Senestech (NASDAQ:SNES) Announces Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Senestech (NASDAQ:SNES) released its quarterly earnings results on Wednesday. The company reported ($0.35) EPS for the quarter, topping the consensus estimate of ($0.36) by $0.01, FiscalAI reports. The firm had revenue of $0.77 million for the quarter, compared to analyst estimates of $0.60 million. Senestech had a negative return on equity of 67.60% and a negative net margin of 304.22%.

Here are the key takeaways from Senestech’s conference call:

• Record revenue and e-commerce growth: Q2 revenue rose 56% sequentially to $770,000, led by e-commerce revenue up 186% to $511,000. Amazon revenue increased 473% sequentially to $349,000 after the channel was brought in-house.
• Recurring revenue momentum strengthened: Subscription revenue increased 89% sequentially and 142% year over year to a record $104,000, while combined Amazon and company-site subscribers rose 117%. July e-commerce revenue and subscription revenue reached additional records.
• Gross margins reached a company record: Gross margin improved to 73.6% from 68.5% in Q1 and 65.5% a year earlier, reflecting a more favorable channel mix, pricing discipline, and lower raw-material costs. Adjusted EBITDA loss improved 15% sequentially to $1.4 million.
• Management is rebuilding the B2B organization: Core B2B revenue increased 11% sequentially and 14% year over year after excluding unusual prior-period orders, but reported B2B revenue declined to $259,000. New sales and marketing hires are targeting larger opportunities across pest management, commercial, agriculture, government, and other verticals, with management expecting the strategy to require additional time to demonstrate results.
• Cash remains a key risk: Senestech ended the quarter with $5.1 million in cash and said its current resources should fund operations for at least nine months. The company continues to report significant losses and acknowledged that additional capital may be needed before reaching profitability, although it provided no fundraising guidance.

Senestech Stock Performance

SNES traded down $0.04 during trading hours on Wednesday, hitting $1.63. 134,888 shares of the stock were exchanged, compared to its average volume of 135,645. The stock has a market cap of $8.64 million, a price-to-earnings ratio of -0.86 and a beta of 0.28. The stock has a 50-day simple moving average of $1.52 and a 200-day simple moving average of $1.73. The company has a debt-to-equity ratio of 0.02, a current ratio of 8.91 and a quick ratio of 7.79. Senestech has a 12 month low of $1.22 and a 12 month high of $5.53.

Insiders Place Their Bets

In other Senestech news, major shareholder Glenbrook Capital Management bought 35,000 shares of the company’s stock in a transaction on Monday, July 20th. The shares were bought at an average cost of $1.47 per share, with a total value of $51,450.00. Following the completion of the acquisition, the insider owned 1,057,824 shares of the company’s stock, valued at approximately $1,555,001.28. This trade represents a 3.42% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders have acquired a total of 143,773 shares of company stock worth $224,802 in the last three months. 2.20% of the stock is owned by insiders.

Institutional Investors Weigh In On Senestech

Institutional investors and hedge funds have recently bought and sold shares of the business. Jane Street Group LLC bought a new position in Senestech in the fourth quarter worth about $32,000. XTX Topco Ltd acquired a new position in Senestech during the 4th quarter valued at approximately $54,000. Geode Capital Management LLC bought a new position in Senestech during the 2nd quarter worth $59,000. Millennium Management LLC bought a new stake in Senestech in the third quarter valued at $126,000. Finally, DRW Securities LLC lifted its stake in Senestech by 171.1% in the fourth quarter. DRW Securities LLC now owns 82,107 shares of the company’s stock valued at $176,000 after buying an additional 51,818 shares during the last quarter. Institutional investors and hedge funds own 5.19% of the company’s stock.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings upgraded shares of Senestech from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Friday, July 10th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Hold”.

About Senestech

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.