SenesTech, Inc.

Second-quarter revenue was $770,000, up 56% sequentially and 23% year over year. E-commerce revenue was a record $511,000, up 186% sequentially and 206% year over year; Amazon revenue was $349,000, up 473% sequentially; non-Amazon e-commerce was $155,000, up 31% sequentially; and DTC subscription revenue was $104,000, up 89% sequentially and 142% year over year. Gross profit was a record $567,000 and gross margin was a record 73.6%, compared with 68.5% in Q1 and 65.5% in the prior-year quarter. B2B revenue was $259,000 versus $350,000 in Q1 and $460,000 in Q2 2025; management said core B2B rose 11% sequentially excluding an $81,000 international order and 14% year over year excluding prior-year one-time items. Net loss was $1.8 million and adjusted EBITDA loss was $1.4 million. Cash and cash equivalents were $5.1 million at quarter-end, with cash usage of about $1.7 million in the quarter; management said current cash and operating levels are sufficient for at least the next 9 months. No formal quarterly or full-year numeric guidance was provided.

Michael Edell framed the quarter as evidence that SenesTech is moving from a research-oriented company to a revenue-driven business with a clearer commercial model. He emphasized direct control of Amazon and e-commerce, saying the company now controls pricing, promotions, subscriptions, and customer data, which is improving speed and precision. He also stressed a broader strategy built on three priorities: e-commerce brand building, a more disciplined B2B vertical sales effort, and new services/products to deepen customer relationships. His tone was upbeat but measured, repeatedly saying the quarter is proof the strategy is working while cautioning that it is still early and one quarter does not complete the transformation.

Tom Chesterman highlighted the quarter’s financial quality improvements: revenue of $770,000, gross profit of $567,000, and gross margin of 73.6%, with margin expansion of 510 basis points sequentially and 810 basis points year over year. He said the improvement reflected a better channel mix, stronger direct-channel economics, pricing discipline, and favorable raw material costs. Operating expenses were $2.4 million, including $270,000 of severance costs, and adjusted EBITDA loss improved to $1.4 million from $1.6 million in Q1. He ended with $5.1 million of cash and cash equivalents and said that, based on current revenue and expense levels, the company believes it has at least 9 months of funding, while staying focused on disciplined capital deployment and expense control.

Analysts pressed for more detail on which verticals management will prioritize, how the margin mix has changed with more direct sales, when B2B acceleration should show up, and whether and when the company might need to raise capital. Management said the initial vertical priorities are third-party e-commerce, pest management, commercial, agri-business, zoos/sanctuaries, government, retail, and international, and noted that retail is lower priority until consumer acceptance is proven. On margins, Edell said the shift away from lower-margin distributor transactions and excessive discounting was a key reason margins improved. He declined to provide forward guidance on B2B growth, profitability timing, or capital raises, but said the company is still building pipeline visibility and expects it will take another two quarters to show larger B2B deals. On international opportunities, he said New Zealand is active, Australia remains in regulatory review, and India/other parts of Asia are not active at this point.