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On Monday, H.C. Wainwright analyst Amit Dayal maintained a Buy rating and a $3.50 price target on TOMI Environmental Solutions (NASDAQ:TOMZ), following the company’s release of its first-quarter financial results for 2025. According to InvestingPro data, this price target represents a significant upside potential from the current trading price of $0.85, though the stock is currently trading slightly above its Fair Value. TOMI Environmental Solutions reported a year-over-year increase in net revenue, posting approximately $1.6 million for the first quarter of 2025, up from $1.1 million in the same quarter of the previous year.
The company’s gross margin for the quarter was recorded at 60.4%, which is slightly lower than the average gross margin of 61.0% during the first three quarters of 2024. TOMI Environmental Solutions also managed to reduce its total operating expenses to approximately $1.7 million in 1Q25, down from $1.9 million in 1Q24.
Despite the improvements in revenue and reduced expenses, TOMI Environmental Solutions experienced a net loss of around $0.3 million, or $0.01 per share, in the first quarter of 2025. This marks a significant improvement from the net loss of $1.3 million, or $0.07 per share, in the first quarter of 2024.
The company’s financial position as of March 31, 2025, included cash and cash equivalents of approximately $0.7 million and debt totaling $2.6 million. The company maintains a healthy current ratio of 2.25, indicating strong short-term liquidity, while operating with a moderate debt-to-equity ratio of 0.84. Additionally, in March and April of 2025, TOMI Environmental Solutions raised roughly $385,000 through the issuance of convertible promissory notes. InvestingPro’s comprehensive analysis shows an overall Financial Health Score of WEAK, providing valuable insights for investors considering this $17.12M market cap company.
The analyst’s reiteration of the Buy rating and $3.50 price target reflects the company’s financial results and recent fundraising efforts. The company’s efforts to improve its financial health and the positive year-over-year growth in net revenue contribute to the analyst’s outlook on the stock.
In other recent news, TOMI Environmental Solutions Inc. reported its Q1 2025 earnings, showing a net loss of $0.01 per share. Despite this, the company experienced a 42% year-over-year increase in revenues, reaching $1.577 million. Product-based revenues rose by 35% to $1 million, while service revenues increased by 56% to $577,000. The company’s gross margin stood at 60.4%, with an operating loss of $754,000, which is an improvement from the previous year’s $1.226 million. Future guidance from TOMI suggests a gradual improvement in earnings with projections indicating a positive EPS by FY2026. The company has highlighted new product launches and strategic partnerships as key factors for potential growth. Analysts noted that TOMI’s earnings per share missed expectations, reflecting ongoing challenges in meeting forecasts. However, the company’s revenue growth suggests effective sales strategies.
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