TOMI Environmental Solutions (NASDAQ:TOMZ) reported full-year 2025 revenue of $5.6 million, down from $7.7 million in 2024, as management pointed to the timing of customer equipment purchases and an uncertain macro environment that led some customers to defer capital spending. On the company’s investor update conference call, CEO and Chairman Dr. Halden Shane said 2025 “tested our patience,” but argued it also validated the company’s technology and helped position TOMI for what he described as a meaningful revenue opportunity in 2026 and beyond.
2025 results: lower revenue, improved margins and narrower loss
Chief Financial Officer David Vanston said the year-over-year revenue decline was “driven primarily by the timing of customer equipment purchases,” while service revenue was “relatively stable,” which he said indicated “the durability of our installed base.”
On liquidity, Vanston said the company ended 2025 with approximately $88,000 in cash and about $1 million in working capital. Operating cash used was $1.2 million in 2025, an improvement from $1.4 million in 2024. He said TOMI raised $535,000 through a convertible note during 2025 and entered into a $20 million equity line of credit with Hudson Global Ventures in November 2025, with a first draw of about $94,000 in February 2026. He also said the company has an effective Form S-3 shelf registration for up to $50 million and engaged Bancroft Capital to explore additional financing options.
Commercial milestones and customer activity
Dr. Shane highlighted progress in TOMI’s SteraMist Integrated System (SIS) platform, saying the company achieved its first commercial SIS installation at a contract development and manufacturing organization (CDMO) in June 2025 and had four fully operational SIS enclosure installations by year-end.
He also noted several customer wins and initiatives mentioned during the call, including:
- A signed $500,000 purchase contract in December with “a global biopharmaceutical leader” for integration into sterile manufacturing pass-through fill boxes, according to Dr. Shane.
- Adoption of SteraMist iHP in December by “a leading cell and gene therapy manufacturer” for a commercial-scale pharmaceutical facility, which Dr. Shane called a “landmark win.”
- Selection by NASA Johnson Space Center for a biosecurity operation, with Dr. Shane saying NASA has continued to express satisfaction with performance.
- A bid secured from a university in Rhode Island for a custom engineered system (CES) project that has been completed and is awaiting factory testing, Dr. Shane said.
- An eye health sector customer described as a new “platinum” customer added in the first quarter of 2025 that expanded to two active facilities using five SteraMist machines each, with a third Berlin site expected to begin trials in June 2026; Dr. Shane said the customer operates under an “open monthly bid solution order.”
Partnership strategy and regulatory updates
Management emphasized an OEM partnership strategy intended to embed the company’s iHP technology into equipment at the point of manufacture. Dr. Shane said relationships with PBSC, ESCO, and Steelco are integrating iHP into cleanroom enclosures, pass-through hatches, and biosafety cabinets, which he framed as a scalable distribution approach that expands reach without proportionally increasing direct sales costs. He said TOMI completed its first PBSC collaboration project—an iHP pass-through—that “exceeded decontamination cycle speed expectations” and generated positive customer feedback, and that a second PBSC project has begun.
International regulatory progress was also discussed. Dr. Shane said the company is “finally receiving approvals from the HSE and the BPR submissions,” adding that TOMI is now officially recognized in the United Kingdom (including Wales and Northern Ireland) as well as in the Netherlands. In the Q&A, COO EJ Shane said the first EU registrations have come in and the company expects “many other EU states to follow suit within the next upcoming months,” adding that distributors in regions including Poland, Germany, and the Netherlands have been positioned for opportunities dependent on those registrations.
Food safety, agriculture, and other market development
Dr. Shane discussed expanding activity in food safety and agriculture. He cited a partnership with AlgaFeed and said the partner has committed to acquiring additional handheld units before the end of 2026. He also pointed to what he called a key regulatory development: the FDA’s late-2025 approval of hydrogen peroxide as a direct food additive for multiple uses, including as an antimicrobial and bleaching agent. Dr. Shane said TOMI is engaged with partners including Danone and Nestlé and is “actively winning bids both directly and through service providers.”
He said TOMI is pursuing a food contact notification (FCN) and identified two opportunities to tailor an FCN for powdered infant formula at the request of an existing customer. He added that the company is awaiting approval of its “Dash four label” from the EPA for the cannabis industry and other requested markets in the food safety division, and plans to submit a “Dash five EPA label” based on studies conducted with Plum Island.
On agriculture, Dr. Shane referenced a USDA study that confirmed BIT’s efficacy against Deformed Wing Virus for honeybees. In response to an investor question, EJ Shane said the company has the study and is speaking with a local university about establishing a live use case. Dr. Shane said he has contacted honeybee associations and the Department of Agriculture to try to get the technology in front of stakeholders.
2026 outlook: pipeline, backlog trends, and expected revenue
Management repeatedly pointed to early 2026 indicators tied to services and consumables. Dr. Shane said the backlog of support services orders was up 16% and BIT Solution backlog was up 24% in the first quarter of 2026 versus the prior-year period. COO EJ Shane said TOMI is focusing on open bid solution orders and annual service offerings, supported by expanded training and recertification programs, which he said could drive additional revenue and deeper adoption.
EJ Shane outlined anticipated 2026 activity among five customers—covering items such as a completed CES for the University of Rhode Island, “two IHP chambers for the biopharmaceutical partner,” and other expected orders—saying the company anticipates about $3 million in sales from those customers, with approximately $920,000 overlapping with the previously announced $3 million integration pipeline from November 2025. He added that about $800,000 has been recognized to date from that November pipeline, which he said came from 10 distinct customer orders, with seven formally placed and final approvals anticipated from three remaining accounts. He also said TOMI has added four more integration projects moving toward CapEx approvals, expected to contribute another $2.3 million to the “active immediate integration project pipeline.”
Dr. Shane said TOMI’s “entire opportunity book for integration projects remains at $16 million” and that the “entire SteraMist iHP opportunity book is currently at $20 million.” He also said first-quarter 2026 revenue is higher than the first quarter of 2025 and later stated that first-quarter results, including recognized revenue and open orders, “could be $3 million or higher.” Dr. Shane said the company estimates 2026 revenue will be “around $12 million, barring any unknowns.”
In the Q&A, Vanston said he does not expect a “significant jump” in operating expenses as the business grows and suggested modeling operating expenses as a percentage of revenue growth, with the percentage “slightly” decreasing as revenue increases.
About TOMI Environmental Solutions (NASDAQ:TOMZ)
TOMI Environmental Solutions, Inc is a provider of infection prevention and control technologies, specializing in advanced decontamination and disinfection solutions. The company develops and manufactures a range of proprietary products, including electrostatic sprayers, thermal foggers, vaporized hydrogen peroxide systems and mobile decontamination chambers. These technologies are designed to deliver broad-spectrum pathogen kill and odor elimination in both occupied and unoccupied spaces.
In addition to its equipment offerings, TOMI provides chemical disinfectants and surface coatings formulated to meet regulatory standards for hospital‐grade efficacy.
