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.

• Completed the accretive acquisition of Refrigerants, Inc., expanding western U.S. presence and recovery capabilities.

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

• Continued commitment to sustainability and refrigerant lifecycle management, with a second consecutive year of 18% reclamation volume growth.

Financial highlights

• Q4 2025 revenue: $44.4 million, up 28% year-over-year; gross profit: $3.5 million (down from $5.8 million in Q4 2024).

• Q4 2025 net loss: $8.6 million ($0.20/share), including $8.2 million in inventory and $4 million in severance costs; adjusted net loss: $5.4 million ($0.13/share).

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

• Gross margin for 2025 was 25.2%, down from 27.7% in 2024, reflecting lower prices and higher freight costs.

• Inventory at year-end: $135.9 million (up from $96.2 million in 2024).

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 to meet 2026 demand.

• DLA contract revenue projected to remain at a similar $38 million run rate for 2026.