Senestech (NASDAQ:SNES) Posts Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Senestech (NASDAQ:SNES) released its earnings results on Wednesday. The company reported ($0.35) earnings per share for the quarter, beating the consensus estimate of ($0.37) by $0.02, FiscalAI reports. Senestech had a negative net margin of 294.73% and a negative return on equity of 65.32%. The business had revenue of $0.77 million during the quarter, compared to analysts’ expectations of $0.60 million.

Here are the key takeaways from Senestech’s conference call:

• Record revenue and e-commerce growth: Q2 revenue rose 56% sequentially to $770,000, led by e-commerce revenue up 186% to $511,000. Amazon revenue increased 473% sequentially to $349,000 after the channel was brought in-house.
• Recurring revenue momentum strengthened: Subscription revenue increased 89% sequentially and 142% year over year to a record $104,000, while combined Amazon and company-site subscribers rose 117%. July e-commerce revenue and subscription revenue reached additional records.
• Gross margins reached a company record: Gross margin improved to 73.6% from 68.5% in Q1 and 65.5% a year earlier, reflecting a more favorable channel mix, pricing discipline, and lower raw-material costs. Adjusted EBITDA loss improved 15% sequentially to $1.4 million.
• Management is rebuilding the B2B organization: Core B2B revenue increased 11% sequentially and 14% year over year after excluding unusual prior-period orders, but reported B2B revenue declined to $259,000. New sales and marketing hires are targeting larger opportunities across pest management, commercial, agriculture, government, and other verticals, with management expecting the strategy to require additional time to demonstrate results.
• Cash remains a key risk: Senestech ended the quarter with $5.1 million in cash and said its current resources should fund operations for at least nine months. The company continues to report significant losses and acknowledged that additional capital may be needed before reaching profitability, although it provided no fundraising guidance.

Senestech Price Performance

NASDAQ:SNES traded up $0.03 during trading hours on Friday, reaching $1.30. The company had a trading volume of 33,967 shares, compared to its average volume of 74,168. The company has a quick ratio of 7.79, a current ratio of 8.91 and a debt-to-equity ratio of 0.02. The stock has a 50-day moving average of $1.51 and a two-hundred day moving average of $1.72. Senestech has a one year low of $1.15 and a one year high of $5.35. The firm has a market capitalization of $6.88 million, a PE ratio of -0.95 and a beta of 0.28.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings raised Senestech from a “sell (e+)” rating to a “sell (d-)” rating in a report on Friday, July 10th. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Senestech has a consensus rating of “Hold”.

Insider Buying and Selling at Senestech

In other news, major shareholder Glenbrook Capital Management acquired 35,000 shares of the firm’s stock in a transaction on Monday, July 20th. The shares were purchased at an average cost of $1.47 per share, with a total value of $51,450.00. Following the completion of the purchase, the insider owned 1,057,824 shares of the company’s stock, valued at $1,555,001.28. This represents a 3.42% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Over the last 90 days, insiders have bought 143,773 shares of company stock valued at $224,802. 2.20% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Senestech

Several institutional investors have recently bought and sold shares of the business. Jane Street Group LLC bought a new stake in shares of Senestech during the fourth quarter worth $32,000. XTX Topco Ltd acquired a new position in Senestech during the 4th quarter worth about $54,000. Geode Capital Management LLC bought a new stake in Senestech during the 2nd quarter worth about $59,000. Millennium Management LLC bought a new stake in Senestech during the 3rd quarter worth about $126,000. Finally, DRW Securities LLC increased its position in Senestech by 171.1% in the 4th quarter. DRW Securities LLC now owns 82,107 shares of the company’s stock valued at $176,000 after acquiring an additional 51,818 shares in the last quarter. Institutional investors own 5.19% of the company’s stock.

Senestech Company Profile

SenesTech, Inc (NASDAQ: SNES) is a biotechnology company specializing in non-lethal pest management solutions. The company’s core focus is the development and commercialization of fertility-based control methods for commensal rodents, providing an alternative to traditional rodenticides. By targeting the reproductive cycle of rats, SenesTech aims to reduce rodent populations over time without the use of toxic chemicals, offering a more sustainable approach for pest management professionals.

The company’s flagship product, ContraPest®, is an EPA-registered liquid bait that disrupts rodent reproduction.