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Hudson Technologies (HDSN) investor relations material
Hudson Technologies Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Third quarter revenue increased 20% year-over-year to $74.0 million, with gross margin improving to 32% and net income rising 59% to $12.4 million, driven by higher sales volume and pricing of refrigerants.
Ended the quarter with approximately $90 million in cash and no debt, reflecting a strong balance sheet.
Awarded a new $210 million, five-year contract with the U.S. Defense Logistics Agency, reinforcing a key government partnership.
Completed the acquisition of USA Refrigerants in June 2024 for $20.7 million, with a $1.6 million earn-out liability reversed in Q3 2025.
Leadership transition underway with the CEO stepping down; interim CFO/CEO in place and a new CEO appointment expected soon.
Financial highlights
Q3 2025 revenue: $74.0 million, up from $61.9 million in Q3 2024; gross profit at $23.7 million (32% margin), up from $15.9 million (26% margin) last year.
Q3 operating income doubled to $14.0 million; net income was $12.4 million ($0.27 per share), up from $7.8 million ($0.17 per share) in the prior year.
Nine-month 2025 revenue was $202.2 million, nearly flat year-over-year, with net income of $25.3 million, down from $27.0 million in the prior year.
SG&A expenses for Q3 2025 were $8.9 million, up $0.8 million year-over-year due to higher sales personnel costs.
Cash and cash equivalents at September 30, 2025 were $89.7 million, up $19.6 million from year-end 2024.
Outlook and guidance
Expectation of mid-twenty percent gross margin for the full year 2025, with Q4 anticipated to be seasonally slow.
HFC pricing for next year expected to be consistent with this year, though market volatility remains.
A2L refrigerants (R-32, R-454B) expected to become a growing part of the business in 2026 and beyond.
Management expects to satisfy working capital requirements from operating cash flow and available credit.
The company anticipates continued seasonality, with peak sales in the first nine months of the year.
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