SenesTech, Inc.

What they do

SenesTech develops and sells products that manage rat and mouse populations through fertility control rather than eradication, with active ingredients such as cottonseed oil and vinylcyclohexene diepoxide (VCD). Its products are Evolve Rat, launched January 2024 and now the primary revenue product, Evolve Mouse, launched May 2024, and the older ContraPest, which received EPA registration in 2016. Evolve products qualify as minimum risk pesticides under Section 25(b) of FIFRA and are exempt from federal registration, but the company must obtain state registrations where the federal exemption is not accepted; as of the 10-K it was authorized to sell Evolve Rat in 48 states and territories and Evolve Mouse in 37.

Revenue drivers

• Evolve Rat and Evolve Mouse — The Evolve line is the primary revenue-generating product; Evolve revenue was $662,000 in Q2 2026, or 86% of product revenue, versus $520,000 and 83% in Q2 2025.
• E-commerce (Amazon and company website) — Online DTC and online B2B sales more than tripled to $511,000 in Q2 2026 from $179,000 in Q1 2026 and exceeded direct B2B revenue for the first time; Amazon revenue alone rose to $349,000 from $61,000 after SenesTech took Amazon management in-house in February 2026.
• Direct B2B — Sales to distributors and pest management providers were $259,000 in Q2 2026, down from $460,000 in Q2 2025, which the company attributes to a $180,000 periodic bulk sale tied to prior third-party Amazon management and a large initial distributor stocking order in the year-ago period.
• ContraPest — The original EPA-registered product contributed $107,000 in Q2 2026, roughly flat versus $105,000 in Q2 2025 but up 43% from $75,000 in Q1 2026.

Recent performance

Q2 2026 total revenue was a record $770,000, up 56% sequentially from $493,000 in Q1 2026 and up 23% from $625,000 in Q2 2025. Gross profit rose to a record $567,000 with a company-record gross margin of 73.6%, versus 68.5% in Q1 2026 and 65.5% in Q2 2025. Net loss was $1.8 million, improving from $2.1 million in Q1 2026 but wider than the $1.6 million loss in Q2 2025, and included $273,000 of severance costs. Adjusted EBITDA loss improved to $1.4 million from $1.6 million in Q1 2026, and cash and cash equivalents were $5.1 million at June 30, 2026. First-half 2026 revenue was $1.26 million, up 14% year over year.

Strategy

Management is shifting the business toward e-commerce, taking Amazon management in-house in February 2026 to control advertising, pricing and channel economics, and reported record order count, subscription revenue and subscriber count in the first full quarter under that model. The company is emphasizing recurring revenue: DTC subscription revenue rose 89% sequentially to $104,000, and combined subscriber count across Amazon and its website increased 117% to a record level at quarter end. It has appointed a new EVP of Sales to pursue targeted B2B verticals now that the e-commerce base is established. It continues state-by-state registration of Evolve Rat and Evolve Mouse and has begun marketing Evolve products internationally.

Risks

• Limited commercial traction — The 10-K states the company has not yet had significant sales of ContraPest and Evolve, its only commercially available products, and five-year annual revenue remains modest at $2.2 million in 2025.
• Persistent losses and cash use — Net loss was $6.4 million in 2025 and $1.8 million in Q2 2026, with operating cash flow negative every year from 2021 to 2025 (−$5.8 million in 2025), leaving $5.1 million of cash at June 30, 2026.
• State-by-state registration limits — Although Evolve is exempt from federal registration as a minimum risk pesticide under FIFRA Section 25(b), SenesTech must still register in states that do not accept the federal exemption and is currently authorized in only 48 states for Evolve Rat and 37 for Evolve Mouse.
• Nasdaq listing and financing needs — The 10-Q risk disclosures cite ability to maintain compliance with Nasdaq Capital Market continued listing requirements and ability to fund operations, alongside heavily diluted per-share results (diluted EPS of −$1.95 in 2025).

Outlook

Management describes the second quarter as the first full quarter of in-house Amazon management and frames e-commerce as the base for a scalable, recurring-revenue platform, with subscriber growth cited as improving revenue visibility. It says a new EVP of Sales will push growth across targeted B2B verticals now that the online channel is established. The company also points to state registration expansion and international marketing of Evolve products as ongoing priorities, while its risk disclosures continue to flag funding needs and Nasdaq listing compliance.