TOMI Environmental Solutions (NasdaqCM:TOMZ) Q4 2025 Earnings call March 31, 2026 04:30 PM ET Company ParticipantsDavid Vanston - CFOEJ Shane - COOHalden Shane - CEO and ChairmanZach Nevas - Account ExecutiveConference Call ParticipantsCarl Wright - AnalystJohn Nelson - AnalystOperatorGood day, and welcome to the TOMI Environmental Solutions, Inc. 2025 financial results conference call. At this time, all participants have been placed on a listen-only mode. The floor will be open for questions and comments f ...

TOMI Environmental Solutions (NasdaqCM:TOMZ) Q4 2025 Earnings call March 31, 2026 04:30 PM ET Company ParticipantsDavid Vanston - CFOEJ Shane - COOHalden Shane - CEO and ChairmanJohn Nelson - ShareholderZach Nevas - Account ExecutiveConference Call ParticipantsCarl Wright - AnalystOperatorGood day, and welcome to the TOMI Environmental Solutions, Inc. 2025 financial results conference call. At this time, all participants have been placed on a listen-only mode. The floor will be open for questions and commen ...

TOMI Environmental Solutions (NasdaqCM:TOMZ) Q4 2025 Earnings call March 31, 2026 04:30 PM ET Speaker5Good day, and welcome to the TOMI Environmental Solutions, Inc. 2025 financial results conference call. At this time, all participants have been placed on a listen-only mode. The floor will be open for questions and comments following the presentation. It is now my pleasure to turn the floor over to your host, Zach Nevas from IMS Investor Relations. Zach, the floor is yours.Speaker6Thank you for joining us ...

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]