SenesTech Inc (SNES) Q3 2026 Earnings Call Highlights: Record $1 Million Quarterly Revenue and ... GuruFocus News Wed, November 11, 2026 at 12:07 AM EST 7 min read AMZN +1.99% SNES -18.42% Trade AMZN on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
SenesTech Inc (NASDAQ:SNES) surpassed $1 million in quarterly revenue for the first time, with revenue growing 42% sequentially and 59% year-over-year.
Gross profit reached a record $796,000, up 40% sequentially and 84% year-over-year, with a strong gross margin of 72.6%.
Combined subscription customers across Amazon and the company's website increased 72% in just one quarter, with subscription revenue growing 53% sequentially and 234% year-over-year.
E-commerce revenue increased 52% sequentially and 337% year-over-year, representing 71% of total Q3 revenue, with Amazon revenue up 76% sequentially.
Direct B2B revenue increased 19% sequentially, and the company expanded its sales team to four reps with plans to add at least one more by year-end, building pipeline for future growth.
Net loss for Q3 was approximately $2.0 million, or $0.36 per share, compared to $1.3 million in the prior year quarter, reflecting increased operating expenses.
Operating expenses rose to $2.8 million from $1.8 million year-over-year, driven by higher sales and marketing and G&A costs, including non-cash stock-based compensation and bonus accruals.
Cash and cash equivalents decreased to $4.0 million at September 30 from $5.1 million at June 30, and the company raised $1.2 million post-quarter through its ATM facility, potentially diluting shareholders.
The company did not provide guidance on when it expects to achieve EBITDA breakeven or profitability, leaving uncertainty about its path to positive cash flow.
A significant shareholder expressed concern over heavy ATM usage and product pricing for consumers, noting that the current $35 price for a 1.5 lb portion may not align with the recommended multi-month use for effective rodent control.
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Q: With Amazon, third-party e-commerce, your own website, and the newly expanded B2B team, how do these channels compare on customer acquisition costs and return, and how are you prioritizing among them? A: CEO Michael Edell said that since bringing Amazon in-house roughly seven to eight months ago, the company has been building out the channel and investing in marketing and ad spend. Management monitors acquisition cost daily and weekly to confirm each customer is profitable on either an immediate-sale or long-term-value basis. He noted SenesTech has been profitable on acquisition cost and is doing well on spend versus acquired customers.
Q: As repeat subscribers accumulate, should margins increase as you retain more customers? A: CEO Michael Edell said B2B margins will fluctuate somewhat depending on the approach to building the subscriber base. As the company gathers more data on subscriber value, it plans to test different pricing strategies in Q4 to potentially accelerate subscription revenue and adoption, which may require more investment but carries higher long-term customer value.
Q: Last year's fourth quarter was weaker due to seasonality. Are you expecting a flat or lower Q4 2026? A: CEO Michael Edell explained that a year ago e-commerce was very small and the seasonal B2B business drove Q4. Now that e-commerce is about 72% of the quarter, seasonality should play a smaller role. On the B2B side, fewer business days due to the holidays will compress activity, but this is unrelated to weather or other factors.
Q: Do the Chicago assessment and monitoring services generate revenue, and should they lead to more meaningful orders with higher gross margins? A: CEO Michael Edell confirmed that since July and August the company has rolled out multiple deployments in Chicago, and there is revenue on every one of those opportunities from the assessment and monitoring services.
Q: At what revenue level would SenesTech reach EBITDA breakeven? A: CEO Michael Edell declined to provide forward guidance but pointed to net cash used in operating activities, which has improved each quarter ($1.9 million in Q1, $1.7 million in Q2, $1.3 million in Q3). He said focusing on top-line revenue that is not heavily discounted, while maintaining the margin profile and growing activity in target channels, will continue to improve operating cash.
Q: Do B2C consumers understand that the product must be used regularly over time, which also supports subscriber growth? A: CEO Michael Edell said consumer education is top of mind, since unlike a trap the product needs time to show results as rodents cycle through the population. Over the last eight to nine months, the company overhauled product descriptions and usage guidance across Shopify, Amazon, Walmart and Home Depot. Greater transparency actually accelerated e-commerce revenue and subscriber growth, and more pricing and subscription changes are planned for Q4 and Q1 with Sandstrom Partners.
Q: Subscriber growth is impressive, but what is your churn, and can you offer price points that incentivize long-term B2C subscribers despite Amazon fees? A: CEO Michael Edell said he firmly believes the company can. He noted that if churn were high, subscriber counts and dollars would drop, but the opposite is happening: even as e-commerce revenue grows rapidly, subscription revenue holds steady at roughly 15% to 16% of the total. He expects to grow that share further through changes to pricing and packaging.
Q: Glenbrook suggested selectively using equity-based compensation instead of cash. Is the board willing to consider this to conserve cash? A: CEO Michael Edell said this is absolutely a focus and is being discussed at the board level. The key requirement is ensuring enough options in the pool to shift certain compensation from cash to equity. He said everyone is very receptive to the idea.
Q: Will Sandstrom Partners also help with messaging for your priority B2B verticals? A: CEO Michael Edell said clearer messaging for each B2B vertical will help significantly in the field. At PestWorld, the largest U.S. pest trade show, SenesTech announced programs letting pest management organizations incorporate its offerings to add revenue streams, which was a big hit. Sandstrom's help clarifying that messaging should provide an even bigger boost.
Q: Have you started increasing social media and online promotional outreach, and what feedback are you getting? A: CEO Michael Edell said that with EVP of Sales Jack Karabes on board full-time in July, the team built outreach programs targeting tens of thousands of prospective opportunitiessomething that had not been happening in the prior three to four years. This outbound effort is reflected in a growing pipeline and quotes, and he stressed that B2B growth requires a growing pipeline.
Q: Can you give color on how Q4 is trending so far, both on Amazon and more generally? A: CEO Michael Edell declined to give forward guidance but said B2B pipeline growth and activity are moving along nicely, helped by expanding from two field sales reps toward a hoped-for five by year-end. On e-commerce, Amazon is more mature after eight to nine months, but new-to-brand customers remain a significant percentage, so the channel has not tapped out heading into Q4. Average order size, subscriber counts and recurring revenue trends remain very strong.
Q: Did you use the ATM in Q3, and will you disclose the average price of the $1.2 million raised after quarter-end? A: CFO Tom Chesterman said there was some ATM activity during the quarter but not much, with more detail to come in the 10-Q. After quarter-end the company raised $1.2 million by issuing about 1.3 million shares, at an average price a little under $1, taking part in a day when over 50 million shares traded. He said it seemed appropriate at the time.
Q: What is the current outstanding share count after the post-quarter ATM activity? A: CFO Tom Chesterman said the current share count is approximately 6.8 million shares.
Q: What drove the absolute dollar increase in Q3 G&A, and why hasn't G&A declined now that the CEO transition and Leafitic litigation settlement costs are behind the company? A: CFO Tom Chesterman
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
