TOMI Environmental Solutions Reports 5% Revenue Increase but Wider Net Loss for Fiscal Year 2024

TOMI Environmental Solutions, Inc. reported a modest increase in revenue for the fiscal year ending December 31, 2024, achieving $7.74 million, up 5% from $7.36 million in 2023. Despite this growth, the company continued to face significant financial challenges, posting a net loss of approximately $4.48 million compared to a loss of $3.40 million in the previous year. The increase in losses was attributed to higher costs of sales, which rose to $4.18 million from $3.07 million, primarily due to an adjustment in inventory reserves. The gross profit margin also declined to 46% from 58% in the prior year, reflecting the impact of these increased costs.

In terms of operational developments, TOMI expanded its customer base and diversified its product offerings, securing new partnerships in regions including Malaysia, India, Canada, Korea, and the United Kingdom. The company reported a notable increase in service revenue, particularly from its iHP Corporate Service, which saw a 41% rise in the first quarter of 2025 compared to the same period in 2024. This growth is indicative of TOMI's strategic focus on enhancing its service offerings and establishing long-term contracts with key clients, including major pharmaceutical companies.

TOMI's product line, particularly the SteraMist family, remains central to its revenue generation, accounting for the majority of sales. The company has made significant strides in the life sciences and food safety sectors, with ongoing feasibility studies and collaborations aimed at expanding the application of its technology. The introduction of the SteraMist Pro Certified program is expected to further enhance customer engagement and product adoption across various industries.

Despite these advancements, TOMI's financial health raises concerns, with an accumulated deficit of $54.3 million as of December 31, 2024. The company reported cash and cash equivalents of $665,000, down from $2.34 million in the previous year, indicating liquidity challenges. Management has acknowledged the need for additional capital to support ongoing operations and has initiated efforts to raise funds through convertible notes. The outlook remains cautious, with management emphasizing the importance of expanding its market presence and improving operational efficiencies to achieve profitability in the future.