SenesTech Reports Record Direct-to-Consumer and Subscription Growth Following Strategic E-Commerce Transition
Rhea-AI Summary
SenesTech (NASDAQ: SNES) reported Q1 2026 revenue of $493,000, up 2% year over year, with a company-record gross margin of 68.6%. Direct-to-consumer sales grew 42% to $194,000 and subscription revenue rose 44% to $56,000, while B2B revenue increased 57% to $298,000.
Net loss widened to $2.1 million, including $443,000 of severance and one-time legal costs. April 2026 e-commerce sales grew 163% year over year to $146,000, with subscription revenue up 198%. Michael Edell was appointed CEO, supporting the in-house Amazon and recurring revenue strategy.
AI-generated analysis. Not financial advice.
Positive
- Q1 2026 revenue increased 2% to $493,000
- Company-record Q1 2026 gross margin of 68.6%
- Direct-to-consumer revenue up 42% to $194,000 in Q1 2026
- Subscription revenue up 44% to $56,000 in Q1 2026
- B2B revenue up 57% to $298,000 in Q1 2026
- April 2026 e-commerce sales up 163% year over year to $146,000
- April 2026 subscription revenue up 198% to $36,000
- Cash and equivalents of $6.8 million at March 31, 2026
Negative
- Net loss increased to $2.1 million in Q1 2026 from $1.7 million
- Q1 2026 included $443,000 in severance and one-time legal expenses
- Adjusted EBITDA loss widened to $1.6 million in Q1 2026 from $1.5 million
- Third-party e-commerce revenue fell to $17,000 from $157,000 in Q1 2025
News Market Reaction – SNES
On the day this news was published, SNES gained 9.04%, reflecting a notable positive market reaction. Argus tracked a trough of -18.0% from its starting point during tracking. Our momentum scanner triggered 5 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $808K to the company's valuation, bringing the market cap to $9.74M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Sector peers in specialty/ag chemicals showed mixed trading, with momentum names like FEAM and FSI moving up, while SNES was flat at 0% change ahead of its Q1 report, indicating stock-specific focus rather than a broad sector swing.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| May 07 | Earnings call date | Neutral | -12.2% | Announced timing of Q1 2026 financial results and conference call logistics. |
| May 07 | CEO appointment | Positive | +34.0% | Named Michael Edell as CEO to drive revenue growth and scalable sales channels. |
| Mar 12 | Full-year earnings | Positive | -15.0% | Reported 2025 revenue up 20% to $2.2M with margin gains and narrower EBITDA loss. |
| Mar 09 | Earnings call date | Neutral | -6.6% | Set date and time for Q4 and full-year 2025 earnings release and webcast. |
| Feb 18 | Field study data | Positive | -1.1% | Shared urban field results showing large reductions in rodent activity after Evolve use. |
Stock reactions to fundamentals have been inconsistent, with notable selloffs following positive 2025 results, but a strong gain on the recent CEO appointment. Operationally, management has steadily emphasized e-commerce, Amazon control, and recurring revenue.
Over the last six months, SenesTech has focused on e-commerce-led growth and leadership transition. Full-year 2025 revenue rose to $2.2M with gross margin at 62.5%, yet the stock fell after that report. The company highlighted strong Evolve field data and international expansion while continuing to post net losses. In March and May, it scheduled and then reported earnings calls, and in early May appointed Michael Edell as CEO, which coincided with a 34.01% share price gain, underscoring investor attention to execution and leadership.
Regulatory & Risk Context
An effective S-3 shelf filed on 2025-08-15 registers shares for resale by existing holders, with proceeds to the company only from any warrant exercises. Stated uses include general corporate purposes such as R&D, capital expenditures and working capital, and potential acquisitions with no specific commitments disclosed.
Market Pulse Summary
The stock moved +9.0% in the session following this news. A strong positive reaction aligns with the company’s record Q1 gross margin of 68.6% and rapid direct-to-consumer and subscription growth, including April e-commerce sales of $146,000. Historically, investors have sometimes sold into good fundamental news, as seen after 2025 results, so any sharp gain has faced the risk of profit-taking or capital-raising overhang from existing registration statements. Leadership changes and execution on Amazon and subscriptions have been key drivers of sentiment.
Key Terms
adjusted ebitda financial
non-gaap financial
webcast technical
AI-generated analysis. Not financial advice.
In-house e-commerce transition and new CEO expected to support scalable recurring revenue growth strategy
Q1 2026 Financial Highlights
- Revenue increased
2% to$493,000 $485,000 $157,000 8% to$338,000 $313,000 - Direct-to-consumer revenue increased
42% to$194,000 $137,000 - Subscription revenue increased
44% to$56,000 $39,000 - Third party e-commerce revenues declined to
$17,000 $157,000 - B2B revenue increased
57% to$298,000 $190,000 - Gross margin expanded to a company record
68.6% in Q1 2026 as direct channel economics improved and pricing discipline strengthened. - Net loss for Q1 2026 was
$2 $1 $443,000 - Adjusted EBITDA loss was
$1 $1 - Cash and equivalents totaled
$6
April 2026 E-Commerce Momentum
- April 2026 represented the first full month following completion of the Company's Amazon transition from third-party e-commerce management to direct in-house management.
- E-commerce sales for April 2026 increased
163% to a record$146,000 $56,000 47% compared to$99,000 - Subscription-based revenue increased
198% to a record$36,000 $12,000 109% , reinforcing the recurring nature of the Company's growing direct-to-consumer business model.
Recent Operational and Strategic Highlights
- Appointment of New CEO: Michael Edell's appointment as President and Chief Executive Officer in May 2026 reinforces SenesTech's focus on operational accountability, scalable growth, and disciplined execution. During his tenure as Interim Chief Operating Officer, Mr. Edell helped accelerate the Company's direct-to-consumer strategy, including the transition to direct Amazon management, subscription growth initiatives, packaging redesign efforts, and broader go-to-market execution across e-commerce, distributor, municipal, and other B2B channels.
- Amazon Direct Management Transition Completed: SenesTech substantially completed its transition from third party e-commerce management of Amazon sales of Evolve products during March 2026. The transition provides the Company with greater visibility into customer behavior, enhanced control over advertising and media buying, improved pricing visibility, stronger customer engagement opportunities, and greater control over overall channel economics.
- E-Commerce Website Redesign Underway: SenesTech continues to redesign the e-commerce section of SenesTech.com to improve customer experience, simplify navigation, increase conversion rates, and support subscription growth. The redesign is expected to align closely with updated packaging, digital advertising initiatives, and broader consumer marketing efforts, with launch currently targeted for Q3 2026.
- B2B Vertical Expansion Strategy: SenesTech continues to refine its B2B strategy with increased focus on large-scale opportunities across targeted verticals including pest management, agriculture, municipalities, distributors, and other commercial markets capable of generating larger dollar opportunities. The emphasis on direct-to-consumer growth is also expected to support B2B revenues through increased brand awareness and inbound lead generation.
- Packaging Refresh Initiative: SenesTech is implementing updated packaging designed to improve online and shelf visibility and strengthen differentiation.
- Municipal Deployment Growth: SenesTech continues to see increased municipal deployment activity across major urban markets, including
Chicago ,Boston ,Washington, D.C. , andNew York City . The previously announced 12-monthNew York City rat contraception pilot program is expected to conclude this month. - International Activity: SenesTech continues to pursue international expansion opportunities on an opportunistic basis, with a focus on countries that can move efficiently through the regulatory process with minimal incremental cost to the Company.
Management Commentary
"SenesTech is entering a new phase where we are building a more scalable, data-driven and recurring revenue business model around the growing demand for non-poison rodent management solutions," said Michael Edell, Chief Executive Officer of SenesTech. "The strategic transition to directly managing our Amazon business and revamping our online e-commerce store has significantly improved our visibility into customer behavior, advertising performance, subscriptions, and overall channel economics. We are already seeing strong momentum in our direct-to-consumer business, particularly through accelerating subscription adoption and improved Amazon execution."
Mr. Edell continued, "Our efforts across Amazon, Shopify, packaging redesign, digital media buying, subscriptions, and customer engagement are all connected initiatives intended to reduce friction, improve conversion, increase customer retention, and create a stronger recurring revenue foundation. At the same time, we remain focused on improving operational discipline, maintaining strong gross margins and positioning the Company for scalable long-term growth."
"Our first quarter results reflected the expected temporary disruption associated with transitioning Amazon operations in-house, however the underlying consumer demand trends and April proof points were highly encouraging," said Tom Chesterman, Chief Financial Officer of SenesTech. "Direct-to-consumer revenue increased
Use of Non-GAAP Measure
Adjusted EBITDA and Adjusted Net Loss are non-GAAP measures. However, these measures 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: Tuesday, May 12, 2026.
Time: 5:00 p.m. ET.
Webcast: https://app.webinar.net/m976bqQblKE.
Webcast Replay: Available for 90 days on the Company's website.
About SenesTech
SenesTech is committed to creating healthier environments by managing animal pest populations through birth control. The Company's groundbreaking products, including Evolve rodent birth control, integrate seamlessly into pest management programs, significantly enhancing their effectiveness while reducing reliance on traditional poisons. SenesTech's mission is to create cleaner cities, more efficient businesses, and healthier communities with products that are effective and sustainable.
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 the Company's direct-to-consumer and e-commerce initiatives, the recurring nature of the Company's growing director-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, 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 successful commercialization of our products; market acceptance of our products; our financial performance, including our 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 our 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) | |||
March 31, | December 31, | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 6,804 | $ 7,575 | |
Short-term investments | — | 994 | |
Accounts receivable, net | 163 | 201 | |
Inventory | 1,048 | 994 | |
Prepaid expenses and other current assets | 338 | 297 | |
Total current assets | 8,353 | 10,061 | |
Right to use asset, operating lease | 2,295 | 2,336 | |
Property and equipment, net | 379 | 410 | |
Other noncurrent assets | 36 | 36 | |
Total assets | $ 11,063 | $ 12,843 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 115 | $ 183 | |
Accrued expenses | 593 | 383 | |
Current portion of operating lease liability | 142 | 139 | |
Current portion of notes payable | 63 | 61 | |
Deferred revenue | 25 | 32 | |
Total current liabilities | 938 | 798 | |
Operating lease liability, less current portion | 2,296 | 2,332 | |
Notes payable, less current portion | 128 | 145 | |
Total liabilities | 3,362 | 3,275 | |
Stockholders' equity: | |||
Common stock | 5 | 5 | |
Additional paid-in capital | 152,239 | 152,043 | |
Accumulated deficit | (144,543) | (142,480) | |
Total stockholders' equity | 7,701 | 9,568 | |
Total liabilities and stockholders' equity | $ 11,063 | $ 12,843 | |
SENESTECH, INC. | |||
STATEMENTS OF OPERATIONS | |||
(In thousands, except share and per share data) | |||
(Unaudited) | |||
Three Months Ended | |||
2026 | 2025 | ||
Revenues, net | $ 493 | $ 485 | |
Cost of sales | 155 | 172 | |
Gross profit | 338 | 313 | |
Operating expenses: | |||
Research and development | 422 | 418 | |
Selling, general and administrative | 2,035 | 1,558 | |
Total operating expenses | 2,457 | 1,976 | |
Loss from operations | (2,119) | (1,663) | |
Interest income (expense), net | 56 | (2) | |
Net loss | $ (2,063) | $ (1,665) | |
Weighted average shares outstanding — basic and diluted | 5,263,717 | 1,299,971 | |
Loss per share — basic and diluted | $ (0.39) | $ (1.28) | |
SENESTECH, INC. | |||
Itemized Reconciliation Between Net Loss and Adjusted EBITDA (non-GAAP) | |||
(In thousands) | |||
(Unaudited) | |||
Three Months Ended | |||
2026 | 2025 | ||
Net loss (as reported, GAAP) | $ (2,063) | $ (1,665) | |
Non-GAAP adjustments: | |||
Severance costs | 230 | 27 | |
One-time legal costs | 213 | 45 | |
Interest income, net | (56) | 2 | |
Stock-based compensation expense | 23 | 91 | |
Depreciation expense | 31 | 39 | |
Non-cash operating lease expense | 8 | — | |
Total non-GAAP adjustments | 449 | 204 | |
Adjusted EBITDA loss (non-GAAP) | $ (1,614) | $ (1,461) | |
SenesTech Inc. | |||||
Reconciliation of Net Loss and Adjusted Net Loss (non-GAAP) | |||||
(In thousands) | |||||
(Unaudited) | |||||
Three Months Ended | Percent | ||||
2026 | 2025 | ||||
Net loss (as reported, GAAP) | $ (2,063) | $ (1,665) | 24 % | ||
Non-GAAP adjustments: | |||||
Severance costs | 230 | 27 | |||
One-time legal costs | 213 | 45 | |||
Adjusted net loss (non-GAAP) | $ (1,620) | $ (1,593) | 2 % | ||
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SOURCE SenesTech, Inc.