SenesTech(SNES) - 2025 Q2 - Quarterly Results

Q2 2025 Financial and Operational Highlights Balance Sheet Highlights SenesTech reported a strong cash balance of $11.2 million as of August 5, 2025, providing an operating runway through the end of 2027 - Current cash balance as of August 5, 2025, is $11.2 million, providing an operating runway through the end of 2027 and beyond[4] Key Financial Metrics The company achieved record revenue of $625,000 in Q2 2025, a 36% increase year-over-year, driven by 94% growth in Evolve products. Gross profit margin also reached a record 65.4%. Net loss remained stable at $1.6 million, with an improved Adjusted EBITDA loss of $1.4 million Q2 2025 Financial Performance Summary | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------- | :---------- | :---------- | :----------- | | Total Revenues | $625,000 | $459,000 | +36% | | Evolve Product Sales Growth | N/A | N/A | +94% | | Gross Profit Margin | 65.4% | 54.2% | +11.2 pp | | Net Loss | $(1.6) million | $(1.6) million | 0% | | Adjusted EBITDA Loss | $(1.4) million | $(1.5) million | Improved by $0.1M | - Evolve Rodent Birth Control products sales grew 94% year-over-year, now representing 83% of total revenue[6] - Excluding $201,000 in one-time legal expenses and $38,000 in non-cash operating lease expense, Q2 2025 net loss would have been $1.4 million[6] Operational and Strategic Achievements SenesTech saw significant traction for its Evolve Rat and Evolve Mouse products, which are now the largest revenue drivers. E-commerce revenue surged by 78% year-over-year, and municipal deployments expanded to major cities. The company also completed its move to a new manufacturing facility with automation and expanded retail partnerships - Product Expansion: The higher-margin Evolve Rat and Evolve Mouse products, launched in 2024, are now SenesTech's largest revenue drivers[7] - E-commerce Growth: E-commerce revenue increased 78% year-over-year, driven by enhanced platform functionality and digital marketing[7] - Municipal Deployment: Expanded municipal pilot deployments in Q2 2025 with programs in New York City, Chicago, Boston, Baltimore, Los Angeles County, and San Francisco[7] - Retail Market Adoption: Strategic partnership with Bradley Caldwell led to 478% year-over-year growth in the Retail market vertical[13] - Manufacturing Expansion and Automation: Completed move into a new manufacturing facility in July 2025 to meet growing demand for Evolve products with new automated capabilities[13] Management Commentary CEO Commentary CEO Joel Fruendt highlighted record revenue and gross margins, attributing success to rapid Evolve product adoption and disciplined OpEx management. He emphasized the strength of their multi-channel distribution strategy and the company's commitment to efficiency and profitability, aiming for breakeven goals with a strong cash position - Delivered another quarter of record revenue and gross margins fueled by rapid adoption of the Evolve product line and disciplined OpEx management[8] - Results reflect the strength of a diverse multi-channel distribution strategy, with momentum across E-commerce, city and government deployments, brick-and-mortar retail, and international partnerships[8] - Well-positioned to achieve breakeven goals and meet growth potential with over $6 million in cash at quarter-end and an additional $6.3 million in gross proceeds post-quarter[8] Detailed Business Update Product Development and Market Traction The Evolve Rat and Evolve Mouse products, launched in 2024, have become SenesTech's primary revenue drivers, gaining significant traction among pest management professionals and consumers due to their unique design for proactive rodent fertility control - The higher-margin Evolve Rat and Evolve Mouse products are uniquely designed for proactive rodent fertility control and continue to gain traction among pest management professionals and consumers[7] Sales Channels and Market Penetration SenesTech experienced substantial e-commerce growth, with revenue increasing 78% year-over-year across major platforms. Municipal pilot deployments expanded to several key U.S. cities, and a strategic partnership significantly boosted retail market adoption by 478% year-over-year. International expansion is also underway with pending regulatory approvals - E-commerce revenue increased 78% year-over-year driven by enhanced platform functionality and digital marketing across Amazon, Walmart, Tractor Supply, DIYpestcontrol.com, and SenesTech.com[7] - Expanded municipal pilot deployments in Q2 2025 with programs in New York City, Chicago, Boston, Baltimore, Los Angeles County, and San Francisco[7] - Strategic partnership with Bradley Caldwell significantly expands and accelerates adoption of Evolve in retail locations across rural America, leading to 478% year-over-year growth in the Retail market vertical[13] - Regulatory approvals are pending in Australia and New Zealand, with commercial launch expected later in 2025, and new orders/reorders expected from countries with signed distribution agreements[13] Manufacturing and Capacity The company completed its relocation to a new manufacturing facility in July 2025, equipped with new automated capabilities to meet increasing demand for Evolve products and improve capacity and gross margins - Company completed its move into a new manufacturing facility in July 2025 to meet growing demand for Evolve product[13] - New automated capabilities are expected to drive improvement in capacity and gross margins[13] Media and Brand Awareness SenesTech continues to receive significant positive media coverage across various outlets for its unique approach to pest management, enhancing brand awareness - SenesTech continues to garner significant positive media coverage for its unique approach to pest management, with coverage across all media outlets, including Discord and X[13] Financial Statements Balance Sheets As of June 30, 2025, SenesTech's total assets significantly increased to $10.365 million from $3.278 million at December 31, 2024, primarily driven by a substantial increase in cash and cash equivalents. Total liabilities also rose, mainly due to the recognition of operating lease liabilities Balance Sheet Summary (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :-------------------------- | :-------------- | :---------------- | | Cash and cash equivalents | $6,055 | $1,307 | | Total current assets | $7,474 | $2,813 | | Total assets | $10,365 | $3,278 | | Total current liabilities | $810 | $561 | | Total liabilities | $3,388 | $767 | | Total stockholders' equity | $6,977 | $2,511 | - Cash and cash equivalents increased significantly from $1,307 thousand at December 31, 2024, to $6,055 thousand at June 30, 2025[20] - The balance sheet reflects the introduction of a Right to use asset, operating lease ($2,417 thousand) and an Operating lease liability ($2,403 thousand) in Q2 2025[20] Statements of Operations For the three months ended June 30, 2025, net revenues increased 36% year-over-year to $625,000, leading to a 64% increase in gross profit to $409,000. Despite increased operating expenses, the net loss remained stable at $(1.616) million compared to $(1.584) million in Q2 2024. Loss per share significantly improved to $(0.87) from $(3.08) due to an increase in weighted average shares outstanding Statements of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Revenues, net | $625 | $459 | $1,110 | $874 | | Cost of sales | $216 | $210 | $388 | $490 | | Gross profit | $409 | $249 | $722 | $384 | | Operating expenses | $2,023 | $1,851 | $3,999 | $3,829 | | Loss from operations | $(1,614) | $(1,602) | $(3,277) | $(3,445) | | Net loss | $(1,616) | $(1,584) | $(3,281) | $(3,416) | | Weighted average shares outstanding | 1,854,531 | 514,463 | 1,578,783 | 514,458 | | Loss per share | $(0.87) | $(3.08) | $(2.08) | $(6.64) | - Gross profit margin for Q2 2025 was 65.4% ($409/$625), an increase from 54.2% ($249/$459) in Q2 2024[22] - Loss per share improved significantly from $(3.08) in Q2 2024 to $(0.87) in Q2 2025, primarily due to a substantial increase in weighted average shares outstanding[22] Non-GAAP Financial Measures Reconciliation SenesTech's Adjusted EBITDA loss improved to $(1.442) million in Q2 2025 from $(1.478) million in Q2 2024, reflecting a slight improvement in operational performance when excluding non-cash and one-time items Adjusted EBITDA Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net loss (as reported, GAAP) | $(1,616) | $(1,584) | $(3,281) | $(3,416) | | Total non-GAAP adjustments | $174 | $106 | $333 | $215 | | Adjusted EBITDA loss (non-GAAP) | $(1,442) | $(1,478) | $(2,948) | $(3,201) | - Adjusted EBITDA loss improved by $36 thousand year-over-year for the three months ended June 30, 2025[24] Company Information and Disclosures About SenesTech SenesTech is a pioneer in rodent fertility control, offering EPA-registered contraceptive solutions like ContraPest® and Evolve Rat/Mouse. Their mission is to provide humane, effective, and sustainable pest management, integrating into existing IPM programs - SenesTech is the pioneer of fertility control for rodents, offering solutions like ContraPest®, the first and only U.S. EPA-registered contraceptive for male and female rats, and Evolve Rat and Evolve Mouse Birth Control[13][14] - Their mission is to achieve healthier cities, safer environments, and smarter pest management through reproductive control, without compromise[14] Use of Non-GAAP Measure Adjusted EBITDA is presented as a non-GAAP measure to provide additional insight into operating performance and liquidity, though it is not a substitute for GAAP financial measures - Adjusted EBITDA is a non-GAAP measure included because management believes it provides meaningful information related to operating performance and liquidity[9] - This measure is not intended to be a substitute for financial measures reported in accordance with GAAP[9] Conference Call Information SenesTech hosted a conference call on Thursday, August 7, 2025, at 5:00 p.m. ET, with a webcast replay available for 90 days - Conference Call Date: Thursday, August 7, 2025, Time: 5:00 p.m. ET[10] - Webcast available at https://app.webinar.net/20BjnmenEmb, with a replay available for 90 days on the Company's website[11][12] Forward-Looking Statements and Safe Harbor This press release contains forward-looking statements regarding future expectations, plans, and strategies, which are subject to risks and uncertainties that could cause actual results to differ materially. The company does not undertake to update these statements publicly - This press release contains "forward-looking statements" within the meaning of federal securities laws, subject to the safe harbor created thereby[16] - Such statements describe future expectations, plans, results, or strategies and are subject to risks, uncertainties, and other factors that could cause actual results to differ materially[16][17] - The company does not undertake any obligation to publicly update any forward-looking statements, except as required by law[17] Investor Relations Contact Contact information for investor relations and the company's Chief Financial Officer is provided for inquiries - Investors can contact Robert Blum at Lytham Partners, LLC, (602) 889-9700, senestech@lythampartners.com[18] - Company contact: Tom Chesterman, Chief Financial Officer, SenesTech, Inc., (928) 779-4143[18]