TOMZ · TOMI Environmental Solutions, Inc.

TOMI Environmental Solutions reported mixed 2025 results with declining sales but improved profitability metrics. The 27% sales decline to $5.6 million was primarily driven by customers deferring capital expenditure projects due to economic uncertainty, tariff impacts, and the Middle East crisis, which management expects to be temporary. Despite the revenue decline, the company improved its net loss to $3.7 million ($0.19 per share) from $4.5 million ($0.22 per share) in 2024, supported by a 10% reduction in operating expenses and maintained gross profit margin of approximately 55%. International expansion showed progress with 29% of revenue generated internationally, up from 21% in 2024, through penetration into Canada, UK, and European markets. The company's sales backlog grew to approximately $1.8 million, with active integration projects valued at $3 million and total opportunity books of $16 million for integration projects and $20 million for SteraMist iHP. Liquidity remains a focus with $88,000 in cash and $1.0 million in working capital as of December 31, 2025, supplemented by a $20 million equity line of credit and $50 million shelf registration. Management highlighted strategic initiatives including expansion in pharmaceutical manufacturing, food safety markets, and new applications in biofuel and agricultural biosecurity, while maintaining focus on operational efficiency and balance sheet flexibility.