Executive Summary

Record quarter: revenue grew 36% year over year to $0.625M (up 29% q/q) with record gross margin of 65.4%, driven by 94% YoY growth in Evolve and mix-shift to higher-margin products .
Losses narrowed on a non-GAAP basis: Adjusted EBITDA loss improved to $1.44M vs $1.48M in Q2’24 and $1.51M in Q1’25; GAAP net loss was $1.62M and included $0.20M one-time legal expense and $0.04M non-cash lease cost .
Liquidity strengthened: cash rose to $6.06M at 6/30 and $11.2M as of Aug 5 following warrant exercises/ATM; management now sees runway “through 2027 and beyond,” with breakeven targeted at a little over $1.5M quarterly revenue .
Commercial momentum: Evolve now 83% of revenue; e-commerce 56% of sales (+78% YoY), municipal sales +538% YoY, retail order ~$65k via Bradley Caldwell; international reorders and pending ANZ approvals support H2 pipeline .

What Went Well and What Went Wrong

What Went Well
- Record revenue and gross margin: “another quarter of record revenue and gross margins” as Evolve adoption accelerates; margins reached 65.4% vs 54.2% a year ago .
- Channel breadth and traction: e-commerce up 78% YoY (56% of sales), municipal programs expanding (NYC, Chicago, Boston, Baltimore, LA County, SF), retail order with Bradley Caldwell and discussions with major home improvement chains .
- Balance sheet/operations: cash to $11.2M post-quarter; completed move to larger automated facility to improve capacity and margins; “well positioned to achieve our breakeven goals” .
What Went Wrong
- Still loss-making: GAAP net loss of $1.62M; OpEx up vs Q2’24 on one-time legal costs, partially offset by cost controls; ContraPest declined ~45% YoY as mix shifts away .
- Retail slower historically: management highlighted retail adoption had been slower than expected (now improving with Bradley Caldwell), and large box placements have long lead times .
- International timelines/regulatory dependency: pending approvals in Australia/New Zealand; broader international growth hinges on regulatory processes despite signed distributors .

Financial Results

Overall P&L and cash (oldest → newest)

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($USD)	$459,000	$485,000	$625,000
Gross Profit ($USD)	$249,000	$313,000	$409,000
Gross Margin (%)	54.2%	64.5%	65.4%
Net Loss ($USD)	$(1,584,000)	$(1,665,000)	$(1,616,000)
Diluted EPS	$(3.08)	$(1.28)	$(0.87)
Adjusted EBITDA Loss ($USD)	$(1,478,000)	$(1,506,000)	$(1,442,000)
Cash & Equivalents (quarter-end, $USD)	—	$1,655,000	$6,055,000
Shares Outstanding (WASO)	514,463	1,299,971	1,854,531

Key mix, channels, and product KPIs

KPI	Q1 2025	Q2 2025	Notes
Evolve % of Revenue	79%	83%	Evolve YoY +94% in Q2
ContraPest % of Revenue	21%	17%	ContraPest ~-45% YoY in Q2
E-commerce % of Sales	61%	56%	E-comm +78% YoY; Amazon leading
Municipal Sales Growth YoY	7x	+538%	NYC & Chicago deployments
Brick & Mortar Sales ($)	“small”	~$65,000	Bradley Caldwell order
International Sales ($)	$0	~$20,000	Caribbean reorder; ANZ pending
One-time Costs (Q2)	—	Legal $201k; Non-cash lease $38k	Excluding, net loss ~$(1.4)M

Segment breakdown: SenesTech does not report GAAP segments; product/channel disclosures provided above.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Cash flow breakeven quarterly revenue	Ongoing	“a little over $1.5M/quarter” (Q4/Q1)	“a little over $1.5M/quarter”	Maintained
Cash burn target	Ongoing	~$1.0M/quarter (from ~$1.5M)	~$1.0M/quarter goal	Maintained
Gross margin outlook	2H25+	Improving with Evolve mix	“Expect margins to stay consistent or improve”	Maintained/positive bias
Liquidity runway	Multi-year	Implicitly improved post Q1 financing	“Through 2027 and beyond” post 8/5 warrant inducement	Extended
Capacity expansion capex (if scale-up)	Scenario	—	~$300–$400k per additional line	New disclosure
Share count (basic)	Point-in-time	—	~4,724,340 as of Aug 7	Updated capital structure

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
Evolve adoption/margins	Evolve transformed mix; Q4 GM 61%	Evolve 83% of rev; GM 65.4%; YoY gross profit +64%	Improving
E-commerce growth	Q4 e-comm +206% YoY; 55% mix	+78% YoY; 56% mix; Amazon leading	Strong, sustained
Municipal programs	NYC pilot starting April; Baltimore, Chicago, Boston	NYC & Chicago showing consumption/reorders; +538% YoY municipal	Scaling pilots
Retail adoption	Early Ace progress; long lead-times	Bradley Caldwell order (~$65k); big-box discussions	Improving from small base
Manufacturing capacity	New Phoenix facility to scale 5 years demand	New facility live; 1 shift ≈ $10M rev capacity; option for more lines	Expanded, scalable
International	Shipments to HK/UAE/NL/Maldives; ANZ pending	Reorder in Caribbean; ANZ approvals pending 2025	Incremental progress
Profitability path	Breakeven lowered to ~$7M/year; burn to ~$1M/qtr	Breakeven “a little over $1.5M/qtr”; burn target reiterated	Clearer target

Management Commentary

CEO (press release): “We delivered another quarter of record revenue and gross margins…As the pioneers in rodent birth control, we are…reshaping the multi-billion-dollar rodenticide industry with a scalable, science-driven solution” .
CEO (prepared remarks): “Evolve sales were up an incredible 94% YoY…and up 36% sequentially…gross profit margins were 65.4%…we expect to see continued long term improvement in gross margins” .
CFO: “We ended the quarter with $6.1M in cash…closed additional financing of $6.3M on August 5…providing an operating runway now through 2027 and beyond…Any further fundraising is likely to be limited to occasional opportunistic ATM issuances” .

Q&A Highlights

Margins: Management expects gross margins to “stay consistent” with potential improvement as scale and automation increase .
Demand ramp: E-commerce acceleration via increased digital marketing is planned; city/government volumes expected to build as trials convert to larger deployments .
Capacity and capex: Current line at one shift supports roughly $10M revenue; facility prepped for three lines; incremental capex per added line ~$300–$400k .
Capital structure: ~4.72M basic shares outstanding as of Aug 7; recent inducement raises concluded; no near-term plans for additional financings beyond opportunistic ATM .
Breakeven timing: Revenue needed for cash flow breakeven ~“a little over $1.5M per quarter”; management sees potential to reach that level in 2026 .

Estimates Context

Consensus was not available for Q2 2025 on S&P Global; thus, beat/miss vs Street cannot be assessed.

Metric	Q2 2025 Actual	Q2 2025 Consensus	Surprise
Revenue ($USD)	$625,000	N/A*	N/A
Primary EPS	$(0.87)	N/A*	N/A

Values marked with * retrieved from S&P Global; consensus unavailable.

Key Takeaways for Investors

Mix-driven margin expansion is durable: Evolve at 83% of revenue with 65%+ GM provides operating leverage as volumes scale; margins expected to hold or improve .
Clear path to breakeven: With breakeven “a little over $1.5M/quarter,” municipal expansions, e-commerce growth, and retail wins are the key levers to watch into 2026 .
Funding overhang eased: $11.2M cash as of 8/5 and management’s “2027+” runway comment reduce financing risk; monitor warrant overhang at $5.25 strike and any ATM activity .
Near-term catalysts: Evidence of NYC/Chicago trial scale-ups, additional municipal orders, ANZ approvals and big-box retail placements could drive step-ups in revenue .
Capacity in place: One shift supports ~$10M revenue; incremental lines require modest capex ($300–$400k), enabling rapid scaling if large municipal/retail wins materialize .
Watch ContraPest erosion vs. Evolve growth: Legacy product declines are expected as customers convert; overall impact is positive given Evolve’s higher margins .
Execution focus: Retail sell-through, international registrations, and sustained e-comm growth (Amazon/Walmart/Tractor Supply) remain the execution priorities .

Supporting detail and disclosures:

Q2 2025 8-K press release and financials .
Q2 2025 earnings call transcript for channel/product detail, capacity, runway, and guidance context .
Prior quarter comps: Q1 2025 8-K and call ; Q4 2024 8-K and call .
Financing events: July 1 and Aug 5, 2025 warrant inducement 8-Ks .

SenesTech, Inc. (SNES)·Q2 2025 Earnings Summary