TOMI Environmental boosts gross margin to 55% and wins $500K biopharma deal

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TOMI Environmental Solutions reported a 2025 net loss of $3.7 million on $5.6 million revenue, improving gross margin to 55% from 46% and cutting operating expenses by 10%. The company secured a $500,000 biopharmaceutical purchase agreement, gained FDA approval for hydrogen peroxide as a direct food additive and received its first EU registrations with distributors in Poland, Germany and the Netherlands ready to deploy.

1. Financial Results for 2025

TOMI Environmental recorded $5.6 million in revenue for 2025, down from $7.7 million in 2024, and reduced its net loss to $3.7 million from $4.5 million a year earlier. Improved cost of sales and reduced inventory reserves lifted gross margin to approximately 55%, up from 46% in the prior year.

2. Operating Expense Outlook

The company cut operating expenses by 10% during the year and the CFO indicated that while additional investment will support growth initiatives, expenses should slightly decrease as a percentage of revenue going forward due to existing leverage.

3. Strategic Partnerships and Market Expansion

TOMI secured FDA approval for hydrogen peroxide as a direct food additive and entered the agriculture sector through an AlgaFeed partnership. It also booked a $500,000 order with a global biopharmaceutical leader, completed its first SteraMist Integrated System installation and received initial EU registrations with distributor networks in Poland, Germany and the Netherlands prepared for commercial roll-out.

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