TOMI Environmental Solutions, Inc. (NASDAQ: TOMZ) announced that a leading consumer‑packaged‑goods manufacturer has cut its sanitation validation costs by 95%, reducing annual testing expenses from roughly $100,000 to $5,000 after integrating TOMI’s SteraMist ionized hydrogen peroxide (iHP) system into its production line.
The cost savings were enabled by the portable SteraPak iHP system, which can treat the interiors of complex machinery that are normally inaccessible to conventional cleaning methods. The rapid, residue‑free disinfection allows the manufacturer to shift from frequent laboratory testing to a quarterly sampling schedule, dramatically cutting external lab testing and material expenses.
While the achievement underscores the commercial viability of TOMI’s technology, the company’s own financial performance has been uneven. In Q3 2025, TOMI reported revenue of $2.01 million, down from $2.54 million in Q3 2024, and operating and net margins were negative at –94.16% and –91.4%, respectively. Gross profit margins have fluctuated, with 61% in Q3 2025 and 66% in Q2 2025, but the company has faced declining revenues and negative margins in recent quarters, raising concerns about financial stability.
Dr. Halden Shane, TOMI’s CEO, said, “Our expansion into the food safety sector represents a pivotal milestone in TOMI’s mission to set a new global standard for disinfection. The 95% reduction in validation costs achieved by our CPG partner is a powerful testament to the economic disruption SteraMist brings to the industry. We are not just improving safety; we are fundamentally changing the cost‑of‑doing‑business for food manufacturers by replacing outdated, labor‑intensive processes with a superior, science‑driven solution.”
Investors have expressed caution due to broader financial challenges. TOMZ has faced declining revenues and negative margins in recent quarters, raising concerns about financial stability. The cost‑saving case study, however, highlights the potential for broader adoption of the iHP technology across the food‑safety sector.
The 95% cost reduction demonstrates the effectiveness of TOMI’s SteraMist iHP system and its potential to transform sanitation practices in high‑volume manufacturing environments. Yet, the company’s financial headwinds suggest that the market will weigh this success against the broader context of declining revenues and negative margins when assessing TOMI’s long‑term prospects.
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