Summary of SenesTech Q1 2026 Earnings Call

1Key Financial Results and Metrics

Total Revenue: $493,000, a 2% increase from $485,000 in Q1 2025.

Direct-to-Consumer Revenue: Increased 42% to $194,000 from $137,000 year-over-year.

Subscription Revenue: Rose 44% to $56,000, with subscriber counts increasing over 50%.

B2B Revenue: Increased 57% to $298,000 compared to $190,000 in the prior year.

Gross Margin: Improved to a record 68.6%, up from 64.5% in Q1 2025.

Adjusted EBITDA Loss: $1.6 million, slightly worse than the $1.5 million loss in the prior year.

Cash Position: Ended the quarter with $6.8 million in cash, providing a runway into Q3 2027.

2Strategic Updates and Business Highlights

Leadership Changes: Michael Edell appointed as CEO, emphasizing a focus on scaling the business and improving commercial execution.

E-commerce Transition: Successfully transitioned Amazon sales management in-house, leading to improved control over customer data and advertising.

Product Strategy: Plans to expand the Evolve brand with additional products and improve packaging and marketing efforts to enhance consumer understanding.

Operational Improvements: Streamlined operations and restructured the B2B sales organization to enhance accountability and pipeline visibility.

3Forward Guidance and Outlook

Revenue Growth: Management expects continued quarter-over-quarter growth, with potential for record revenue in upcoming quarters based on early April results.

Subscription Focus: Emphasis on building a recurring revenue model through subscriptions, which is seen as critical for long-term growth.

International Opportunities: Plans to pursue international markets selectively, focusing on those with shorter regulatory timelines.

4Bad News, Challenges, or Points of Concern

Short-term Disruption: The transition to direct management of Amazon sales caused temporary disruptions in sales.

High SG&A Costs: Operating expenses remain elevated due to one-time severance and legal costs, raising concerns about efficiency.

Market Risks: The company is cautious about international expansion due to lengthy regulatory processes and is focusing on immediate revenue opportunities.

5Notable Q&A Insights

April Performance: Early data from April shows e-commerce sales increased 163% year-over-year, indicating strong momentum post-transition.

Hantavirus Awareness: Increased inquiries related to rodent control solutions have been noted, presenting a marketing opportunity.

Direct-to-Consumer Rationale: The shift to D2C is aimed at enhancing brand awareness, which is crucial for driving B2B sales.

Marketing Strategy: Plans to enhance social media and marketing efforts to capitalize on market opportunities and educate consumers about product usage. Overall, SenesTech is entering a new phase focused on commercial execution and scaling operations, with promising early indicators from recent strategic changes. However, challenges remain in managing costs and navigating market dynamics.