Hudson Technologies finished 2025 with a strong fourth quarter, marked by significant revenue growth and the successful acquisition of Refrigerants Inc. The company highlighted its commitment to organic growth, strategic acquisitions, and opportunistic share repurchases, while emphasizing its leadership in lifecycle refrigerant management amidst the ongoing HFC phase-down.
Fourth quarter revenue increased 28% to $44.4 million, driven by stronger sales volume.
positiveAnnual refrigerant reclamation volume increased by 18% for the second consecutive year, a key driver of long-term strategy.
positiveCompleted the accretive acquisition of Refrigerants Inc. in December 2025.
positiveBoard approved a $20 million share repurchase authorization for 2026, and fully utilized the 2025 authorization by repurchasing $14 million of common stock in Q4.
positiveFourth quarter gross margin was 8.0%, a significant decrease from 16.7% in Q4 2024, due to $4.2 million in inventory-related costs, including a lower of cost or market adjustment.
negativeFourth quarter SG&A expenses increased to $13.9 million from $8.0 million in Q4 2024, including $4.0 million of executive severance costs.
negativeFourth quarter operating loss was $11.2 million, compared to an operating loss of $3.2 million in the prior year period, impacted by inventory and severance costs.
negativeFourth quarter net loss was $8.6 million or $0.20 per diluted share, compared to a net loss of $2.6 million or $0.06 per diluted share in the prior year period.
negativeFull year 2025 revenues increased 4% to $246.6 million, a deceleration from prior periods, with a decrease in refrigerant pricing partially offsetting a 6% growth in sales volume.
attentionFull year 2025 gross margin decreased to 25.2% from 27.7% in 2024, due to decreased refrigerant pricing and higher freight costs.
attentionFull year 2025 operating income decreased to $18.6 million from $29.3 million in 2024.
negativeFull year 2025 net income decreased to $16.7 million ($0.37/share) from $24.4 million ($0.52/share) in 2024.
negativeThe company experienced some startup inefficiencies from a new ERP system implementation, expected to negatively impact first quarter 2026 revenues.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Hudson delivered a strong finish to 2025 with fourth quarter results that included revenue growth of 28% and the successful execution of our accretive acquisition of Refrigerants Inc.
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.
Our unlevered balance sheet remained strong with a cash position of $39.5 million at December 31, 2025.
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Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.