- Preliminary Q1 2025 results show a 42% revenue increase for TOMI Environmental Solutions (TOMZ, Financial).
- International revenue grew by 33% in 2024.
- GAAP net loss widened to $(4.48 million) in 2024 from $(3.40 million) in 2023.
TOMI Environmental Solutions, Inc. (TOMZ) reported its financial performance for the fourth quarter and full-year 2024, revealing a mixed outcome. The company achieved a 5% increase in annual revenue, reaching $7.74 million, supported by a 33% rise in international revenue. However, TOMI faced challenges as the GAAP net loss expanded to $(4.48 million) or $(0.22) per share for 2024, compared to $(3.40 million) or $(0.17) per share in 2023.
In Q4 2024, TOMZ experienced a decline in net sales, which fell to $1.07 million from $1.53 million in the same period the previous year. Additionally, the gross margin turned negative at -49.5%, a significant downturn from 54.9% in Q4 2023. The company attributes some of this loss to "non-cash adjustments to certain reserve accounts."
Looking ahead, preliminary results for Q1 2025 indicate a positive shift, with revenue increasing by 42% to $1.58 million, accompanied by a 200% growth in solution sales quarter-over-quarter. The sales backlog also improved, climbing 40% to $1.23 million as of March 2025. These figures suggest potential recovery and improved financial metrics for TOMZ moving forward.
The company's strategic efforts, particularly in expanding international markets, played a significant role, with new customers in Canada, South Africa, and India contributing to the 33% growth in international revenue. As TOMZ continues to develop its global partnerships and enhance its product distribution through the SteraMist brand, its long-term growth prospects remain robust despite recent financial challenges.
