TOMI Environmental Solutions Reports 42% Revenue Growth in Q1 2025

TOMI Environmental Solutions, Inc. reported a significant increase in financial performance for the first quarter of 2025, with total revenue reaching $1.577 million, a 42% increase from $1.114 million in the same period last year. The growth was primarily driven by heightened demand for the company's SteraMist Binary Ionization Technology (BIT) solutions, mobile equipment, and custom engineered systems (CES). Gross profit for the quarter was approximately $952,000, maintaining a gross margin of 60.4%, slightly up from 60.2% in the prior year. Despite the revenue growth, the company reported a net loss of $255,593, an improvement from a loss of $1.31 million in the first quarter of 2024.

Operationally, TOMI saw a decline in total operating expenses, which fell by $191,000, or 10%, compared to the previous year. This reduction was attributed to lower selling and general administrative expenses, which decreased by 15% and 11%, respectively. The company also recorded $534,912 in other income from employee retention credits, contributing to a notable turnaround in total other income, which shifted from a loss of $83,714 in the previous year to a gain of $498,872 in the current quarter.

In terms of strategic developments, TOMI has expanded its market presence through several key initiatives. Notably, the company secured a contract to install a SteraMist CES at a leading university in Rhode Island, valued at approximately $450,000. Additionally, TOMI announced the deployment of its technology at the NASA Johnson Space Center, marking its entry into the aerospace sector. The company also formed an OEM partnership with Pharma Biotech System Components, enhancing its SteraMist Integrated System product line.

Geographically, domestic revenue surged by 80% to $1.192 million, while international revenue decreased by 15% to $385,000, reflecting timing issues with international orders. The company’s total recognized revenue and backlog for the quarter amounted to $2.802 million, indicating a strong sales pipeline. As of March 31, 2025, TOMI had cash and cash equivalents of approximately $674,000 and an accumulated deficit of $54.6 million, raising concerns about its ability to continue as a going concern within the next year. The company plans to fund ongoing operations through current cash reserves and potential capital raises, although it acknowledges the uncertainty surrounding future financing.

Looking ahead, TOMI aims to capitalize on the growing demand for its disinfection and decontamination solutions across various sectors, including healthcare, food safety, and commercial markets. The company is focused on expanding its product offerings and enhancing its market share, particularly in light of the ongoing global health challenges. Management remains optimistic about future growth opportunities, driven by the increasing adoption of its innovative technologies and strategic partnerships.