Tomi Environmental Solutions Inc (NASDAQ: TOMZ) reported $1.7 million in year-to-date SteraMist iHP Service and Support sales for 2026, surpassing the approximately $1.3 million recorded in both 2024 and 2025.

The increase underscores a strategic shift toward recurring revenue streams through contracted decontamination services and ongoing on-site support engagements, complementing the company’s traditional system sales model.

Service Deployment Details

During the period, Tomi executed multiple contracted engagements across key sectors:

• Integra Pharma and Catalent: Deployed four times each year-to-date
• Cleveland Clinic and LFB USA: Contracted engagements completed
• Canadian university: Ongoing service relationship, serviced four times year-to-date
• Centers for Disease Control and Prevention (CDC): Recurring on-site support averaging four visits per month

Reed A. Scott, iHP Service Director and Quality Service Engineer at Tomi, attributed the demand to operational efficiency. "SteraMist allows us to complete a service job quickly, so facilities can return to operations with minimal downtime," Scott said. He noted that customers consistently cite turnaround time, reporting quality, and professionalism as key factors in their engagement decisions.

What the Numbers Show

The year-to-date revenue of $1.7 million represents a $400,000 increase over the full-year totals of both 2024 and 2025 ($1.3 million each). This early-year outperformance against prior full-year benchmarks signals accelerated adoption of contracted service models rather than one-off system sales. The recurring nature of these engagements—evidenced by multiple quarterly deployments with the same clients—suggests improving revenue visibility for fiscal 2026.

Strategic Outlook

Tomi remains focused on expanding its contracted service accounts and on-site support operations for the remainder of fiscal 2026. The company views this growth as integral to its broader revenue diversification strategy, reinforcing recurring engagement across its installed base of Binary Ionization Technology (BIT) platforms.

The BIT platform utilizes low-percentage hydrogen peroxide to produce ionized hydrogen peroxide (iHP) fog, serving hospitals, laboratories, government installations, and commercial facilities. Tomi continues to leverage this technology for environmental disinfection and bio-decontamination solutions globally.

TOMI Environmental Solns (NASDAQ: TOMZ) delivered a significant acceleration in top-line performance for the second quarter of 2026, reporting revenue of $2.25 million. This figure represents a 118% increase compared to $1.03 million in the same period last year and a 36% sequential rise from the first quarter of 2026. The growth was primarily fueled by robust demand for its SteraMist decontamination technology, specifically in BIT Solution sales and capital equipment deployments.

Financial Performance

The company demonstrated strong operating leverage during the quarter. Gross profit more than doubled to $1.39 million, reflecting a gross margin expansion to 61.7% from 50.3% in the prior quarter. This margin improvement was attributed to higher revenue volumes and an optimal mix of high-margin consumable sales alongside equipment deployments.

Operating expenses were managed effectively, declining 10% year-over-year to $1.63 million. This reduction was led by savings in general and administrative costs, partially offset by approximately $300,000 in transaction-related professional fees associated with the pending merger with Carbonium Core. Consequently, the operating loss narrowed significantly by 78% to approximately $244,000, down from $1.13 million in Q2 2025.

The net loss for the quarter improved by 69% to approximately $382,000, or $0.05 per basic and diluted share, compared to a net loss of $1.24 million ($0.19 per share) in Q2 2025. All per-share figures reflect the 1-for-3 reverse stock split effected on July 20, 2026.

What the Numbers Show

A critical divergence exists between the company's operational trajectory and its net loss profile. While the operating loss contracted sharply by 78%, indicating improving core business efficiency, the net loss reduction was slightly less pronounced at 69%. This suggests that non-operating items or tax effects may have influenced the bottom line. Furthermore, the expansion in gross margin to 61.7% alongside a 118% revenue surge highlights the scalability of the "razor-and-blade" model, where high-margin applicator sales ($355,000 in Q2, up from $13,000 in Q2 2025) are locking in long-term recurring demand for BIT Solutions.

Balance Sheet and Liquidity

Liquidity positions strengthened during the quarter. Cash and cash equivalents rose to $322,000 from $88,000 at year-end 2025, supported by $1.92 million in net proceeds from the equity line of credit (ELOC). Working capital expanded to $1.82 million from $1.02 million at the end of 2025. Stockholders' equity increased significantly to $1.43 million, up from $589,000 as of June 30, 2025. The company maintains approximately $18.1 million in remaining contractual capacity under its ELOC facility.

Operational Highlights and Backlog

The sales order backlog grew steadily, reaching $2.2 million at quarter-end and expanding to $2.6 million post-quarter. Management highlighted several key operational milestones:

• Medical Device Sector: Delivery of SteraMist IHP chambers to a Fortune 500 medical device manufacturer, advancing the 510(k) clearance process with the FDA.
• Regulatory Approvals: Expanded EU registrations to include Austria, Italy, Germany, and others. Secured new EPA registration for AgriMist, allowing direct application on indoor-grown plants and fruits up to harvest day.
• Strategic Merger: Continued integration planning with Carbonium Core, which includes a $10 million minimum concurrent financing condition prior to closing.

Management reaffirmed full-year 2026 revenue guidance of at least $12 million, citing a robust pipeline of approximately $35 million and strong execution across domestic and international markets.