TOMI Environmental Solutions, Inc.

What they do

TOMI sells SteraMist equipment (including Custom Engineered Systems, Integration Systems, and mobile units), BIT Solution consumables, and corporate decontamination services, plus Installation/Operational/Performance Qualification (IQ/OQ/PQ) services. Its technology uses a low-concentration hydrogen peroxide mist to achieve high-level disinfection, with EPA registration in the U.S. and approvals in over 40 countries. Revenue is derived from equipment sales, recurring consumables, and service contracts across its four divisions.

Revenue drivers

• Life Sciences — Largest and fastest-growing segment, driven by SIS and CES projects for pharmaceutical and biotech customers; pipeline was about $4.3 million across 13 customers as of March 2026, including a signed $500,000 purchase order from a global biopharmaceutical leader.
• Commercial — Includes franchise networks like T.A.C.T. and Steri-Clean, which purchased $175,000 of equipment and BIT Solution in Q4 2025; recurring BIT sales are modeled on a 'razor-blade' consumable model with steady annual growth of 21% from 2024 to 2025.
• Hospital-Healthcare — Sells SteraMist equipment and services to hospitals and medical facilities; includes application in medical device sterilization and support for public health threats such as H5N1 and RSV.
• Food Safety — Uses BIT solution for food contact surfaces and ready-to-eat processing, especially after FDA expanded permitted use of hydrogen peroxide as a direct food additive in September 2025; demonstrated efficacy against foot-and-mouth disease virus, African Swine Fever, and mycotoxins.

Recent performance

For fiscal 2025, revenue fell to $5.6 million from $7.7 million in 2024, with a net loss of $3.7 million (vs. $4.5 million loss in 2024). Q1 2026 revenue was $1.65 million, up 5% year-over-year and 67% sequentially, with a gross margin of 50% (down from 60% due to discounts and mix) and operating expenses down 15%. Q2 2026 revenue reached $2.2 million, and management reported growth across all key metrics. Cash and equivalents stood at $322,000 as of June 30, 2026, with $3.1 million in long-term debt.

Strategy

TOMI is expanding via OEM partnerships (PBSC, ESCO, Steelco, Nuaire, Getinge) to embed iHP into cleanroom and biosafety equipment, and pursuing international registrations, with approvals now in multiple European countries. It is targeting new verticals including aerospace, aquaculture, cell and gene therapy, robotaxis, drones, and defense. The company is also advancing a heart monitoring device through FDA 510(k) clearance and plans to merge with Carbonium Core to produce nuclear-grade graphite. Management emphasizes recurring BIT Solution sales and services to improve margins and achieve profitability.

Risks

• History of losses — The company has had net losses every year since 2021, with an accumulated deficit of $58.1 million as of December 31, 2025, and may not achieve profitability.
• Dependence on SteraMist — The SteraMist product line accounts for the majority of revenue, making the company almost completely dependent on its commercial success.
• Revenue volatility and timing — Large equipment sales are lumpy and subject to customer construction delays, as seen in 2025 when timing of purchases and tariff uncertainty suppressed revenue.
• Liquidity risk — With only $322,000 cash and a $3.1 million long-term debt as of June 30, 2026, the company relies on external financing, including a $20 million ELOC, to fund operations.

Outlook

Management reaffirms revenue guidance of at least $12 million for fiscal 2026, citing over 100% increase in sales and receipts compared to 2025, with $6.2 million in booked orders and a $35 million sales pipeline ($8.6 million in advanced stages). They expect continued growth in BIT Solution sales and support services, and anticipate regulatory approvals in additional European countries. The Carbonium merger is expected to close in the second half of 2026, which management believes will enhance value.