Hudson Technologies (HDSN) Q2 2025 earnings summary

Executive summary

• Second quarter revenue reached $72.8 million, down 3% year-over-year due to lower sales volume and a slow start to the cooling season, partially offset by higher refrigerant prices.

• Gross margin improved to 31% from 30% last year, driven by higher refrigerant prices.

• Net income for Q2 2025 was $10.2 million ($0.23 per diluted share), up from $9.6 million ($0.20 per share) in Q2 2024, driven by increased average selling prices.

• Six-month revenue totaled $128.2 million, a 9% decrease year-over-year, with net income of $12.9 million, down from $19.1 million in 2024.

• The company completed the $20.7 million acquisition of USA Refrigerants in June 2024, expanding its customer network and access to reclaimed refrigerants.

Financial highlights

• Q2 2025 gross profit was $22.8 million (31% margin), up from $22.6 million (30%) in Q2 2024; six-month gross profit was $34.9 million (27% margin), down from $44.0 million (31%).

• Operating income for Q2 2025 was $12.7 million, nearly flat year-over-year; six-month operating income was $15.8 million, down from $25.6 million.

• Net interest income for Q2 2025 was $0.7 million, compared to net interest expense of $0.2 million in Q2 2024.

• Cash and cash equivalents at June 30, 2025 were $84.3 million, up $14.2 million from year-end 2024, with no debt.

• Working capital increased to $157.8 million at June 30, 2025, from $147.7 million at December 31, 2024.

Outlook and guidance

• Full-year 2025 gross margin target remains mid-20%, with potential upside depending on Q3 performance.

• Q3 is expected to be strong due to continued high demand and pricing, while Q4 is anticipated to be seasonally soft.

• Management expects to satisfy working capital needs from operating cash flows and available credit, but notes that unanticipated expenses or lower-than-expected revenues could require additional capital.

• The ongoing HFC phase-down is seen as a significant long-term growth opportunity for reclaimed refrigerants.

• Capital allocation priorities include organic growth, strategic acquisitions, and opportunistic share repurchases.