Company: TOMZ
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001654954-25-005288
Chunk: 61

Company: TOMI Environmental Solutions, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 61
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.  The increase in revenue, consistent gross profit and lower operating expenses all contributed to improved financial results for the first quarter of 2025, when compared to the same prior year period.  

Revenue for the three months ended March 31, 2025 and 2024 was $1,577,000 and $1,114,000 respectively, an increase of $463,000 or 42% when compared to the first quarter of the prior year.   The higher revenue was attributable to increased demand for our SteraMist BIT solution, mobile, handheld point and spray product lines, the SteraMist Integrated System (SIS) product offering, scope adjustments to align with client needs and project dynamics on currently installed Custom Engineered Systems (CES’s) among deliverables to new projects, and diversified iHP service sales.

Our first quarter 2025 product-based revenue grew by 35% when compared to the same period primarily due to improved recurring SteraMist BIT solution sales as well as increased demand for our mobile and CES equipment.

Service-based revenue for the three months ended March 31, 2025 and 2024, was $577,000 and $371,000 respectively, representing an increase of $206,000 or 56%.   The increase in service revenue was due to increased demand for iHP services as well as expanded services offered by the company.

Domestic revenue for the first quarter of 2025 was $1,192,000, which represents 80% growth when compared to the same prior year period.  The increase in domestic revenue increased due to higher demand for our solution, mobile equipment, CES and iHP service sales.  

Our gross profit as a percentage of sales for the three months ended March 31, 2025 and 2024, was 60.4% and 60.2%, respectively.  The improved gross profit margins were attributable to our product mix in sales and the increased demand for our BIT solution and mobile equipment. 

During the first quarter of 2025, our operating expenses declined by $191,000, or 10%, compared to the first quarter of 2024.  The decline was primarily due to lower selling and general and administrative expenses, which declined 15% and 11%, respectively, when compared to the same prior year period.    

Our total recognized revenue and backlog for the three months ended March 31, 2025 amounted to $2,802,000, consisting