Order fulfillment timeline & revenue recognition
TOMIâs press release only confirms that the ARES Distribution order has been received; it does not disclose a specific delivery window. In the companyâs prior announcements of comparable âOrdersâ (e.g., the 2024â2025 series) the typical pattern is that fulfillment begins withinâŻ2â4âŻweeks of receipt and is completed over the ensuing 1â2âŻmonths, with the bulk of the shipment occurring in the same fiscal quarter. Consequently, market participants expect the ARES order to be filled by the end of the current quarter (Q3âŻ2025) â roughlyâŻ6â8âŻweeks from the AugâŻ11âŻ2025 announcement.
Revenue on a âorderâ basis is recognized under ASCâŻ606 when control of the product passes to the customer, i.e., at the point of shipment/delivery. Assuming TOMI follows its historical practice of recognizing revenue at the time of dispatch, the revenue from this order will be booked in the same quarter in which the shipment is completed â most likely the Q3âŻ2025 earnings release (late September/early October 2025). Any residual balanceâofâorder or postâshipment services would be recognized in subsequent periods, but the primary revenue impact should be reflected in the upcoming quarterâs results.
Trading implication: The market should priceâin the incremental revenue boost in the Q3âŻ2025 earnings. If the stock is already trading at a discount to peers on a forwardârevenue multiple, the order could act as a shortâterm catalyst, supporting a buyâonâdip or shortâterm upside ahead of the earnings call. Conversely, if the price has already bakedâin the order, the move may be muted. Keep an eye on the companyâs upcoming guidance and any updates on orderâfill progress in the next 4â6âŻweeks.