Hudson Technologies (HDSN) Q3 2026 earnings summary

Executive summary

• Q3 revenue and volume fell amid soft HFC pricing and ample channel inventory; prioritizing profitable sales and cost containment supported a 25% gross margin.

• 9M sales volume increased 9% while Q3 volume declined 9%; strategic priorities include higher-value refrigerants, separation technology, expanded capacity and broader services.

Financial highlights

• Q3 revenue was $59.4M vs. $74.0M, down 20%; sales volume fell 9% and average selling price fell 17%.

• Q3 net income was $2.0M, or $0.05 per diluted share, vs. $12.4M and $0.27 per diluted share in Q3 2025.

• Q3 operating income was $3.3M vs. $14.0M; gross profit was $14.8M vs. $23.7M.

• 9M revenue was $197.9M vs. $202.2M; net income was $7.3M vs. $25.3M, and diluted EPS was $0.17 vs. $0.56.

• Q3 SG&A rose $1.9M YoY to $10.8M, reflecting ERP costs, staffing, consultants and other investments; ERP expense was 50% below Q2.

Outlook and guidance

• Reaffirmed FY 2026 gross margin target in the low-to-mid-20% range; pricing stabilized in 2026, with 2027 pricing expected in line with 2026 levels.

• Priorities include refrigerant sales, recovery and reclamation, higher-value products, separation technology, facility efficiency, talent and market development.

• Management expects foreseeable working-capital needs to be met through anticipated operating cash flows and revolver availability.