(MENAFN- GlobeNewsWire - Nasdaq) Third quarter revenue grew 20% to $74.0 million; Gross margin improved to 32.0% Net income grew 59% to $12.4 million or $0.27 per diluted share Substantial cash position and no debt at September 30, 2025
WOODCLIFF LAKE, N.J., Nov. 05, 2025 (GLOBE NEWSWIRE) -- Hudson Technologies, Inc. (NASDAQ: HDSN) announced results for the third quarter and nine months ended September 30, 2025.
Brian Bertaux, Chief Financial Officer of Hudson Technologies commented,“Hudson achieved strong third quarter results to close out the 2025 nine-month selling season, highlighted by revenue growth of 20%, improved gross margin of 32%, and a 59% increase in net income to $12.4 million or $0.27 per diluted share. Additionally, we continue to expand our strategic supply chain of after-market refrigerants through outreach and awareness campaigns to encourage the return of used refrigerant by contractors servicing cooling systems.
“Revenue growth in the quarter was driven by increased sales volume and higher average pricing for refrigerants sold, with our strong gross margin of 32.0% reflecting the more favorable pricing environment. We are maintaining our expectation of mid-twenty percent gross margin for the full year as the fourth quarter period has historically resulted in seasonally lower revenue and gross margin as a large portion of our customers transition to heating applications for the fall and winter seasons.
“Subsequent to the close of the quarter, we announced that we have again been awarded a contract to support the U.S. military as prime contractor with the U.S. Defense Logistics Agency (“DLA”), after a standard competitive review and rebidding process. The indefinite delivery, indefinite quantity contract comprises the supply of certain refrigerants, industrial gases and equipment and is valued at $210 million for the first five-year base period, with a five-year renewal option. Hudson has served as prime contractor to the DLA since 2016 and we believe our selection demonstrates the strength of our nine-year partnership and our success providing critical materials to the nation's many military installations and facilities. We look forward to continuing our relationship as a valued partner to the U.S. military.
“We move toward the close of 2025 having further strengthened our unlevered balance sheet with approximately $90 million in cash at September 30, 2025. We continue to maintain a disciplined capital allocation strategy which includes: investing in organic growth, pursuing acquisition opportunities that have the potential to strengthen our capabilities or enhance our footprint, and the opportunistic repurchase of our stock. During the third quarter the Company repurchased $1.3 million in common stock, bringing our total repurchases to date in 2025 to $5.8 million under our stock buyback program,” Mr. Bertaux concluded.
Three Months Results
For the quarter ended September 30, 2025, Hudson reported:
Revenues increased 20% to $74.0 million compared to revenues of $61.9 million in the comparable 2024 period. The revenue improvement reflects increased sales volume and higher average pricing for refrigerants sold as compared to the third quarter of 2024. Gross margin of 32.0%, compared to 25.7% in the third quarter of 2024 was primarily driven by increased pricing as compared to the third quarter of 2024. Selling, general and administrative expenses increased to $8.9 million compared to $8.1 million in the third quarter of 2024. Operating income doubled to $14.0 million, compared to operating income of $7.0 million in the prior year period. Net income improved by 59% to $12.4 million or $0.28 per basic and $0.27 per diluted share in the third quarter of 2025, compared to net income of $7.8 million or $0.17 per basic and diluted share in the same period of 2024.
Nine Month Results
For the nine months ended September 30, 2025, Hudson reported:
Revenues of $202.2 million decreased slightly compared to revenues of $202.5 million for the first nine months of 2024. Revenues declined primarily related to a slight decrease in sales pricing, partially offset with a slight increase in sales volume during the first nine months of 2025. Gross margin of 29.0%, compared to gross margin of 29.6% in the first nine months of 2024. Selling, general and administrative expenses increased to $26.3 million compared to $25.0 million in the first nine months of 2024. The increase in SG&A is related to the Company's initiative to strategically add staffing, which began in 2024. Operating income of $29.8 million compared to operating income of $32.5 million in the first nine months of 2024. Net income of $25.3 million or $0.58 per basic and $0.56 per diluted share, compared to net income of $27.0 million or $0.59 per basic and $0.57 per diluted share in the first nine months of 2024.
At September 30, 2025 the Company reported $89.7 million in cash and cash equivalents.
Conference Call Information
Hudson Technologies will host a conference call and webcast today, Wednesday, November 5, 2025 at 5:00 p.m. Eastern Time to discuss the Company's third quarter 2025 results.
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 December 5, 2025, and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 53054.
About Hudson Technologies
Hudson Technologies, Inc. is a leading provider of innovative and sustainable refrigerant products and services to the Heating Ventilation Air Conditioning and Refrigeration industry. For nearly three decades, we have demonstrated our commitment to our customers and the environment by becoming one of the first in the United States and largest refrigerant reclaimers through multimillion dollar investments in the plants and advanced separation technology required to recover a wide variety of refrigerants and restoring them to Air-Conditioning, Heating, and Refrigeration Institute standard for reuse as certified EMERALD RefrigerantsTM. The Company's products and services are primarily used in commercial air conditioning, industrial processing and refrigeration systems, and include refrigerant and industrial gas sales, refrigerant management services consisting primarily of reclamation of refrigerants and RefrigerantSide® Services performed at a customer's site, consisting of system decontamination to remove moisture, oils and other contaminants. The Company's SmartEnergy OPS® service is a web-based real time continuous monitoring service applicable to a facility's refrigeration systems and other energy systems. The Company's Chiller Chemistry® and Chill Smart® services are also predictive and diagnostic service offerings. As a component of the Company's products and services, the Company also generates carbon offset projects.
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 the United States, including changes in the laws, regulations, policies, and political, financial and economic conditions, including inflation, interest and currency exchange rates, of countries in which the Company may seek to conduct business, the Company's ability to successfully integrate any assets it acquires from third parties into its operations, and other risks detailed in the Company's 10-K for the year ended December 31, 2024 and other subsequent filings with the Securities and Exchange Commission. The words "believe", "expect", "anticipate", "may", "plan", "should" and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made.
Hudson Technologies, Inc. and Subsidiaries
Consolidated Balance Sheets
(Amounts in thousands, except for share and par value amounts)
|
| | | | | | |
| | September 30, | | | December 31, | |
| | 2025 | | | 2024 | |
| | (unaudited) | | | | |
| Assets | | | | | | | | |
| Current assets: | | | | | | | | |
| Cash and cash equivalents | | $ | 89,681 | | | $ | 70,134 | |
| Trade accounts receivable – net of allowance for credit losses of $977 and $1,079, respectively | | | 25,366 | | | | 13,629 | |
| Inventories | | | 97,414 | | | | 96,247 | |
| Income tax receivable | | | 4,284 | | | | 6,284 | |
| Prepaid expenses and other current assets | | | 17,614 | | | | 9,218 | |
| Total current assets | | | 234,359 | | | | 195,512 | |
| | | | | | | | |
| Property, plant and equipment, less accumulated depreciation | | | 22,781 | | | | 21,554 | |
| Goodwill | | | 62,280 | | | | 62,280 | |
| Intangible assets, less accumulated amortization | | | 11,632 | | | | 14,100 | |
| Right of use asset | | | 5,537 | | | | 6,878 | |
| Other assets | | | 2,357 | | | | 2,328 | |
| Total Assets | | $ | 338,946 | | | $ | 302,652 | |
| | | | | | | | |
| Liabilities and Stockholders' Equity | | | | | | | | |
| Current liabilities: | | | | | | | | |
| Trade accounts payable | | $ | 19,994 | | | $ | 8,692 | |
| Accrued expenses and other current liabilities | | | 42,202 | | | | 33,813 | |
| Accrued payroll | | | 1,837 | | | | 3,704 | |
| Other short-term liabilities | | | - | | | | 1,600 | |
| Total current liabilities | | | 64,033 | | | | 47,809 | |
| Deferred tax liability | | | 5,536 | | | | 4,076 | |
| Long-term lease liabilities | | | 3,488 | | | | 4,917 | |
| Total Liabilities | | | 73,057 | | | | 56,802 | |
| | | | | | | | |
| Commitments and contingencies | | | | | | | | |
| | | | | | | | |
| Stockholders' equity: | | | | | | | | |
| Preferred stock, shares authorized 5,000,000: Series A Convertible preferred stock, $0.01 par value ($100 liquidation preference value); shares authorized 150,000; none issued or outstanding | | | - | | | | - | |
| Common stock, $0.01 par value; shares authorized 100,000,000; issued and outstanding: 43,598,202 and 44,284,374, respectively | | | 436 | | | | 443 | |
| Additional paid-in capital | | | 105,538 | | | | 110,792 | |
| Retained earnings | | | 159,915 | | | | 134,615 | |
| Total Stockholders' Equity | | | 265,889 | | | | 245,850 | |
| | | | | | | | |
| Total Liabilities and Stockholders' Equity | | $ | 338,946 | | | $ | 302,652 | |
Hudson Technologies, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(unaudited)
(Amounts in thousands) |
| | | |
| | Nine months | |
| | ended September 30, | |
| | 2025 | | | 2024 | |
| Cash flows from operating activities: | | | | | | | | |
| Net income | | $ | 25,300 | | | $ | 26,953 | |
| Adjustments to reconcile net income to cash provided by operating activities: | | | | | | | | |
| Depreciation | | | 2,105 | | | | 2,274 | |
| Amortization of intangible assets | | | 2,468 | | | | 2,368 | |
| Gain on measurement of earn-out liability | | | (1,600 | ) | | | - | |
| Impairment of long lived assets | | | - | | | | 441 | |
| Lower of cost or net realizable value inventory adjustment | | | 211 | | | | 3,811 | |
| Allowance for credit losses | | | 300 | | | | 14 | |
| Share based compensation | | | 631 | | | | 808 | |
| Amortization of deferred finance costs | | | 170 | | | | 171 | |
| Deferred tax expense (benefit) | | | 1,460 | | | | (1,020 | ) |
| Changes in assets and liabilities: | | | | | | | | |
| Trade accounts receivable | | | (12,038 | ) | | | (733 | ) |
| Inventories | | | (1,378 | ) | | | 52,189 | |
| Prepaid and other assets | | | (8,595 | ) | | | (6,732 | ) |
| Lease obligations | | | - | | | | (6 | ) |
| Income taxes receivable | | | 2,000 | | | | 1,794 | |
| Accounts payable and accrued expenses | | | 18,347 | | | | (11,229 | ) |
| Cash provided by operating activities | | | 29,381 | | | | 71,103 | |
| | | | | | | | |
| Cash flows from investing activities: | | | | | | | | |
| Payments for acquisition | | | - | | | | (20,670 | ) |
| Additions to property, plant, and equipment | | | (3,942 | ) | | | (3,752 | ) |
| Cash used in investing activities | | | (3,942 | ) | | | (24,422 | ) |
| | | | | | | | |
| Cash flows from financing activities: | | | | | | | | |
| Proceeds from issuance of common stock | | | 45 | | | | - | |
| Excess tax benefits from exercise of stock options | | | - | | | | (4 | ) |
| Repurchase of common shares | | | (5,820 | ) | | | (2,636 | ) |
| Excise tax on repurchase of common shares | | | (117 | ) | | | - | |
| Cash used in financing activities | | | (5,892 | ) | | | (2,640 | ) |
| | | | | | | | |
| Increase in cash and cash equivalents | | | 19,547 | | | | 44,041 | |
| Cash and cash equivalents at beginning of period | | | 70,134 | | | | 12,446 | |
| Cash and cash equivalents at end of period | | $ | 89,681 | | | $ | 56,487 | |
| | | | | | | | |
| Supplemental disclosure of cash flow information: | | | | | | | | |
| Cash paid for interest | | $ | 431 | | | $ | 529 | |
| Cash paid for income taxes – net | | $ | 4,627 | | | $ | 7,042 | |
| | | | | | | | |
| Property and equipment included in accrued expenses and other current liabilities | | $ | 3 | | | $ | - | |
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