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TOMI Environmental Solutions (TOMZ)
NASDAQ:TOMZ
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TOMI Environmental Solutions (TOMZ) AI Stock Analysis

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TOMZ

TOMI Environmental Solutions

(NASDAQ:TOMZ)

Rating:41Neutral
Price Target:
$1.00
▲(20.48% Upside)
TOMI Environmental Solutions faces significant financial challenges, with ongoing losses and declining revenues being the most impactful factors. Technical indicators suggest bearish momentum, and valuation metrics are poor due to negative earnings. Although there are some positive developments, such as service revenue growth and improved gross margins, these are overshadowed by the company's financial instability.
Positive Factors
Future Outlook
The company’s 2H25 outlook remains positive with a backlog of $1.4M, approximately $2.0M of contracts under negotiations, and $15.0M of open opportunities for Custom Engineered System (CES), Hybrid Solutions, and SteraMist (SIS) offerings.
International Expansion
International expansion continues with nearly 20% of 2Q25 revenues coming from outside the U.S., and long-term international partners in Germany, the Netherlands, and Italy have developed strong pipelines pending the final EU and UK registration approvals.
Product Demand
The company has announced several developments across its product portfolio demonstrating evidence of demand for the company’s products and services, including a $450K contract to install a SteraMist iHP Custom Engineered System (CES) at a university in Rhode Island.
Negative Factors
Gross Margin Decline
Gross margin for the quarter was negative 49.5% compared to an average of 61.0% during the previous three quarters, impacted by three orders that were returned.
International Sales Concerns
Given the volatility around tariffs being considered by the Trump administration, investors should temper expectations around international sales execution in 2025.
Revenue Performance
The company's 2Q25 revenues were lower than analyst's expectations of $1.8M, primarily as a result of TOMI’s customers deferring capex projects due to the uncertain economic environment with the impact of announced and implemented tariffs on their supply chains, and long-term planning.

TOMI Environmental Solutions (TOMZ) vs. SPDR S&P 500 ETF (SPY)

TOMI Environmental Solutions Business Overview & Revenue Model

Company DescriptionTOMI Environmental Solutions, Inc., a bacteria decontamination and infectious disease control company, provides environmental solutions for indoor surface decontamination in the United States and internationally. Its products and services include SteraMist Surface Unit, a portable, handheld, point and spray disinfection/decontamination system intended to provide quick turnover of any affected space; SteraMist Environment System, a transportable, remotely controlled system that offers complete room disinfection/decontamination of a sealed space of approximately 103.8 m3; and The SteraMist Hospital Disinfection Cart, a solution to aid its hospital-healthcare customers in providing the quality of care and safety to their patients by disinfecting patient and operating rooms, pharmacies, ambulances, and emergency environments in a hospital or healthcare facility. The company also offers SteraMist Select Surface Unit; Stainless Steel 90-Degree Applicator; iHP Plasma Decontamination Chamber; SteraMist Custom Engineered System; and iHP Corporate Service Decontamination, which provides full room, equipment, facility, and emergency disinfection and decontamination services. It also manufactures, sells, services, and licenses SteraMist Binary Ionization Technology, a hydrogen peroxide-based mist and fog. The company's products and services are used in hospitals and medical facilities, bio-safety labs, pharmaceutical facilities, meat and produce processing facilities, universities and research facilities, vivarium labs, and other service industries including cruise ships, office buildings, hotel and motel rooms, schools, restaurants, military barracks, police and fire departments, prisons, and athletic facilities; and single-family homes and multi-unit residences. TOMI Environmental Solutions, Inc. was incorporated in 1979 and is headquartered in Frederick, Maryland.
How the Company Makes MoneyTOMI Environmental Solutions generates revenue through the sale of its proprietary disinfection equipment, such as the TOMI SteraMist system, as well as through recurring service contracts for disinfection applications in various settings, including hospitals, schools, and commercial facilities. The company also earns income from consumables and chemical solutions used in conjunction with its equipment. Key revenue streams include direct sales to end-users, partnerships with healthcare providers, and collaborations with distributors and service providers in the environmental and cleaning sectors. Additionally, TOMZ's focus on innovation and expanding its product offerings contributes to its financial growth.

TOMI Environmental Solutions Earnings Call Summary

Earnings Call Date:Aug 14, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with significant growth in service revenue and improved gross margins, alongside notable declines in overall revenue and operating losses. While there are positive developments and future opportunities, the current financial challenges are substantial.
Q2-2025 Updates
Positive Updates
Service Revenue Growth
Service revenue from iHP service deployments and validation support services grew by 33% compared to the same period last year and by 46% over the first 6 months.
Gross Margin Improvement
Gross margin as a percentage of sales improved to 66%, up from 62% in the same quarter last year.
BIT Solution Sales Increase
Year-to-date, there was a 40% increase in BIT Solution sales, with expectations for continued growth and repeat orders in the latter half of the year.
NASA Project Validation
Successfully validated the NASA project, which is now operational and collaborating on writing a publication.
Recognition and Awards
SteraMist was recognized as the Disinfection and Decontamination Products Company of the Year for 2025.
Negative Updates
Significant Revenue Decline
Revenue fell to $1.031 million, a 66% decrease from $3 million in the second quarter of 2024, primarily due to deferred capital expenditure projects.
Operating and Net Loss
The company experienced an operating loss of approximately $1.1 million and a net loss of $1.28 million, compared to an operating income and net income in the same period last year.
Cash and Financial Position
As of June 30, 2025, cash and cash equivalents were approximately $569,000, with a working capital of $2.8 million and shareholders' equity of $2.7 million.
Company Guidance
During the second quarter of 2025, TOMI Environmental Solutions reported a total recognized and deferred revenue of approximately $1.8 million, with recognized revenue for the quarter exceeding $1 million. The company's service revenue from iHP service deployments and validation support services grew by 33% compared to the same period last year and by 46% over the first six months. TOMI's total revenue for the quarter was $1.031 million, marking a 66% decrease from $3 million in the second quarter of 2024, primarily due to deferred capital expenditure projects. Despite a decline in overall sales, the company improved its gross margin to 66%, up from 62% in the same quarter last year, driven by higher sales of solution and service offerings. The company is negotiating approximately $2 million in new custom and integrated contracts and has $15 million in open opportunities across its product offerings, with $7 million designated as high priority. TOMI also announced a collaboration with NASA and a notable SIS platform win totaling over $180,000. The company's net loss for the quarter was approximately $1.28 million, compared to a net income of $30,000 in the same period last year. As of June 30, 2025, TOMI's financial position included cash and cash equivalents of approximately $569,000, working capital of $2.8 million, and shareholders' equity of $2.7 million.

TOMI Environmental Solutions Financial Statement Overview

Summary
TOMI Environmental Solutions is facing significant financial challenges, including ongoing losses, declining revenues, and increasing leverage. The company's profitability ratios are under pressure, and cash flows are negative, indicating a need for cost management and revenue enhancement strategies.
Income Statement
30
Negative
The company has faced significant challenges in maintaining revenue and profitability over the years. Revenue growth has been negative, with a sharp decline in 2024 compared to 2023. The gross profit margin remains positive, but net profit margin is deeply negative, indicating substantial losses. Despite a positive gross profit, operational costs are too high, leading to negative EBIT and EBITDA margins.
Balance Sheet
40
Negative
The balance sheet shows a decrease in total assets and equity over time. The debt-to-equity ratio has increased, indicating rising leverage and potential financial risk. The equity ratio remains positive, but the declining trend suggests waning financial stability. Return on equity has been negative, reflecting ongoing net losses.
Cash Flow
25
Negative
Cash flow analysis shows negative free cash flow growth, with consistent operating cash flow losses. The free cash flow to net income ratio remains negative, demonstrating cash burn issues. Operating cash flow has not been sufficient to cover net losses, suggesting financial strain.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.22M7.74M7.35M8.34M7.75M25.03M
Gross Profit2.66M3.56M4.29M5.06M4.59M15.04M
EBITDA-3.83M-3.63M-2.96M-2.53M-4.01M5.43M
Net Income-4.69M-4.48M-3.40M-2.88M-4.44M4.39M
Balance Sheet
Total Assets8.48M9.69M13.36M15.50M16.27M16.77M
Cash, Cash Equivalents and Short-Term Investments569.45K664.88K2.34M3.87M5.32M5.20M
Total Debt3.36M3.00M3.06M861.41K953.19K1.45M
Total Liabilities5.82M5.59M5.00M4.05M2.68M3.57M
Stockholders Equity2.66M4.10M8.36M11.45M13.60M13.20M
Cash Flow
Free Cash Flow-510.20K-1.55M-3.82M-1.48M-4.46M4.18M
Operating Cash Flow-345.28K-1.44M-3.60M-1.23M-3.82M4.58M
Investing Cash Flow-229.38K-261.53K-216.69K-241.45K-639.37K-400.65K
Financing Cash Flow407.50K27.50K2.29M25.00K4.58M124.20K

TOMI Environmental Solutions Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.83
Price Trends
50DMA
0.98
Negative
100DMA
0.92
Negative
200DMA
0.90
Negative
Market Momentum
MACD
-0.04
Positive
RSI
34.40
Neutral
STOCH
27.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TOMZ, the sentiment is Negative. The current price of 0.83 is below the 20-day moving average (MA) of 0.94, below the 50-day MA of 0.98, and below the 200-day MA of 0.90, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 34.40 is Neutral, neither overbought nor oversold. The STOCH value of 27.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TOMZ.

TOMI Environmental Solutions Risk Analysis

TOMI Environmental Solutions disclosed 37 risk factors in its most recent earnings report. TOMI Environmental Solutions reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

TOMI Environmental Solutions Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$10.95B16.108.81%1.99%2.59%-16.41%
56
Neutral
$30.41M-46.19%19.03%11.70%
53
Neutral
$97.57M-7.69%-4.78%-1359.72%
49
Neutral
$18.70M-78.97%-12.76%15.23%
41
Neutral
$17.14M-94.24%-12.72%-36.80%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TOMZ
TOMI Environmental Solutions
0.83
-0.05
-5.68%
FTEK
Fuel Tech
3.14
2.12
207.84%
CLIR
ClearSign Combustion
0.58
-0.15
-20.55%
LIQT
LiqTech International
1.94
-1.06
-35.33%

TOMI Environmental Solutions Corporate Events

Executive/Board Changes
TOMI Environmental Names Interim CFO Nick Jennings
Neutral
Dec 17, 2024

TOMI Environmental Solutions, Inc. announced the resignation of Joe Rzepka as Chief Financial Officer due to personal reasons. The company’s Board of Directors has appointed Nick Jennings as Interim CFO, who previously served in the same role from October 2014 to May 2024. The company plans to search for a permanent CFO and has agreed to a five-month term with Jennings, offering him $15,000 per month.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 21, 2025