TOMI Environmental Solutions (NasdaqCM:TOMZ) 2025 Conference Transcript

Financial Data and Key Metrics Changes - The company reported a 40% increase in consumables revenue for 2025 compared to 2024, with a gross margin of approximately 60% [12] - Revenue growth over pre-COVID levels is at 38%, with product revenue and service revenue both showing growth [27][28] - Service revenue grew over 30% year over year, with a significant contribution from the life sciences and pharmaceutical sectors [36][29] Business Line Data and Key Metrics Changes - The company operates five divisions: biotechnology, food and beverage, commercial services, healthcare, and custom integration, each showing potential for growth [8][9] - The integrated mobile and service pipeline is around $21 million, with $7 million in active specific designs [33][29] Market Data and Key Metrics Changes - The market opportunity for the company's products spans billions in biotechnology, food and beverage, commercial services, and healthcare [7] - The global medical device market is valued at approximately $23.78 billion, growing at a CAGR of about 10% [41] Company Strategy and Development Direction - The company aims to capitalize on the shift away from ethylene oxide in the life sciences market, which presents a significant opportunity for growth [19] - The focus is on expanding service offerings and enhancing the sales team to address new applications of their technology [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the conversion of open opportunities, citing a strong pipeline and ongoing contracts [37] - The company is optimistic about the lifting of capital restraints and the growing interest in their products post-COVID [20] Other Important Information - The company has 32 granted patents and over 200 trademarks registered in 50 states and more than 30 countries [7] - Recent FDA rule changes broaden the permitted use of hydrogen peroxide, opening new market opportunities in food safety and production [40] Q&A Session Summary Question: How repeatable is the growth in service revenue, and which industries are driving it? - Management indicated that the most traction is in life sciences and pharmaceuticals, with contracts for service revenue expected to grow year over year [36] Question: What gives confidence in conversion time and win rates? - Management noted that many opportunities are already won, and the design process with clients can take time, but they are confident in conversion rates [37] Question: How effective is the system at decontaminating facilities exposed to measles, and can production ramp up? - The company can quickly ramp up production using their backpack system, depending on capital availability [39]