- 28% growth in fourth quarter revenue to
$44.4 million - Annual refrigerant sales volume grew by 6%
- Annual refrigerant reclamation volume increased by 18% for second consecutive year
- Maintained strong, unlevered balance sheet
- Completed accretive acquisition of
Refrigerants Inc. - Board approved
$20 million share repurchase authorization for 2026
“We also achieved a second consecutive year of 18% growth in refrigerant reclamation volume, a key driver of our long-term business strategy, helping to provide our operations with lower cost refrigerant feedstock. Reclamation is an integral part of the refrigerant supply chain, especially with the continuing phase down of HFCs through the AIM Act. Our demonstrated growth in reclaim volume illustrates the success of our efforts to expand the Company’s market presence and promote the adoption of the practice of recovering refrigerants. We have strategically expanded our capabilities and geographic reach related to securing recovered refrigerants, strengthened by our acquisition of
“Our unlevered balance sheet remained strong with a cash position of
“During the fourth quarter we announced that our board of directors had approved an increase to the Company’s share repurchase authorization to up to
“We enter 2026 energized by the organic and strategic opportunities in front of us and look forward to expanding Hudson’s longstanding leadership role in lifecycle refrigerant management. The phase out of HFC refrigerants is well underway and we believe our reputation for service excellence, our customer base, proprietary reclamation technology and proven distribution network leave us well positioned to meet the evolving demands of the industry,”
Three Month Results
For the quarter ended
- Revenues increased 28% to
$44.4 million compared to revenues of$34.6 million in the comparable 2024 period. The increase was primarily related to stronger sales volume. - Gross margin of 8.0% compared to 16.7% in the fourth quarter of 2024. The 2025 gross margin included
$4.2 million of inventory related costs, including a lower of cost or market adjustment related to the fourth quarter inventory build. - Selling, general and administrative expenses of
$13.9 million compared to$8.0 million in the fourth quarter of 2024. SG&A in the fourth quarter of 2025 included$4.0 million of executive severance costs. Non-GAAP Adjusted SG&A was$9.9 million compared to$8.0 million in the fourth quarter of 2024 with the variance related to increased headcount. - Operating loss of
$11.2 million compared to an operating loss of$3.2 million in the prior year period. The 2025 operating loss includes the$8.2 million in inventory and severance costs noted above. Non-GAAP Adjusted operating loss, which excludes the$4.0 million severance cost was$7.2 million compared to$3.2 million in the 2024 quarter. - Net loss of
$8.6 million or a loss of$0.20 per basic and diluted share, which includes the after-tax impact of the$8.2 million of costs noted above, compares to a net loss of$2.6 million or$0.06 per basic and diluted share in the prior year period. Non-GAAP Adjusted net loss, which excludes the after-tax impact of the$4.0 million executive severance cost, was$5.4 million or$0.13 per diluted share compared to a non-GAAP Adjusted net loss of$2.6 million or$0.06 per diluted share in the prior year period.
(See tabular reconciliation of GAAP to non-GAAP adjusted financial measures in the back of this release)
Full Year 2025 Results
For the full year ended
- Revenues increased 4% to
$246.6 million compared to revenues of$237.1 million for 2024. The increase in revenues was related to a 6% growth in sales volume partially offset by a decrease in refrigerant pricing. - Gross margin of 25.2% compared to gross margin of 27.7% for full year 2024, which included the decrease in refrigerant pricing coupled with higher freight costs.
- Selling, general and administrative expenses were
$40.2 million compared to$33.0 million in 2024. Non-GAAP Adjusted SG&A was$36.2 million compared to$32.6 million , with the variance to 2024 primarily related to the mid-year 2024 increase to the sales staff. - Operating income was
$18.6 million compared to$29.3 million in 2024. Non-GAAP Adjusted operating income was$22.6 million compared to$29.7 million in 2024. - Net income of
$16.7 million or$0.38 per basic and$0.37 per diluted share compared to net income of$24.4 million or$0.54 per basic and$0.52 per diluted share. Non-GAAP Adjusted net income was$19.7 million or$0.44 per diluted share compared to$24.7 million or$0.52 per diluted share.
(See tabular reconciliation of GAAP to non-GAAP adjusted financial measures in the back of this release)
At
Subsequent to the end of the fourth quarter, on
Conference Call Information
Please visit this link at least 5 minutes prior to the scheduled start time in order to register and receive dial-in and webcast details.
A replay of the teleconference will be available until
About
About Non-GAAP Financial Measures
This release is intended to supplement, rather than to supersede, the Company's consolidated financial statements, which are prepared and presented in accordance with
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements contained herein which are not historical facts constitute forward-looking statements. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, changes in the laws and regulations affecting the industry, changes in the demand and price for refrigerants (including unfavorable market conditions adversely affecting the demand for, and the price of, refrigerants), the Company's ability to source refrigerants, regulatory and economic factors, seasonality, competition, litigation, the nature of supplier or customer arrangements that become available to the Company in the future, adverse weather conditions, possible technological obsolescence of existing products and services, possible reduction in the carrying value of long-lived assets, estimates of the useful life of its assets, potential environmental liability, customer concentration, the ability to obtain financing, the ability to meet financial covenants under its existing credit facility, any delays or interruptions in bringing products and services to market, the timely availability of any requisite permits and authorizations from governmental entities and third parties as well as factors relating to doing business outside
| Investor Relations Contact: IMS Investor Relations (203) 972-9200 hudson@imsinvestorrelations.com | Company Contact: (845) 735-6000 bbertaux@hudsontech.com |
Consolidated Balance Sheets (Amounts in thousands, except for share and par value amounts) | ||||||
| Unaudited 2025 | 2024 | |||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 39,456 | $ | 70,134 | ||
| Trade accounts receivable – net of allowance for credit losses of | 17,098 | 13,629 | ||||
| Inventories | 135,923 | 96,247 | ||||
| Income tax receivable | 5,916 | 6,284 | ||||
| Prepaid expenses and other current assets | 12,445 | 9,218 | ||||
| Total current assets | 210,838 | 195,512 | ||||
| Property, plant and equipment, less accumulated depreciation | 23,623 | 21,554 | ||||
| 65,282 | 62,280 | |||||
| Intangible assets, less accumulated amortization | 11,294 | 14,100 | ||||
| Right of use asset | 5,290 | 6,878 | ||||
| Other assets | 2,321 | 2,328 | ||||
| Total Assets | $ | 318,648 | $ | 302,652 | ||
| Liabilities and Stockholders’ Equity | ||||||
| Current liabilities: | ||||||
| Trade accounts payable | $ | 21,112 | $ | 8,692 | ||
| Accrued expenses and other current liabilities | 38,772 | 33,813 | ||||
| Accrued payroll | 4,712 | 3,704 | ||||
| Other short-term liabilities | — | 1,600 | ||||
| Total current liabilities | 64,596 | 47,809 | ||||
| Deferred tax liability | 4,034 | 4,076 | ||||
| Long-term lease liabilities | 3,233 | 4,917 | ||||
| Long-term severance payable | 1,595 | — | ||||
| Other long-term liabilities | 1,800 | — | ||||
| Total Liabilities | 75,258 | 56,802 | ||||
| Commitments and contingencies | ||||||
| Stockholders’ equity: | ||||||
| Preferred stock, shares authorized 5,000,000: Series A Convertible preferred stock, | — | — | ||||
| Common stock, | 416 | 443 | ||||
| Additional paid-in capital | 91,692 | 110,792 | ||||
| Retained earnings | 151,282 | 134,615 | ||||
| Total Stockholders’ Equity | 243,390 | 245,850 | ||||
| Total Liabilities and Stockholders’ Equity | $ | 318,648 | $ | 302,652 | ||
| Hudson Technologies, Inc. and Subsidiaries Consolidated Income Statements (unaudited) (Amounts in thousands, except for share and per share amounts) | |||||||||||||||||||||||||||
| Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||
| Revenues | $ | 44,410 | $ | 34,643 | $ | 246,614 | $ | 237,118 | |||||||||||||||||||
| Cost of sales | 40,866 | 28,869 | 184,517 | 171,410 | |||||||||||||||||||||||
| Gross profit | 3,544 | 5,774 | 62,097 | 65,708 | |||||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||
| Selling, general and administrative | 13,924 | 7,998 | 40,242 | 33,017 | |||||||||||||||||||||||
| Amortization | 828 | 1,022 | 3,296 | 3,390 | |||||||||||||||||||||||
| Total operating expenses | 14,752 | 9,020 | 43,538 | 36,407 | |||||||||||||||||||||||
| Operating (loss) income | (11,208 | ) | (3,246 | ) | 18,559 | 29,301 | |||||||||||||||||||||
| Other income | 513 | 527 | 4,132 | 2,726 | |||||||||||||||||||||||
| Income (loss) before income taxes | (10,965 | ) | (2,719 | ) | 22,691 | 32,027 | |||||||||||||||||||||
| Income tax (benefit) expense | (2,062 | ) | (154 | ) | 6,024 | 7,639 | |||||||||||||||||||||
| Net (loss) income | $ | (8,633 | ) | $ | (2,565 | ) | $ | 16,667 | $ | 24,388 | |||||||||||||||||
| Net (loss) income per common share – Basic | $ | (0.20 | ) | $ | (0.06 | ) | $ | 0.38 | $ | 0.54 | |||||||||||||||||
| Net (loss) income per common share – Diluted | $ | (0.20 | ) | $ | (0.06 | ) | $ | 0.37 | $ | 0.52 | |||||||||||||||||
| Weighted average number of shares outstanding – Basic | 43,011,314 | 44,863,767 | 43,585,401 | 45,329,789 | |||||||||||||||||||||||
| Weighted average number of shares outstanding – Diluted | 43,011,314 | 44,863,767 | 45,111,151 | 47,076,477 | |||||||||||||||||||||||
| Hudson Technologies, Inc. and Subsidiaries Consolidated Statements of Cash Flows (Amounts in thousands) | ||||||||
| For the years ended | ||||||||
| 2025 | 2024 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 16,667 | $ | 24,388 | ||||
| Adjustments to reconcile net income to cash (used in) provided by operating activities: | ||||||||
| Depreciation | 2,695 | 2,997 | ||||||
| Amortization of intangible assets | 3,296 | 3,390 | ||||||
| Gain on measurement of earn-out liability | (1,600 | ) | ||||||
| Impairment of long lived assets | — | 441 | ||||||
| Lower of cost or net realizable value inventory adjustment | 1,726 | 3,028 | ||||||
| Allowance for credit losses | 307 | (766 | ) | |||||
| Amortization of deferred finance cost | 228 | 228 | ||||||
| Share based compensation | 1,100 | 842 | ||||||
| Deferred tax expense | (42 | ) | (482 | ) | ||||
| Changes in assets and liabilities: | ||||||||
| Trade accounts receivable | (3,776 | ) | 12,306 | |||||
| Inventories | (40,913 | ) | 60,248 | |||||
| Prepaid and other assets | (3,448 | ) | (1,144 | ) | ||||
| Lease obligations | — | (92 | ) | |||||
| Income taxes receivable | 368 | (846 | ) | |||||
| Accounts payable and accrued expenses | 20,230 | (12,727 | ) | |||||
| Cash (used in) provided by operating activities | (3,162 | ) | 91,811 | |||||
| Cash flows from investing activities: | ||||||||
| Payments for acquisition | (2,237 | ) | (20,670 | ) | ||||
| Additions to property, plant, and equipment | (5,052 | ) | (5,300 | ) | ||||
| Cash used in investing activities | (7,289 | ) | (25,970 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Net proceeds from issuances of common stock and exercises of stock options | 46 | — | ||||||
| Repurchase of common shares | (20,014 | ) | (8,146 | ) | ||||
| Excess tax benefits from exercise of stock options | — | (7 | ) | |||||
| Excise tax on repurchase of common shares | (259 | ) | — | |||||
| Cash used in financing activities | (20,227 | ) | (8,153 | ) | ||||
| Increase in cash and cash equivalents | (30,678 | ) | 57,688 | |||||
| Cash and cash equivalents at beginning of period | 70,134 | 12,446 | ||||||
| Cash and cash equivalents at end of period | $ | 39,456 | $ | 70,134 | ||||
| Supplemental disclosure of cash flow information: | ||||||||
| Cash paid during period for interest | $ | 520 | $ | 690 | ||||
| Cash paid for income taxes | $ | 5,748 | $ | 8,990 | ||||
| Property and equipment included in accrued expenses and other current liabilities | $ | 268 | 655 | |||||
Reconciliation of Non-GAAP Financial Measures
To supplement the financial measures prepared in accordance with GAAP, the Company uses non-GAAP financial measures, including adjusted selling, general and administrative expenses, adjusted operating income (loss) and margin, adjusted net income (loss) and adjusted diluted earnings (loss) per share. The reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are shown in tables below. These non-GAAP measures are derived from the consolidated financial statements but are not presented in accordance with GAAP. The Company believes these non-GAAP measures provide a meaningful comparison of its results to others in its industry and prior year results. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, its financial performance measures prepared in accordance with GAAP. Moreover, these non-GAAP financial measures have limitations in that they do not reflect all the items associated with the operations of the business as determined in accordance with GAAP. Other companies may calculate similarly titled non-GAAP financial measures differently than the Company does, limiting the usefulness of those measures for comparative purposes. Despite the limitations of these non-GAAP financial measures, the Company believes these adjusted financial measures and the information they provide are useful in viewing its performance using the same tools that management uses to assess progress in achieving its goals. Adjusted measures may also facilitate comparisons to historical performance. The following tables provide a reconciliation of non-GAAP financial measures used in this release to the most directly comparable GAAP financial measures:
| Hudson Technologies, Inc. and Subsidiaries Reconciliation of GAAP Selling, General and Administrative Costs to Adjusted Net (Loss) Income/Adjusted Diluted EPS (Amounts in thousands) (Amounts in thousands, except for share and per share amounts) | ||||||||||||||
| Three months | Twelve months | |||||||||||||
| ended December 31, | ended December 31, | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||
| GAAP Selling, general and administrative | ||||||||||||||
| Adjustments (pre-tax)* | - | |||||||||||||
| Adjusted Selling, general and administrative* | ||||||||||||||
| Adjusted Operating Income | ||||||||||||||
| GAAP Operating (loss) income | ( | ) | ( | ) | ||||||||||
| Adjustments (pre-tax)* | - | |||||||||||||
| Adjusted operating (loss) income* | ( | ) | ( | ) | ||||||||||
| Revenues | ||||||||||||||
| Adjusted Net (loss) Income/Adjusted Diluted EPS | ||||||||||||||
| GAAP Net (loss) income | ( | ) | ( | ) | ||||||||||
| Adjustments, net of tax* | - | |||||||||||||
| Adjusted Income (loss)* | ( | ) | ( | ) | ||||||||||
| Diluted weighted average common shares | ||||||||||||||
| GAAP Diluted EPS | ( | ) | ( | ) | ||||||||||
| Adjusted diluted EPS* | ( | ) | ( | ) | ||||||||||
| Hudson Technologies, Inc. and Subsidiaries Reconciliation of Severance Costs to Adjustments to Net Income (Amounts in thousands) (unaudited) | ||||||||||||||
| * Adjustments to reported GAAP financial measures including selling, general and administrative expenses, operating income and margin, net income and diluted EPS have been adjusted by the following: | ||||||||||||||
| Three months | Twelve months | |||||||||||||
| ended December 31, | ended December 31, | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||
| Severance costs | - | |||||||||||||
| Adjustments to selling, general and administrative | - | |||||||||||||
| Adjustments to operating income | - | |||||||||||||
| Related income tax effects on non-recurring items(1) | ( | ) | - | ( | ) | ( | ) | |||||||
| Adjustments to Net Income | - | |||||||||||||
(1) Calculated using the marginal tax rate for each period presented
| Hudson Technologies, Inc. and Subsidiaries Reconciliation of Revenues to Adjusted Net (Loss) Income and Adjusted Diluted EPS (Amounts in thousands, except for share and per share amounts) (unaudited) | ||||||||||||||
| Three months | Twelve months | |||||||||||||
| ended December 31, | ended December 31, | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||
| Revenues | ||||||||||||||
| Gross profit | ||||||||||||||
| Selling, general and administrative | ||||||||||||||
| Adjusted selling, general and administrative* | ||||||||||||||
| GAAP operating (loss) income | ( | ) | ( | ) | ||||||||||
| Adjusted operating (loss) income* | ( | ) | ( | ) | ||||||||||
| GAAP net (loss) income | ( | ) | ( | ) | ||||||||||
| Adjusted net (loss) income* | ( | ) | ( | ) | ||||||||||
| GAAP diluted EPS | ( | ) | ( | ) | ||||||||||
| Adjusted diluted EPS | ( | ) | ( | ) | ||||||||||
