By M. Marin
NASDAQ: SNES
READ THE FULL SNES RESEARCH REPORT
Hantavirus quarantine finally ends as outbreak calls attention to the many severe issues rodent infestations can cause, and the need to control rodent populations
As SenesTech, Inc. (NASDAQ: SNES), a leader in solutions for managing and reducing rodent populations, moves forward with its growth initiatives, the recent outbreak of hantavirus highlights the risks posed by rodent infestations. The World Health Organization (WHO) identified the outbreak as a strain of hantavirus, the Andes virus, which is “spread mainly by rodents,” per the CDC, and has a 40% fatality rate or roughly 40x that of COVID-19, according to the New York Times. The World Health Organization (WHO) was first notified about cases aboard the ship last month, and it was not until this past weekend – almost seven weeks later – that the quarantine ended for many passengers.
The recent hantavirus outbreak calls attention to the many severe issues rodent infestations can cause and the need to control rodent populations. Rodent populations can create other health problems, as well as food contamination and waste that can also exacerbate food security issues, among other issues. Yet, businesses or homeowners are often reluctant to report an infestation. Thus, rodent infestation is a fairly pervasive problem, although the issue is often undisclosed. The problem is likely to be much larger than people perceive because rat infestations are often not reported.
While it seems evident that infestations need to be managed, the way to manage the problem is evolving from complete reliance on chemical agents to multifaceted, or Integrated Pest Management (IPM) programs that include birth control tools such as those offered by SenesTech. Chemical rodenticides—the most widely used rodent control measure—are widely used throughout the world. However, the use of chemical agents raises issues concerning environmental safety and persistence, and rodents generally develop some resistance to the chemicals over time. Many traditional solutions are also considered inhumane.
Traditional methods alone are thus less effective and can also harm non-target organisms and the environment. For these and other reasons, the EPA has tightened rules on highly toxic rodenticides, and many regulators are restricting the use of second-generation anticoagulant rodenticides (SGARs). In fact, many regulators are imposing other restrictions on the use of SGARs. Specifically, federal regulations prohibit consumer retailers from selling SGARs, limiting their use to licensed pest management professionals (PMPs), as well as certain agricultural users. California signed the California Ecosystems Protection Act (AB 1788) in 2020, imposing greater restrictions on the use of SGARs to protect the state’s native wildlife.
Conversely, SNES products are considered sustainable, effective, and ethical. SNES’ solutions differ from more traditional rodent control measures; the company develops birth control solutions to contain animal pest populations through fertility control. Integrated pest management programs (IPMs) combine traditional and fertility control methods, particularly as SNES’ ContraPest and Evolve products do not have the issues related to SGARs noted above.
SNES growth strategy includes broadening product portfolio to expand addressable market
SNES is also broadening its product portfolio in order to expand its addressable market. The recently introduced Evolve product line is expected to expand SNES’s addressable market to the consumer market, as well as to appeal to segments of the company’s traditional professional pest control market. The objective to expand its reach to a broader range of customers appears to be gaining traction, as evidenced by the company’s recent financial and operating results.
In addition, SNES implemented a packaging redesign. The packaging refresh includes better descriptions of the product and how it is to be used. The redesign is expected to improve online and shelf visibility and strengthen the consumer understanding of what differentiates its product line. SenesTech also continues to redesign the e-commerce section of SenesTech.com in order to improve the customer experience, simplify navigation, boost conversion rates, and support subscription growth. In addition, digital advertising initiatives and broader marketing efforts – slated to launch in 3Q26 – are expected to boost awareness of SenesTech products and support both online and in-store retail sales.
Sizable and growing market opportunity
The company believes the market opportunity for non-poison rodent control remains significant and is growing. The anticipated growth is expected to be driven by ongoing urbanization combined with regulatory restrictions on traditional rodenticides and rising demand for safer, sustainable pest-management solutions. The company has recently introduced or intends to implement several initiatives to drive growth, including:
- Expanding the product line
- Redesigning the packaging to better communicate product benefits
- Emphasizing the DTC, online channels & redesigning its proprietary e-commerce website
- Managing its Amazon store itself
- Digital advertising measures
- Strategically increasing focus on large-scale opportunities
- Opportunistically adding international markets
- Improving operational efficiency to expand margins
- Developing relationships with agricultural companies
E-commerce Growth: Amazon Direct Management
With the original ContraPest product and new Evolve product line, SNES now has a broadening product portfolio that is expected to appeal to the consumer, as well as the professional market segments. With products for the consumer market, the company is focusing more efforts on the direct-to-consumer (DTC) and e-commerce channels. As a result, the company has refocused its efforts on online sales, including the SenesTech e-commerce portal and Amazon, as well as through big box retailers.
SenesTech also redesigned the e-commerce section of SenesTech.com in order to improve the customer experience, simplify navigation, boost conversion rates, and support subscription growth to support both targeted B2B and B2C increases. SNES’s B2B strategy also encompasses increased focus on large-scale opportunities across targeted verticals, including pest management, agriculture, municipalities, distributors, and other sizable commercial markets. The emphasis on DTC is also expected to support B2B revenues through increased brand awareness, as noted, and inbound lead generation.
SenesTech believes that strengthening its control of the customer channel improves its ability to capture more value as adoption of its growing product line expands. In 2025, SNES began managing Amazon sales of Evolve Rat and Evolve Mouse directly, transitioning from third-party management to strengthen product presentation and customer communications, leverage performance data to optimize marketing, and retain a greater portion of e-commerce economics. (The transition led to roughly $200k, technically a reduction in revenue, in 4Q25.)
1st full month of Amazon transition to in-house management saw e-commerce sales up 163% y/y
In 2025, e-commerce revenue increased 88% year-over-year compared to 2024, driven by strong growth on Amazon and the company's direct-to-consumer website. SNES’s e-commerce channel now represents more than 50% of the company’s total annual revenue. SNES substantially completed its transition from third-party e-commerce management of Amazon sales of Evolve products during March 2026, improving visibility into customer behavior, enhancing control over advertising and media buying, expanding opportunities for customer engagement, and obtaining greater control over overall channel economics.
Management expects direct control to drive higher revenue and stronger margins once fully integrated. SenesTech is optimistic about the traction it is seeing with its DTC and subscription measures. April 2026 was the first full month of SNES’s direct in-house management of its Amazon e-commerce management. E-commerce sales for April 2026 advanced 163% year-over-year to a record $146k compared to $56k in April 2025 and 47% sequentially compared to $99k in March 2026. Subscription-based recurring revenue advanced 198% year-over-year to a record $36k for the month compared to $12k in April 2025, while subscription-based customers grew 109%. The company believes these metrics provide early positive evidence supporting the benefits of its evolving e-commerce strategy, growing DTC focus, and recurring revenue subscription business model.
Opportunities in international markets…
The company’s focus is on the domestic market. SNES also has some international sales at this early stage in its development. Evolve secured regulatory approval in New Zealand (with the initial stocking order shipped to exclusive partner Evicom) and expanded its international footprint in Belize by adding the Belize Raptor Center as an official distributor. SNES continues to support its international distribution partners as they introduce the company’s fertility products to new markets. The focus will be on international markets where the regulatory process would be expected to be cost-efficient.
Earlier this month, SNES expanded the Evolve® Rodent Birth Control™ product line into Bermuda through a distribution agreement with Animal and Garden House. Bermuda is a small island, and urban areas and surrounding marine ecosystems are in close proximity, making the use of traditional rodenticides challenging, reflecting concerns regarding runoff, non-target exposure, and impacts on wildlife, among other factors. In addition to Belize, other existing and expanding deployments of Evolve in the region include the U.S. Virgin Islands.
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