TOMI Environmental Solutions, Inc. Reports Preliminary Third Quarter 2026 Financial Results

Rhea-AI Summary

TOMI Environmental Solutions (NASDAQ: TOMZ) reported preliminary third-quarter 2026 revenue growth of 24% and a return to positive operating income. Revenue reached $2,492,801, up 11% sequentially, while operating income was $30,047 versus a $321,415 loss a year earlier. Gross profit rose 19% to $1,469,921, but gross margin fell to 59.0% from 61.2%. Operating expenses declined 7% year over year.

Nine-month revenue increased 38% to $6,393,937. Backlog reached approximately $2.8 million after quarter-end, alongside an approximately $35 million pipeline. Conversion of $2.5 million of notes reduced debt obligations. The company expects September 30 shareholders’ equity of $3 million to $4 million. Results remain unaudited and subject to change pending review of convertible-note accounting. TOMI also gained AgriMist EPA registration and approval in Ireland, and effected a 1-for-3 reverse split on July 20, 2026.

26 points · 0 major

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0 major · 5 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointQ3 revenue rose 24% year over year to $2,492,801, also increasing 11% sequentially.
• Moderate pointQ3 operating income reached $30,047, versus losses of $321,415 a year earlier and $244,142 sequentially.
• Moderate pointQ3 gross profit increased 19% to $1,469,921 from $1,231,971 a year earlier.
• Moderate pointBacklog reached approximately $2.5 million at September 30, subsequently increasing to approximately $2.8 million. 14% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.Convertible-note conversion reduced debt obligations by $2.5 million and lowered expected annual cash interest commitments. 12% of market cap

21 minor points

• Minor pointQ3 operating expenses fell 7% year over year to $1,439,874 and 12% sequentially.
• Minor pointNine-month revenue increased 38% to $6,393,937 from $4,619,229.
• Minor pointNine-month gross profit increased 29% compared with the same period in 2025.
• Minor pointNine-month operating expenses declined 11% compared with the same period in 2025.
• Minor pointNine-month operating loss improved approximately 62% compared with the same period in 2025.
• Minor pointQ3 product revenue increased 30% to approximately $2,078,000 from $1,603,000 a year earlier.
• Minor pointQ3 service revenue increased 1% to approximately $415,000 from $409,000 a year earlier.
• Minor pointQ3 U.S. revenue increased 50% to approximately $1,921,000.
• Minor pointSales pipeline totaled approximately $35 million, with approximately 25% in advanced stages.
• Minor pointiHP Support Services invoiced sales and open orders increased approximately 133% versus full-year 2025 levels.
• Minor pointMobile Equipment invoiced sales and open orders increased approximately 106% versus full-year 2025 levels.
• Minor pointCES/Enclosure invoiced sales and open orders increased approximately 259% versus full-year 2025 levels.
• Minor point. Forward-looking: it has not happened yet and may not happen.BIT Solution sales are on track to exceed 2025.
• Minor pointYear-to-date enclosure orders reached approximately $2.3 million, exceeding approximately $1.6 million over the prior four years combined.
• Minor pointYear-to-date service and support sales reached approximately $1.7 million, exceeding approximately $1.3 million in each of 2024 and 2025.
• Minor pointAgriMist received unconditional EPA registration on August 3, expanding labeled agricultural and post-harvest use sites.
• Minor pointIreland granted formal approval on August 17, bringing European market approvals to 11.
• Minor pointIndia distributor STS Technocrat signed a pharmaceutical customer and is working with TOMI on an integrated enclosure.
• Minor pointCarbonium Core merger termination required no termination fee.
• Minor point. Forward-looking: it has not happened yet and may not happen.TOMI plans to expand recurring revenue through consumables, applicator adoption, and service and support.
• Minor point. Forward-looking: it has not happened yet and may not happen.TOMI plans to expand international, defense and institutional sales using approvals, distributors and defense-sector relationships.

Negative

• Moderate pointQ3 gross margin declined to 59.0% from 61.2% in the prior-year quarter.
• Moderate pointConversion of $2.5 million of convertible notes into equity diluted existing holders. 12% of market cap
• Minor pointQ3 international revenue decreased 22% to approximately $572,000.
• Minor pointConvertible-note accounting remains under review; all preliminary results remain subject to change before the Form 10-Q filing.
• Minor point. Forward-looking: it has not happened yet and may not happen.Food-contact and additional international regulatory authorizations remain ongoing work.

News Explained

The preliminary release omits net loss, earnings per share, and related liability and equity balances pending review of the convertible notes; TOMI does not expect revenue, gross profit, operating expenses, or operating income to change, but results remain subject to change until the September-quarter Form 10-Q.

Key Figures

Q3 revenue: $2,492,801 (+24% year over year) Income from operations: $30,047 Gross profit: $1,469,921 (+19%) +5 more

Q3 revenue

$2,492,801 (+24% year over year)

Q3 2026 compared with Q3 2025; preliminary and unaudited

Income from operations

$30,047

Q3 2026; first positive quarterly operating result since Q3 2024

Gross profit

$1,469,921 (+19%)

Q3 2026 compared with Q3 2025

Gross margin

59.0%

Q3 2026 compared with 61.2% in Q3 2025

Operating expenses

$1,439,874 (down 7% year over year)

Q3 2026

Nine-month revenue

$6,393,937 (+38%)

Nine months ended September 30, 2026, compared with the same period in 2025

Sales backlog

Approximately $2.5 million at quarter-end; approximately $2.8 million subsequently

Q3 2026 and post-quarter

Shareholders’ equity

$3 million to $4 million

Expected at September 30, 2026; results are preliminary and unaudited

Previous Earnings Reports

2 past events · Latest: Oct 08

Same Type 2 events

1. Oct 08

   Q3 preliminary revenue

   24h Move

   -1.3%

   Preliminary Q3 revenue was $2.5 million, up 27% year over year.

2. Aug 14

   Q2 earnings results

   24h Move

   -6.4%

   Q2 revenue rose 118%, operating loss narrowed 78%, and full-year revenue guidance was reaffirmed.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

convertible notes, form 10-q, biofilm

3 terms

convertible notes financial

"the Company’s convertible notes, including the conversion of $2.5 million of notes"

Convertible notes are a type of short-term loan that a company receives from investors, which can later be turned into company shares instead of being paid back in cash. They matter to investors because they offer a way to support a company early on while giving the potential to own a stake in its success if the company grows and later raises more funding.

form 10-q regulatory

"files its Quarterly Report on Form 10-Q for the period ended September 30, 2026"

A Form 10-Q is a detailed report that publicly traded companies are required to file with regulators three times a year, providing an update on their financial health and business activities. It is important for investors because it offers timely insights into a company's performance, helping them make informed decisions about buying or selling stocks. Think of it as a regular check-up report that shows how well a company is doing.

biofilm medical

"reduced Listeria monocytogenes biofilm on flat surfaces"

A biofilm is a thin, slimy community of microbes that stick to surfaces—like a microscopic film on a pipe or a toothbrush—held together by a self-made sticky coating. Investors care because biofilms can make infections harder to treat, reduce the effectiveness of medical devices and cleaning products, and create demand for specialized drugs, diagnostics or coatings, affecting market size, regulatory risk and a company’s ability to win approvals and customers.

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Company Delivers 24% Q3 Revenue Growth and Returns to Positive Operating Income

FREDERICK, Md., Nov. 12, 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 preliminary financial results for the three and nine months ended September 30, 2026, and provided an update on strategic initiatives.

Select financial and operational achievements for the quarter are as follows:

• Q3 Revenue Increased 24% Year-Over-Year to $2.49 Million; Sequential Revenue Increased 11% Over Q2 2026.
• Achieved Positive Operating Income: Generated approximately $30,000 of operating income, representing the Company’s first positive quarterly operating result since the third quarter of 2024.
• Gross Profit Increased 19% to $1.47 Million; Gross Margin was 59.0%.
• Operating Expenses Decreased 7% Year-Over-Year and 12% Sequentially, reflecting continued expense discipline.
• Sales Backlog Reached Approximately $2.5 Million at Quarter-End and Approximately $2.8 Million Subsequently, supporting near-term revenue visibility.
• The company expects shareholders’ equity at September 30, 2026 to be in the range of $3 Million to $4 Million

The financial results in this press release are preliminary and unaudited. The Company and its independent registered public accounting firm have not yet completed their review of the accounting treatment for the Company’s convertible notes, including the conversion of $2.5 million of notes during the third quarter. Accordingly, this release does not include financial results that may be affected by that review, including any gain or loss associated with the conversion, net loss, net loss per share, and the related liability and stockholders’ equity balances. Based on information currently available, the Company does not expect the review to affect the revenue, gross profit, operating expense or income from operations figures presented in this release; however, all results remain subject to change until the Company files its Quarterly Report on Form 10-Q for the period ended September 30, 2026.

Executive Commentary

Dr. Halden Shane, CEO of TOMI Environmental Solutions, commented, “The third quarter represented an important inflection point for TOMI. Revenue increased 24% year-over-year and 11% sequentially, and we returned to positive operating income for the first time since the third quarter of 2024. This progress reflects stronger commercial execution, improved equipment sales and disciplined management of our operating cost base.

“We also materially improved our capital structure during the quarter. The conversion of $2.5 million of convertible notes significantly reduced our debt obligations and expected annual cash interest commitment. Combined with an expanding backlog and commercial pipeline, we believe these improvements provide a stronger foundation as we work toward sustained profitability.

“Operationally, momentum continued across mobile equipment, SteraMist applicators, BIT Solution consumables and support services. We also advanced our food safety, life sciences, defense and international regulatory initiatives, including the expanded AgriMist registration and independent Listeria biofilm data. We remain focused on converting our backlog and pipeline, increasing recurring revenue and delivering sustainable growth.”

Q3 2026 Highlights:

• Revenue Growth: Q3 2026 revenue was $2,492,801, a 24% increase from $2,011,556 in Q3 2025 and an 11% sequential increase from $2,246,909 in Q2 2026. Nine-month revenue increased 38% to $6,393,937 from $4,619,229.
• Positive Operating Income: Income from operations was $30,047, compared with an operating loss of ($321,415) in Q3 2025 and an operating loss of ($244,142) in Q2 2026.
• Gross Profit Growth: Gross profit increased 19% to $1,469,921 from $1,231,971 in Q3 2025. Gross margin was 59.0%, compared with 61.2% in the prior-year quarter.
• Disciplined Operating Expenses: Operating expenses decreased 7% year-over-year to $1,439,874 from $1,553,386 and decreased 12% sequentially from $1,629,448 in Q2 2026.
• Product and Domestic Revenue Growth: Product revenue increased 30% to approximately $2.08 million, while U.S. revenue increased 50% to approximately $1.92 million.
• Strong Product and Service Order Growth: Based on 2026 invoiced sales and open orders, iHP Support Services increased approximately 133%, Mobile Equipment increased approximately 106%, and CES/Enclosure sales increased approximately 259% compared with full-year 2025 levels. BIT Solution sales are on track to exceed 2025.
• Expanded Backlog and Pipeline: Sales backlog totaled approximately $2.5 million at September 30, 2026 and subsequently increased to approximately $2.8 million. The Company’s total sales pipeline was approximately $35 million, with approximately 25% in advanced stages.

Financial Results for the Three and Nine Months Ended September 30, 2026, Compared to September 30, 2025

• Nine-month performance: Revenue increased 38%, gross profit increased 29%, operating expenses declined 11%, and operating loss improved approximately 62%.
• Sales, net were $2,492,801 for Q3 2026 compared with $2,011,556 for Q3 2025, an increase of $481,245, or 24%. For the nine-month period, sales increased 38% to $6,393,937 from $4,619,229.
• Product revenue increased 30% to approximately $2,078,000 for Q3 2026 from $1,603,000. Service revenue increased 1% to approximately $415,000 from $409,000.
• Geographic performance: U.S. revenue increased 50% to approximately $1,921,000, while international revenue decreased 22% to approximately $572,000.
• Gross profit was $1,469,921, or 59.0% of net sales, compared with $1,231,971, or 61.2% of net sales, for Q3 2025.
• Total operating expenses were $1,439,874, a decrease of $113,512, or 7%, compared with $1,553,386 in Q3 2025.
• Income from operations was $30,047, an improvement of $351,462 compared with a loss from operations of ($321,415) in Q3 2025.

Recent Business Highlights:

• On July 20, 2026, the Company effected a 1-for-3 reverse stock split of its Common Stock and Series A Preferred Stock.
• On August 3, 2026, the U.S. Environmental Protection Agency granted a new unconditional registration for SteraMist® (BIT®) – AgriMist (EPA Reg. No. 90150-4), expanding labeled use sites across post-harvest food safety, cannabis and hemp cultivation, and greenhouse and hydroponic agriculture.
• On August 17, 2026, TOMI’s Binary Ionization Technology received formal approval in Ireland under the European Union’s Biocidal Products Regulation, bringing approvals to 11 European markets.
• On September 17, 2026, TOMI reported approximately $2.3 million in SteraMist iHP enclosure purchase orders year-to-date, exceeding approximately $1.6 million in comparable enclosure orders over the prior four years combined.
• On September 18, 2026, TOMI reported year-to-date SteraMist iHP service and support sales of approximately $1.7 million, exceeding the approximately $1.3 million recorded in each of full-year 2024 and full-year 2025.
• On September 21, 2026, TOMI announced the mutual termination of its definitive merger agreement with Carbonium Core, Inc. Each party will bear its own fees and expenses, and no termination fee was payable.
• On September 29, 2026, TOMI announced modular integration concepts for its SteraMist iHP platform targeting autonomous vehicle fleets, drone platforms and robotic systems.
• On September 30, 2026, TOMI announced that Project MEND implemented SteraMist iHP to disinfect reusable durable medical equipment before redistribution.

Post-Quarter Developments:

• TOMI expanded SteraMist iHP into India’s pharmaceutical market through its distribution partner, STS Technocrat (India) Pvt. Ltd., which signed a pharmaceutical customer and is working with TOMI on a turnkey, fully integrated iHP enclosure.
• Independent laboratory results showed SteraMist iHP reduced Listeria monocytogenes biofilm on flat surfaces by an average of more than 7 log and by more than 3 log on hard-to-reach equipment parts.
• On October 11, 2026, the Board appointed Niroshan Srirathan as permanent Chief Financial Officer.

Looking Ahead

TOMI enters the fourth quarter of 2026 with improved operating performance, a strengthened capital structure and growing commercial visibility. The Company is executing a focused strategy to:

• Convert Commercial Pipeline and Backlog: Deliver on the Company’s approximately $2.8 million post-quarter backlog and convert opportunities within its approximately $35 million sales pipeline.
• Drive Recurring Revenue: Expand BIT Solution consumable sales, applicator adoption and iHP service and support revenue across life sciences, healthcare, food safety and commercial markets.
• Advance Food Safety and Regulatory Pathways: Build on the expanded AgriMist EPA registration, independent Listeria biofilm data and ongoing work toward applicable food-contact and international regulatory authorizations.
• Expand International, Defense and Institutional Sales: Leverage the Company’s regulatory approvals, distributor network and defense-sector relationships to broaden adoption of SteraMist iHP technology.
• Maintain Cost and Capital Discipline: Continue managing operating expenses, liquidity and financing resources while pursuing sustainable profitability.

Conference Call Information

TOMI will hold a conference call to discuss third quarter 2026 results at 4:30 p.m. ET today, November 12, 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 271346 or request the “TOMI Environmental Solutions third quarter earnings call.” International callers should 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/2262/54772

A replay of the teleconference will be available until November 19, 2026, and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use replay access code 54772. A replay of the webcast will also be available on the company’s website following 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 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.

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 business and market conditions. These forward-looking statements include, without limitation, statements regarding TOMI’s expectations concerning future revenue growth, profitability, backlog and pipeline conversion, business development initiatives, recurring revenue, international expansion, regulatory pathways, capital availability, liquidity, operating performance and financial results, including statements under “Looking Ahead.”

Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those expressed or implied by such statements. These risks include, but are not limited to, TOMI’s ability to acquire new customers, expand sales, maintain growth, convert backlog and pipeline opportunities into revenue, improve operating performance, obtain necessary financing, maintain compliance with Nasdaq listing standards, manage customer and supplier concentration, obtain regulatory approvals and successfully commercialize its technologies, as well as changes in market demand, competitive conditions, regulatory developments and economic conditions. Additional risks are described in TOMI’s filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2025, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

The information provided in this press release is based on facts and circumstances known at the time of issuance. Actual results may differ materially from those anticipated due to the factors described above and other unknown or unpredictable factors. Readers are cautioned not to place undue reliance on forward-looking statements. All forward-looking statements speak only as of the date of this press release, and TOMI undertakes no obligation to update or revise any forward-looking statements, except as required by applicable law.

INVESTOR RELATIONS CONTACT:  

John Nesbett/Zach Nevas

IMS Investor Relations  

tomi@imsinvestorrelations.com  

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were TOMI's preliminary third-quarter 2026 revenue and operating income?

TOMI reported revenue of $2,492,801 and operating income of $30,047. Revenue increased 24% from Q3 2025 and 11% from Q2 2026. Operating income compared with operating losses of $321,415 and $244,142, respectively. The results are preliminary and unaudited.

Why are TOMI's third-quarter 2026 financial results preliminary?

TOMI and its independent accounting firm have not completed their review of convertible-note accounting, including the third-quarter conversion of $2.5 million of notes. Figures potentially affected, including conversion gains or losses, net loss, loss per share and related balances, were excluded. The company does not expect changes to the reported revenue, gross profit, operating expenses or operating income.

What happened to TOMI's merger agreement with Carbonium Core?

TOMI and Carbonium Core mutually terminated their definitive merger agreement, announced on September 21, 2026. Each party will bear its own fees and expenses, and no termination fee was payable.

When did TOMI's 2026 reverse stock split take effect and what was the ratio?

TOMI effected a 1-for-3 reverse stock split on July 20, 2026. The split applied to both its Common Stock and Series A Preferred Stock.