TOMI Environmental Solutions, Inc. reported a net loss of approximately $3.7 million for the fiscal year ending December 31, 2025, a decrease from a net loss of $4.5 million in 2024. The company's revenue fell by 27% to $5.6 million, down from $7.7 million in the previous year, primarily due to the timing of large equipment purchases that occurred in the prior fiscal period. Despite the decline in revenue, gross profit was $3.1 million, resulting in a gross margin improvement to 54.6% from 46.0% in 2024, attributed to reduced costs of sales and improved inventory management.
In 2025, TOMI made significant strides in expanding its market presence and product offerings. The company launched new products, including the SteraMist Integration System (SIS), which achieved its first commercial installation in the second quarter. Additionally, TOMI entered new markets such as aerospace and aquaculture, and secured partnerships with major players in the pharmaceutical and food safety sectors. The FDA's expanded approval of hydrogen peroxide as a direct food additive further enhances TOMI's market opportunities, particularly in food processing.
Operationally, TOMI's customer base remains diverse, with notable clients including major pharmaceutical companies and government agencies. The company reported a sales backlog of approximately $1.8 million, reflecting improved visibility into near-term revenue conversion. As of December 31, 2025, TOMI employed 20 full-time personnel, maintaining a lean operational structure to support its growth initiatives. The company also reported a total of ten active integration projects with a combined contract value of around $3 million.
Despite these advancements, TOMI faces challenges, including a substantial accumulated deficit of $58.1 million and ongoing concerns regarding its ability to continue as a going concern. The company has entered into an equity line of credit (ELOC) agreement to raise up to $20 million, which it plans to utilize to improve liquidity and support operations. Management is focused on converting its strong commercial pipeline into recognized revenue in 2026, while also addressing Nasdaq compliance issues related to stock price and equity requirements.
Looking ahead, TOMI's management remains optimistic about the potential for revenue growth driven by its active sales pipeline, which exceeds $18 million. The company is committed to enhancing its product offerings and expanding its market reach, while also managing costs and improving operational efficiencies. However, the successful execution of these plans is contingent upon favorable market conditions and the ability to secure additional financing as needed.
About TOMI Environmental Solutions, Inc.
TOMI Environmental Solutions specializes in bacteria decontamination and infectious disease control, primarily through its flagship SteraMist technology. Using environmentally friendly, hydrogen peroxide-based fogging and misting systems, it serves healthcare, life sciences, food safety, and commercial markets worldwide. The company's innovative, validated solutions offer rapid, thorough disinfection with a focus on safety, sustainability, and regulatory compliance, supporting both routine and emergency decontamination needs.
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