Earnings call transcript: SenesTech tops Q3 2026 estimates, shares fall

SenesTech Inc. reported stronger-than-expected results for Q3 2026, with revenue reaching $1.1 million, a 42% increase sequentially and 59% year-over-year. The company surpassed the $1 million revenue milestone for the first time, extending a trend of improving sales and subscription growth. Gross profit hit a record $796,000, representing a 40% increase from the previous quarter and an 84% jump year-over-year.

The gross margin remained strong at 72.6%. Adjusted losses were narrower than expected, narrowing by 2 cents per share, but the company remains unprofitable and continues to burn cash. Despite the positive earnings beat, SenesTech's stock fell sharply, with shares closing at $1.03, down 9.65% from the previous close, and further slipping to $0.93 in after-hours trading.

The significant decline suggests that investors were concerned about dilution and continued cash burn, rather than solely focusing on the earnings improvement. Management plans to test pricing and subscription models in the upcoming quarters to optimize revenue streams, while also expanding its sales force in B2B outreach.