TOMI (TOMZ) Q1 2026 Earnings Transcript

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DATE

Friday, May 8, 2026 astatine 4:30 p.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Halden Shane

• Chief Financial Officer — David Vanston

• Chief Operating Officer — Elissa Shane

• Operator

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Full Conference Call Transcript

Halden Shane: Thank you, John, and convey you each for joining america today. Q1 2026 marked a steadfast commencement to the year, highlighted by a pivotal strategical improvement for TOMI. Our archetypal 4th results demonstrated important momentum crossed cardinal metrics. Revenue accrued by 5% year-over-year and 67% sequentially from Q4 of 2025. Notably, applicator income successful Q1 unsocial surpassed our full applicator income for the full twelvemonth of 2025, representing a singular 139% year-over-year growth. This occurrence underscores the effectiveness of our razor/blade consumable exemplary arsenic we grow our installed base. Additionally, BIT Solution income person consistently grown by 21% annually since 2024 and remained supra the 2025 levels successful Q1 of 2026.

We besides achieved a 15% simplification successful operating expenses compared to Q1 of 2025, portion maintaining our afloat capacity. The institution besides generated affirmative operating currency travel of $296,000, which is simply a $572,000 betterment implicit the aforesaid play past year. A notable inclination this twelvemonth is strengthening and dynamic quality of our integrated task pipeline, which continues to show meaningful momentum. This is the pipeline the institution has highlighted since November of 2025 and which evolves arsenic we beforehand oregon implicit contracts. The enlargement of this pipeline aligns intimately with maturation successful our backlog, and we are disclosing lone opportunities that suppliers person indicated are adjacent signing. These opportunities thin to impact longer income cycles.

While near-term closings are communicated arsenic they steadfast up, they bash not correspond our full imaginable opportunity. The inclination is reflected successful our backlog of orders. At year-end of 2025, TOMI reported $1.6 cardinal successful backlog, which grew by $0.5 cardinal by the adjacent of Q1 2026 and is presently astatine $2.2 million. This dependable backlog enlargement underscores the spot of our automated integrated strategy and the galore work offerings we implemented. Critically, backlog maturation continues adjacent arsenic we fulfill existing orders, illustrating request and execution crossed sales. At the extremity of 4th 1, TOMI received 440,000 yearly acquisition orders for recurring decontamination services with a starring planetary aesculapian exertion company.

This declaration involves quarterly nonrecreational IHP decontamination services for captious cleanable country and laboratory environments, aligning perfectly with our strategy to physique a high-margin, repeatable gross exemplary successful summation to expanding the backlog bid number. In Q1, we achieved respective different notable milestones. A backstage East Coast probe assemblage purchased and installed a SteraMist hybrid strategy for high-level decontamination of reusable aesculapian equipment. We besides sold a customized engineered strategy successful the U.K. to an planetary pharmaceutical manufacturer, which was integrated into Total Clean Air's modular cleanroom platform, and we established Total Clean Air arsenic our preferred European spouse for SteraMist iHP exertion erstwhile the U.K.