TOMI Environmental Solutions, a global decontamination and infection prevention company, has released its financial results for the fourth quarter and year ended 31 December 2024.
The company, which operates under the SteraMist brand and leverages its proprietary Binary Ionization Technology (BIT) platform, reported notable achievements in revenue growth, customer expansion, and international partnerships throughout the year.
We are entering 2025 with positive momentum
Dr Halden Shane, Chief Executive Officer of TOMI, said: "In 2024, we achieved a 5% increase in annual revenue year-over-year, expanded our global customer base, diversified our product offerings, and secured significant new agreements. These efforts are instrumental in strengthening the global distribution and adoption of our SteraMist product line and enhancing the reach of our innovative ionised Hydrogen Peroxide (iHP) technology across various sectors."
Dr Shane also noted the impact of non-cash charges recorded during the fourth quarter, which affected the company's GAAP financial outcomes: "While non-cash adjustments impacted our reported net losses, excluding these charges, our performance improved compared to the previous year. We are entering 2025 with positive momentum—preliminary Q1 revenues show a 42% increase compared to Q1 2024, alongside significant growth in our BIT solutions segment."
Financial performance review
Full Year Ended 31 December 2024 (vs 2023):
Net Sales: $7.74 million (up from $7.36 million, a 5% increase)
Non-GAAP Gross Sales: $7.97 million (vs $7.48 million, a 6% increase)
GAAP Gross Margin: 46% (down from 58%)
Non-GAAP Gross Margin: 60% (up from 59%)
GAAP Net Loss: $(4.48) million or $(0.22) per share (vs $(3.40) million or $(0.17))
Non-GAAP Net Loss: $(2.05) million or $(0.10) per share (vs $(2.84) million or $(0.14))
Fourth Quarter Ended 31 December 2024 (vs Q4 2023):
Net Sales: $1.07 million (down from $1.53 million)
Non-GAAP Gross Sales: $1.30 million (vs $1.66 million)
GAAP Gross Margin: -49.5% (vs 54.9%)
Non-GAAP Gross Margin: 54.2% (vs 58.4%)
GAAP Net Loss: $(3.26) million or $(0.16) per share (vs $(1.23) million or $(0.06))
Non-GAAP Net Loss: $(0.98) million or $(0.05) per share (vs $(0.80) million or $(0.04))
Business highlights and strategic developments
Product-based revenue: SteraMist product revenue reached $6.04 million in 2024, up from $5.78 million in 2023, driven primarily by increased demand for mobile and SteraMist Surface Units (SIS).
Service revenue: Revenue from iHP services increased by $130,000 year-over-year, reaching $1.70 million.
Sales backlog: Backlog stood at $877,000 at year-end, rising to $1.23 million by 31 March 2025—a 40% increase.
International expansion: Overseas revenue grew 33% year-over-year, bolstered by new clients in Canada, South Africa, and India.
Pharmaceutical milestone: Successful installation of a Custom Engineered Solution
New partnerships: TOMI formalised agreements with six partners across Malaysia, India, Canada, South Korea, and the UK, spanning key sectors including pharmaceuticals, emergency services, and cleaning.
Canadian distribution: Long-standing partner Betatek transitioned from a manufacturing representative to an official distributor, reflecting rising demand in the Canadian market.
Pharmaceutical milestone: Successful installation of a Custom Engineered Solution (CES) at a high-profile pharmaceutical facility in the United Kingdom.
Outlook for 2025
TOMI has entered 2025 with what it describes as the strongest business pipeline in its history. Preliminary results for the first quarter show:
Revenue: Approximately $1.58 million (up 42% from Q1 2024)
Sales backlog: $1.23 million as of 31 March 2025
Solution sales: Estimated 200% quarter-over-quarter growth
However, these unaudited figures are preliminary and subject to final accounting and review procedures.
Overall, continued focus on high-margin solutions, reduced operational costs, and strategic international growth positions the company for improving profitability as 2025 progresses, according to the company.