SenesTech (NASDAQ:SNES) reported second-quarter 2026 revenue of $770,000, a company record and an increase of 56% from the first quarter and 23% from the prior-year period, as direct management of its Amazon and other e-commerce channels drove growth.
President and CEO Michael Edell said the quarter represented the first full period in which the company managed Amazon and its e-commerce operations internally from start to finish. He characterized the results as evidence that the company’s commercial strategy, centered on direct consumer relationships, subscription revenue, data analytics and channel discipline, is gaining traction.
E-commerce and Subscription Growth
Edell said Amazon revenue increased in every month since the company assumed direct control of the channel in mid-February, reaching $148,000 in June. Total e-commerce revenue reached $206,000 in June, the company’s strongest e-commerce month during the quarter.
Subscription revenue rose 89% sequentially to $104,000 and increased 142% from the year-earlier quarter. Combined subscriber counts across Amazon and SenesTech’s own e-commerce site increased 117%, according to management.
After the quarter ended, SenesTech reported July e-commerce revenue of $245,000, up 19% from June, while subscription revenue reached $52,000, up 22% from the prior month. The company also completed a redesign of its website in July, placing its Evolve rodent fertility-control product and rodent birth control more prominently in the customer experience.
“The Evolve product is not intended to be a one-time purchase,” Edell said, describing subscriptions and repeat purchases as central components of the company’s model.
B2B Strategy Shifts Toward Vertical Markets
Business-to-business revenue totaled $259,000 in the second quarter, compared with $350,000 in the first quarter and $460,000 in the prior-year quarter. Chief Financial Officer Tom Chesterman said the first-quarter figure included an $81,000 international order carried over from 2025. Excluding that order, core B2B revenue increased 11% sequentially, he said.
The prior-year B2B comparison included a $180,000 periodic bulk sale tied to the former third-party management of Amazon, as well as an initial stocking order from a large distributor. Excluding those items, Chesterman said core B2B revenue increased 14% year over year.
SenesTech appointed Jack Karabees as executive vice president of sales in June. Edell said Karabees began full-time work July 1 and is building a sales organization with clearer vertical-market ownership, pipeline tracking, forecasting and follow-up processes. A regional sales manager and director of marketing joined in July.
The company identified eight strategic verticals: third-party e-commerce, pest management, commercial customers, agribusiness, zoos and sanctuaries, government, retail and international markets. Edell said the company will prioritize investments based on customer adoption and results in each segment.
Management cited a 400-acre Texas agricultural deployment as an example of the opportunity in vertical markets. On-site observations indicated an estimated 80% reduction in rodent activity and a substantial decline in damage to underground irrigation infrastructure, according to Edell.
SenesTech also launched assessment services in July and completed its first deployment. The service uses field personnel, track plates, track tunnels and proprietary artificial-intelligence technology to assess rodent activity, establish a baseline and help customers select treatment programs. The company said the services could generate additional revenue, improve product placement and create a database of customer and performance results.
Margins Improve as Revenue Mix Changes
Gross profit increased 68% sequentially and 39% year over year to a record $567,000. Gross margin rose to a company-record 73.6%, compared with 68.5% in the first quarter and 65.5% a year earlier.
Chesterman attributed the margin expansion to a more favorable channel mix, stronger economics in direct channels, pricing discipline and favorable raw-material costs. Edell said the company had also reduced certain lower-margin transactions and partner arrangements involving what he viewed as excessive discounting and end-of-quarter promotions.
By product, Evolve revenue was $662,000, up 27% from the prior-year quarter and representing 86% of product revenue. ContraPest revenue was $107,000, up 2% year over year and 43% sequentially.
Total operating expenses were $2.4 million, compared with $2 million in the prior-year period. The current quarter included $270,000 in severance costs, as well as investments in e-commerce, brand development, sales capabilities and other commercial initiatives.
Net loss improved sequentially to $1.8 million from $2.1 million in the first quarter, but widened from $1.6 million a year earlier. Adjusted EBITDA loss improved 15% from the prior quarter to $1.4 million, compared with $1.6 million in the first quarter and $1.2 million in the year-ago period.
Cash Position and International Priorities
SenesTech ended June with $5.1 million in cash and cash equivalents. Cash usage was about $1.7 million during the quarter, reflecting elevated raw-material purchases in May and severance payments. Cash use declined to $298,000 in June from $917,000 in May, Chesterman said.
Based on its current operating plan, the company said its cash, current revenue and expense levels should be sufficient to fund operations for at least the next nine months.
Internationally, SenesTech expanded distribution into Bermuda through partner Animal & Garden House, adding to activity in the U.S. Virgin Islands and Belize. Edell said the company is currently deploying in New Zealand, remains in the regulatory process in Australia, and is not operating in India or elsewhere in Asia at this time.
Management declined to provide forward revenue, profitability or capital-raising guidance. Edell said the company is focused on increasing monthly revenue run rates while maintaining gross margins, and indicated that the expanded B2B sales organization may require additional quarters to demonstrate progress on larger opportunities.
About Senestech (NASDAQ:SNES)
SenesTech, Inc (NASDAQ: SNES) is a biotechnology company specializing in non-lethal pest management solutions. The company’s core focus is the development and commercialization of fertility-based control methods for commensal rodents, providing an alternative to traditional rodenticides. By targeting the reproductive cycle of rats, SenesTech aims to reduce rodent populations over time without the use of toxic chemicals, offering a more sustainable approach for pest management professionals.
The company’s flagship product, ContraPest®, is an EPA-registered liquid bait that disrupts rodent reproduction.
