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TOMI Environmental Solutions
(NASDAQ:TOMZ)
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Rating:42Neutral
Price Target:
$1.50
▼(-2.60% Downside)
Action:Reiterated
Date:07/26/26
Overall score is constrained primarily by weak financial performance (multi-year losses and a deteriorated, highly leveraged balance sheet) and bearish technicals (price below key moving averages with negative MACD). Earnings-call indicators of operational improvement and near-term cash flow progress provide some support, but valuation is not compelling due to negative earnings, and recent corporate events (Nasdaq delisting risk and finance leadership transition) add material downside risk.
Positive Factors
Recurring consumables/razor-blade model
Rapid applicator adoption and mid-single-digit+ annual growth in BIT consumables point to a growing recurring-revenue base. Over months this supports higher margin, predictable demand and lifecycle revenue from installed equipment, improving long-term cash visibility if adoption persists.
Negative Factors
Highly leveraged balance sheet
An extremely leveraged capital structure with near‑zero equity materially raises refinancing, covenant and liquidity risk. Over months this constrains strategic optionality, increases likelihood of dilutive financings under stress, and reduces ability to fund working capital or pursue growth without external capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring consumables/razor-blade model
Rapid applicator adoption and mid-single-digit+ annual growth in BIT consumables point to a growing recurring-revenue base. Over months this supports higher margin, predictable demand and lifecycle revenue from installed equipment, improving long-term cash visibility if adoption persists.
Read all positive factors
TOMI Environmental Solutions (TOMZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.03M
Dividend YieldN/A
Average Volume (3M)23.43K
Price to Earnings (P/E)―
Beta (1Y)0.94
Revenue Growth-30.33%
EPS Growth-24.92%
CountryUS
Employees20
SectorIndustrials
Sector Strength72
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)-0.65
Shares Outstanding8,142,488
10 Day Avg. Volume33,830
30 Day Avg. Volume23,435
Financial Highlights & Ratios
PEG Ratio0.30
Price to Book (P/B)26.62
Price to Sales (P/S)2.78
P/FCF Ratio-11.76
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$7.00Price Target Upside354.55% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.45
Revenue Forecast (FY)$8.17M
TOMI Environmental Solutions Business Overview & Revenue Model
Company Description
TOMI Environmental Solutions, Inc. is a company dedicated to controlling infectious diseases and decontaminating bacteria, offering sophisticated environmental solutions for sanitizing indoor surfaces globally and across the United States. Central...
How the Company Makes Money
TOMI primarily makes money by selling and supporting its SteraMist iHP-based disinfection and decontamination solutions. Revenue is generated from (1) product sales of SteraMist equipment and related components used to deliver iHP in facilities an...
TOMI Environmental Solutions Earnings Call Summary
Earnings Call Date:May 08, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 17, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: meaningful commercial and regulatory progress (revenue growth, 139% applicator increase, pipeline expansion, recurring customer wins, and operating expense reductions) are offset by financial constraints (gross margin compression from discounts, a larger net loss, modest cash and working capital, and increased short-term liabilities). The Carbonium LOI offers potential strategic upside but remains early-stage and introduces execution and dilution risk. Overall, operational momentum is evident but financial and execution risks temper near-term optimism.Positive Updates
Revenue Growth (YoY and Sequential)
Q1 2026 revenue of $1.6M, up 5% year-over-year and up 67% sequentially versus Q4 2025, demonstrating strong quarter-to-quarter momentum.
Negative Updates
Gross Margin Compression
Gross profit was $832K (~50% of revenue) in Q1 2026 versus $952K in Q1 2025; margins softened due to strategic price discounts to drive equipment adoption and a product mix shift toward lower-margin equipment sales.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth (YoY and Sequential)
Q1 2026 revenue of $1.6M, up 5% year-over-year and up 67% sequentially versus Q4 2025, demonstrating strong quarter-to-quarter momentum.
Read all positive updates
Company Guidance
Management guided that TOMI expects revenue growth through 2026 into 2027 with margin recovery as high‑margin BIT Solution consumables and applicator sales scale, and reiterated a target to reach profitability this year; supporting metrics cited on the call included Q1 2026 revenue of $1.6M (up 5% YoY and 67% sequentially), applicator sales up 139% YoY, BIT Solution sales +21% annual growth since 2024, Q1 gross profit $832k (~50% of revenue), product revenue +$300k (31%) while service revenue was -$234k (-41%), operating expenses down 15% to $1.48M, loss from operations $626k (improved $128k), net loss $811k ($0.04/share), positive operating cash flow $296k (improved $572k year‑over‑year), ending cash $280k and working capital ~$394k, backlog $2.2M (up $0.5M from year‑end 2025), an immediate integration pipeline of $4M across 14 customers/7 orders, a full sales pipeline of $22–33M with $9M classified as active this year, and ongoing plans to advance the Carbonium Core LOI (implied enterprise value $120M) toward a definitive agreement by May 30 with a 45‑day exclusivity period while bolstering the balance sheet via the ELOC and other financing.TOMI Environmental Solutions Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
9
Very Negative
Cash Flow
34
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.64M | 7.74M | 7.35M | 8.34M | 7.75M |
| Gross Profit | 3.08M | 3.56M | 4.29M | 5.06M | 4.59M |
| EBITDA | -2.80M | -3.63M | -2.96M | -2.53M | -4.01M |
| Net Income | -3.75M | -4.48M | -3.40M | -2.88M | -4.44M |
Balance Sheet | |||||
| Total Assets | 7.03M | 9.69M | 13.36M | 15.50M | 16.27M |
| Cash, Cash Equivalents and Short-Term Investments | 87.78K | 664.88K | 2.34M | 3.87M | 5.32M |
| Total Debt | 3.43M | 3.00M | 3.06M | 861.41K | 953.19K |
| Total Liabilities | 6.45M | 5.59M | 5.00M | 4.05M | 2.68M |
| Stockholders Equity | 588.50K | 4.10M | 8.36M | 11.45M | 13.60M |
Cash Flow | |||||
| Free Cash Flow | -1.33M | -1.55M | -3.82M | -1.48M | -4.46M |
| Operating Cash Flow | -1.20M | -1.44M | -3.60M | -1.23M | -3.82M |
| Investing Cash Flow | -135.58K | -261.53K | -216.69K | -241.45K | -639.37K |
| Financing Cash Flow | 755.13K | 27.50K | 2.29M | 25.00K | 4.58M |
TOMI Environmental Solutions Technical Analysis
Negative
1.54
Price Trends
2.30
Negative
2.13
Negative
2.24
Negative
Market Momentum
-0.20
Positive
40.15
Neutral
50.10
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 1.54 is below the 20-day moving average (MA) of 1.96, below the 50-day MA of 2.30, and below the 200-day MA of 2.24, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 40.15 is Neutral, neither overbought nor oversold. The STOCH value of 50.10 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
53 Neutral | $11.04M | 72.33 | 1.01% | ― | -13.77% | -78.34% | |
53 Neutral | $43.94M | -14.89 | -7.34% | ― | -0.69% | 1.97% | |
48 Neutral | $24.35M | -3.85 | -61.23% | ― | 73.54% | 17.08% | |
43 Neutral | $20.89M | -0.75 | -79.34% | ― | 6.94% | 38.10% | |
42 Neutral | $13.03M | -2.46 | -315.76% | ― | -30.33% | -24.92% | |
42 Neutral | $38.14M | -1.52 | -338.76% | ― | ― | ― |
* Industrials Sector Average
TOMZ
TOMI Environmental Solutions
1.74
-1.24
-41.71%
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1.49
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22.13%
FTEK
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1.50
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CLIR
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3.96
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-28.26%
LIQT
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0.65
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SCWO
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2.32
0.02
0.87%
TOMI Environmental Solutions Corporate Events
Regulatory Filings and ComplianceShareholder MeetingsStock Split
TOMI Environmental Executes 1-for-3 Reverse Stock Split
Neutral
Jul 20, 2026
On June 4, 2026, TOMI Environmental Solutions’ majority shareholders approved via written consent the execution of one or more reverse stock splits of its common and Series A preferred stock at ratios between 1-for-3 and 1-for-6, with the bo...
Business Operations and StrategyStock Split
TOMI Environmental Announces One-for-Three Reverse Stock Split
Neutral
Jul 17, 2026
On July 20, 2026, TOMI Environmental Solutions will implement a one-for-three reverse stock split of its common and Series A preferred voting shares, with trading in the split-adjusted common stock beginning that same day and no change to the tota...
Business Operations and StrategyRegulatory Filings and ComplianceShareholder MeetingsStock Split
TOMI Environmental Shareholders Approve Reverse Stock Split Flexibility
Neutral
Jun 10, 2026
On May 19, 2026, TOMI Environmental Solutions received written consent from majority shareholders holding its common and Series A preferred stock, and on June 4, 2026, they approved removing a prior 19.99% issuance cap tied to a November 5, 2025 p...
Delistings and Listing ChangesRegulatory Filings and Compliance
TOMI Environmental Faces Nasdaq Delisting, Plans Appeal
Negative
May 20, 2026
On November 21, 2025, Nasdaq notified TOMI Environmental Solutions that its common stock had traded below the $1.00 minimum bid price for 30 consecutive business days and that the company failed to meet the $2.5 million stockholders’ equity ...
Executive/Board Changes
TOMI Environmental Appoints Interim CFO Amid Leadership Transition
Negative
May 19, 2026
On May 16, 2026, TOMI Environmental Solutions, Inc. appointed Niroshan Srirathan as interim chief financial officer, with an annual base salary of $180,000, following his recent role as controller and a 14-year career in international finance and ...
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.