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1. Company Snapshot

1.a. Company Description

TOMI Environmental Solutions, Inc., a bacteria decontamination and infectious disease control company, provides environmental solutions for indoor surface decontamination in the United States and internationally.Its products and services include SteraMist Surface Unit, a portable, handheld, point and spray disinfection/decontamination system intended to provide quick turnover of any affected space; SteraMist Environment System, a transportable, remotely controlled system that offers complete room disinfection/decontamination of a sealed space of approximately 103.8 m3; and The SteraMist Hospital Disinfection Cart, a solution to aid its hospital-healthcare customers in providing the quality of care and safety to their patients by disinfecting patient and operating rooms, pharmacies, ambulances, and emergency environments in a hospital or healthcare facility.The company also offers SteraMist Select Surface Unit; Stainless Steel 90-Degree Applicator; iHP Plasma Decontamination Chamber; SteraMist Custom Engineered System; and iHP Corporate Service Decontamination, which provides full room, equipment, facility, and emergency disinfection and decontamination services.


It also manufactures, sells, services, and licenses SteraMist Binary Ionization Technology, a hydrogen peroxide-based mist and fog.The company's products and services are used in hospitals and medical facilities, bio-safety labs, pharmaceutical facilities, meat and produce processing facilities, universities and research facilities, vivarium labs, and other service industries including cruise ships, office buildings, hotel and motel rooms, schools, restaurants, military barracks, police and fire departments, prisons, and athletic facilities; and single-family homes and multi-unit residences.TOMI Environmental Solutions, Inc.


was incorporated in 1979 and is headquartered in Frederick, Maryland.

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1.b. Last Insights on TOMZ

TOMI Environmental Solutions' recent performance was negatively impacted by its Q3 2025 earnings report, which showed a loss of $0.02 per share, missing revenue estimates. This compares to break-even earnings per share in the same quarter last year. The company's financial results and conference call transcript revealed challenges, but specific details on the underperformance were not provided. Additionally, a head-to-head analysis with Decent (NASDAQ:DXST) raised questions about TOMI's investment prospects. The company has also filed a $50 million universal shelf registration statement.

1.c. Company Highlights

2. TOMI Environmental Solutions: A Breakout on the Horizon?

TOMI Environmental Solutions reported a significant 95% sequential revenue increase to $2 million in Q3 2025, driven by expanding recurring revenue streams and deeper customer engagement. However, revenue declined from $2.5 million in Q3 2024, primarily due to a timing reduction in IronHP services sales from a key customer. The company's EPS came in at -$0.02, missing estimates of -$0.01. Gross margin is expected to remain around 60% as the company continues to grow.

Publication Date: Nov -23

📋 Highlights
  • Revenue Growth:: Q3 2025 revenue reached $2 million, a 95% sequential increase from Q2 2025.
  • Recurring Revenue Growth:: BIT solution sales rose 21% year-to-date, driven by expanded customer engagement.
  • Sales Pipeline Expansion:: Active pipeline surpassed $15 million, with backlog growing to $1.3 million by October 31.
  • FDA Market Expansion:: Hydrogen peroxide approval unlocked new markets in agriculture, food processing, and biosafety.

Growth Drivers

The company's growth is driven by strong equipment sales and recurring BIT solution sales, which have risen 21% year to date. The sales order backlog was $900,000 at the quarter end and grew further to $1.3 million by October 31, with an active pipeline surpassing $15 million. As Dr. Halden Shane, CEO, noted, "initial purchases of one or two units at select locations inspiring broader rollouts across entire organizations" is a key driver of growth, as seen in the company's growing relationship with Nestle.

New Market Opportunities

The FDA's broadened approval of hydrogen peroxide positions TOMI to serve not only life sciences and healthcare but also agriculture, food processing, and environmental biosafety. The company is leveraging this opportunity through personalized engagement strategies, targeted marketing campaigns, and deeper partnerships with key industry players. With the data center market emerging as a key area of interest, TOMI is expanding its sales teams to focus on this market.

Valuation

With analysts estimating next year's revenue growth at 68.7%, TOMI's current valuation multiples are worth examining. The stock trades at a P/S Ratio of 4.28 and an EV/EBITDA of -4.22, indicating that the market is pricing in significant growth. The P/B Ratio stands at 7.15, suggesting that the stock may be slightly overvalued. As the company continues to drive growth and innovation, it's essential to monitor whether TOMI can meet the expected growth rates and justify its current valuation.

Strategic Milestones

TOMI has made significant strategic progress, including entering into an equity purchase agreement with Hudson Global Ventures, providing the company with the flexible right to sell up to $20 million in common stock over a twenty-four-month period. This move is expected to support TOMI's growth plans and provide the necessary capital to drive innovation and expansion.

3. NewsRoom

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TOMI Environmental Solutions to Present at the 2025 Sidoti Year End Investor Conference

Dec -04

Source: globenewswire.com

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TOMI Environmental Solutions Announces $3 Million Custom Integration Pipeline with Strategic Life Sciences Partnerships

Nov -26

Source:

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TOMI Environmental Solutions, Inc. Announces Filing of $50 Million Universal Shelf Registration Statement and Equity Line of Credit

Nov -17

Source: globenewswire.com

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TOMI Environmental Solutions, Inc. (TOMZ) Q3 2025 Earnings Call Transcript

Nov -15

Source: seekingalpha.com

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TOMI Environmental Solutions, Inc. (TOMZ) Reports Q3 Loss, Misses Revenue Estimates

Nov -14

Source: zacks.com

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TOMI Environmental Solutions, Inc. to Hold Conference Call to Discuss Third Quarter 2025 Financial Results on November 14, 2025

Nov -10

Source: globenewswire.com

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Decent (NASDAQ:DXST) versus TOMI Environmental Solutions (NASDAQ:TOMZ) Head to Head Analysis

Nov -05

Source: defenseworld.net

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TOMI Environmental Solutions to Present at the LD Micro Main Event XIX

Oct -06

Source: newsfilecorp.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.20%)

6. Segments

SteraMist Product

Expected Growth: 10.2%

Growing demand for eco-friendly and non-toxic decontamination solutions, increasing awareness of infectious disease outbreaks, and rising adoption in healthcare and industrial settings drive the growth of SteraMist technology.

Service and Training

Expected Growth: 10.2%

Growing demand for infection prevention and control measures, increasing adoption of decontamination and disinfection solutions, and rising awareness about the importance of proper equipment usage drive the growth of TOMI Environmental Solutions' services and training programs.

7. Detailed Products

INACTIVATION SERVICES

TOMI Environmental Solutions, Inc. provides inactivation services to eliminate pathogens, viruses, and other microorganisms from surfaces and equipment.

STERILIZATION SERVICES

TOMI offers sterilization services using its proprietary SteraMist technology to eliminate microorganisms from surfaces and equipment.

DECONTAMINATION SERVICES

TOMI provides decontamination services to remove hazardous materials and contaminants from surfaces and equipment.

STERAMIST BINARY IONIZATION TECHNOLOGY

TOMI's SteraMist technology uses a binary ionization process to eliminate microorganisms from surfaces and equipment.

INFECTION PREVENTION SOLUTIONS

TOMI offers infection prevention solutions to reduce the risk of healthcare-associated infections (HAIs) in healthcare facilities.

BIODECONTAMINATION SERVICES

TOMI provides biodecontamination services to remove biological contaminants from surfaces and equipment.

8. TOMI Environmental Solutions, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes is low for TOMI Environmental Solutions, Inc. because the company's unique technology and patented processes make it difficult for substitutes to emerge.

Bargaining Power Of Customers

The bargaining power of customers is medium for TOMI Environmental Solutions, Inc. because while customers have some bargaining power due to the availability of alternative solutions, the company's strong brand reputation and customer loyalty programs help to mitigate this power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low for TOMI Environmental Solutions, Inc. because the company has a diverse supplier base and is not heavily reliant on any one supplier.

Threat Of New Entrants

The threat of new entrants is high for TOMI Environmental Solutions, Inc. because the environmental solutions industry is attractive and has low barriers to entry, making it easy for new companies to enter the market.

Intensity Of Rivalry

The intensity of rivalry is medium for TOMI Environmental Solutions, Inc. because while there are several competitors in the market, the company's unique technology and strong brand reputation help to differentiate it from competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 22.41%
Debt Cost 3.95%
Equity Weight 77.59%
Equity Cost -9.46%
WACC -6.46%
Leverage 28.88%

11. Quality Control: TOMI Environmental Solutions, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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CECO Environmental

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TOMI Environmental Solutions

A-Score: 4.1/10

Value: 6.8

Growth: 3.3

Quality: 3.6

Yield: 0.0

Momentum: 9.0

Volatility: 1.7

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Quality: 3.5

Yield: 0.0

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A-Score: 3.8/10

Value: 6.4

Growth: 7.4

Quality: 3.7

Yield: 0.0

Momentum: 4.0

Volatility: 1.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.82$

Current Price

0.82$

Potential

0.00%

Expected Cash-Flows