SenesTech, Inc. (SNES) Earnings
SenesTech, Inc. is expected to report next earnings on August 6, 2026 (in NaN days), with a consensus EPS estimate of $-0.37. SNES has beaten EPS estimates in 7 of its last 10 reported quarters (average surprise +8.0% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 12, 2026 | $-0.33 | $-0.31 | +6.1% | $493000 | -22.0% |
| Mar 12, 2026 | $-0.30 | $-0.29 | +3.3% | $421000 | -45.7% |
| Aug 7, 2025 | — | $-0.87 | — | $625000 | -14.4% |
| May 8, 2025 | — | $-1.28 | — | $485000 | — |
| Mar 12, 2025 | $-1.50 | $-1.22 | +18.7% | $501000 | -29.1% |
| Aug 8, 2024 | $-3.20 | $-3.08 | +3.8% | $459000 | -4.4% |
| May 9, 2024 | $-3.40 | $-3.60 | -5.9% | $415000 | -3.5% |
| Feb 21, 2024 | $-0.44 | $-0.90 | -104.5% | $295000 | -22.4% |
| Nov 9, 2023 | $-102.04 | $-56.42 | +44.7% | $360000 | -61.7% |
| Aug 10, 2023 | $-93.64 | $-84.03 | +10.3% | $305000 | -46.5% |
| May 11, 2023 | $-97.24 | $-158.46 | -63.0% | $233000 | -21.5% |
| Mar 16, 2023 | $-504.00 | $-3.21 | +99.4% | $297000 | -49.7% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · May 12, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- New CEO Leadership & Strategic Restructuring * Newly appointed CEO Michael Edel began working with Synestec in mid-2025 as a consultant to build a commercial growth-focused strategic plan, became interim COO in October 2025, and has since led operational restructuring. * Key changes include streamlining operations, prioritizing D2C as a core growth engine, moving Evolve brand Amazon account management in-house, restructuring B2B sales processes and teams, and advancing investments in packaging, digital marketing, subscriptions, customer education, and the company's proprietary e-commerce platform. - Direct-to-Consumer & E-Commerce Progress * D2C revenue grew 42% YoY to a record $194,000 in Q1 despite short-term disruption from the Amazon transition, which was a deliberate strategic move to gain full control over customer data, advertising performance, pricing, subscription metrics, and channel economics. * April 2026 (the first full month after transition completion) saw total e-commerce sales grow 163% YoY to a record $146,000, with $96,000 in Evolve Amazon sales and $50,000 in sales through the Synestek website. The company is currently redesigning its website to reduce purchase friction, improve conversion, and support subscription growth, and is refreshing packaging to clearly communicate the product's core value (rat birth control). - Subscription Growth Highlights * Q1 subscription revenue grew 44% YoY to a record $56,000, with subscriber counts up over 50% YoY. April 2026 subscription revenue grew 198% YoY to $36,000, with subscription customer counts up 109% YoY, proving product stickiness, customer engagement, and the viability of a predictable recurring revenue model. - B2B Operational Progress * B2B revenue grew 57% YoY to $298,000, driven by a new focused strategy that concentrates resources on the highest-impact opportunities across municipal, pest management, agricultural, distributor, and commercial verticals, with improved pipeline accountability and forecasting accuracy. * The 12-month New York City rat contraception pilot program is scheduled to launch in May 2026, with ongoing municipal activity across other major U.S. urban markets including Chicago, Boston, and Washington D.C. Growing D2C brand awareness is already driving an increase in inbound B2B leads. - Product & International Expansion * The company plans to expand the Evolve brand with additional rodent control products (including attractants and repellents) to build out a full pest management ecosystem, with direct control of e-commerce channels providing an efficient new product launch platform. * International expansion follows a disciplined approach: the company shipped initial stocking orders to New Zealand and Bermuda in Q1, and will only pursue opportunities with near-term revenue potential, requiring local partners to cover regulatory costs for markets with long/expensive approval processes. - Operating & Financial Discipline * The record 68.6% gross margin was driven by improved production efficiency and reduced reliance on discounted sales, aligning with management's goal of growing revenue while protecting business economics to build a durable company.
Guidance
- Management expects sequential quarter-over-quarter revenue growth and a reasonable chance of achieving record total revenue in coming quarters, based on early positive post-transition results from D2C and e-commerce channels. - With $6.8 million in cash and cash equivalents as of quarter-end, management believes current funding provides sufficient operating runway into the third quarter of 2027. - After one-time transition-related expenses in Q1 FY2026, the company has a formal plan to optimize SG&A and achieve a more streamlined cost structure going forward, supporting focused investment in growth initiatives. - Management is actively exploring non-equity financing options (beyond existing equipment financing) to support capital needs as revenue becomes more predictable, moving beyond reliance on pure equity funding, with the long-term goal of moving incrementally toward breakeven and self-funding.
Segment performance
Total company revenue for Q1 FY2026 was $493,000, a 2% increase compared to $485,000 in Q1 FY2025. Gross profit increased 8% year-over-year to $338,000, with a record gross margin of 68.6% (up from 64.5% in the prior year period), accounting for 100% of total revenue. The Direct-to-Consumer (D2C) segment generated revenue of $194,000, representing a 42% YoY increase and 39.35% of total Q1 revenue. Within D2C, subscription revenue hit a record $56,000, a 44% YoY increase, and accounted for 28.87% of D2C revenue. The B2B segment generated revenue of $298,000, representing a 57% YoY increase and 60.45% of total Q1 revenue.
Risks & headwinds
- The transition to direct management of Amazon sales created expected short-term channel disruption that impacted Q1 FY2026 total revenue growth, which was just 2% YoY as a result. - International expansion carries inherent risk due to long and costly regulatory approval processes in most markets, requiring the company to limit investment and focus only on near-term, low-cost opportunities. - Pilot programs such as the New York City rat contraception trial require close coordination and buy-in from local government partners, and success depends on broader systemic environmental changes beyond the product itself, introducing execution uncertainty. - The company is currently not self-funding and has historically relied on equity financing, with SG&A elevated in Q1 due to one-time restructuring costs, requiring ongoing cost optimization and revenue growth to reach profitability. - Forward-looking statements about future growth, operational improvements, and strategic outcomes are subject to inherent uncertainties that could cause actual results to differ materially from projections, per standard safe harbor disclosures.
Analyst Q&A
Q: Given strong early April results, can investors expect quarter-over-quarter revenue growth and a chance at record revenue?
A: Management confirmed that based on the early positive results from direct D2C control, they expect reasonable sequential quarter-over-quarter growth and believe the company will continue to break revenue records.
Q: What is the core rationale for the new focus on direct-to-consumer sales, after historically prioritizing B2B?
A: Historically, the company lacked sufficient consumer brand awareness, which makes it difficult to drive B2B and retail partner interest, especially with large brick-and-mortar retailers. Building D2C success and brand awareness will create pull-through that supports future B2B and retail expansion.
Q: SG&A was elevated this quarter even after adjusting for one-time costs. Is there a plan to optimize SG&A to align with the current size of the business?
A: The elevated Q1 SG&A reflected one-time transition investments, including severance, resolving legacy distracting legal matters, and hiring new skilled personnel. With these one-time items completed, management now plans to streamline SG&A going forward, and has already provided a normalized view of operating burn to investors.
Q: Why are subscriptions such a core priority for the business going forward?
A: Evolve is a repeatable consumable product that is naturally suited for recurring revenue. Customer acquisition is far more expensive for one-time purchases than for retained subscription customers, and growing subscriptions builds customer stickiness that creates a flywheel effect for long-term, predictable business momentum.