TOMI Environmental Solutions Reports 21% Revenue Decline in Q3 2025

TOMI Environmental Solutions, Inc. reported a decline in financial performance for the third quarter of 2025, with revenues of $2.01 million, a 21% decrease from $2.54 million in the same period last year. For the nine months ending September 30, 2025, total revenue was $4.62 million, down 31% from $6.67 million in the prior year. The decrease in revenue was attributed to a timing reduction in service sales, particularly from a key customer restructuring operations. Despite the decline in revenue, gross profit margins remained stable at 61%, reflecting effective cost management.

The company's operating expenses increased by 10% year-over-year to $1.55 million for the third quarter, primarily due to higher professional fees, while selling expenses decreased significantly. The net loss for the quarter was $450,348, compared to a net income of $58,962 in the same quarter of 2024. For the nine-month period, the net loss was $1.94 million, worsening from a loss of $1.22 million in the previous year. The increase in losses was attributed to reduced revenues and higher operational costs.

In terms of operational developments, TOMI's sales order backlog reached approximately $0.9 million as of September 30, 2025, and increased to $1.3 million by October 31, 2025. The company is actively negotiating additional contracts valued between $2 million and $3 million, indicating a potential rebound in business activity. The company also reported a significant increase in quote activity and pipeline volume, particularly in the Life Sciences and Food Safety sectors, which are expected to drive future growth.

TOMI has made strategic advancements, including the successful installation of its SteraMist iHP technology in high-profile locations such as NASA's Johnson Space Center and various universities. The company is also expanding its market presence internationally, particularly in Europe, and is working towards regulatory approvals in the EU and UK. Additionally, TOMI entered into an Equity Purchase Agreement with Hudson Global Ventures, allowing the company to sell up to $20 million in common stock over a 24-month period, which may enhance its liquidity position.

Looking ahead, TOMI's management remains optimistic about future growth, citing increased demand for its products and services, particularly in the food safety market following recent FDA rulings. However, the company acknowledges ongoing challenges, including a substantial accumulated deficit of $56.2 million and the need for additional capital to support operations. The management's focus on optimizing product mix and expanding recurring sales is expected to support liquidity needs through 2025.