SenesTech Q2 2026 earnings: E-commerce lifts revenue and gross margin

SenesTech (NASDAQ: SNES) reported Q2 2026 revenue of $770,000, up 23% from $625,000 a year earlier, while GAAP basic and diluted loss per share narrowed to $0.35 from $0.87. E-commerce growth and a more favorable channel mix lifted gross margin to a record 73.6%, but higher selling, general and administrative expenses caused the absolute net loss to widen year over year.

Core financial results

Revenue also increased 56% sequentially from Q1 2026, while gross profit grew faster than sales because of stronger direct-channel economics, favorable supply costs, product mix and pricing. Compared with Q1, the net loss and adjusted EBITDA loss improved, but both remained worse than in the prior-year quarter.

Operating expenses increased faster than gross profit on a year-over-year basis. That prevented the higher revenue and margin from translating into improved GAAP profitability.

Business and channel performance

E-commerce, including online direct-to-consumer and online B2B sales, became SenesTech’s largest reported channel for the first time. Direct B2B revenue declined, although the prior-year comparison included a $180,000 periodic bulk sale related to third-party Amazon management and a large initial distributor stocking order.

The categories in the table overlap and should not be added together: subscription revenue is part of e-commerce, while product sales span multiple channels.

Amazon was the main source of sequential acceleration. Revenue from the platform increased to $349,000 from $61,000 in Q1, marking the first full quarter since SenesTech brought Amazon management in-house. Revenue from the company’s own e-commerce website increased 31% sequentially to $155,000.

Evolve remained the dominant product, accounting for 86% of product revenue versus 83% a year earlier. ContraPest was nearly flat year over year but increased 43% from Q1, reflecting the company’s renewed focus on selected customers and markets.

After the quarter ended, July e-commerce revenue rose 19% from June to $245,000, while subscription revenue increased 22% to $53,000. These are single-month operating figures rather than quantitative financial guidance.

Higher-margin channel growth did not offset SG&A pressure

Gross profit increased by $158,000 year over year, but total operating expenses rose by $406,000. Research and development expense declined by $50,000 to $377,000, while SG&A increased by $456,000 to $2.05 million. This expense growth explains why operating loss widened despite record revenue, gross profit and gross margin.

The quarter included $273,000 of severance costs. However, adjusted EBITDA excludes severance and certain other items, and its loss still widened by $123,000 from the prior year. The profitability pressure therefore was not solely attributable to severance.

The narrowing per-share loss also requires context. Weighted-average shares outstanding increased to 5.30 million from 1.85 million, while the absolute net loss rose. Consequently, the lower loss per share did not represent an improvement in total GAAP profitability.

Liquidity and balance sheet

Cash and cash equivalents totaled $5.08 million at June 30, 2026, compared with $7.58 million in cash and $994,000 in short-term investments at the end of 2025. Combined cash and short-term investments therefore declined by approximately $3.49 million during the first half of 2026.

Current assets were $6.78 million against current liabilities of $1.00 million. Inventory remained relatively stable at $969,000, while accounts receivable increased to $361,000 from $201,000 at year-end. With a first-half net loss of $3.90 million, the remaining cash balance and the pace of future spending are important measures of SenesTech’s ability to fund its growth strategy.

Management perspective

CEO Michael Edell described direct Amazon management and subscription growth as early evidence that SenesTech is developing stronger customer relationships and a more recurring revenue base. Management is also seeking to rebuild B2B growth through a new sales leader, targeted industry verticals and assessment services that combine field work, tracking products and AI-enabled analysis.

The company launched a redesigned e-commerce website in July to simplify product education, checkout and subscriptions. Management’s stated priorities are continued revenue growth, maintaining gross margins and controlling expenses as the company works toward profitability.

Risks investors need to monitor

• Continuing losses and declining liquid resources: Revenue remains well below operating expenses, and combined cash and short-term investments decreased materially during the first half. Continued losses could increase financing pressure.
• Dependence on e-commerce execution: E-commerce represented about 66% of quarterly revenue, while Amazon alone represented roughly 45%. Any difficulty sustaining customer acquisition, subscriptions or in-house channel performance could affect growth and margin.
• Expense growth: SG&A increased much faster than revenue year over year. SenesTech needs additional gross profit growth or tighter expense control to narrow its operating loss.
• B2B execution and order timing: Direct B2B revenue declined, partly because the prior-year period included unusual bulk and stocking orders. Building a scalable sales organization and generating more consistent orders remain important to diversifying growth beyond e-commerce.

Summary

SenesTech’s Q2 2026 results showed that direct e-commerce management can support faster revenue growth and higher gross margin, with Amazon, subscriptions and Evolve providing the main momentum. The central limitation was operating scale: SG&A growth outweighed the additional gross profit, leaving absolute GAAP and adjusted losses above prior-year levels. Future results will depend on whether online growth continues, B2B sales become more consistent and expense growth moderates while the company manages its remaining liquidity.