TOMI Environmental Solutions, Inc. (NASDAQ: TOMZ)

TOMI Environmental Solutions, Inc. is a global provider of disinfection and decontamination solutions, offering environmentally friendly products and services for indoor air and surface treatment. The company’s flagship product line, SteraMist, uses patented Binary Ionization Technology (BIT) to deliver a low-concentration hydrogen peroxide-based fog or mist that treats indoor environments and achieves a 6-log kill rate against pathogens, leaving only oxygen and humidity as by-products. TOMI serves four primary market divisions: Life Sciences, Hospital-Healthcare, Food Safety, and Commercial.

TOMI generates revenue from equipment sales, BIT Solution consumables, corporate decontamination services, and Installation/Operational/Performance Qualification (IQ/OQ/PQ) services. The company operates on a razor-blade model where equipment sales drive recurring revenue from BIT Solution usage. Revenue is derived across its four divisions through direct sales, independent representatives, and a global network of distributors and certified service providers under the SteraMist Pro Certified program.

The company operates through the following segments: Life Sciences, Hospital-Healthcare, Food Safety, and Commercial.

• Life Sciences: This segment targets pharmaceutical manufacturers, Contract Development and Manufacturing Organizations (CDMOs), and research institutions requiring automated, validated decontamination with minimal downtime. Product offerings include Custom Engineered System (CES), Hybrid, and SteraMist Integration System (SIS) lines, all undergoing full IQ/OQ/PQ validation. The onshoring of pharmaceutical manufacturing in Virginia with commitments from Merck, Eli Lilly, and AstraZeneca supports expanded adoption in this sector.

• Hospital-Healthcare: This segment addresses healthcare-associated infections by providing rapid-turnaround disinfection for operating rooms, pharmacies, ambulances, and emergency environments. TOMI expands presence through partnerships with group purchasing organizations such as Vizient and educational campaigns for facility managers and infection control professionals. The segment leverages SteraMist’s efficiency in high-turnover clinical settings.

• Food Safety: This segment benefits from the FDA’s 2025 final rule broadening hydrogen peroxide use as a direct food additive, enabling iHP application on food contact surfaces and ready-to-eat products. TOMI has conducted specialized tests with industry stakeholders on pathogens like Listeria monocytogenes using food items such as cheese, strawberries, and cut cantaloupe. The segment serves customers including Nestle, Sensient Technologies Corporation, and Danone.

• Commercial: This segment serves aviation, hospitality, education, government, emergency services, and restoration sectors through certified service providers. Relationships include large franchise networks such as T. A. C. T. (18 U. S. locations) and Steri-Clean (approximately 60 franchises). SteraMist’s rapid deployment, no preconditioning needs, and minimal PPE requirements make it suitable for high-frequency commercial use in schools, transportation, and hospitality.

TOMI operates in a competitive disinfection and decontamination industry with players such as Steris Corporation, Bioquell (owned by Ecolab), and The Clorox Company, as well as ultraviolet and quaternary ammonium chemical companies. Its SteraMist iHP technology achieves a 6-log kill rate, surpassing most household and industrial disinfectants. Competitive advantages include its ready-to-use formula, ability to reach surfaces beyond traditional sprays, no rinse or wipe requirement, gentleness on electronics, minimal PPE needs, and DOT transport advantage due to its 7.8% hydrogen peroxide concentration falling below air shipment restrictions.

TOMI’s customers include Fortune 100 pharmaceutical and healthcare companies such as Pfizer, Merck, AbbVie, Bausch & Lomb, ThermoFisher Scientific, Eli Lilly and Company, FUJIFILM Diosynth Biotechnologies USA, and Fresenius Kabi. Government clients include the National Institutes of Health, U. S. Department of Agriculture, Centers for Disease Control and Prevention, United States Army Medical Research Institute of Infectious Diseases, and NASA’s Johnson Space Center. In food safety, customers encompass Nestle, Sensient Technologies Corporation, Mayorga Organics, Lakeview Farms LLC, Batory Foods, Danone, and Perdue. Healthcare customers also include Tower Health, Novant Health, Corewell Health, NorthEast Medical Services, St. Jude Children’s Research Hospital, Edgewell Personal Care, and Mass General Brigham.