TOMI Environmental Solutions Achieves 95% Cost Savings in Food Safety Sector
TOMI Environmental Solutions is accelerating its expansion into the food safety sector by delivering unprecedented operational savings of up to 95%. As global supply chains face mounting pressure to eliminate pathogens such as Salmonella, Listeria, and E. coli, the industry is rapidly transitioning from legacy chemical applications toward the advanced, science-driven efficacy of SteraMist ionized Hydrogen Peroxide technology. The financial stakes for food safety have never been higher, with industry data indicating that the average direct cost of a single food recall now reaches nearly $10 million when accounting for notification, product retrieval, and disposal. To combat these risks, leading manufacturers are seeking automated, repeatable solutions that go beyond traditional cleaning. A prominent Consumer Packaged Goods manufacturer specializing in egg white-based products recently showcased the transformative power of this technology by integrating SteraMist iHP into its facility-wide Sanitation Standard Operating Procedures. The portability of the SteraPak system allowed sanitation teams to treat the deep, intricate internals of complex manufacturing machinery that are often unreachable by conventional methods. The implementation of SteraMist exceeded all performance benchmarks, resulting in an environment where spoilage organisms were detected so rarely that the facility was able to reduce its environmental sampling frequency from a routine schedule to only once per quarter. This shift led to a dramatic reduction in external lab testing and material costs, which plummeted from approximately $100,000 annually to just $5,000-representing a 95% overall decrease in sanitation validation expenses. Driven by these results, the manufacturer has introduced SteraMist to multiple partner facilities, further validating the technology's scalability.
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- BIT Solution Sales Growth: In Q1 2026, TOMI's BIT solution sales reached approximately $427,000, continuing a growth trend since 2024, where sales were $872,380 and $1,065,172 in 2024 and 2025 respectively, indicating strong performance in high-margin product lines.
- High Margin Products: The BIT solution boasts gross margins exceeding 80%, significantly higher than TOMI's historical consolidated gross margins, highlighting the company's potential for sustainable revenue streams and reinforcing its market position.
- 55-Gallon Drum Sales Expectations: TOMI anticipates selling 10 55-gallon drums in 2026, a notable increase from 7 in 2025, driven by a growing pipeline of automated integration builds, which is expected to contribute to ongoing high-margin recurring revenue.
- Strong Order Totals: The total order amount for Q1 was approximately $3,360,000, with preliminary figures indicating about $1.7 million in recognized revenue for the quarter, positioning the company to potentially exceed $12 million in revenue for the 2026 fiscal year, reflecting robust market demand and growth potential.
- Significant Revenue Growth: TOMI's preliminary unaudited revenue for Q1 2026 reached approximately $1.7 million, reflecting a 67% sequential increase from Q4 2025, indicating strong market demand for disinfection and decontamination solutions.
- Pipeline Expansion: The total integrated projects have increased to $5.3 million, with half of the 14 customers having secured approval through purchase orders or contracts, demonstrating sustained confidence and demand for the SteraMist Integrated System.
- Strengthened Strategic Partnerships: The $440,000 annual purchase order secured with a leading global medical technology company underscores the growth potential of the iHP Corporate Service business, highlighting the client's commitment to long-term service and reinforcing TOMI's market position in the healthcare sector.
- Sales Driven by Technological Innovation: Sales of standalone applicators utilizing patented cold plasma arc technology have already surpassed total sales for the entire previous year, with a remarkable increase of 139%, reflecting strong customer demand for new technologies and the competitive edge of TOMI's products.

Company Announcement: Tomi Environmental Solutions, Inc. has released its unaudited preliminary financial results for the first quarter of 2026.
Revenue Growth: The financial results indicate strong sequential revenue growth compared to the fourth quarter.

- Surge in Industry Demand: TOMI has established partnerships with approximately a dozen clients in the compounding pharmacy sector, reflecting a sharp increase in demand for validated disinfection technologies amid stricter FDA audits and regulatory oversight, highlighting the company's significance and influence in the market.
- Shift to Automation: As traditional manual cleaning methods fail to meet modern FDA standards, TOMI's SteraMist products are viewed as essential everyday partners for maintaining compliance in 503B outsourcing facilities, thereby reducing the financial loss risks associated with audit failures.
- Compliance Risk Management: By routinely utilizing SteraMist, pharmacies proactively mitigate the risks of audit failures and contamination events, which not only safeguards patient safety but also avoids potential losses of millions of dollars from product recalls and operational shutdowns, enhancing the company's competitive edge.
- Strategic Market Positioning: TOMI's growth reflects a transformation in the compounding pharmacy industry, particularly among 503B facilities, indicating the strategic importance of the company in meeting customer demands for high standards of cleanliness and disinfection, further solidifying its leadership position in the global disinfection market.
- Revenue and Loss Overview: Revenue for 2025 was $5.6 million, down from $7.7 million in 2024, primarily due to the timing of customer equipment purchases, although gross margin improved from 46% to 55%, indicating better cost control.
- Technology and Market Expansion: The SIS system achieved its first commercial installation in June 2025 and ended the year with four fully operational installations, alongside a $500,000 purchase contract with a global biopharmaceutical leader, marking significant commercialization progress in automation.
- Future Outlook and Targets: CEO estimates 2026 revenue will reach $12 million, with a total opportunity book of $16 million for integration projects and $20 million for iHP, showcasing strong growth potential in the market.
- Operational Efficiency Improvement: Operating expenses decreased by approximately 10% to $6.9 million in 2025, and the company is actively pushing open BIT solution orders and annual service offerings, with a significant increase in support service demand reflected in a 16% backlog increase.
- Commercial Installation Achievement: TOMI Environmental Solutions achieved its first commercial installation of the SteraMist Integrated System in 2025, completing four fully operational installations by year-end, marking significant progress in the biopharmaceutical sector despite a decline in overall revenue.
- Key Contract Secured: The company secured a $500,000 purchase contract with a global biopharmaceutical leader, further expanding its market share in the cell and gene therapy sector, although it faces liquidity challenges with only $88,000 in cash at year-end.
- Gross Margin Improvement: The gross margin improved to approximately 55% in 2025, up from 46% in 2024, reflecting lower cost of sales and reduced inventory reserves, despite reporting a net loss of $3.7 million.
- Market Challenges: The company faces challenges such as tariffs, political uncertainty, and the impact of the Middle East crisis, which have delayed customer capital expenditure projects; despite a strong pipeline, the stock price declined to $0.78 by the end of 2025, reflecting market concerns over financial performance.







