue to scale the business. We remain focused on disciplined execution, continued revenue growth, maintaining strong gross margins and prudent expense management as we work toward profitability."
Use of Non-GAAP Measures
Adjusted EBITDA and Adjusted Net Loss are non-GAAP measures and are not intended to be a substitute for those financial measures reported in accordance with GAAP. These measures have been included because management believes that, when considered together with the GAAP figures, they provide meaningful information related to operating performance and liquidity trends. We use these non-GAAP financial measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with our board of directors concerning our financial performance. These adjustments may be calculated by us differently than other companies that disclose measures with the same or similar term. See our attached financials for a reconciliation of the non-GAAP measures to the nearest GAAP measure.
Conference Call Details
Date: Wednesday, August 5, 2026.
Time: 5:00 p.m. ET.
Webcast: https://app.webinar.net/YnBlE97qw2G
Webcast Replay: Available for 90 days on the Company's website.
About SenesTech
SenesTech is the leader in rodent birth control solutions. The Company's patented products, marketed under its Evolve® and ContraPest® brands, provide effective, sustainable approaches to long-term rodent population management that can be integrated into existing pest management programs or used independently. SenesTech serves both consumer and professional markets with science-based solutions aimed at addressing one of the world's most persistent pest challenges.
For more information, visit https://senestech.com/.
Safe Harbor Statement
This press release contains "forward-looking statements" within the meaning of federal securities laws, and we intend that such forward-looking statements be subject to the safe harbor created thereby. Such forward-looking statements include, among others, statements regarding the acceleration of, and expected benefits from, the Company's direct-to-consumer and e-commerce initiatives, the recurring nature of the Company's growing direct-to-consumer business model, any growth attributable to the appointment of the Company's new CEO, the Company's efforts in driving B2B revenues, any increases in conversion rates and subscription growth, the Company's ability to establish and grow an entirely new category of rodent fertility control, the anticipated benefits of the Company's direct-to-consumer and brand-building investments to its B2B business, the Company's strategy of focusing on selected vertical markets, the Company's entry into paid consultative and assessment services and any revenue therefrom, the Company's positioning as an expert in rodent population management, and any international expansion opportunities for the Company.
Forward-looking statements may describe future expectations, plans, results, or strategies and are often, but not always, made through the use of words such as "believe," "may," "future," "plan," "will," "should," "expect," "anticipate," "eventually," "project," "estimate," "continuing," "intend" and similar words or phrases. You are cautioned that such statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those reflected by such forward-looking statements. Such factors include, among others, the risk that the Company may not realize the benefits expected from its e-commerce, direct-to-consumer, business-to-business and subscription strategies, or be successful in commercialization of its products, realize sufficient market acceptance of its products, or capitalize on market opportunities and accelerate growth; the risks of establishing an entirely new product category, including the time, expense and uncertainty of building market awareness and customer acceptance; the Company's ability to build and scale a professional B2B sales organization and to execute a vertical-market strategy; the Company's ability to develop, price, deliver and achieve market acceptance of new service offerings; risks related to the Company's financial performance, including its ability to fund operations; regulatory approval and regulation of our products; challenges transitioning to direct management of Amazon sales of Evolve products or the results of such direct management not being as expected; having to use cash at times and in ways other than as planned; and other factors and risks identified from time to time in our filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025. All forward-looking statements contained in this press release speak only as of the date on which they were made and are based on management's assumptions and estimates as of such date. Except as required by law, we do not undertake any obligation to publicly update any forward-looking statements, whether as a result of the receipt of new information, the occurrence of future events or otherwise.
CONTACT:
Investors: Robert Blum, Lytham Partners, LLC, (602) 889-9700, senestech@lythampartners.com
Company: Tom Chesterman, Chief Financial Officer, SenesTech, Inc., (928) 779-4143
SENESTECH, INC. BALANCE SHEETS (In thousands, except share and per share data) (Unaudited) | |||
June 30, | December 31, | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 5,080 | $ 7,575 | |
Short-term investments | — | 994 | |
Accounts receivable, net | 361 | 201 | |
Inventory | 969 | 994 | |
Prepaid expenses and other current assets | 373 | 297 | |
Total current assets | 6,783 | 10,061 | |
Right to use asset, operating lease | 2,253 | 2,336 | |
Property and equipment, net | 348 | 410 | |
Other noncurrent assets | 36 | 36 | |
Total assets | $ 9,420 | $ 12,843 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 314 | $ 183 | |
Accrued expenses | 464 | 383 | |
Current portion of operating lease liability | 146 | 139 | |
Current portion of notes payable | 65 | 61 | |
Deferred revenue | 12 | 32 | |
Total current liabilities | 1,001 | 798 | |
Operating lease liability, less current portion | 2,257 | 2,332 | |
Notes payable, less current portion | 111 | 145 | |
Total liabilities | 3,369 | 3,275 | |
Stockholders' equity: | |||
Common stock | 5 | 5 | |
Additional paid-in capital | 152,421 | 152,043 | |
Accumulated deficit | (146,375) | (142,480) | |
Total stockholders' equity | 6,051 | 9,568 | |
Total liabilities and stockholders' equity | $ 9,420 | $ 12,843 | |
SENESTECH, INC. STATEMENTS OF OPERATIONS (In thousands, except share and per share data) (Unaudited) | |||||||
Three Months Ended | Six Months Ended | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Revenues, net | $ 770 | $ 625 | $ 1,263 | $ 1,110 | |||
Cost of sales | 203 | 216 | 358 | 388 | |||
Gross profit | 567 | 409 | 905 | 722 | |||
Operating expenses: | |||||||
Research and development | 377 | 427 | 799 | 845 | |||
Selling, general and administrative | 2,052 | 1,596 | 4,087 | 3,154 | |||
Total operating expenses | 2,429 | 2,023 | 4,886 | 3,999 | |||
Loss from operations | (1,862) | (1,614) | (3,981) | (3,277) | |||
Interest income (expense), net | 30 | (2) | 86 | (4) | |||
Net loss | $ (1,832) | $ (1,616) | $ (3,895) | $ (3,281) | |||
Weighted average shares outstanding — basic and diluted | 5,303,426 | 1,854,531 | 5,283,681 | 1,578,783 | |||
Loss per share — basic and diluted | $ (0.35) | $ (0.87) | $ (0.74) | $ (2.08) | |||
SENESTECH, INC. Itemized Reconciliation Between Net Loss and Adjusted EBITDA (non-GAAP) (In thousands) (Unaudited) | |||||||
Three Months Ended | Six Months Ended | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Net loss (as reported, GAAP) | $ (1,832) | $ (1,616) | $ (3,895) | $ (3,281) | |||
Non-GAAP adjustments: | |||||||
Severance costs | 273 | — | 503 | 27 | |||
One-time legal costs | 4 | 200 | 217 | 245 | |||
Stock-based compensation expense | 182 | 90 | 205 | 181 | |||
Depreciation expense | 31 | 44 | 62 | 74 | |||
Interest (income) expense, net | (30) | 2 | (86) | 4 | |||
Non-cash operating lease expense | 7 | 38 | 15 | 38 | |||
Total non-GAAP adjustments | 467 | 374 | 916 | 569 | |||
Adjusted EBITDA loss (non-GAAP) | $ (1,365) | $ (1,242) | $ (2,979) | $ (2,712) | |||
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SOURCE SenesTech, Inc.