TOMI Environmental Solutions (TOMZ) investor relations material

Executive summary

• Q1 2026 revenue grew 5% year-over-year to $1.65 million, with a 67% sequential increase, driven by strong equipment and CES sales and a 139% surge in applicator sales, surpassing all of 2025's total.

• Operating expenses declined 15% year-over-year to $1.46 million, supporting improved operating cash flow of $296,000, a $572,000 improvement.

• Backlog increased to $3.4 million as of March 31, 2026, with a $4.3 million integration project pipeline across 13 customers.

• A non-binding LOI to merge with Carbonium Core, a U.S. producer of nuclear-grade graphite, was executed, targeting a $120 million enterprise value and closing in Q2 2026.

• Expanded regulatory approvals and international partnerships, including new authorizations in the UK, EU, Canada, and a strategic partnership with Total Clean Air.

Financial highlights

• Q1 2026 revenue was $1.65 million, up 5% year-over-year and 67% sequentially; product revenue increased 31%, while service revenue declined 41% due to project timing.

• Gross profit was $832,000 (50% margin), down from $952,000 (60–63%) due to discounts and product mix.

• Net loss widened to $811,000 or $(0.04) per share, impacted by the absence of prior year one-time credits.

• Cash at quarter-end was $280,000, with working capital of $394,000.

• Operating cash flow turned positive at $296,000, a $572,000 year-over-year improvement.

Outlook and guidance

• Management expects revenue growth through 2026 and into 2027, with a credible path to profitability within the year.

• BIT Solution sales are expected to exceed 2025 levels, supporting future profitability.

• The integration project pipeline reached $4.3 million, with a $1.7 million sales backlog providing near-term revenue visibility.

• Focus on closing the Carbonium Core merger, expanding recurring revenue, and leveraging new regulatory approvals for European growth.