TOMI Environmental Solutions (TOMZ) investor relations material

Executive summary

• Q1 2026 revenue grew 5% year-over-year to $1.65 million, with a 67% sequential increase, driven by strong equipment and CES sales and record applicator sales, which surged 139% year-over-year and surpassed all of 2025.

• Operating expenses declined 15% year-over-year to $1.46 million, supporting improved operating cash flow and reduced loss from operations.

• Net loss widened to $811,000 ($0.04/share), primarily due to the absence of prior year one-time credits.

• Backlog and integration pipeline grew, with a sales order backlog of $1.7 million–$3.4 million and a $4.3 million pipeline across 13 customers.

• A non-binding LOI to merge with Carbonium Core, a U.S. nuclear-grade graphite producer, was signed, targeting diversification and entry into advanced materials.

Financial highlights

• Q1 2026 revenue was $1.65 million, up 5% year-over-year and 67% sequentially; product revenue rose 31% ($311,000), while service revenue fell 41% ($234,000) due to project timing.

• Gross profit was $832,000 (50% margin), down from $952,000 (60–63%) in Q1 2025 due to discounts and product mix.

• Operating expenses were $1.46 million, down from $1.71 million in Q1 2025.

• Net loss was $810,000–$811,000 ($0.04/share), compared to $255,000–$256,000 ($0.01/share) in Q1 2025.

• Operating cash flow was $296,000, a $572,000 improvement year-over-year; cash at quarter-end was $280,000.

Outlook and guidance

• Management expects revenue growth through 2026 and into 2027, with profitability targeted within 2026.

• BIT Solution sales are expected to exceed 2025 levels, supporting future profitability and recurring revenue growth.

• Integration project pipeline reached $4.3 million across 13 customers, with $9 million active or anticipated for 2026.

• Management is focused on converting the pipeline to revenue, cost management, and utilizing the $20 million ELOC for liquidity.