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Aug 14, 2026, 10:01 AM ETIndustrials

TOMI Environmental Solutions — Second Quarter 2026 Earnings Summary

TOMZTOMI ENVIRONMENTAL SOLUTIONS INC
Source

Financial Performance

  • Q2 2026 revenue surged 118% year-over-year to $2,246,909 and increased 36% sequentially from Q1 2026 ($1,654,227); six-month year-to-date revenue grew 50% to $3,901,000 compared to $2,608,000 in the prior-year period.
  • Gross profit more than doubled year-over-year, increasing 105% to $1,385,306 in Q2 2026 from $677,124 in Q2 2025, and rose 67% sequentially from Q1 2026.
  • Gross margin improved to 61.7% in Q2 2026 from 50.3% in Q1 2026, though it decreased slightly from 65.7% in Q2 2025.
  • Total operating expenses declined 10% year-over-year to $1,629,448 in Q2 2026 from $1,809,813 in Q2 2025.
  • Operating loss improved 78% year-over-year to $(244,142) in Q2 2026 compared to $(1,132,689) in Q2 2025.
  • Net loss for Q2 2026 was $(382,299) or $(0.05) per share, an improvement of 69% from $(1,237,516) or $(0.19) per share in Q2 2025; six-month net loss improved 20% to $(1,192,945).
  • Cash and cash equivalents increased to $321,899 as of June 30, 2026, from $87,775 at December 31, 2025.
  • Shareholders' equity rose significantly to $1,428,436 at June 30, 2026, compared to $588,504 at year-end 2025.
  • Working capital increased to $1,818,000 at June 30, 2026, from $1,024,000 at year-end 2025.
  • Deferred revenue stood at $431,100 as of June 30, 2026, compared to $424,032 at December 31, 2025.
  • Long-term convertible notes payable were $2,949,022 net of discount as of June 30, 2026.

Guidance and Future Outlook

  • The Company reaffirmed full-year 2026 revenue guidance of at least $12.0 million, representing 113% year-over-year growth.
  • Management targets completing the required $10 million concurrent financing and closing the definitive merger with Carbonium Core, Inc.
  • The Company aims to convert a $2.5 million sales backlog and opportunities within a $35 million commercial sales pipeline ($8.6 million in advanced stages).
  • Future strategy includes accelerating recurring revenue through increased BIT™ Solution sales and expanding applicator adoption.
  • The Company plans to advance FDA 510(k) medical device clearance submissions and leverage new EPA AgriMist label expansions.

Business Segments and Product Lines

  • Product revenue increased 185% to $1,858,000 in Q2 2026, driven by demand for capital equipment and Custom Engineered Systems (CES).
  • Service revenue increased 3% to $389,000 in Q2 2026, supported by service provider rental activity and recurring decontamination contracts.
  • Applicator sales reached $355,000 in Q2 2026, up from $13,000 in Q2 2025.
  • Mid-year BIT™ Solution consumable sales exceeded $700,000.
  • The Company delivered custom SteraMist iHP chambers to a Fortune 500 medical device manufacturer.
  • The Company announced a strategic pivot toward autonomous systems, targeting drone-enabled, robotic, and AI-powered SteraMist iHP decontamination.
  • The Company expanded its European regulatory footprint to 11 countries and advanced NSF certification frameworks for biosafety cabinets.

Market and Competitive Landscape

  • Domestic (U.S.) revenue increased 132% to $1,908,000 in Q2 2026.
  • International revenue grew 62% to $339,000 in Q2 2026, supported by new customer onboarding in the UK.
  • The Company highlighted expanded commercial relevance for SteraMist amid global concerns regarding hantavirus and Ebola outbreaks.
  • The Company secured a Defense Logistics Agency (DLA) distribution authorization to scale sales in defense and public health sectors.
  • The Company engaged with over 200 current and potential customers at INTERPHEX 2026.

Risks and Challenges

  • The proposed merger with Carbonium Core is subject to regulatory approvals, stockholder approvals, and the completion of a $10 million financing transaction.
  • The Company must maintain compliance with Nasdaq's minimum bid price requirements, which necessitated a 1-for-3 reverse stock split effective July 20, 2026.
  • Actual results may differ from forward-looking statements due to risks including the ability to execute business strategy, commercialization of Carbonium's technology, and market demand fluctuations.
  • The Company relies on a limited number of products for a significant portion of revenues.

Management Commentary and Tone

  • CEO Dr. Halden Shane described Q2 2026 as a "defining operational and commercial period" marking the third consecutive quarter of accelerating growth.
  • Management expressed confidence in the "razor-and-blade commercial model" driven by surge demand for capital equipment and rapid adoption of SteraMist applicators.
  • The Company stated it is working toward operating at breakeven on a cash basis through strict cost control.
  • Management noted a "strong commercial sales pipeline" of approximately $35 million with $8.6 million in advanced stages.

Other Key Points

  • On June 29, 2026, the Company signed a definitive Agreement and Plan of Merger with Carbonium Core, Inc., an implied enterprise valuation of $120 million. Under the agreement, Carbonium stockholders will receive 19.99% of TOMZ common stock and Series C Preferred Stock convertible into 90% of the combined company.
  • On July 20, 2026, the Company effected a 1-for-3 reverse stock split of its Common Stock and Series A Preferred Stock.
  • On August 3, 2026, the EPA granted unconditional registration for SteraMist® (BIT®) – AgriMist, authorizing direct application through the day of harvest for post-harvest food safety, cannabis, hemp, and greenhouse agriculture.
  • The total sales order backlog was $2.2 million as of June 30, 2026, expanding to $2.6 million post-quarter.
  • Booked orders and expected completions before year-end exceed $6.2 million.
  • The Company maintains an active integrated project pipeline of $4.3 million across 13 projects (SIS, Hybrid, and CES).