TOMI Environmental Solutions, Inc. Reports Full Year 2025 Financial Results and Outlines Growth Initiatives
Rhea-AI Summary
TOMI Environmental Solutions (NASDAQ: TOMZ) reported 2025 revenue of $5.64M versus $7.74M in 2024, with gross margin near 55% and a net loss of $3.75M (‑$0.19 per share). Cash was $88,000 and working capital about $1.0M. Backlog rose to $1.8M; the company completed a $535k convertible note and established a $20M equity line (first draw $94,130).
Management highlighted international expansion, R&D investments, signed integration projects (~$3M), and larger opportunity books of $16M (integration) and $20M (SteraMist iHP).
Positive
- Gross margin approximately 55%
- Net loss improved by ~16% year-over-year
- Sales backlog growth to $1.8M
- Integration project pipeline totalling $3M with signed orders
Negative
- Revenue declined ~27% to $5.64M year-over-year
- Cash on hand was only $88,000 as of December 31, 2025
- Equity line of credit ($20M) may dilute shareholders if drawn
Market Reaction – TOMZ
Following this news, TOMZ has declined 11.41%, reflecting a significant negative market reaction. Our momentum scanner has triggered 6 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $0.49. This price movement has removed approximately $1M from the company's valuation.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.
Key Figures
Market Reality Check
Peers on Argus
TOMZ was modestly lower by 0.4% pre-release while peers were mixed: CLWT up 4.27%, CLIR up 1.85%, and LIQT, DEVS, ZONE down between 1–4%. Only ZONE appeared in momentum scans, suggesting stock-specific trading rather than a coordinated sector move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 14 | Q3 2025 results | Neutral | -8.6% | 95% sequential revenue jump but year-to-date sales and profits under pressure. |
| Aug 14 | Q2 2025 results | Negative | -2.1% | Sharp revenue decline and shift from prior-year profit to sizable net loss. |
| May 08 | Q1 2025 results | Positive | +1.9% | Net sales up 42% with materially reduced net loss and stronger backlog. |
| Apr 14 | FY 2024 results | Negative | -5.4% | Wider annual net loss despite 5% revenue growth and weak Q4 margin. |
| Oct 28 | Q3 2024 prelims | Positive | +8.7% | Preliminary Q3 2024 showing strong revenue growth and continued profitability. |
Earnings releases often produced modest moves, generally aligning with the tone of results: positive quarters tended to see gains, while weak or mixed updates more often drew selling.
Over the last five earnings-related announcements from Oct 2024 to Nov 2025, TOMI moved from strong growth and preliminary profitability to a tougher 2025 with revenue declines but improving margins and backlog. Positive updates in Q3 2024 and Q1 2025 saw share price gains, while weaker or mixed quarters in Q2 2025, Q3 2025, and full-year 2024 led to selloffs. Today’s full-year 2025 report continues this narrative of balancing growth initiatives against ongoing losses and liquidity management.
Historical Comparison
Across five earnings updates, TOMZ’s average move was -1.09%, indicating historically modest price reactions around results. Today’s full-year 2025 release fits into this pattern of incremental adjustments rather than extreme repricing.
Same-tag history shows TOMI cycling from profitable growth in late 2024 into a more challenging 2025 with revenue pressure but recurring solution sales, backlog, and international expansion gradually strengthening the underlying franchise.
Regulatory & Risk Context
An effective Form S-3 shelf filed on Nov 14, 2025 allows TOMI to offer up to $50,000,000 of various securities over time. Combined with the $20,000,000 equity purchase arrangement and recently used ELOC capacity, this provides multiple registered pathways to raise capital for working capital, debt repayment, and growth initiatives, subject to market conditions and Nasdaq requirements.
Market Pulse Summary
The stock is dropping -11.4% following this news. A negative reaction despite highlighted growth initiatives fits prior patterns where the stock often sold off on mixed earnings. Investors confronted 2025 revenue of only $5.64M, a net loss of $(3.75M), and cash of just $88,000, even as backlog reached $1.8M. Market focus may gravitate toward balance-sheet risk and the need to tap the $20M equity line or $50M shelf, which can raise dilution concerns.
Key Terms
binary ionization technology technical
convertible note financing financial
equity line of credit financial
form s-3 shelf registration statement regulatory
iq/oq qualification technical
AI-generated analysis. Not financial advice.
FREDERICK, Md., March 31, 2026 (GLOBE NEWSWIRE) -- TOMI Environmental Solutions, Inc. (NASDAQ: TOMZ), a global provider of disinfection and decontamination essentials through its premier Binary Ionization Technology® (BIT™) platform, today announced financial results for the year ended December 31, 2025, and provided an update on strategic initiatives designed to drive long-term growth.
2025 Highlights:
- Recap of 2025: TOMI made meaningful strides across multiple strategic priorities. We continued to strengthen our government relationships, highlighted by our selection by NASA for a biosecurity operation for our reliability in mission-critical environments. Commercially, we announced several new customer wins across global CDMOs, leaders in eye health, and prestigious university research groups. In parallel, regulatory and industry tailwinds in the food market, particularly recent FDA developments, have significantly expanded the potential applications for SteraMist iHP within food safety and processing environments. Our sales were driven primarily by continued strength in our service division and recurring BIT™ Solution sales.
- Strong Gross Margins: Gross profit margin remained healthy at approximately
55% , underscoring the efficiency of operations and the value of the Company’s technology. - Global Market Expansion: Continued penetration into global markets, including Canada, the UK and Europe, with approximately
29% of revenue generated internationally, compared to21% in the prior year. We leveraged late-2025 strategic milestones to successfully launch into the Canadian healthcare sector in early 2026. This momentum included securing Total Clean Air as our preferred partner for the UK and EU, alongside significant infrastructure investments to support 2026 growth across Europe. - Operational Efficiencies: We reduced total operating expenses by approximately
10% in 2025 and are exploring the use of AI-related technologies. Going forward into 2026, we continue to actively manage controllable costs while preserving the technical and commercial capacity required to execute on our pipeline. - Product Innovation: Ongoing investment in R&D to expand applications of SteraMist® across life sciences, healthcare, food safety, and commercial markets, resulting in a more comprehensive equipment and service portfolio.
- Industry Recognition: Our technology continued to gain industry recognition. SteraMist was named Disinfection and Decontamination Products Company of the Year 2025 by MedTech Outlook, reflecting market confidence and the growing adoption of our platform.
- Strategic Validation: A landmark USDA study confirmed BIT efficacy against deformed wing virus (DWV) for agricultural biosecurity in honeybees.
Financial Results for the year ended December 31, 2025, compared to December 31, 2024
- Sales, net was
$5,636,000 compared to$7,739,000 for the years ended December 31, 2025 and 2024, respectively. This was primarily driven by customers deferring capital expenditure projects due to the uncertain economic environment with the impact of tariffs and the Middle East crisis. This impact is expected to be temporary, and the customers’ operations and related service activity are expected to resume on a normal schedule. - Service revenue remained relatively consistent, reflecting ongoing demand for the Company’s decontamination and service solutions.
- Operating loss was (
$3,854,000) compared to an operating loss of ($4,105,000) for the years ended December 31, 2025 and 2024, respectively. - Net loss was
$(3,749,000) or ($0.19) per basic and diluted share, compared to net loss of$(4,477,000) or ($0.22) per basic and diluted share for the years ended December 31, 2025, and 2024, respectively. - Our sales backlog grew during 2025 to approximately
$1.8 million , reflecting improved visibility into near-term revenue conversion and continued contribution from our recurring consumables and service revenue base.
Recent Business Highlights:
- On October 1, 2025, we announced the purchase of SteraMist iHP equipment and BIT Solution totaling
$175,000 b y Trauma and Casualty Team (T.A.C.T.) franchises, a premier provider of decontamination services operating 18 franchises across the United States. T.A.C.T.'s adoption of SteraMist technology represents a key milestone in the Company's commercial growth strategy. - On November 10, 2025, we showcased our SIS platform at the AALAS 76th National Meeting in Long Beach, California, a key lead generation event for our animal research vertical.
- On November 26, 2025, we announced a custom integration pipeline valued at approximately
$3 million , with ten active projects across our SIS and CES platforms. Strategic OEM partnerships with ESCO, Steelco, PBSC, Nuaire, and Getinge are driving platform growth and broader distribution. - On December 18, 2025, we secured a signed purchase order valued at approximately
$500,000 from a global biopharmaceutical leader for the integration of SteraMist iHP into passthrough fill boxes used in sterile manufacturing. - On December 22, 2025, we announced the adoption of SteraMist iHP by a leading Cell and Gene Therapy (“CGT”) manufacturer for a commercial-scale pharmaceutical facility, including full IQ/OQ qualification and whole-facility iHP Corporate Service fogging of manufacturing suites, QC labs, and support spaces.
- As of December 31, 2025, we had ten active SIS and CES integration projects with a combined contract value of approximately
$3 million , including a$500,000 signed purchase order from a global biopharmaceutical leader received in December 2025. - These figures represent potential future revenue and are not committed orders or guarantees of future performance. Conversion of this pipeline is a primary driver of our 2026 liquidity plan. Certain CES project conversions were delayed during 2025 by the tariff-driven slowdown in U.S. pharmaceutical facility capital decisions, which management views as a temporary, externally driven timing issue rather than a change in underlying demand.
Liquidity and Capital Access
- As of December 31, 2025, we had cash and cash equivalents of
$88,000 and working capital of$1.0 million . For the year ended December 31, 2025, we incurred a net loss of$3.7 million and used$1.2 million of cash in operating activities. Our accumulated deficit as of December 31, 2025 is$58.1 million . - During 2025, the Company successfully completed a
$535,000 convertible note financing to provide additional working capital and support growth initiatives. We are evaluating options to reduce our outstanding convertible note obligations, including potential conversion into equity or repayment using proceeds from the Hudson Global equity line, either of which would reduce total debt and improve stockholders' equity. - On November 5, 2025, the Company entered into an equity line of credit (“ELOC”) pursuant to which the Company has the option to sell, from time to time, up to
$20,000,000 shares of its common stock over a 24-month period. The ELOC provides the Company with flexible access to capital on an as-needed basis, subject to applicable Nasdaq listing requirements. We may, at our sole discretion, draw down between$25,000 and$2,000,000 per draw, subject to applicable exchange caps. In February 2026, we made our first draw, generating gross proceeds of$94,130 . - Our effective Form S-3 shelf registration statement provides a registered platform to raise up to
$50 million of securities from time to time. We have engaged Bancroft Capital as an investment banking advisor to explore additional financing opportunities, including equity and equity-linked transactions with existing and new investors.
Executive Commentary
Dr. Halden Shane, CEO of TOMI Environmental Solutions commented, “As we enter 2026, our focus remains on growth and profitability. We plan to continue expanding our presence in the global pharmaceutical manufacturing sector by deepening OEM relationships and supporting customers with integrated, validated decontamination solutions, while partnering with new global contract development and manufacturing organizations whose market size is expanding from
“In addition, we see continued opportunities to penetrate the food safety market that has a value of
“The global
Looking Ahead
- The Company enters the first quarter of 2026 with strong operational momentum, expanding recurring sales, and a growing customer base across regulated and emerging markets. We are just in the process of closing the first quarter of 2026, beating first quarter 2025 revenue. The pipeline that we have is the strongest we’ve ever had. Our entire opportunity book for integration projects remains at
$16 million and the entire SteraMist iHP opportunity book is currently at$20 million .
The company is strategically positioned to capitalize on global trends in clean manufacturing, AI-enabled automation, and biosecurity, with a focus on delivering sustainable long-term growth and shareholder value.
The Company is executing a focused strategy to:
- Expand recurring service contracts with key customers and explore new product lines and/or service offerings to generate a steady income stream
- Drive year on year recurring revenue growth by increasing SteraMist solution sales
- Continue to grow our presence internationally utilizing targeted marketing campaigns and referral business
- Pursue additional government and institutional partnerships
- Strengthen balance sheet flexibility through disciplined financial management
- Strengthen corporate team to support growth
Conference Call Information
TOMI will hold a conference call to discuss Full Year 2025 results at 4:30 p.m. ET today, March 31, 2026.
To participate in the call by phone, dial (888) 506-0062 approximately five minutes prior to the scheduled start time and provide participant access code 903042, or request the "TOMI Environmental Solutions Full Year earnings call." International callers please dial (973) 528-0011. To access the live webcast or view the press release, please visit the Investor Relations section of the TOMI website or register at the following link:
https://www.webcaster5.com/Webcast/Page/2262/53808.
A replay of the teleconference will be available until Tuesday, April 7, 2026, and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use replay access code: 53808. A replay of the webcast will be available for at least 90 days on the company’s website, starting approximately one hour after the completion of the call.
TOMI™ Environmental Solutions, Inc.: Innovating for a safer world®
TOMI™ Environmental Solutions, Inc. (NASDAQ:TOMZ) is a global decontamination and infection prevention company, providing environmental solutions for indoor surface disinfection through the manufacturing, sales and licensing of its premier Binary Ionization Technology® (BIT™) platform. Invented under a defense grant in association with the Defense Advanced Research Projects Agency (DARPA) of the U.S. Department of Defense, BIT™ solution utilizes a low percentage Hydrogen Peroxide as its only active ingredient to produce a fog of ionized Hydrogen Peroxide (iHP™). Represented by the SteraMist® brand of products, iHP™ produces a germ-killing aerosol that works like a visual non-caustic gas.
TOMI products are designed to service a broad spectrum of commercial structures, including, but not limited to, hospitals and medical facilities, cruise ships, office buildings, hotel and motel rooms, schools, restaurants, meat and produce processing facilities, military barracks, police and fire departments, and athletic facilities. TOMI products and services have also been used in single-family homes and multi-unit residences.
TOMI develops training programs and application protocols for its clients and is a member in good standing with The American Biological Safety Association, The American Association of Tissue Banks, Association for Professionals in Infection Control and Epidemiology, Society for Healthcare Epidemiology of America, America Seed Trade Association, and The Restoration Industry Association.
For additional information, please visit https://www.steramist.com or contact us at info@tomimist.com.
Forward-Looking Statements
This press release contains forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance based on management’s judgment, beliefs, current trends, and anticipated product performance. These forward-looking statements include, without limitation, our strategies to grow revenue and expand business development, our expectation with respect to the remainder of 2026, including schedule of delivery, realization of revenue from backlog and potential demands; our ability to generate lead and referral for sales, the expectation to capture new markets, our ability to improve financial performance and the statements under the section entitled “Looking Ahead”. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. These factors include, but are not limited to, our ability to acquire new customers and expands sales; our ability to maintain and manage growth and generate sales, our reliance on a single or a few products for a majority of revenues; the general business and economic conditions; and other risks as described in our SEC filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed by us with the SEC and other periodic reports we filed with the SEC. The information provided in this document is based upon the facts and circumstances known at this time. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today’s date, unless otherwise stated, and we undertake no duty to update such information, except as required under applicable law.
The following represents our consolidated balance sheets and statement of operations from our recently filed Form 10-K:
| TOMI ENVIRONMENTAL SOLUTIONS, INC. | |||||||
| CONSOLIDATED BALANCE SHEETS | |||||||
| ASSETS | |||||||
| As of December 31, | |||||||
| Current assets: | 2025 | 2024 | |||||
| Cash and cash equivalents | $ | 87,775 | $ | 664,879 | |||
| Accounts receivable, net | 689,153 | 1,881,138 | |||||
| Inventories, net | 2,926,427 | 3,578,202 | |||||
| Vendor deposits | 161,597 | 35,895 | |||||
| Prepaid expenses | 322,114 | 332,999 | |||||
| Total current assets | 4,187,066 | 6,493,113 | |||||
| Property and equipment, net | 614,311 | 875,449 | |||||
| Other assets: | |||||||
| Intangible assets, net | 1,351,164 | 1,250,574 | |||||
| Operating lease – right of use asset | 322,089 | 399,254 | |||||
| Other assets | 559,671 | 675,348 | |||||
| Total other assets | 2,232,924 | 2,325,176 | |||||
| Total assets | $ | 7,034,301 | $ | 9,693,738 | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | 1,480,189 | 1,924,379 | |||||
| Accrued expenses and other current liabilities | 860,703 | 455,675 | |||||
| Deferred revenue | 424,032 | 211,724 | |||||
| Sale of future receipts, net of discount of | 254,234 | - | |||||
| Current portion of long-term operating lease | 143,672 | 129,132 | |||||
| Total current liabilities | 3,162,830 | 2,720,910 | |||||
| Long-term liabilities: | |||||||
| Long-term operating lease, net of current portion | 370,591 | 513,395 | |||||
| Convertible notes payable, net of discount of | 2,912,376 | 2,360,494 | |||||
| Total long-term liabilities | 3,282,967 | 2,873,889 | |||||
| Total liabilities | 6,445,797 | 5,594,799 | |||||
| Commitments and contingencies | - | - | |||||
| Shareholders’ equity: | |||||||
| Cumulative convertible Series A preferred stock; par value | 638 | 638 | |||||
| Cumulative convertible Series B preferred stock; | - | - | |||||
| Common stock; par value | 202,772 | 200,152 | |||||
| Additional paid-in capital | 58,437,080 | 58,201,140 | |||||
| Accumulated deficit | (58,051,986 | ) | (54,302,991 | ) | |||
| Total shareholders’ equity | 588,504 | 4,098,939 | |||||
| Total liabilities and shareholders' equity | $ | 7,034,301 | $ | 9,693,738 | |||
| TOMI ENVIRONMENTAL SOLUTIONS, INC. | ||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| For the years ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Sales, net | $ | 5,635,927 | $ | 7,738,842 | ||||
| Cost of sales | 2,558,848 | 4,181,764 | ||||||
| Gross profit | 3,077,079 | 3,557,078 | ||||||
| Operating expenses: | ||||||||
| Professional fees | 742,785 | 597,365 | ||||||
| Depreciation and amortization | 271,329 | 296,536 | ||||||
| Selling expenses | 775,133 | 1,128,402 | ||||||
| Research and development | 289,899 | 290,683 | ||||||
| Consulting fees | 317,649 | 225,779 | ||||||
| General and administrative | 4,534,622 | 5,123,073 | ||||||
| Total operating expenses | 6,931,417 | 7,661,838 | ||||||
| Loss from operations | (3,854,338 | ) | (4,104,760 | ) | ||||
| Other income (expense): | ||||||||
| Other income | 534,912 | - | ||||||
| Interest income | 86,543 | 17,489 | ||||||
| Interest expense | (516,112 | ) | (389,491 | ) | ||||
| Total other income (expense) | 105,343 | (372,002 | ) | |||||
| Loss before income taxes | (3,748,995 | ) | (4,476,762 | ) | ||||
| Provision for income taxes | - | - | ||||||
| Net loss | ($3,748,995 | ) | ($4,476,762 | ) | ||||
| Net loss per common share: | ||||||||
| Basic | ( | ) | ( | ) | ||||
| Diluted | ( | ) | ( | ) | ||||
| Basic weighted average common shares outstanding | 20,085,703 | 19,992,592 | ||||||
| Diluted weighted average common shares outstanding | 20,085,703 | 19,992,592 | ||||||
FAQ
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