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TOMI Reports Strong Q1 2026 Sales of High-Margin BIT Solution, Indicating Positive Growth Trends

(Positive)
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TOMI (NASDAQ: TOMZ) reported preliminary unaudited BIT Solution sales of approximately $427,000 in Q1 2026, following annual BIT growth from $872,380 in 2024 to $1,065,172 in 2025. Q1 orders totaled about $3,360,000 with ~$1.7M recognized revenue. TOMI expects to sell 10 55-gallon drums in 2026 and says current orders position the company to potentially exceed $12 million in fiscal 2026 revenue.

The update emphasizes TOMI's razor-and-blade model where high-margin BIT consumables (historical gross margins >80%) drive recurring revenue tied to SteraMist system adoption.

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Positive

  • BIT revenue increased ~22% from 2024 to 2025
  • Q1 BIT sales of approximately $427,000
  • Q1 orders $3.36M supporting FY2026 upside
  • BIT gross margins historically exceeding 80%

Negative

  • Key figures are preliminary and unaudited
  • 55-gallon drum sales historically concentrated in H2
  • FY2026 $12M revenue outcome described as potential, not guaranteed

News Market Reaction – TOMZ

+1.77%
1 alert
+1.77% News Effect
+$203K Valuation Impact
$11.70M Market Cap
0.0x Rel. Volume

On the day this news was published, TOMZ gained 1.77%, reflecting a mild positive market reaction. This price movement added approximately $203K to the company's valuation, bringing the market cap to $11.70M at that time.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement emphasizes the expansion of TOMI’s high-margin BIT Solution business, with sales r...
Analysis

This announcement emphasizes the expansion of TOMI’s high-margin BIT Solution business, with sales rising from $872,380 in 2024 to $1,065,172 in 2025 and about $427,000 in Q1 2026. Management highlights a razor-and-blade model, growing 55-gallon drum demand, and potential to exceed $12 million in 2026 revenue. Against this, investors must weigh past losses, liquidity reliance, and an unused $50,000,000 shelf that could fund growth but also introduce dilution if tapped.

Key Figures

BIT sales 2024: $872,380 BIT sales 2025: $1,065,172 Q1 2026 BIT sales: $427,000 +5 more
8 metrics
BIT sales 2024 $872,380 Full year 2024 BIT Solution revenue
BIT sales 2025 $1,065,172 Full year 2025 BIT Solution revenue
Q1 2026 BIT sales $427,000 Preliminary BIT Solution sales and orders, Q1 2026
55-gallon drums 2024 5 drums 55-gallon BIT Solution drums sold in 2024
55-gallon drums 2025 7 drums 55-gallon BIT Solution drums sold in 2025
Expected drums 2026 10 drums Anticipated 55-gallon BIT Solution drums in 2026
Q1 2026 orders $3,360,000 Total orders produced in first quarter 2026
BIT gross margin >80% Historical gross margin on BIT Solution sales

Historical Context

5 past events · Latest: Apr 08 (Positive)
Pattern 5 events
Date Event Sentiment 24h Move Catalyst
Apr 08 Q1 2026 update Positive -2.3% Preliminary Q1 2026 revenue and order strength highlighted across offerings.
Apr 06 Adoption update Positive -10.5% Reported rising SteraMist adoption among compounding pharmacies amid tighter standards.
Mar 31 Full-year 2025 results Neutral +5.4% Detailed 2025 revenue decline, margins, losses, financing actions, and growth pipeline.
Mar 26 Earnings call notice Neutral +0.0% Announced timing and access details for Q4 2025 results conference call.
Mar 25 Regulatory approval Positive -5.0% BIT Solution gained Dutch ctgb PT2 authorization under EU BPR for SteraMist use.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Positive operating or regulatory updates have often been met with negative or muted price reactions, indicating a pattern of divergence between fundamentals-focused news and share performance.

Recent Company History

Recent releases showed improving activity but inconsistent price responses. On Mar 31, TOMI reported $5.64M 2025 revenue and a $3.75M net loss, with shares rising 5.37%. However, a Netherlands BIT authorization on Mar 24 and a Q1 2026 revenue update of about $1.7M plus $3.36M in sales and open orders both coincided with declines of ‑4.95% and ‑2.26%. Adoption gains in compounding pharmacies on Apr 6 also saw a ‑10.46% move, underscoring repeated divergence.

Key Terms

razor and blade business model, epa-registered, steramist, automated integration builds
4 terms
razor and blade business model financial
"TOMI employs a Razor and Blade business model for iHP decontamination."
A razor and blade business model is one in which a company sells a low-cost or one-time core product and makes most of its profit from repeat purchases of complementary items, parts, or services required to keep the product working. For investors, this matters because it can create steady, predictable follow-on revenue, high customer switching costs and strong margins over time—similar to buying a cheap printer but paying repeatedly for expensive ink cartridges.
epa-registered regulatory
"Delivery system sales drive ongoing demand for our EPA-registered BIT solution,"
EPA-registered means a product or chemical has been reviewed and listed by the U.S. Environmental Protection Agency for the uses claimed on its label, commonly applying to pesticides, disinfectants and certain chemical products. For investors, an EPA registration is like a safety and use permit: it reduces regulatory risk, often broadens market access and can be a competitive advantage because it signals lawful compliance and validated claims, which affects sales potential and liability exposure.
steramist technical
"The Company sells a durable primary delivery system (the “razor”) under the SteraMist brand,"
A "steramist" is a person or entity that creates or manages financial structures designed to isolate and protect specific assets or risks from the rest of a company’s operations. Think of it as a protective shell or barrier that shields certain parts of a business from financial troubles elsewhere. For investors, understanding steramists is important because they can influence how risks and assets are handled within a company, affecting overall financial stability.
automated integration builds technical
"55-gallon drums, which play a crucial role in SteraMist automated integration builds"
Automated integration builds are routine, computer-driven processes that combine recent pieces of software code, compile them, and run basic checks so the whole product is tested together whenever changes are made. For investors, they matter because they speed up development, reduce the chance of unexpected breakdowns after releases, and lower long-term costs—similar to running an assembly-line test on every new car part before it leaves the factory.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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FREDERICK, Md., April 14, 2026 (GLOBE NEWSWIRE) -- TOMI Environmental Solutions, Inc.® (“TOMI”) (NASDAQ: TOMZ), a global leader in disinfection/decontamination solutions, reports preliminary unaudited BIT Solution revenue for the first quarter of 2026. TOMI employs a Razor and Blade business model for iHP decontamination. The Company sells a durable primary delivery system (the “razor”) under the SteraMist brand, at a competitive price point. Delivery system sales drive ongoing demand for our EPA-registered BIT solution, a high-margin consumable (the “blade”). BIT Solution sales have historically generated gross margins in excess of 80%, well above TOMI’s historical consolidated gross margins.

Since 2024, BIT solution sales have shown steady annual growth, increasing from $872,380 in 2024 to $1,065,172 in 2025. In the first quarter of 2026, BIT solution sales and orders totaled approximately $427,000.

TOMI sells 55-gallon drums, which play a crucial role in SteraMist automated integration builds and contribute to ongoing high-margin recurring revenue. Historically, sales of these 55-gallon drums occur in the latter half of the year; in 2024, TOMI sold five (5) 55-gallon drums, increasing to seven (7) drums in 2025. This year, TOMI anticipates selling ten (10) drums, driven by a growing pipeline of automated integration builds scheduled for delivery by year-end.

As noted in the Company’s previous press release, total orders produced in the first quarter amounted to approximately $3,360,000 million, with preliminary figures indicating approximately $1.7 million in recognized revenue for the quarter. This $3.3 million in orders positions TOMI to potentially exceed $12 million in revenue for the 2026 fiscal year.

Dr. Halden Shane, CEO of TOMI Environmental Solutions commented, “Our razor-razor blade model is beginning to show tangible results after years of growing the installed base of SteraMist delivery systems with customers. The primary goal of the Company is to achieve sustained and growing profitability. The timeline for achieving this has always been largely dependent on how quickly the iHP technology can foster customer adoption, establishing a recurring revenue stream from our proprietary BIT Solution sales, a high-margin consumable which offsets the initial hardware sales.”

About TOMI™ Environmental Solutions, Inc.: Innovating for a safer world®

TOMI™ Environmental Solutions, Inc. (NASDAQ: TOMZ) is a global decontamination and infection prevention company, providing environmental solutions for indoor surface disinfection through the manufacturing, sales and licensing of its premier Binary Ionization Technology® (BIT™) platform. Invented under a defense grant in association with the Defense Advanced Research Projects Agency (DARPA) of the U.S. Department of Defense, BIT™ solution utilizes a low percentage Hydrogen Peroxide as its only active ingredient to produce a fog of ionized Hydrogen Peroxide (iHP™). Represented by the SteraMist® brand of products, iHP™ produces a germ-killing aerosol that works like a visual non-caustic gas.

TOMI products are designed to service a broad spectrum of commercial structures, including, but not limited to, hospitals and medical facilities, cruise ships, office buildings, hotel and motel rooms, schools, restaurants, meat and produce processing facilities, military barracks, police and fire departments, and athletic facilities. TOMI products and services have also been used in single-family homes and multi-unit residences.

TOMI develops training programs and application protocols for its clients and is a member in good standing with The American Biological Safety Association, The American Association of Tissue Banks, Association for Professionals in Infection Control and Epidemiology, Society for Healthcare Epidemiology of America, America Seed Trade Association, and The Restoration Industry Association.

For additional information, please visit https://www.steramist.com or contact us at info@tomimist.com.

Forward-Looking Statements 

This press release contains forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance based on management’s judgment, beliefs, current trends, and anticipated product performance. These forward-looking statements include, without limitation, statements relating to preliminary financial results, including preliminary revenue information, estimated open orders, BIT Solution sales, and estimated total integration pipeline, expected revenue growth in 2026 and beyond, TOMI’s products and services to serve the life sciences sector, and the ability to complete delivery of products and services pursuant to purchase orders. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. These may include, but are not limited to, our ability to acquire new customers and expands sales; our projected revenue and revenue recognized from anticipated future purchase orders, invoiced orders, and contracts, our ability to maintain and manage growth and generate sales (equipment and consumable), our reliance on a single or a few products for a majority of revenues; the general business and economic conditions; and other risks as described in our SEC filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed by us with the SEC and other periodic reports we filed with the SEC. The information provided in this document is based upon the facts and circumstances known at this time. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today’s date, unless otherwise stated, and we undertake no duty to update such information, except as required under applicable law.

INVESTOR RELATIONS CONTACT:
John Nesbett/Zach Nevas
IMS Investor Relations
tomi@imsinvestorrelations.com


FAQ

How much did TOMZ report in BIT Solution sales for Q1 2026?

TOMZ reported approximately $427,000 in BIT Solution sales for Q1 2026. According to the company, this continues a multi-year growth trend after BIT sales rose from $872,380 in 2024 to $1,065,172 in 2025.

What were TOMZ total orders and recognized revenue in Q1 2026?

TOMZ recorded about $3,360,000 in total orders and roughly $1.7 million revenue recognized in Q1 2026. According to the company, these preliminary figures underpin its FY2026 revenue potential exceeding $12 million.

What is TOMZ's expectation for 55-gallon drum sales in 2026 and timing?

TOMZ anticipates selling 10 55-gallon drums in 2026, up from seven in 2025. According to the company, these drums support automated integration builds scheduled for delivery by year-end and drive recurring consumable revenue.

How profitable is TOMZ's BIT Solution for shareholders?

The BIT Solution has historically generated gross margins in excess of 80%, indicating high profitability. According to the company, BIT is a high-margin consumable that offsets initial SteraMist hardware sales and supports recurring revenue.

Does TOMZ guarantee exceeding $12 million revenue in fiscal 2026?

TOMZ did not guarantee it; the company said Q1 orders position it to potentially exceed $12 million. According to the company, the outcome depends on converting the current pipeline and scheduled deliveries.