Tomi Environmental Solutions, Inc. ((TOMZ)) has held its Q3 earnings call. Read on for the main highlights of the call.
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TOMI Environmental Solutions, Inc. recently held its earnings call, revealing a mixed sentiment. The company showcased significant revenue growth in the third quarter, alongside strategic regulatory approvals and industry recognition. However, financial challenges such as a decline in revenue compared to the previous year and operating and net losses were also highlighted. Despite these hurdles, the overall outlook remains optimistic, driven by positive developments.
Revenue Growth and Recurring Streams
TOMI Environmental Solutions reported a remarkable 95% sequential revenue increase in Q3, primarily fueled by expanding recurring revenue streams and enhanced customer engagement. This growth marks a pivotal moment for the company, indicating a shift towards more stable and predictable revenue sources.
SteraMist IHP Technology Recognition
The company’s SteraMist IHP technology received significant industry validation by being named the Disinfection and Decontamination Products Company of the Year 2025. This accolade underscores the technology’s effectiveness and the company’s leadership in the disinfection sector.
Active Pipeline and Backlog Expansion
TOMI’s sales order backlog expanded to $1.3 million by the end of October, with pending integration contracts worth approximately $3 million. The active pipeline surpassing $15 million highlights substantial business opportunities on the horizon.
Regulatory Approvals and New Market Entries
With the FDA’s broadened approval of hydrogen peroxide, TOMI is poised to enter new markets, including agriculture, food processing, and environmental biosafety. This regulatory milestone opens doors to significant growth avenues.
Strategic Milestones and Capital Flexibility
A recent equity purchase agreement with Hudson Global Ventures allows TOMI to sell up to $20 million in common stock, providing the company with much-needed capital flexibility to support its strategic initiatives.
Revenue Decline Compared to Previous Year
Despite the impressive sequential growth, Q3 2025 revenue was $2 million, marking a 24% decrease from the $2.5 million reported in Q3 2024. This decline was mainly due to a temporary reduction in IronHP services sales.
Operating and Net Losses
TOMI reported an operating loss of approximately $320,000 and a net loss of $450,000 for Q3 2025. These figures contrast with the operating income and net income reported in the same period last year, reflecting the financial challenges faced by the company.
Limited Financial Reserves
The company’s financial reserves are limited, with cash and cash equivalents totaling approximately $190,000. This financial position underscores the importance of the capital flexibility gained through recent strategic agreements.
Forward-Looking Guidance
Looking ahead, TOMI is focused on scaling its automation integrations and exploring opportunities in sustainable agriculture and public infrastructure. The company plans to strengthen its sales force and global partnerships to capitalize on the substantial business opportunities identified in its active pipeline.
In conclusion, TOMI Environmental Solutions, Inc.’s earnings call presented a mixed yet optimistic outlook. While financial challenges persist, the company’s strategic initiatives and industry recognition position it well for future growth. The focus on expanding into new markets and enhancing recurring revenue streams suggests a promising trajectory for the company.