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SenesTech’s urban deployments are shaping up to be a game-changing inflection point for the company — and potentially the entire pest control industry. With municipal adoption now underway in four of America’s most rat-infested cities, SenesTech is no longer just selling a product, it’s embedding itself into the long-term infrastructure of public health and urban sanitation that is government funded.

SenesTech (SNES) has recently released two new products in the market with great success. The company reported its Q1-2025 results earlier this month and showed increasing revenues YoY. SenesTech has a large and growing domestic and international distribution footprint for its bait. Revenues will continue to increase over the next physical year or two.

The company’s stock is down 62% over the past year, but has rebounded 18% over the last six months. Despite the recent rally, shares still trade below book value, suggesting meaningful undervaluation. Market consensus indicates that the company’s revenues are expected to increase significantly over the next two years. I rate the company as a Buy and recommend a long-term position to take advantage of the company’s rapid growth.

Business Strategy, Operations, and Current Synergies

SenesTech develops, manufactures, and sells non-toxic rodent birth control. It is a safe alternative to toxic bait and poisons. SenesTech’s bait causes infertility in male and female rodents. The company states that two rats can potentially produce 15,000 offspring within a year. If the animals are infertile, then the population decreases. States have been restricting the use of toxic poisons in rodent control. Rodents become immune to or avoid traditional toxic baits. These toxic baits also pose a health risk to the environment and food chain.

By making rodents infertile, the rodent population depletes and does not return. This method is more humane and more environmentally friendly and preferred by the EPA. The toxic approach requires continual applications of hazardous chemicals which lead to bioaccumulation of toxins in the environment. The rodent population which survives toxic bait can repopulate and rebound in the environment. The company’s bait offers a more effective method.

The company produces and distributes three products: ContraPest, Evolve Rat, and Evolve Mouse. ContraPest is a liquid bait which causes infertility in male and female rodents. ContraPest is registered in all 50 states. Evolve Rat and Evolve Mouse are soft bait products which use cottonseed oil as its active ingredient. Evolve Rat may be found in 47 states and Evolve Mouse in 35 states. Evolve Rat and Evolve Mouse were launched over the last year. The EPA has rated the active ingredient in the bait as a minimum-risk product.

The company sells its products through online retailers like Amazon (AMZN), Walmart (WMT), Tractor Supply (TSCO), and DIY Pest Control. E-commerce sales represent its largest sales channel. The company is placing its products in other retail outlets and distribution networks. It is now selling its bait at ACE Hardware and plans to get its products into Costco (COST).

SenesTech is supplying bait to a rat contraception pilot program with New York City. The company currently participates in municipal rodent eradication programs in Los Angeles, Baltimore, Chicago, and greater Boston. Cities like Chicago offer a unique opportunity for sales because of the large-scale efforts for city-wide rodent control. SenesTech also has an agreement to supply a large New York pest control company, Bug Off Pest Control. Companies which employ an integrated pest control system may use a combination of rodent birth control and toxic bait.

The company is distributing its bait internationally to 10 countries. Senestech has distribution agreements in Hong Kong, UAE, the Netherlands, and the Maldives. Agreements have been made in Australia, New Zealand, and India. The company expects regulatory approval for Australia and New Zealand later this year.

The company is targeting different markets for sales of its bait. The company is pitching to the warehouse and distribution sector, which potentially has issues with rodents. SenesTech is already supplying bait to one of the largest companies in the distribution sector.  The company is looking at supplying large agricultural operations with birth control rodent bait because these businesses report waste due to rodent damage. SenesTech has been conducting research on sugar cane farms with impressive results. The company has ongoing research on agricultural applications. A recent interview with the company’s CEO reveals the impressively strong potential of current and future sales channels.
 

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The company operates out of a new manufacturing facility in Surprise, Arizona with 21,000 square feet which will help keep up with future demand. The company will see rising demand for its products as its scales up availability. The plans to increase its domestic and international distribution footprint. In the future, it may develop other pest baits using similar technologies.

Q1 Results

The company reported its Q1 2025 results on May 8th, continuing its trend of steady growth and operational improvement. Revenues increased 17% year-over-year to $485,000, up from $415,000 in Q1 2024. This growth was driven primarily by Evolve product sales, which rose 40% YoY and now account for 79% of total revenue. Gross profit more than doubled to $313,000 from $135,000 YoY, with gross margins expanding to a record 64.5%, compared to 32.5% in the same quarter last year.

The company reported a Q1 net loss of $1.665 million, a slight improvement from a $1.832 million loss YoY. Adjusted EBITDA loss also improved to $1.506 million versus $1.721 million in Q1 2024. These improvements reflect cost-cutting initiatives that are expected to yield $2 million in annual savings, with noticeable impact beginning in Q2 2025.

Historical Financial Performance and Valuation
 

SenesTech’s revenues have been increasing YoY. As its distribution footprint increases so will its sales. Gross profit has improved YoY while operating expenses have decreased. Net loss has improved YoY. The company has compensated for the net loss by raising money from ATMs and warrants. The company’s assets outweigh its liabilities and its debt is negligible. As operations improve, investors will want to see net income and free cash flow from operations. The company expects net income or at least break-even in 2026.

The company remains undervalued. Its stock trades below its book value per share and right around its NAV per share value. Its forward multipliers, like Total EV / Revenues, also reveal undervaluation. Larger market volatility will continue to keep the price undervalued.

Investment Strategy and Risk

SenesTech is at low to moderate risk of poor financial performance. The company has the resources to continue its expansion of current operations. Its business strategy of global distribution and increased domestic distribution is in the works and successful. Risks to the company include the regulation of their trade and ingredients by nations and whether their bait is adopted by large scale rodent control companies.

A Buy strategy for the company comes at a moderate to high risk. The largest risk is that it is a micro-cap company with fewer shares and low trading momentum. A volatile stock market may keep the stock price low. However, if revenues continue to increase and financial performance improves, then investor sentiment on the stock will be more positive. If the stock price reaches its book per share value, then gains of 30% or more may be realized. Making this a Buy recommendation.

Conclusion

SenesTech currently has no competitors in rodent fertility control, which is becoming more standard because it is more effective and better for the environment. The company is rapidly expanding its sales and distribution footprint on a domestic and global scale. The company is teaming up with city municipalities to supply bait. The company recently reported increased revenues YoY and there is an assumption that this trend will continue. The company’s stock price is trading near its 52-week low and remains undervalued. There is risk in the markets right now due to greater volatility. I rate the company as a Buy and recommend that investors watch for future developments.

Related Articles:
SenesTech's Big Play On Small Pests
SenesTech CEO Reveals Surprise San Francisco Expansion
SenesTech: A Little-Known Biotech Company Worthy Of Attention
SenesTech: The Smart Money’s Bet On Rodent Population Control
SenesTech Has Built A Better Mouse Trap

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