TOMI Environmental Solutions Q2 2025 Earnings Call Transcript Highlights

TOMI Environmental Solutions reported Q2 2025 earnings, with CEO Halden Shane discussing the company's financial results and outlook. CFO David Vanston also participated in the call. The company's press release and webcast replay are available on their website. The conference call was hosted by IMS Investor Relations.

TOMI Environmental Solutions Inc. (TOMZ) reported its second-quarter 2025 earnings, with CEO Halden Shane providing an overview of the company's financial performance and outlook. The earnings call, hosted by IMS Investor Relations, was held on August 14, 2025, and the press release and webcast replay are available on the company's website.

Key Financial Highlights:

- Service Revenue Growth: TOMI reported a 33% increase in service revenue compared to the same period last year, and a 46% increase over the first six months. The company's gross margin improved to 66% in the second quarter, up from 62% in the same quarter last year [1].
- Sales Order Backlog: The company has a strong sales order backlog and deferred revenue totaling approximately $4.6 million, with active projects scheduled for delivery in 2025.
- New Contracts and Collaborations: TOMI secured several new contracts and collaborations, including a significant win for their SIS platform totaling over $180,000 for a university.
- Operating Loss: The company reported an operating loss of approximately $1.1 million for the second quarter, compared to an operating income of $120,000 in the same period last year.
- Net Loss: The net loss for the quarter was approximately $1.28 million, or $0.06 per share, compared to a net income of $30,000 in the same period last year.
- Cash and Cash Equivalents: Cash and cash equivalents were approximately $569,000, indicating potential liquidity concerns.

Outlook and Strategic Initiatives:

- Customer Outreach: TOMI is expanding its customer outreach through targeted marketing strategies and strategic partnerships, leading to a 40% increase in solution sales year-to-date.
- Regulatory Approvals: The company is working on two FDA approvals, including a 510k for medical devices and an FCN approval for food safety applications.
- New Applications: TOMI is testing new applications for Steramist, such as spraying on flowers to extend their lifespan.

Q&A Highlights:

- Solution Sales Margins: Dr. Halden Shane, CEO, noted that solution sales have high margins, contributing to the company's gross margin reaching 66% this quarter.
- Pharma Manufacturing Impact: The CEO discussed the company's strategy of bringing back pharma manufacturing to the U.S. and the regulatory standards they meet.
- Customer Deposits: CFO David Vanston reported a significant increase in customer deposits, indicating that some customers will return in Q1 2026.

Conclusion:

TOMI Environmental Solutions Inc. reported mixed earnings for Q2 2025, with strong service revenue growth and a robust pipeline of opportunities. However, the company faced challenges in revenue decline and operating losses. CEO Halden Shane expressed optimism about the company's strategic initiatives and future growth prospects.

References:

[1] https://finance.yahoo.com/news/tomi-environmental-solutions-inc-tomz-072255397.html
[2] https://www.marketbeat.com/earnings/reports/2025-8-14-tomi-environmental-solutions-inc-stock/