SenesTech Reports 23% Revenue Growth in Q2 2026, Despite Increased Net Loss

SenesTech, Inc. reported its financial results for the second quarter and first half of 2026, revealing a net revenue of $770,000 for the three months ending June 30, 2026, a 23% increase from $625,000 in the same period of 2025. For the six months ended June 30, 2026, revenue reached $1.3 million, up 14% from $1.1 million year-over-year. The company's gross profit for the second quarter was $567,000, representing a gross margin of 73.6%, compared to 65.4% in the prior year. Despite the revenue growth, SenesTech reported a net loss of $1.8 million for the quarter, slightly higher than the $1.6 million loss in Q2 2025, and a total net loss of $3.9 million for the first half of 2026, compared to $3.3 million in the same period last year.

The company experienced significant changes in its operational structure, particularly in its sales channels. Evolve products accounted for approximately 86% of total revenue in Q2 2026, up from 83% in Q2 2025, reflecting a strategic shift towards e-commerce sales. The transition of Amazon and Shopify operations to direct management has allowed SenesTech to enhance control over pricing and customer relationships, which is expected to improve margins and customer engagement. However, B2B sales, which include ContraPest, were impacted by personnel turnover within the sales and marketing teams, leading to a decrease in sales through that channel.

SenesTech's total operating expenses for the second quarter increased to $2.4 million, up 20% from $2.0 million in the prior year, driven by higher selling, general, and administrative costs, which rose by 29% to $2.1 million. This increase was attributed to non-recurring leadership succession costs and investments in sales and marketing initiatives. Research and development expenses decreased by 12% to $377,000, reflecting ongoing cost-containment efforts. The company’s accumulated deficit as of June 30, 2026, stood at $146.4 million, with cash and cash equivalents of $5.1 million, down from $7.6 million at the end of 2025.

Looking ahead, SenesTech anticipates that its current cash reserves, combined with projected revenues, will be sufficient to fund operations through the first quarter of fiscal 2027. However, the company acknowledges the need for additional financing to support ongoing operational losses and to achieve profitability. Management is focused on expanding its market presence through strategic partnerships and enhancing its product offerings, while also managing operating expenses. The company remains committed to its long-term strategy of commercializing its fertility control products and believes that sustained improvements in revenue and operational metrics will lead to increased market acceptance and growth.