By M. Marin
NASDAQ: SNES
READ THE FULL SNES RESEARCH REPORT
We met virtually with management of SenesTech, Inc. (NASDAQ: SNES) yesterday and present our positive takeaways of the meeting and of the increased stake by a longtime institutional investor in this report. SNES is a leader in rodent birth control solutions, with patented products that provide proven long-term and sustainable rodent population management. The company has reported positive news flow over the past week, including record preliminary $1.1 million quarterly revenue for 3Q26 and successful results from its pilot program in Chicago, which produced an 88% reduction in rat activity.
The 3Q26 revenue is the highest in SNES’ history. Preliminary 3Q26 revenue was roughly $1.1 million compared to $770k in 2Q26. This represents about 40% quarter-over-quarter growth and about 55% year-over-year growth. SNES had set a prior revenue high in 2Q26, reflecting record levels of order count and subscription revenue as SNES’ subscriber base continues to grow and adoption of Evolve® accelerates. 3Q26 surpassed that level, marking the company's first quarter at or above $1 million in revenue, which we believe illustrates the strong momentum in the business on benefits of its growth initiatives.
View Glenbrook Capital Management goal – to minimize equity dilution – as a positive
Per a recent filing, Glenbrook Capital Management (GCM) has become a significant holder of SNES shares, with more than 30% of the shares. This is an important development, in our view, as it reflects Glenbrook’s optimistic outlook on the company’s opportunities and prospects. Moreover, it also potentially could help shine a light on the growth measures SNES continues to implement and elevate interest in the company within the investment community. We specifically view Glenbrook’s goals to more closely align management’s and the board’s interests with those of public shareholders and to minimize equity dilution as significant positives.
Believe increased institutional investor participation, along with operating improvements, could lead to expanded capital markets access for SNES & improved financing options
GCM calls for “a sharpened focus on capital discipline” to benefit SenesTech and all of its shareholders and encourages SNES “to consider selective use of equity-based compensation in place of cash compensation,” which “could conserve cash while more closely aligning the interests of the Board with shareholders.”
Glenbrook indicated its intention to “remain a supportive long-term investor” and potentially increase its stake over time opportunistically, as it believes SNES shares are undervalued. However, GCM notes the negative impact of “a recurring cycle of dilutive offerings and reverse splits” and cites its goal to minimize equity dilution and pivot to less dilutive capital access measures now that SNES is getting traction in its core business. SNES is also optimistic that recent results and GCM support can help expand its access to improved financing options.
We view GCM’s goals to more closely align management’s and the board’s interests with those of public shareholders and to minimize equity dilution as significant positives. We are also optimistic that the increased institutional investor participation, along with the company’s ongoing operating improvements, could also lead to improved access to the capital markets for SNES.
Key objective is path to profitability, growing revenues while concurrently lowering cash burn
This also aligns with the company’s goal of developing a clear path to profitability and growing revenues while concurrently lowering cash burn as a key objective. The company’s strategy is to build a commercial model around direct consumer relationships, recurring revenue, greater control of brands and channels and data analytics.
GCM encouraging SNES to retain branding and marketing strategy firm Sandstrom to help with promotional support & raise awareness of and adoption of product portfolio
The changes management implemented have enabled SenesTech to boost awareness of the Evolve™ brand and educate the market, which is important as rodent fertility control represents a new pest management category. To help with promotional support and with raising awareness of its product portfolio, GCM retained Sandstrom Partners, a branding and marketing strategy firm that cites several high profile brands among its client roster, to analyze the company's business and offer SNES consultation services. GCM has encouraged the company to retain Sandstrom’s services to facilitate continued sales advances, including through Amazon, where SNES has already seen strong results since it took control of this and other online channels.
Controlling customer channels is also expected to help SNES establish credibility for its products towards the goal of generating recurring subscription revenue and gaining valuable customer insights that could inform marketing, product development, inventory planning, and commercial initiatives in the future.
SenesTech is optimistic about the traction it is seeing with its DTC and subscription measures. With a product portfolio expected to appeal to the consumer, professional, corporate and government market segments, the company believes its recent initiatives support consumer revenue growth and also lays the groundwork for B2B growth, which is a core goal for SenesTech. SNES’s investments in new initiatives and in digital marketing and building its brands are designed to support product adoption across targeted B2B verticals.
Successful results from Chicago pilot of Evolve®…
Separately, results from a pilot of Evolve® Rat Birth Control™ in Chicago's Wicker Park Bucktown Special Service Area over a 12-month monitoring period showed significant success. Tracking-tunnel surveys documented an 88% reduction in average rat activity intensity and an 82% reduction in the proportion of monitoring locations with detectable rat activity, providing measurable evidence of Evolve's effectiveness, according to SNES.
The municipality wanted to address rodent activity and concurrently respond to community interest in reducing reliance on rodent poisons, supporting management’s view that adding Evolve to an integrated pest management (IPM) program can optimize the efforts and goals of managing long-term rodent population reduction while helping reduce reliance on poisons and their risks to the environment and non-target animal populations.
Results also underscore benefits of emerging assessment services offering…
Chicago results also underscores the benefits of and prospects of SNES’ emerging assessment services offering, according to management. Beginning in August 2025, tracking-tunnel surveys were conducted every two to three months to measure the intensity of rat activity and how widely activity was distributed across monitoring locations. SNES believes this helps municipalities identify the scope of the problem and effectiveness of its offerings and also is expected to generate positive word of mouth that can lead to expanded deployment.
The success of the Chicago deployment follows the recent successful results from the use of Evolve® Rat Birth Control™ at a 400-acre farming operation in Dalhart, Texas. Following deployment of Evolve, the farm experienced a substantial reduction in rodent activity and irrigation tape damage. During the most recent reporting period, onsite observations indicated rodent activity.
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