SNES — SenesTech, Inc.

Summary of SenesTech Q1 2026 Earnings Call

1. Key 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.

2. Strategic 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.

3. Forward 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.

4. Bad 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.

5. Notable 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.