SenesTech, Inc. Q4 FY2025 earnings call

• Leadership transition: Joel Fruent retired, Dr. Jamie Bechtel is interim executive chair, board initiated CEO search. - Financial performance: 2025 revenue increased 20% to ~$2.2 million, e-commerce growth 88%. Gross margin improved. Net loss reported but adjusted net loss and EBITDA loss improved. - Segment activities: E-commerce expansion, municipal markets growth (fertility control initiatives in cities), international expansion (regulatory approvals, new distribution), retail presentations to brick-and-mortar retailers. - Legal dispute: Dispute with LIFATEC resolved, litigation dismissed.

E-commerce was the fastest-growing segment. For the year, e-commerce revenue increased 88%, driven by strong growth on Amazon and the direct-to-consumer website. Even with the temporary transition impact, e-commerce now represents more than one-half of total revenue. Other segments include municipal markets where interest in fertility control approaches grows, international expansion with regulatory approvals and new distribution relationships, and retail where multiple presentations have been made to brick-and-mortar retailers. Gross margin improved to 62.5% in 2025 compared with 54.1% in 2024. Net loss was $6.4 million in 2025 compared with $6.2 million in 2024. Adjusted net loss excluding certain items was approximately $5.6 million, and adjusted EBITDA loss improved to $5.3 million in 2025 from $5.8 million in 2024. Cash and short-term investments ended the year at $8.6 million.

• Expected higher growth in 2026 aiming to accelerate growth in profitable areas. - Contributors to 2026 revenues include Amazon and D2C, pest management professionals networks, municipal orders, international expansion. - Retail growth potential is explosive when brick-and-mortar retailers start large orders. - Anticipated progress in New York City trial conclusion and expansion in Chicago neighborhoods. - Social media to pick up as new initiatives roll out.

• Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those described. Need to refer to company's SEC filings for discussion of risks.

Q: Given that 2025 revenue growth would have been 30% excluding Amazon transition, should we expect similar growth rate in 2026 or could this be higher?

A: Yes, absolutely, it can be higher, aiming to accelerate growth in profitable areas.

Q: What are likely to be the contributors to 2026 revenues?

A: Mixture of Amazon and D2C, pest management professionals networks, municipal orders, international expansion in New Zealand, Belize, etc.

Q: What kind of follow-up should we expect from the two field validations in urban areas? What level of revenue should we expect from these two areas?

A: Not able to give exact revenue level as New York trial conclusion and Chicago expansion details are ongoing.

Q: Why have all the social media accounts been quiet since December of 2025? Talk about the marketing department employment there.

A: Marketing team focused on strengthening core commercial efforts, customer outreach, sales enablement, etc., but will pick up as initiatives roll out.

Q: What is the status of the court case of Leifatech versus Synestek?

A: Case settled to satisfaction of all parties, results immaterial financially and operationally.

Q: What is the status of product registration in Australia?

A: Submitted necessary information, regulatory authorities expect response in spring, expecting positive response.

Q: How much revenue do you expect from Belgium during the coming two years?

A: No direct input or insight into Belgium as no partner there.

Q: Can you break out the SG&A?

A: Detail will be in 10-K.

Q: What are the new international opportunities?

A: Can't comment until signed agreements in place.

Q: How likely is it that Evolve Bait gets to brick and mortar during the first half of 2026?

A: More likely in second half of year.

Q: What municipalities besides New York City are evaluating EVOLVE?

A: Baltimore concluded study and deploying, Chicago has neighborhood deployments, others may have trials but details not readily available.

Q: How is the agricultural sector working out?

A: Working out well, expanding in almond groves, sugarcane, poultry, irrigation areas.

Q: How soon will you know about the trials that in the New York City program, and what's the potential market for that?

A: Trial ends spring, begun discussions with pest management organizations for potential bids.

Q: How has the e-commerce business been when it comes to Home Depot and Lowe's?

A: Not a huge e-commerce push yet, but continuing discussions.

Q: Are there any new species you anticipate in 2026 or 2027, such as ground squirrels, gophers, etc.?

A: Technology broadly applicable to mammalian species, but some complexities with grouse squirrels due to different regulatory approach.

Q: Will EvolveRodentBirthControl.com be available in the future?

A: Will look into why it's down, should be up.

Q: What qualities is the board looking for in the next CEO to improve profitability or the probability of successful commercialization?

A: Strong commercial instinct, experience scaling business, ability to build and lead high-performance teams, operational discipline.

Q: Cash runway implies losses at current revenue levels. Is there any reason why improvement should not be expected?

A: No reason, improvement should be expected but conservative in disclosure.

Q: Inventory grew 25% year-over-year. Is current inventory reflecting anticipated demand from newly expanded locations or slower than expected inventory turnover?

A: Reflecting anticipated demand from surge demand.

Q: Why was Joel not able to be on the call today?

A: Strong leadership team in place, continuity in transition, team aligned.

Q: What other target markets will Synestec focus on this year? Will there be increased focus on the agricultural sector, for instance?

A: Focus on all previously talked about markets, agricultural sector is part of it.

Q: Have there been any new trials in or deployments in major cities, specifically on the West Coast, San Francisco, Los Angeles, for instance?

A: San Francisco has ongoing trial, UC Irvine Housing Project trial concluded successfully.

Q: Does management attend any industry conferences to showcase Evolve?

A: Yes, attend shows like Pest World, ACE show, Bradley Caldwell show, etc.

Q: Will the new CEO have incentives built around the price of the company's stock?

A: Yes, CEO's compensation structure expected to have meaningful equity-based portion aligned with long-term shareholder value.

Q: Will you be expanding your sales team?

A: Yes, will have sales team conference to determine resources needed for B2B growth.

Q: Can you clarify when the New Zealand order was shipped and if it was in Q1, how much of the inventory did that eat up and has it been replaced?

A: Shipment in Q1, inventory replaced. Follow-up on New Zealand follow-up orders: opportunity is tremendous but no forecast yet.

Q: Sales working with UC Davis regarding Kern County and other California counties being overrun by rats?

A: Focused on that, California has opportunity due to ban/limit of certain rodenticides.