Senestech (NASDAQ:SNES) reported its first quarter with more than $1 million in revenue, as online sales and subscriptions helped drive growth in the third quarter of 2026. The rodent birth control company also posted a wider net loss while reducing its operating cash use.
Revenue for the three months ended September 30 reached approximately $1.1 million, up 42% from $770,000 in the second quarter and 59% from $690,000 a year earlier. President and CEO Michael Edell said it was the company’s second consecutive quarterly revenue record.
Gross profit rose to a record $796,000 from $433,000 a year earlier, while gross margin increased to 72.6% from 62.8%. The margin was down from 73.6% in the second quarter.
Online Sales and Subscriptions Drive Growth
E-commerce revenue increased 52% sequentially and 337% year over year, accounting for 71% of third-quarter revenue. Amazon revenue rose 76% from the second quarter, and the company recorded its highest quarterly orders, revenue, Subscribe & Save revenue and subscriber count on the platform, Edell said.
Amazon Subscribe & Save subscribers increased 161% from the end of June to the end of September. Across Amazon and the company’s website, the combined subscriber base grew 72% during the quarter. Subscription revenue rose 53% sequentially and 234% year over year, representing approximately 15% of e-commerce revenue.
Edell said Senestech monitors customer acquisition costs and considers both immediate sale profitability and longer-term customer value. The company plans to test pricing strategies in the fourth quarter to encourage subscription adoption, he said.
Chief Financial Officer Tom Chesterman said Amazon’s higher selling prices produce a higher gross margin than business-to-business pricing, but Amazon fees, advertising and other selling costs offset much of that advantage. Those expenses are recorded in operating expenses rather than cost of sales. He said the channel’s net margin remains positive after those costs.
The company has also added Grove Collaborative as an online sales channel and engaged brand development firm Sandstrom Partners to help clarify its messaging and brand identity. Edell said Senestech intends to improve customer education about the need to use its products consistently over time.
Business Sales and Municipal Deployments
Direct business-to-business revenue, which excludes business sales through e-commerce and third-party online channels, rose 19% from the second quarter and 2% from a year earlier. Edell said the company has four salespeople, including two recent additions, and expects to add at least one more before year-end.
Senestech began offering assessment and monitoring services across its targeted business markets in July. Edell said the services generate revenue and can help shorten the sales cycle. Customers can use a company-performed assessment or deploy tracking products themselves, with data analyzed using Senestech’s internally developed artificial intelligence tools.
In Chicago’s Wicker Park-Bucktown deployment, a program incorporating assessment services and the company’s Evolve product reduced average rodent activity intensity by 88% over 12 months, Edell said. Rodent-related 311 calls in the area fell 36%. He said Evolve has expanded to six Chicago Special Service Areas and wards.
Edell also cited a program in Swampscott, Massachusetts, where Evolve Rat was used alongside sanitation and waste-management improvements. Measured rodent activity declined 43% over six months, he said.
Loss Widens as Cash Use Declines
Senestech’s net loss widened to approximately $2 million, or $0.36 per share, from $1.3 million, or $0.28 per share, a year earlier. Operating expenses increased to $2.8 million from $1.8 million, including $1.1 million in sales and marketing expense.
Adjusted EBITDA loss was approximately $1.4 million, unchanged from the second quarter and wider than the $1.1 million loss a year earlier. Adjusted EBITDA is a non-GAAP measure.
Chesterman said share-based compensation and an accrual for potential companywide bonuses contributed to higher general and administrative expenses. Together, the items totaled approximately $524,000 in non-cash expense, he said.
Cash and cash equivalents stood at approximately $4 million at September 30, down from $5.1 million at the end of June. Operating cash use declined to $1.3 million in the third quarter from $1.7 million in the second quarter and $1.9 million in the first quarter.
After the quarter ended, the company raised $1.2 million in gross proceeds through its at-the-market facility. Chesterman said approximately 1.3 million shares were issued for those proceeds and that the company had roughly 6.8 million shares outstanding at the time of the call.
Financing and Outlook Questions
During the call, Glenbrook analyst Grover Wickersham expressed concern about dilution from the stock sales and urged the company to prioritize shareholder value. Chesterman said Senestech had a little over $6 million in remaining facility capacity and would prefer to sell shares at higher prices.
Wickersham also questioned whether consumer pricing and purchasing options sufficiently encouraged the extended use he said the product requires. Edell agreed that pricing, subscriptions and customer education should be aligned with the time needed for customers to see results.
Asked about fourth-quarter seasonality, Edell said the larger e-commerce business should reduce its effect compared with last year, although fewer business days around the holidays could affect direct business sales. He did not provide a revenue forecast or a revenue target for EBITDA breakeven.
About Senestech (NASDAQ:SNES)
SenesTech, Inc. is a biotechnology company focused on developing fertility-control technologies for managing animal populations. The company’s approach is designed to reduce reproduction rather than rely solely on lethal control methods, with applications primarily in rodent management. SenesTech’s principal product is ContraPest, a liquid bait designed to reduce fertility in rats by affecting reproductive function in both male and female animals. The product is intended for use in commercial, municipal and other settings where rat populations pose sanitation, health or property risks.
