Q2 2026 TOMI Environmental Solutions Inc Earnings Call Transcript
Key Points
- TOMI Environmental Solutions Inc (TOMZ) reported a 118% year-over-year revenue increase in Q2 2026, with product revenue up 185%.
- The company achieved three consecutive quarters of growth, with a growing sales backlog reaching $2.6 million post-quarter.
- Gross margin improved to 61.7% in Q2 2026, up from 50.3% in Q1 2026, driven by higher revenue and a favorable product mix.
- Operating expenses decreased 10% year-over-year, and the operating loss improved by 78%, bringing the company closer to breakeven.
- The company secured new regulatory approvals, including an EPA label for AgriMist and EU registrations, expanding its market reach.
- Applicator sales surged to $355,000 in Q2 2026, up from $13,000 in Q2 2025, validating the razor-and-blade model.
- The company strengthened its balance sheet with working capital expanding to $1.82 million and cash increasing to $322,000.
- TOMI Environmental Solutions Inc (TOMZ) is advancing its FDA 510(k) submission with the delivery of a new chamber to a Fortune 500 medical device manufacturer.
- The company has a robust sales pipeline of approximately $35 million, with $8.6 million in advanced stages expected to close in 2026.
- The pending merger with Carbonium Core includes a $10 million financing condition, which could transform the combined company's balance sheet.
- TOMI Environmental Solutions Inc (TOMZ) still reported a net loss of $382,000 in Q2 2026, though improved from the prior year.
- The company incurred approximately $300,000 in elevated transaction-related expenses tied to the Carbonium Core merger, impacting profitability.
- Cash and cash equivalents remain low at $322,000, despite an increase from year-end 2025.
- The company's service revenue growth was modest, with only a 3% year-over-year increase, and was impacted by a production change at a large customer.
- The timeline for FDA 510(k) clearance remains uncertain, with studies still to be conducted and reported.
- The company's reliance on the equity line of credit and convertible notes highlights ongoing capital needs.
- The merger with Carbonium Core is subject to conditions, including raising $10 million, which may not be completed as planned.
- International revenue growth was slower at 62% year-over-year compared to US growth of 132%.
- The company's ability to achieve full-year revenue guidance of $12 million depends on closing advanced pipeline opportunities, which could be subject to customer budget shifts.
- The company's operating expenses, while reduced, still include significant professional and consulting fees that may continue in the near term.
Good day, everyone, and welcome to the TOMI Environmental Solutions, Inc. second quarter 2026 financial results conference call. (Operator Instructions) It is now my pleasure to hand the floor over to your host, John Nesbett. Sir, the floor is yours.
Thank you for joining us today for TOMI Environmental Solutions Investor Update Conference Call. On today's call is TOMI's Chief Executive Officer and Chairman, Dr. Halden Shane; Chief Operating Officer, EJ Shane; and Interim Chief Financial Officer, Niro Srirathan. A telephone replay of today's call will be available through August 21, 2026, the details of which are included in the company's press release. A webcast replay will also be available at TOMI's website, www.steramist.com.
Certain written and oral statements made by management of TOMI may constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking
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