Senestech (SNES) Q1 2026 earnings summary

Executive summary

• Newly appointed CEO Michael Edell emphasized a strategic shift to commercial execution, focusing on scaling the business, leveraging product strengths, and driving e-commerce and D2C growth.

• Evolve product line became the primary revenue driver, representing 85% of Q1 2026 revenues, with strong sales across e-commerce, pest management professionals, and retail channels.

• Transitioned Amazon operations in-house, improving control over customer data and channel economics, and launched new packaging and website redesign to enhance customer engagement.

• Record direct-to-consumer, subscription, and B2B revenues achieved, with significant improvements in gross margin and operational efficiency.

• Net loss increased to $2.1 million in Q1 2026, primarily due to higher SG&A expenses, including legal and severance costs.

Financial highlights

• Q1 2026 revenue was $493,000, up 2% year-over-year, with Evolve products accounting for 85% of sales.

• Direct-to-consumer revenue rose 42% to $194,000; subscription revenue increased 44% to $56,000; B2B revenue grew 57% to $298,000.

• Gross profit increased 8% to $338,000; gross margin reached a record 68.6%, up from 64.5% last year.

• Operating expenses increased 24% to $2.46 million, driven by higher legal, marketing, and severance costs.

• Net loss per share improved to $(0.39) from $(1.28) year-over-year, reflecting a higher share count.

Outlook and guidance

• Management expects continued quarter-over-quarter revenue growth, driven by D2C and B2B momentum, and projects cash runway into Q3 2027 under current plans.

• Focus remains on building recurring revenue, expanding product offerings, and leveraging brand awareness for future growth.

• Additional financing may be required if revenue growth or expense control deviates from plan.