FREDERICK, Md., Nov. 26, 2025 (GLOBE NEWSWIRE) -- TOMI Environmental Solutions, Inc. (NASDAQ: TOMZ) announces substantial progress in its custom integration pipeline, currently valued at approximately $3 million, signaling significant momentum in the life sciences sector. The company reports ten active projects across its SteraMist Integrated System (SIS) and Custom Engineered System (CES) platforms, serving both new and existing customers. The advancement reflects TOMI's strategic positioning as a turnkey ...

Financial Data and Key Metrics Changes - In Q3 2025, the company's revenue was $2 million, a 24% decrease from $2.5 million in Q3 2024, primarily due to a timing reduction in iHP services sales from a key customer [9][10] - Year-to-date service demand remains robust, with quote activity and pipeline volume up approximately 35% year-over-year in life sciences and food safety [10] - Gross profit margins remained strong at 61% for Q3 2025, consistent with the same period last year [10] Business Line Data and Key Metrics Changes - Recurring BIT solution sales increased by 21% year-to-date, contributing to the overall revenue growth [5][10] - The sales order backlog was $0.9 million at the quarter end and grew to $1.3 million by October 31, with approximately $3 million in pending SteraMist integration contracts expected to close before year-end [6][10] Market Data and Key Metrics Changes - The FDA's broadened approval of hydrogen peroxide positions the company to serve not only life sciences and healthcare but also agriculture, food processing, and environmental biosafety [7][23] - The active pipeline surpassed $15 million, encompassing both domestic and international customers across various industries [6] Company Strategy and Development Direction - The company aims to enhance customer engagement and expand its recurring revenue streams through personalized outreach and targeted marketing campaigns [8] - Focus on biosecurity advancements and scaling automation integrations for high-efficacy environments is prioritized for 2026 [8][9] - The company is investing in innovation and customer success to capture opportunities in clean tech and biosecurity [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's recovery and reaffirmed the soundness of its strategy, with steady improvement expected financially, operationally, and strategically [25][26] - The company is well-positioned for a successful fourth quarter with momentum carrying into 2026, supported by a recent equity purchase agreement to access capital [26][27] Other Important Information - The company celebrated a significant addition to its customer roster with Bausch + Lomb, which adopted mobile handheld surface units and committed to BIT Solution orders for 2026 [19][20] - The company is actively pursuing the cannabis market and has opened doors to promising new partnership discussions [22] Q&A Session Summary Question: What are your sales and marketing efforts towards the FDA approval for hydrogen peroxide usage? - Management indicated that the food industry could be a key marketing vertical, and they are excited about the approval as it positions their technology favorably [29] Question: Should we expect operating expenses and gross margins to continue improving? - Management expects operating expenses to increase but remain positive in relation to revenue, with gross margins expected to hold steady [30][31] Question: What kind of sales effort is in place for international markets like Morocco? - The company has distributors in various countries and is working with global partners to increase demand for SteraMist [34] Question: Do you have visibility on solution sales in the coming quarters? - Management noted that while there was a decrease in solution sales growth in Q3, they expect a rebound by the end of the fourth quarter [35] Question: Any updates on servicing military and defense markets? - Management mentioned ongoing studies with a key site looking to replace formaldehyde, with expectations for significant developments in 2026 [42] Question: Any progress in the use of SteraMist for replacing ethylene oxide in medical sterilization? - Management confirmed ongoing discussions and prioritization of partnerships in device manufacturing for this purpose [51]

Financial Data and Key Metrics Changes - In Q3 2025, the company's revenue was $2 million, a 24% decrease from $2.5 million in Q3 2024, primarily due to a timing reduction in IHP services sales from a key customer [9][10] - Year-to-date service demand remains robust, with quote activity and pipeline volume up approximately 35% year over year in the life sciences and food safety areas [10] - Gross profit margins remained strong at 61% for Q3 2025, consistent with the same period last year [10] Business Line Data and Key Metrics Changes - Recurring BIP solution sales increased by 21% year to date, contributing to the overall revenue growth [5][10] - The sales order backlog was $0.9 million at the quarter end and grew to $1.3 million by October 31, with approximately $3 million in pending SteraMist integration contracts expected to close before year-end [6][10] Market Data and Key Metrics Changes - The FDA's broadened approval of hydrogen peroxide as a safe disinfectant opens new markets, particularly in food processing and agriculture [7][23] - The company is seeing strong interest from emerging sectors, with an active pipeline surpassing $15 million [6][7] Company Strategy and Development Direction - The company aims to grow sales of mobile capital equipment, IHP corporate service, and custom integration platforms alongside its core BIP solution business model [5][8] - There is a focus on biosecurity advancements and scaling automation integrations for high-efficacy environments, addressing global challenges [8][9] Management's Comments on Operating Environment and Future Outlook - Management believes the third quarter marked a decisive turning point, with a 95% sequential revenue increase driven by expanding recurring revenue streams [4][5] - The company is optimistic about the future, with a strong sales backlog and a sales strategy beginning to deliver promising results [25][26] Other Important Information - The company entered into an equity purchase agreement with Hudson Global Ventures, allowing it to sell up to $20 million in common stock over a 24-month period [26] - The SteraMist IHP technology was named the Disinfection and Decontamination Products Company of the Year 2025 [7] Q&A Session Summary Question: What are the sales and marketing efforts towards the FDA approval for hydrogen peroxide usage? - Management sees the food industry as a key marketing vertical and is excited about the approval, which is expected to be a game changer [29] Question: Should operating expenses and gross margins continue to improve? - Management expects operating expenses to increase but believes they will be positive in relation to revenue, with gross margins remaining stable [30][31] Question: What kind of sales effort is in place for international markets like Morocco? - The company has different distributors in various countries and is working with global partners to increase demand for SteraMist [34] Question: What visibility is there on solution sales in the coming quarters? - Management anticipates that solution sales will increase as more technology is deployed, with a key focus on driving growth in BIP solution sales [35] Question: Any updates on servicing military and defense markets? - The company is working with a key site looking to replace formaldehyde and expects significant developments in 2026 [42] Question: Any progress in the use of SteraMist for replacing ethylene oxide in medical instrument sterilization? - The company is prioritizing partnerships in device manufacturing to streamline IHP into decontamination processes [51]

Core Insights - TOMI Environmental Solutions, Inc. is actively participating in the AALAS 76th National Meeting to enhance its presence in the animal research sector [1][2] - The event serves as a platform for TOMI to strengthen strategic partnerships and promote its SteraMist Integrated System (SIS) [2][3] - The company aims to leverage high-impact networking opportunities to drive the adoption of its innovative ionized Hydrogen Peroxide (iHP) technology [3][4] Company Overview - TOMI specializes in disinfection and decontamination solutions, utilizing its Binary Ionization Technology® (BIT™) platform, which is based on low percentage hydrogen peroxide [5] - The company’s products are designed for a wide range of applications, including hospitals, biosafety labs, and food processing facilities [5] Event Participation - AALAS is a significant event for TOMI, attracting thousands of professionals from research institutions, which facilitates lead generation and collaboration [3] - The executive team, including key leaders from various departments, will represent TOMI at the event, highlighting the company's commitment to innovation and customer-centric growth [4][5]

Financial Data and Key Metrics Changes - In Q2 2025, total recognized revenue was approximately $1,000,000, a decline of 66% from $3,000,000 in Q2 2024, primarily due to customers deferring capital expenditure projects [14] - Service revenue for the quarter was $378,000, representing a 33% increase year-over-year, while service revenue for the first six months reached $955,000, a 299% increase [15] - Gross margin improved to 66% in Q2 2025, up from 62% in the same quarter last year, attributed to a favorable product mix [15] Business Line Data and Key Metrics Changes - 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 [8] - BIT solution sales saw a 40% increase year-to-date, with expectations for continued growth due to repeat orders [10] - The company has a sales order backlog of approximately $4,600,000, with active projects scheduled for delivery in 2025 [7] Market Data and Key Metrics Changes - The company is negotiating approximately $2,000,000 in new custom and integrated contracts, with bids expected to close before year-end [7] - Open opportunities for three product offerings total approximately $15,000,000, with $7,000,000 designated as high priority [7] - The USDA increased its usage of SteraMist in Q2 2025, indicating growing market acceptance [12] Company Strategy and Development Direction - The company is focused on expanding customer outreach through targeted marketing strategies and strategic partnerships [9] - There is an emphasis on educating the market about proactive disinfection through the SteriMist Pro certified program [10] - The company aims to enhance its infrastructure by strengthening personnel in management and expanding its global distributor network [28] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about maintaining a positive trajectory for the remainder of 2025, despite challenges faced in Q2 [6] - The company anticipates significant orders from large companies as new manufacturing plants are built in the U.S. [38] - Management is hopeful that upcoming regulatory approvals will significantly impact growth [29] Other Important Information - The company was recognized as the Disinfection, Decontamination, and Disinfection Product Company of the Year for 2025 [12] - The company is developing a scalable solution to replace outdated methods in collaboration with the U.S. Army Medical Research Institute of Infectious Diseases [21] - There is a strong pipeline of international partnerships in Europe, with pending approvals expected soon [23] Q&A Session Summary Question: Can you provide margins realized in solution sales compared to the rest of the business? - Management expressed excitement about solution sales, noting high margins and an increase in gross margins to 66% this quarter [33] Question: What opportunities arise from the strategy to bring back pharma manufacturing to the U.S.? - Management highlighted that high regulatory standards present opportunities for significant orders from large companies as new facilities are built [38] Question: Have any customers that deferred CapEx projects notified you about moving ahead? - Management indicated a significant increase in customer deposits and confirmed that at least two customers are expected to proceed with projects in 2026 [41] Question: Can you describe how SteraMist would be used if FDA approvals are obtained? - Management detailed ongoing FDA approval processes for medical devices and food safety applications, emphasizing the potential for expanded market opportunities [43][44] Question: Any new uses developed for SteraMist? - Management mentioned ongoing internal tests for new applications, including extending the shelf life of flowers, but noted hurdles to overcome before entering new industries [46]