TOMI Environmental Solutions, Inc. (NASDAQ: TOMZ) announced a new, ongoing service contract with a leading Mexican dairy manufacturer that will deploy the company’s SteraMist Environment System on a daily basis. The dairy will purchase roughly $128,000 of Binary Ionization Technology (BIT) Solution each year under an open purchase order for seven pallets.
The contract includes an option for the dairy to expand its use of TOMI’s technology by integrating SteraMist Hybrid Systems across additional sites. The hybrid systems combine permanent applicators with the Environment System to provide comprehensive coverage, allowing the dairy to maintain a consistently high standard of sanitation across its growing footprint. The agreement adds a predictable, recurring revenue stream for TOMI, a key element of the company’s razor‑blade model that relies on ongoing consumable sales alongside equipment.
This win comes at a time when TOMI’s financial performance has been volatile. In Q3 2025 the company reported revenue of $2 million, a 24% decline from $2.5 million in Q3 2024, and a net loss of $450,000. Gross profit margins were 61% in Q3 2025, up from 66% in Q2 2025, reflecting a mix shift toward higher‑margin services. The new contract therefore represents a meaningful addition to the company’s recurring revenue base amid broader revenue headwinds.
The Mexican food‑processing market is projected to reach US$5.75 billion by 2033, growing at a compound annual growth rate of 6.89%. TOMI’s entry into this market expands its geographic footprint and positions the company to capture a share of a rapidly expanding sector that is increasingly focused on food safety and sanitation.
Elissa J. Shane, TOMI’s Chief Operating Officer, said, "The rigorous pathogen reduction data this service provider achieved at this dairy manufacturer speaks for itself. SteraMist is proving that it does not just meet the demanding safety and preservation standards of large‑scale food manufacturing, it raises them. We look forward to growing alongside this manufacturer as they expand their facilities and operations." She added, "This partnership represents exactly the kind of strategic collaboration the food and beverage industry needs more of, bringing together established brand power with genuine, technological innovation to solve real consumer problems."
The contract strengthens TOMI’s recurring revenue stream and signals confidence from a major customer in a high‑growth market, but the company still faces revenue and profitability challenges. The deal is therefore a material event that could influence long‑term investment decisions.
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