Hudson Technologies Reports Second Quarter 2025 Results

Second quarter revenue of $72.8 million; Gross margin of 31%
Net income of $10.2 million or $0.23 per diluted share
Reports $84.3 million in cash and no debt at June 30, 2025

WOODCLIFF LAKE, N.J., July 30, 2025 (GLOBE NEWSWIRE) -- Hudson Technologies, Inc. (NASDAQ: HDSN) announced results for the second quarter and six months ended June 30, 2025.

Brian F. Coleman, President and Chief Executive Officer of Hudson Technologies commented,
“We delivered a solid second quarter despite a slow start to our core selling season as temperatures in the Northeast and Midwest remained relatively mild through early June. As a result, we recorded a slight decrease in revenues compared to the second quarter of 2024. During the quarter, we posted gross margin of 31%, primarily related to increased pricing of certain refrigerants. We also saw continued improvement in our ability to source recovered refrigerants. We’re pleased by the growth we’re seeing in our national reclamation business, which can be attributed to Hudson’s bolstered presence in the marketplace, reflecting our fundamental operating efforts complemented by last year’s strategic acquisition of USA Refrigerants.

“As we move through the balance of the cooling season, we remain focused on meeting the refrigerant and reclamation needs of our customer base. Our long-standing relationships have thrived based upon our ability to reliably provide our customers with the full range of the refrigerants they need, combined with their reciprocity in returning to us the recovered refrigerants that are integral to our supply chain.

“Hudson Technologies has consistently demonstrated the value of our capabilities and industry leadership during previously mandated industry wide transitions. With our national footprint and robust customer network and our commitment to support the transition to lower GWP technologies, we are positioned well as we progress through this third industry-wide phase-down. The current phase-down of HFCs represents a significant long-term growth opportunity for reclaimed HFCs, which will be increasingly necessary to meet demand throughout the useful lives of the existing installed base of HFC units as the supply of newly manufactured HFCs becomes increasingly limited.

“Finally, we further strengthened our unlevered balance sheet, ending the quarter with $84.3 million in cash. Our capital allocation strategy remains committed to three pillars: investing in organic growth, pursuing acquisition opportunities that are additive to our capabilities, and the opportunistic repurchase of our stock. As always, we are focused on ensuring we are meeting customer demand, promoting the practices of recovery and reclamation, and maintaining disciplined capital deployment as we pursue profitable growth to enhance shareholder value,” Mr. Coleman concluded.

Three Months Results

For the quarter ended June 30, 2025, Hudson reported:

Revenues of $72.8 million, a decrease of 3% compared to revenues of $75.3 million in the comparable 2024 period. The revenue decline is related to decreased sales volume, offset by slightly increased pricing for certain refrigerants as compared to the second quarter of 2024.
Gross margin of 31%, compared to 30% in the second quarter of 2024, primarily driven by slightly increased pricing as compared to the second quarter of 2024.
Selling, general and administrative expenses increased slightly to $9.3 million compared to $9.0 million in the second quarter of 2024.
Operating income of $12.7 million, compared to operating income of $12.8 million in the prior year period.
Net income of $10.2 million or $0.23 per basic and diluted share in the second quarter of 2025, compared to net income of $9.6 million or $0.21 per basic and $0.20 per diluted share in the same period of 2024.

Six Month Results

For the six months ended June 30, 2025, Hudson reported:

Revenues of $128.2 million, a decrease of 9% compared to revenues of $140.5 million for the first six months of 2024. Revenues declined primarily related to a slight decrease in sales volume during the first six months of 2025 as well as decreased selling prices for certain refrigerants as compared to the first six months of 2024.
Gross margin of 27%, compared to gross margin of 31% in the first six months of 2024.
Selling, general and administrative expenses increased slightly to $17.4 million compared to $17.0 million in the first six months of 2024.
Operating income of $15.8 million compared to operating income of $25.6 million in the first half of 2024.
Net income of $12.9 million or $0.29 per basic and $0.28 per diluted share, compared to net income of $19.1 million or $0.42 per basic and $0.40 per diluted share in the first six months of 2024.

At June 30, 2025 the Company reported $84.3 million in cash and cash equivalents.

Conference Call Information

Hudson Technologies will host a conference call and webcast today, Wednesday, July 30, 2025 at 5:00 p.m. Eastern Time to discuss the Company’s second quarter 2025 results.

Please visit this link at least 5 minutes prior to the scheduled start time in order to register and receive dial-in and webcast details.

A replay of the teleconference will be available until August 29, 2025, and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 52624.

About Hudson Technologies

Hudson Technologies, Inc. is a leading provider of innovative and sustainable refrigerant products and services to the Heating Ventilation Air Conditioning and Refrigeration industry. For nearly three decades, we have demonstrated our commitment to our customers and the environment by becoming one of the first in the United States and largest refrigerant reclaimers through multimillion dollar investments in the plants and advanced separation technology required to recover a wide variety of refrigerants and restoring them to Air-Conditioning, Heating, and Refrigeration Institute standard for reuse as certified EMERALD Refrigerants™. The Company's products and services are primarily used in commercial air conditioning, industrial processing and refrigeration systems, and include refrigerant and industrial gas sales, refrigerant management services consisting primarily of reclamation of refrigerants and RefrigerantSide® Services performed at a customer's site, consisting of system decontamination to remove moisture, oils and other contaminants. The Company’s SmartEnergy OPS® service is a web-based real time continuous monitoring service applicable to a facility’s refrigeration systems and other energy systems. The Company’s Chiller Chemistry® and Chill Smart® services are also predictive and diagnostic service offerings. As a component of the Company’s products and services, the Company also generates carbon offset projects.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Statements contained herein which are not historical facts constitute forward-looking statements. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, changes in the laws and regulations affecting the industry, changes in the demand and price for refrigerants (including unfavorable market conditions adversely affecting the demand for, and the price of, refrigerants), the Company's ability to source refrigerants, regulatory and economic factors, seasonality, competition, litigation, the nature of supplier or customer arrangements that become available to the Company in the future, adverse weather conditions, possible technological obsolescence of existing products and services, possible reduction in the carrying value of long-lived assets, estimates of the useful life of its assets, potential environmental liability, customer concentration, the ability to obtain financing, the ability to meet financial covenants under its existing credit facility, any delays or interruptions in bringing products and services to market, the timely availability of any requisite permits and authorizations from governmental entities and third parties as well as factors relating to doing business outside the United States, including changes in the laws, regulations, policies, and political, financial and economic conditions, including inflation, interest and currency exchange rates, of countries in which the Company may seek to conduct business, the Company’s ability to successfully integrate any assets it acquires from third parties into its operations, and other risks detailed in the Company's 10-K for the year ended December 31, 2024 and other subsequent filings with the Securities and Exchange Commission. The words "believe", "expect", "anticipate", "may", "plan", "should" and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made.

Investor Relations Contact: John Nesbett/Jennifer Belodeau IMS Investor Relations (203) 972-9200 hudson@imsinvestorrelations.com	Company Contact: Brian F. Coleman, President & CEO Hudson Technologies, Inc. (845) 735-6000 bcoleman@hudsontech.com


Hudson Technologies, Inc. and Subsidiaries Consolidated Balance Sheets (Amounts in thousands, except for share and par value amounts)

	June 30,		December 31,
	2025		2024
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	84,293	$	70,134
Trade accounts receivable – net		35,883		13,629
Inventories		77,683		96,247
Income tax receivable		3,094		6,284
Prepaid expenses and other current assets		11,634		9,218
Total current assets		212,587		195,512

Property, plant and equipment, less accumulated depreciation		22,219		21,554
Goodwill		62,280		62,280
Intangible assets, less accumulated amortization		12,455		14,100
Right of use asset		5,960		6,878
Other assets		2,352		2,328
Total Assets	$	317,853	$	302,652

Liabilities and Stockholders’ Equity
Current liabilities:
Trade accounts payable	$	13,181	$	8,692
Accrued expenses and other current liabilities		37,940		33,813
Accrued payroll		2,083		3,704
Other short-term liabilities		1,600		1,600
Total current liabilities		54,804		47,809
Deferred tax liability		4,331		4,076
Long-term lease liabilities		3,939		4,917
Total Liabilities		63,074		56,802

Commitments and contingencies

Stockholders’ equity:
Preferred stock, shares authorized 5,000,000: Series A Convertible preferred stock, $0.01 par value ($100 liquidation preference value); shares authorized 150,000; none issued or outstanding		—		—
Common stock, $0.01 par value; shares authorized 100,000,000; issued and outstanding: 43,652,459 and 44,284,374, respectively		437		443
Additional paid-in capital		106,801		110,792
Retained earnings		147,541		134,615
Total Stockholders’ Equity		254,779		245,850

Total Liabilities and Stockholders’ Equity	$	317,853	$	302,652

Hudson Technologies, Inc. and Subsidiaries Consolidated Statements of Income (unaudited) (Amounts in thousands, except for share and per share amounts)

	Three months					Six months
	ended June 30,					ended June 30,
	2025			2024		2025			2024
Revenues	$	72,849		$	75,282	$	128,192		$	140,532
Cost of sales		50,038			52,711		93,313			96,540
Gross profit		22,811			22,571		34,879			43,992

Operating expenses:
Selling, general and administrative		9,265			9,013		17,435			16,960
Amortization		822			760		1,645			1,458
Total operating expenses		10,087			9,773		19,080			18,418

Operating income		12,724			12,798		15,799			25,574

Interest (income) expense		(651	)		152		(1,227	)		366

Income before income taxes		13,375			12,646		17,026			25,208

Income tax expense		3,207			3,061		4,100			6,061

Net income	$	10,168		$	9,585	$	12,926		$	19,147

Net income per common share – Basic	$	0.23		$	0.21	$	0.29		$	0.42
Net income per common share – Diluted	$	0.23		$	0.20	$	0.28		$	0.40
Weighted average number of shares outstanding – Basic		43,631,187			45,513,445		43,843,302			45,511,434
Weighted average number of shares outstanding – Diluted		45,157,911			47,275,901		45,390,662			47,377,534

Hudson Technologies, Inc. and Subsidiaries Consolidated Statements of Cash Flows (unaudited) (Amounts in thousands)

	Six months
	ended June 30,
	2025			2024
Cash flows from operating activities:
Net income	$	12,926		$	19,147
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation		1,502			1,564
Amortization of intangible assets		1,645			1,458
Impairment of long lived assets		—			441
Lower of cost or net realizable value inventory adjustment		512			1,983
Allowance for credit losses		(120	)		44
Share based compensation		538			751
Amortization of deferred finance costs		113			114
Deferred tax expense (benefit)		255			(380	)
Changes in assets and liabilities:
Trade accounts receivable		(22,134	)		(2,565	)
Inventories		18,052			33,811
Prepaid and other assets		(2,553	)		(2,776	)
Lease obligations		(1	)		(2	)
Income taxes receivable		3,190			2,887
Accounts payable and accrued expenses		6,644			(15,642	)
Cash provided by operating activities		20,569			40,835

Cash flows from investing activities:
Payments for acquisition		—			(20,670	)
Additions to property, plant, and equipment		(1,875	)		(2,085	)
Cash used in investing activities		(1,875	)		(22,755	)

Cash flows from financing activities:
Proceeds from issuance of common stock		—			1
Excess tax benefits from exercise of stock options		—			(3	)
Repurchase of common shares		(4,535	)		—
Cash used in financing activities		(4,535	)		(2	)

Increase in cash and cash equivalents		14,159			18,078
Cash and cash equivalents at beginning of period		70,134			12,446
Cash and cash equivalents at end of period	$	84,293		$	30,524

Supplemental disclosure of cash flow information:
Cash paid for interest	$	256		$	311
Cash paid for income taxes – net	$	655		$	3,554

Property and equipment included in accrued expenses and other current liabilities	$	905		$	—

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