Inve US ▾
SNSNES

SenesTech (SNES) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Materials· Aug 5, 2026

Source: earnings call transcript

Executive summary

SenesTech Q2 FY26 — Record Revenue, E-commerce Growth, and Margin Expansion

SenesTech delivered record Q2 FY26 results, driven by a successful shift to in-house e-commerce management, which fueled significant sequential revenue and subscription growth. The company achieved record gross margins and sequential improvement in adjusted EBITDA, validating its strategy to transition from a research-focused to a revenue-driven business. Management is now focused on scaling e-commerce, expanding B2B opportunities through a vertical sales approach, and developing assessment services to build a more diversified commercial platform.

Highlights

5

  • Revenue increased 56% sequentially to a company record of $770,000.

  • E-commerce revenue increased 186% sequentially to a record $511,000.

  • Gross margins reached a company record of 73.6%, up 510 bps sequentially and 810 bps year-over-year.

  • Subscription revenue increased 89% sequentially to a record $104,000.

  • Adjusted EBITDA loss improved 15% sequentially to $1.4 million.

Concerns

3

  • B2B revenue declined to $259,000, though core B2B revenue increased 11% sequentially excluding a prior international order.

  • Total operating expenses increased to $2.4 million, including $270,000 in severance costs.

  • Cash usage for the quarter was approximately $1.7 million, reflecting elevated raw material purchasing and severance payments.

Guidance & targets

CategoryTargetConfidence
Cash runway
Sufficient to fund operations for at least 9 months
high materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
E-commerce
Record performance driven by direct in-house management of Amazon and other e-commerce channels. Amazon revenue has grown every month since direct control began in February. Shopify channel also saw strong sequential growth and record subscribers. Subscription growth is a key focus for recurring revenue and customer lifetime value.
Amazon revenue: $349,000 (up 473% sequentially)Amazon revenue in June: $148,000Non-Amazon e-commerce (Shopify) revenue: $155,000 (up 31% sequentially)Subscription revenue: $104,000 (up 89% sequentially, up 142% YoY)Combined subscriber counts: up 117%
$511,000206%186%—
B2B
Reported B2B revenue declined sequentially and year-over-year due to one-time large orders in prior periods. Excluding these, core B2B revenue showed sequential and year-over-year growth, reflecting the early impact of the new sales leadership and vertical strategy.
Core B2B revenue (excluding $81,000 Q1 international order): up 11% sequentiallyCore B2B revenue (excluding $180,000 Q2 2025 bulk sale and initial stocking order): up 14% YoY
$259,000———
Evolve Product
Strong growth for the Evolve product, increasing its share of total product revenue.
Represented 86% of product revenue (vs 83% a year ago)
$662,00027%——
ContraPest Product
Sequential improvement reflects a targeted approach by the sales team to customers and markets where ContraPest provides the most value.
$107,0002%43%—

Product announcements

ProductTypeDetails
SenesTech Website Redesignlaunch
Assessment Serviceslaunch

Deals & partnerships

Animal and Garden House Expanded distribution into Bermuda.

Expanded distribution into Bermuda, adding to activity in the U.S. Virgin Islands and Belize. This model works with capable local organizations that can support regulatory and commercial execution without requiring disproportionate capital from SenesTech.

Risks & headwinds

Capital burn before profitability at least the next 9 months

Cash usage for the quarter was approximately $1.7 million

Mitigation:focused on driving the monthly run rate and maintaining the gross profit margins; demonstrate the execution, which will make any other efforts that we have going forward much, much easier.

B2B revenue decline (reported) Q2 FY26

B2B revenue was $259,000 compared with $350,000 in the first quarter and $460,000 in the second quarter of 2025.

Mitigation:new sales leadership and vertical strategy take hold; core B2B revenue actually increased by 11% sequentially (excluding one-time items).

What to watch in Q3 FY26

Cash Runway

Next quarter
Current $5.1 million cash, sufficient for at least 9 months
Target Continued sufficiency beyond 9 months, or updated runway

Why it matters

Critical for assessing the company's liquidity and need for future capital raises.

Based on our current operating plan, we believe that our cash and cash equivalents as of June 30, 2026, together with current revenue and operating expense levels, will be sufficient to fund our operations for at least the next 9 months.

Find out whether SNES delivers this. Inve re-checks your case every morning.

Q&A highlights

Which of the new key verticals will be approached first?

Michael Edell outlined the 8 verticals in order of priority: third-party e-commerce, pest management, commercial, agri-business, zoos/sanctuaries, government, retail, and international. He explained that retail is lower initially because large retailers require demonstrated consumer acceptance.

“We positioned the verticals, first being third-party e-commerce, second being pest management, third being commercial, fourth being agri-business, fifth would be zoos and sanctuaries. Government would be sixth, retail is seventh and international is number 8. I would also like to comment on some people have asked me why is retail in the seventh out of eighth in terms of verticals? And the reason is, is that big retailers, big box sellers, need to see a clear demonstration of consumer acceptance of product before they want to take the risk and put that product on their shelf.”

asked by Robert Blum · answered by Michael Edell

2 min read 5 chapters

Detailed narrative

E-commerce Strategy Success

The company's shift to direct in-house management of Amazon and other e-commerce channels has been highly successful, leading to record revenues and subscriber growth. This strategy allows for better control over customer experience, advertising, pricing, and data analytics, enabling rapid adjustments and precise marketing spend allocation. The redesigned SenesTech website further supports this direct-to-consumer approach, focusing on product understanding, ease of purchase, and subscription growth.

B2B Verticalization and Sales Organization Build-out

SenesTech is transitioning its B2B approach from broad outreach to a focused vertical strategy across 8 key markets (third-party e-commerce, pest management, commercial, agri-business, zoos, sanctuaries, government, retail, and international). This involves building a professional sales organization with clear vertical ownership, tailored sales materials, ROI models, and industry-specific messaging to demonstrate how Evolve and ContraPest solve specific business problems beyond just product features.

Launch of Assessment Services

The company launched assessment services in July, completing its first deployment. These services combine trained field personnel, track plates, track tunnels, and proprietary AI technology to provide objective baseline data on rodent infestations. This helps customers understand problem severity, supports customized treatment plans, and improves product efficacy, moving SenesTech towards being a trusted expert in rodent population control rather than just a product company.

International Expansion Model

SenesTech's international strategy focuses on partnering with capable local organizations that can lead the regulatory approval process and support commercial execution. This model allows the company to generate revenue by supporting partners through approvals and establishes commercial relationships for future launches, minimizing capital outlay from SenesTech. Bermuda was added as a new distribution market.

Focus on Operating Leverage and Profitability

The company demonstrated improved economics with gross profit growing faster than revenue, reflecting a more favorable channel mix, stronger direct channel economics, and pricing discipline. Management is committed to disciplined capital deployment and expense management, aiming to translate commercial momentum into sustained improvements in adjusted EBITDA and cash efficiency, with a focus on scalable revenue and attractive contribution margins.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.