Senestech (NASDAQ:SNES) reported a modest increase in first-quarter revenue while highlighting early progress from a strategic shift toward direct-to-consumer sales, subscription revenue and tighter control of its e-commerce channels.
The company, which develops fertility-control products for rodent management, reported revenue of $493,000 for the quarter ended March 31, 2026, up 2% from $485,000 in the prior-year period. Chief Financial Officer Thomas Chesterman said the results should be viewed in the context of SenesTech’s transition from third-party management to direct management of Amazon sales for its Evolve brand, which was substantially completed in mid-March.
Direct-to-Consumer Sales and Subscriptions Rise
Newly appointed President and Chief Executive Officer Michael Edell used his first earnings call in the role to outline a commercial strategy centered on making SenesTech’s products “easier to understand, easier to buy, easier to deploy, and easier to reorder.” He said direct-to-consumer revenue is now a core growth engine for the company.
Direct-to-consumer revenue rose 42% in the first quarter to a record $194,000, compared with $137,000 in the prior-year period. Subscription revenue increased 44% to a record $56,000, while subscriber counts rose more than 50%, according to management.
Edell said the company is focused on recurring revenue because Evolve is intended to be part of an ongoing rodent management program rather than a one-time purchase. He said subscription-based customers provide a more predictable revenue stream and lower customer acquisition costs compared with one-time purchases.
Management pointed to April results as an early sign of momentum after the Amazon transition. E-commerce sales increased 163% year over year to approximately $146,000 in April, including about $96,000 from Amazon retail sales of Evolve products and approximately $50,000 from SenesTech’s own website. Subscription-based revenue rose 198% year over year in April to approximately $36,000.
Amazon Transition Seen as Key to Growth Strategy
Edell said direct management of Amazon gives SenesTech better access to customer behavior, advertising performance, subscription data, pricing visibility and media buying efficiency. The company began taking control of advertising execution in mid-February and completed the broader transition in March.
“We can learn faster, we could test faster, and we can improve conversion faster,” Edell said.
SenesTech is also redesigning its e-commerce website, reactivating Google advertising, refreshing packaging and expanding customer education. Edell said the updated packaging will more prominently feature “rat birth control” messaging to help customers quickly understand the product’s purpose.
During the question-and-answer session, Edell said the direct-to-consumer strategy is also intended to build brand awareness that can support business-to-business and retail opportunities. Asked about brick-and-mortar retailers such as Home Depot, he said large retailers look for evidence that consumers already recognize and seek out a product.
B2B Revenue Improves as Sales Process Is Restructured
SenesTech also reported stronger business-to-business revenue. B2B sales increased 57% to $298,000 in the first quarter, compared with approximately $190,000 in the year-ago quarter.
Edell said the company has restructured its B2B team and sales processes to improve pipeline visibility, forecasting accountability and focus on larger opportunities. He said SenesTech continues to see municipal deployment activity across major urban markets, including Chicago, Boston, Washington, D.C., New York and New York City.
The company’s previously announced 12-month New York City rat contraception pilot program is expected to conclude this month, Edell said. In response to an analyst question, he declined to provide details on the results, saying the company is preparing to announce data from the areas being tested.
Internationally, SenesTech shipped initial stocking orders to New Zealand and Bermuda during the quarter. Edell said the company will focus on international markets that can generate near-term revenue and will generally seek local partners in markets requiring significant regulatory investment or long approval timelines.
Margins Reach Company Record
Gross profit increased 8% to $338,000, compared with $313,000 in the prior-year quarter. Gross margin improved to a company record 68.6%, up from 64.5% in the first quarter of 2025.
Chesterman attributed the margin improvement to better production efficiency and reduced reliance on discounted sales activity. Edell said the company needs to grow revenue while protecting the economics of the business.
Operating expenses included severance, one-time legal costs and other extraordinary items tied to the company’s organizational transition and strategic restructuring. Chesterman said first-quarter results included about $443,000 in one-time expenses. On a pro forma basis, adjusted EBITDA loss was $1.6 million, compared with $1.5 million in the prior-year period.
SenesTech ended the quarter with $6.8 million in cash and cash equivalents. Chesterman said the company believes that provides operating runway into the third quarter of 2027 under its current operating plan.
Management Emphasizes Execution and Revenue Growth
Edell said the company’s priorities include increasing revenue, improving conversion, expanding subscriptions, building repeat purchasing behavior and pursuing larger B2B opportunities. He said SenesTech is also considering additional Evolve-branded rodent control products, including potential attractant and repellent products, to broaden its offering.
During the Q&A session, Edell said he believes the company can achieve quarter-over-quarter revenue growth and “continue to break records,” while cautioning that April data represent an early signal rather than a completed turnaround.
Asked about capital structure and the path toward self-funding, Edell said the company is focused on revenue growth and reducing burn over time. Chesterman added that SenesTech already uses equipment financing for capital equipment purchases and is getting closer to being able to use debt for cash flow management as revenue becomes more predictable.
Management also said heightened awareness of hantavirus has contributed to increased searches and inquiries related to rodent and pest-control options. Edell said SenesTech plans to increase its focus on social media and digital marketing channels in coming quarters.
“We have a product we believe in, we have a market that needs better options, and we have clear evidence that customers are engaging with Evolve through the direct-to-consumer channels,” Edell said. “The company will not be defined by belief alone. It will be defined by execution.”
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.
