TOMI Environmental Solutions Reports 5% Revenue Growth to $1.65 Million in Q1 2026

TOMI Environmental Solutions, Inc. reported a revenue of approximately $1.65 million for the first quarter of 2026, marking a 5% increase from $1.58 million in the same period last year. The growth was primarily driven by increased sales of equipment and Custom Engineered Systems (CES) to commercial service providers, although service revenue saw a decline due to the timing of project completions. The company's gross profit for the quarter was approximately $832,000, resulting in a gross margin of 50%, down from 60% in the prior year, attributed to strategic price discounts and a shift towards lower-margin equipment sales.

In terms of operational performance, TOMI's total operating expenses decreased by 15% to $1.46 million, reflecting disciplined cost management across various categories, including professional fees and general administrative costs. However, the company reported a net loss of $810,645 for the quarter, compared to a loss of $255,593 in the same period last year. This increase in net loss was influenced by a significant decrease in other income, which included a one-time Employee Retention Credit benefit in the previous year that was not repeated in the current quarter.

The company’s balance sheet as of March 31, 2026, showed total assets of approximately $7.46 million, up from $7.03 million at the end of 2025. Current assets increased to $4.59 million, driven by higher cash and accounts receivable. However, working capital declined to $394,000 from $1.02 million, raising concerns about the company's liquidity. TOMI's accumulated deficit reached $58.9 million, and the company continues to face substantial doubt about its ability to continue as a going concern within the next year.

Strategically, TOMI has been expanding its market presence, securing a $440,000 annual purchase order for decontamination services from a global medical technology company and increasing its integrated project pipeline to approximately $4.3 million across 13 customers. The company has also made significant strides in regulatory approvals, including authorizations in the UK and the Netherlands, and has established partnerships to enhance its distribution capabilities in Europe and Canada.

Looking ahead, TOMI plans to leverage its equity line of credit and explore additional financing opportunities to support its operations and growth initiatives. The company is also focused on converting its project pipeline into revenue, with management expressing optimism about the potential for increased sales of its BIT Solution and consumables, which are expected to drive future profitability. However, the company acknowledges the risks associated with its reliance on a limited number of customers and suppliers, which could impact its financial performance.