TOMI Environmental Solutions (TOMZ) Q4 2025 earnings summary

Executive summary

• 2025 was a challenging year with revenue decline, but significant progress was made in technology validation, customer relationships, and positioning for future growth, especially in recurring revenue streams and global expansion.

• Achieved significant progress in strategic priorities, including strengthening government relationships and expanding commercial wins in global CDMOs, eye health, and university research sectors.

• Expanded applications for SteraMist iHP in food safety, driven by favorable FDA regulatory developments.

• Key commercial milestones included the first SIS platform installations, major contracts in biopharma and cell/gene therapy, and new wins in food safety and agriculture.

• Maintained strong industry recognition, with SteraMist named Disinfection and Decontamination Products Company of the Year 2025.

Financial highlights

• 2025 revenue was $5.64 million, down from $7.74 million in 2024, mainly due to deferred customer capital expenditures amid economic uncertainty and tariffs.

• Gross margin improved to approximately 55% from 46% year-over-year, reflecting lower cost of sales and reduced inventory reserves.

• Operating expenses decreased by 10% to $6.9 million, showing disciplined cost management.

• Net loss narrowed to $3.75 million ($0.19/share) from $4.48 million ($0.22/share) in 2024.

• Ended 2025 with $88,000 in cash and $1 million in working capital; operating cash use improved to $1.2 million from $1.4 million.

Outlook and guidance

• 2026 revenue is estimated at $12 million, with Q1 2026 revenue already exceeding Q1 2025.

• Backlog for support services up 16% and BIT Solution up 24% in Q1 2026 year-over-year, indicating strong recurring revenue growth.

• Opportunity book for integration projects at $16 million and SteraMist iHP at $20 million.

• Projected $6 million in 2026 revenue from five key customers and three revenue streams.

• Management expects resumed customer activity as deferred projects normalize and anticipates continued international expansion and recurring revenue growth.