Hudson Technologies (HDSN) Q4 2025 earnings summary

Executive summary

• Achieved 4% annual revenue growth to $246.6 million in 2025, with a 6% increase in sales volume year-over-year.

• Q4 2025 revenue rose 28% year-over-year to $44.4 million, driven by strong sales volume and strategic acquisitions.

• Focused on organic growth, strategic acquisitions, and diversification to reduce seasonality and reliance on dominant refrigerants.

• Expanded presence in the western U.S. through the acquisition of Refrigerants, Inc. in December 2025.

• Maintained a strong, unlevered balance sheet with $39.5 million in cash at year-end.

Financial highlights

• Q4 2025 revenue: $44.4 million, up 28% year-over-year.

• Q4 2025 gross profit: $3.5 million (down from $5.8 million in Q4 2024) due to $4.2 million in inventory-related costs.

• Q4 2025 net loss: $8.6 million ($0.20 per diluted share); non-GAAP adjusted net loss: $5.4 million ($0.13 per share).

• Full-year 2025 gross margin: 25.2% (down from 27.7% in 2024).

• Full-year 2025 net income: $16.7 million ($0.38 per diluted share); non-GAAP adjusted net income: $19.7 million ($0.44 per share).

Outlook and guidance

• Q1 2026 revenue expected to increase low to mid-single digits year-over-year, despite ERP startup inefficiencies.

• Gross margins for 2026 expected to be comparable to 2025 if pricing remains stable.

• Continued focus on inventory investment, automation, and ERP efficiencies to support growth and margin improvement.

• ERP implementation expected to impact Q1 2026 revenues but not persist into Q2.