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Tomi Environmental Solutions reported Q2 2025 earnings with a 33% YoY increase in service-based revenue and a gross margin improvement to 66%. Despite a net loss of $1.24 million, the company highlighted international expansion and strategic initiatives such as product innovation and operational efficiencies. Tomi Environmental Solutions remains focused on expanding service contracts, increasing SteraMist sales, and pursuing new market opportunities.

Frederick, Md., Aug. 14, 2025 (GLOBE NEWSWIRE) -- Tomi Environmental Solutions, Inc. (NASDAQ: TOMZ), a global provider of disinfection and decontamination essentials through its premier Binary Ionization Technology® (BIT™) platform, today announced its financial results for the quarter ended June 30, 2025, and provided an update on strategic initiatives designed to drive long-term growth.

Key Highlights:

- Service & Training Growth: Service and training revenue increased year-over-year in both the quarter (33%) and first half of 2025 (46%), reflecting growing demand for high-value decontamination services [1].
- Strong Gross Margins: Gross profit margin remained healthy at 66% in Q2, underscoring the efficiency of operations and the value of the Company’s technology [1].
- Operational Efficiencies: Reduced selling, research, and administrative expenses year-to-date, demonstrating disciplined cost management [1].
- International Reach: Continued penetration into global markets, with nearly 20% of Q2 revenue generated internationally [1].
- Product Innovation: Ongoing investment in R&D to expand applications of SteraMist® across life sciences, healthcare, food safety, and commercial markets [1].

Financial Results:

- Sales, net: $1,031,000 compared to $3,013,000 for the three months ended June 30, 2025 and 2024, respectively [1].
- Sales, net: $2,608,000 compared to $4,127,000 for the six months ended June 30, 2025 and 2024, respectively [1].
- Service-based revenue: $378,000 and $285,000 for the three months ended June 30, 2025, and 2024, respectively, representing a year-over-year increase of $93,000, or 33% [1].
- Service-based revenue: $955,000 and $656,000 for the six months ended June 30, 2025, and 2024, respectively, representing a year-over-year increase of $299,000, or 46% [1].
- Gross margin: 66% compared to 62% in the same prior quarter [1].
- Operating loss: $(1,133,000) compared to income from operations of $122,000 for the three months ended June 30, 2025, and 2024, respectively [1].
- Operating loss: $(1,887,000) compared to $(1,105,000) for the six months ended June 30, 2025, and 2024, respectively [1].
- Net loss: $(1,238,000) or $(0.06) per basic and diluted share, compared to net income of $30,000 or $0.00 per basic and diluted share for the three months ended June 30, 2025, and 2024, respectively [1].
- Net loss: $(1,493,000) or $(0.07) per basic and diluted share, compared to $(1,280,000) or $(0.06) per basic and diluted share for the six months ended June 30, 2025, and 2024, respectively [1].

Recent Business Highlights:

- Sales order backlog: As of June 30, 2025, totaled approximately $1.4 million [1].
- Recognized revenue, deferred revenue, and sales order backlog: Combined total as of August 7, 2025, was approximately $4.6 million, with active projects on schedule for delivery in 2025 [1].
- New custom and integrated contracts: Negotiating approximately $2 million in new contracts, with bids expected to close prior to year-end [1].
- Open opportunities: Totaled approximately $15 million, of which $7 million are designated as high priority [1].
- Awards: Honored with the prestigious 2025 "Disinfection and Decontamination Products Company of the Year" award by MedTech Outlook [1].
- New product line: Announced the advancement of the SteraMist Integration System with the Standalone or SIS-SA [1].

Leadership Update:

- Chief Financial Officer: David Vanston appointed in May 2025, bringing extensive financial and operational experience to the leadership team [1].

Liquidity & Capital Access:

- Working capital: $2.8 million as of June 30, 2025 [1].
- Cash used in operations: Improved by over $1 million compared to the prior year quarter [1].
- Convertible note financing: Successfully completed a $435,000 convertible note financing in the first half of 2025 [1].

Looking Ahead:

- Strategic initiatives: Focused on expanding recurring service contracts, increasing SteraMist solution sales, growing international presence, pursuing government and institutional partnerships, and strengthening the balance sheet [1].

Conference Call Information:

- TOMI will hold a conference call to discuss Second Quarter 2025 results at 4:30 p.m. ET today, August 14, 2025. To participate, dial (888) 506-0062 or (973) 528-0011 for international callers, and use participant access code 838858. A replay of the teleconference will be available until Thursday, August 28, 2025 [1].

References:

[1] https://finance.yahoo.com/news/tomi-environmental-solutions-inc-reports-200500029.html