HDSN · Hudson Technologies, Inc.

Hudson Technologies' Q1 2026 results showed revenue growth of 9% to $60.2 million, primarily driven by 20% higher sales volumes from unseasonably warm temperatures in the western U.S. and slightly elevated HFC pricing above $6 per pound. However, gross margins contracted to 20% from 22% in Q1 2025 due to a less favorable mix of refrigerants sold, with last year's period benefiting from higher-priced new HFO refrigerants used in topping off newly installed equipment. SG&A expenses rose to $9.5 million from $8.2 million, attributed to ERP system optimization launched February 1, 2026, and strategic initiatives, contributing to operating income declining to $1.5 million from $3.1 million. Net income fell sharply to $0.3 million or $0.01 per share from $2.8 million or $0.06 per share, impacted by higher income tax expense including non-recurring items and executive stock compensation. CEO Ken Gaglione highlighted operational progress, management team enhancements, a new licensing agreement with Solstice Advanced Materials for patented HFO reclamation targeting supermarket sector growth, and ERP implementation benefits emerging. Cash position stood at $19.4 million after $2.5 million in share repurchases, with Q2 revenue guidance of $73-76 million reflecting firming HFC prices into peak selling season. Balance sheet remains solid with total assets at $308.9 million and no debt noted, positioning the company to leverage refrigerant transition to lower GWP products.