Hudson Technologies Reports Second Quarter 2026 Results
Rhea-AI Summary
Hudson Technologies (NASDAQ:HDSN) reported second quarter 2026 revenue of $78.3 million, up 8% year over year, driven by a 12% increase in sales volume that offset 6% lower pricing. Gross margin was 26% versus 31% a year ago, and net income declined to $4.9 million with diluted EPS of $0.12 compared with $0.23 in 2025.
For the first six months of 2026, revenue rose 8% to $138.5 million, while gross margin fell to 23% from 27% and net income decreased to $5.3 million. The company ended June 30, 2026 with $25.6 million in cash and an unlevered balance sheet, and revised full‑year 2026 gross margin guidance from mid‑20% to low‑to‑mid‑20%. Hudson also reported full restoration of operations at a tornado‑impacted Illinois facility and announced a preliminary agreement and intent to partner with Icorium to commercialize advanced extractive distillation technology.
Positive
- Q2 2026 revenue $78.3M, up 8% year over year
- Sales volume +12% in Q2 and +17% for first half 2026
- Unlevered balance sheet with $25.6M in cash at June 30, 2026
- Inventories reduced to $128.1M from $135.9M at December 31, 2025
- Facility operations restored after Illinois tornado with costs expected covered by insurance
- Preliminary Icorium partnership to commercialize advanced extractive distillation technology
Negative
- Q2 gross margin down to 26% from 31% in 2025
- Q2 net income fell to $4.9M from $10.2M year over year
- First half 2026 net income declined to $5.3M from $12.9M
- SG&A expenses up to $12.4M in Q2 from $9.3M in 2025
- Operating cash flow used $6.0M in first half 2026 versus $20.6M provided in 2025
- 2026 gross margin guidance reduced from mid‑20% to low‑to‑mid‑20%
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 06 | Q1 earnings report | Negative | -19.0% | Lower earnings and margin pressure accompanied ERP transition inefficiencies. |
| Nov 05 | Q3 earnings report | Positive | -22.4% | Revenue, earnings, cash, and a major DLA contract showed operational strength. |
| Jul 30 | Q2 earnings report | Positive | +12.9% | Profitability and cash remained strong despite revenue declining year over year. |
| May 07 | Q1 earnings report | Negative | +16.2% | Revenue, earnings, and gross margin declined amid lower refrigerant pricing. |
| Nov 04 | Q3 earnings report | Negative | -22.0% | Revenue and gross margin declined, while full-year guidance moved lower. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings-tagged events averaged -6.84%, with three of five supplied earnings reactions aligned with the reported event sentiment.
Key Terms
erp technical
extractive distillation technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Second quarter revenue grew
Posts trailing twelve month double-digit volume growth
Operations fully restored at tornado impacted facility
Announces Icorium partnership
Maintains unlevered balance sheet with
WOODCLIFF LAKE, N.J., Aug. 05, 2026 (GLOBE NEWSWIRE) -- Hudson Technologies, Inc. (NASDAQ: HDSN) announced results for the second quarter and six months ended June 30, 2026.
SECOND QUARTER 2026 FINANCIAL HIGHLIGHTS:
- Revenues of
$78.3 million
Sales Volume +
Pricing -
- Gross Margin of
26% - Net income of
$4.9 million - Diluted EPS of
$0.12
Ken Gaglione, President and Chief Executive Officer of Hudson Technologies, commented, “Our selling season is underway and second quarter sales revenue and volume growth exceeded expectations despite significant headwinds in the quarter, including a continued trough in HFC market prices and inflationary pressures. We continued to deliver for our customers driving our second 2026 sequential quarter of double-digit volume growth. In fact, our trailing twelve months volume is up double-digits. We also continued our efforts towards reinvigorating our focus on long-term shareholder value creation, announcing a preliminary agreement for a major partnership for advanced separation technology and making investments in our plants that will expand capacity and capability.
“As disclosed previously, one of our Illinois facilities experienced an operational disruption in mid-June due to tornado damage. We are happy to report there were no injuries to our people, and the facility was quickly restored to pre-storm output with only minimal interruption to our customers. We are very grateful to our team for restoring operations and their determination to service our customers despite production disruptions. All costs to restore the facility and related business interruption are expected to be covered through insurance.
“Following the close of the quarter, we announced our intention to partner with Icorium, an advanced separation technology company based in Kansas, to commercialize and scale their patented extractive distillation technology as an important component of Hudson’s operational excellence strategy. This exciting technology complements and advances conventional fractional distillation by increasing the ability to purify more complicated refrigerant mixtures with greater productivity and efficiency. Converting more recovered refrigerant into saleable product unlocks working capital and creates a new competitive edge as the industry phases out conventional refrigerants.
“We are encouraged by our progress in the areas we can control, including driving trailing-twelve-month double digit sales volume growth, generating cash, and executing our long-term growth and diversification strategy. As we move through the second half of the year, we continue to focus on revenue growth and improving quarterly operating margins. At the same time, we remain committed to making strategic investments to further our reinvigorated focus on longer-term initiatives to increase shareholder value through operational excellence, ensuring we have the right team in place, and evaluating and acting on strategic diversification opportunities that strengthen our competitive advantage today and reduce our exposure to seasonality in the future,” Mr. Gaglione concluded.
Three Months Results
For the quarter ended June 30, 2026, Hudson reported:
- Revenue was
$78.3 million , up8% from$72.8 million in the comparable 2025 period reflecting a12% increase in sales volume, partially offset by6% lower selling prices compared with the prior-year period where all refrigerant market prices rose as a result of supply chain constraints related to the EPA mandated transition to HFO refrigerants. - Gross margin was
26% , compared with31% in the second quarter of 2025. The decline in gross margin was two-fold, reflecting6% lower refrigerant market pricing related to the previously noted increase in refrigerant prices in the 2025 quarter and increased operating costs primarily in fuel from geopolitically driven inflationary pressure. - Selling, general and administrative expenses increased to
$12.4 million from$9.3 million in the second quarter of 2025. The increase in SG&A expenses was two-fold, reflecting costs related to the optimization of the recently launched ERP system as well as legal expenses incurred related to the Company’s DLA contract. Second, the Company increased staffing and consulting resources that reflect the Company’s newly reinvigorated focus on longer-term initiatives to increase shareholder value. - Net income was
$4.9 million , or$0.12 per basic and diluted share, compared with$10.2 million , or$0.23 per basic and diluted share, in the second quarter of 2025.
Six Months Results
For the six months ended June 30, 2026, Hudson reported:
- Revenue was
$138.5 million , up8% from$128.2 million in the first six months of 2025 reflecting a17% increase in sales volume, partially offset by a7% decline in selling prices compared with the prior-year period where all refrigerant market prices rose as a result of supply chain constraints as described above. - Gross margin was
23% , compared to27% in the first six months of 2025. The decline in gross margin was two-fold, reflecting lower refrigerant market pricing related to the previously noted increase in refrigerant prices in the 2025 period and increased operating costs primarily in fuel costs as described above. - Selling, general and administrative expenses increased to
$22.0 million from$17.4 million in the first six months of 2025. The increase in SG&A expenses was related to the increased operational, legal and staffing and consulting costs that impacted the second quarter. - Net income was
$5.3 million , or$0.13 per basic and$0.12 per diluted share, compared with$12.9 million , or$0.29 per basic and$0.28 per diluted share, in the first six months of 2025.
At June 30, 2026 the Company reported
Full Year Gross Margin Guidance
With its visibility today, and the expectation of continued subdued refrigerant market pricing and inflationary pressures through the close of 2026, the Company is revising its previously announced full year 2026 gross margin target from mid-twenty percent to low-to-mid-twenty percent.
Conference Call Information
Hudson Technologies will host a conference call and webcast today, Wednesday, August 5, 2026 at 5:00 p.m. Eastern Time to discuss the Company’s second quarter 2026 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 September 2, 2026, and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 54215.
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 aftermarket service of commercial air conditioning, industrial processing and refrigeration systems. These include refrigerant and industrial gas sales, refrigerant management services consisting primarily of recovery and 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 Chiller Chemistry® and Chill Smart® services are 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, 2025 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 jnesbett@imsinvestorrelations.com | Company Contact: Brian J. Bertaux, CFO and Secretary Hudson Technologies, Inc. (845) 735-6000 bbertaux@hudsontech.com |
Hudson Technologies, Inc. and Subsidiaries
Consolidated Balance Sheets
(Amounts in thousands, except for share and par value amounts)
| June 30, | December 31, | |||||
| 2026 | 2025 | |||||
| (unaudited) | ||||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 25,600 | $ | 39,456 | ||
| Trade accounts receivable – net of allowance for credit losses of | 43,253 | 17,098 | ||||
| Inventories | 128,112 | 135,923 | ||||
| Income tax receivable | 6,974 | 5,916 | ||||
| Prepaid expenses and other current assets | 14,214 | 12,445 | ||||
| Total current assets | 218,153 | 210,838 | ||||
| Property, plant and equipment, less accumulated depreciation | 22,159 | 23,623 | ||||
| Goodwill | 65,282 | 65,282 | ||||
| Intangible assets, less accumulated amortization | 9,584 | 11,294 | ||||
| Right of use assets | 4,760 | 5,290 | ||||
| Other assets | 2,125 | 2,321 | ||||
| Total Assets | $ | 322,063 | $ | 318,648 | ||
| Liabilities and Stockholders’ Equity | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 22,403 | $ | 21,112 | ||
| Accrued expenses and other current liabilities | 41,143 | 38,772 | ||||
| Accrued payroll | 2,962 | 4,712 | ||||
| Other short-term liabilities | 1,000 | — | ||||
| Total current liabilities | 67,508 | 64,596 | ||||
| Deferred tax liability | 7,018 | 4,034 | ||||
| Long-term lease liabilities | 2,707 | 3,233 | ||||
| Long-term severance payable | 766 | 1,595 | ||||
| Other long-term liabilities | 800 | 1,800 | ||||
| Total Liabilities | 78,799 | 75,258 | ||||
| Commitments and contingencies | ||||||
| Stockholders’ equity: | ||||||
| Preferred stock, shares authorized 5,000,000: Series A Convertible preferred stock, | — | — | ||||
| Common stock, | 421 | 416 | ||||
| Additional paid-in capital | 86,284 | 91,692 | ||||
| Retained earnings | 156,559 | 151,282 | ||||
| Total Stockholders’ Equity | 243,264 | 243,390 | ||||
| Total Liabilities and Stockholders’ Equity | $ | 322,063 | $ | 318,648 | ||
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, | |||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Revenues | $ | 78,345 | $ | 72,849 | $ | 138,496 | $ | 128,192 | ||||||||||||||
| Cost of sales | 57,655 | 50,038 | 105,958 | 93,313 | ||||||||||||||||||
| Gross profit | 20,690 | 22,811 | 32,538 | 34,879 | ||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||
| Selling, general and administrative | 12,436 | 9,265 | 21,965 | 17,435 | ||||||||||||||||||
| Amortization | 856 | 822 | 1,711 | 1,645 | ||||||||||||||||||
| Total operating expenses | 13,292 | 10,087 | 23,676 | 19,080 | ||||||||||||||||||
| Operating income | 7,398 | 12,724 | 8,862 | 15,799 | ||||||||||||||||||
| Interest income | (47) | (651) | (180) | (1,227) | ||||||||||||||||||
| Income before income taxes | 7,445 | 13,375 | 9,042 | 17,026 | ||||||||||||||||||
| Income tax expense | 2,498 | 3,207 | 3,765 | 4,100 | ||||||||||||||||||
| Net income | $ | 4,947 | $ | 10,168 | $ | 5,277 | $ | 12,926 | ||||||||||||||
| Net income per common share – Basic | $ | 0.12 | $ | 0.23 | $ | 0.13 | $ | 0.29 | ||||||||||||||
| Net income per common share – Diluted | $ | 0.12 | $ | 0.23 | $ | 0.12 | $ | 0.28 | ||||||||||||||
| Weighted average number of shares outstanding – Basic | 42,070,723 | 43,631,187 | 42,195,502 | 43,843,302 | ||||||||||||||||||
| Weighted average number of shares outstanding – Diluted | 42,175,117 | 45,157,911 | 42,371,567 | 45,390,662 | ||||||||||||||||||
Hudson Technologies, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(unaudited)
(Amounts in thousands)
| Six months | ||||||||
| ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 5,277 | $ | 12,926 | ||||
| Adjustments to reconcile net income to cash provided by (used in) operating activities: | ||||||||
| Depreciation | 1,766 | 1,502 | ||||||
| Amortization of intangible assets | 1,711 | 1,645 | ||||||
| Lower of cost or net realizable value inventory adjustment | (5,003) | 512 | ||||||
| Allowance for credit losses | 437 | (120) | ||||||
| Share based compensation | 847 | 538 | ||||||
| Amortization of deferred finance costs | 113 | 113 | ||||||
| Deferred tax expense | 2,984 | 255 | ||||||
| Changes in assets and liabilities: | ||||||||
| Trade accounts receivable | (26,591) | (22,134) | ||||||
| Inventories | 13,939 | 18,052 | ||||||
| Prepaid and other assets | (1,686) | (2,553) | ||||||
| Lease obligations | — | (1) | ||||||
| Income taxes receivable | (1,058) | 3,190 | ||||||
| Accounts payable and accrued expenses | 1,308 | 6,644 | ||||||
| Cash provided by (used in) operating activities | (5,956) | 20,569 | ||||||
| Cash flows from investing activities: | ||||||||
| Additions to property, plant, and equipment | (1,650) | (1,875) | ||||||
| Cash used in investing activities | (1,650) | (1,875) | ||||||
| Cash flows from financing activities: | ||||||||
| Excess tax benefits from exercise of stock options | (3,759) | — | ||||||
| Repurchase of common shares | (2,491) | (4,535) | ||||||
| Cash used in financing activities | (6,250) | (4,535) | ||||||
| Increase (decrease) in cash and cash equivalents | (13,856) | 14,159 | ||||||
| Cash and cash equivalents at beginning of period | 39,456 | 70,134 | ||||||
| Cash and cash equivalents at end of period | $ | 25,600 | $ | 84,293 | ||||
| Supplemental disclosure of cash flow information: | ||||||||
| Cash paid for interest | $ | 162 | $ | 256 | ||||
| Cash paid for income taxes – net | $ | 2,189 | $ | 655 | ||||
| Property and equipment included in accrued expenses and other current liabilities | $ | 44 | $ | 905 | ||||
