Hudson Technologies(US:HDSN)2025-11-07 21:06Financial Performance - Revenues for Q3 2025 reached $74,012,000, a 19.5% increase from $61,943,000 in Q3 2024[10] - Gross profit for Q3 2025 was $23,674,000, compared to $15,942,000 in Q3 2024, reflecting a 48.8% increase[10] - Net income for the three months ended September 30, 2025, was $12.374 million, up 58.5% from $7.806 million in 2024[60] - Operating income for Q3 2025 was $13,968,000, significantly higher than $6,973,000 in Q3 2024, representing a 100.4% increase[10] - Revenues for the nine-month period ended September 30, 2025, were $202.2 million, consistent with $202.5 million reported in the comparable 2024 period, with a 3% increase in sales volume offset by a 3% decline in selling prices[142] - Gross profit for the nine-month period ended September 30, 2025, was $58.6 million, with a gross margin of 29%, down from $59.9 million and 30% in the same period of 2024[143] Assets and Liabilities - Total current assets increased to $234,359,000 as of September 30, 2025, up from $195,512,000 at the end of 2024[8] - Total liabilities rose to $73,057,000 as of September 30, 2025, compared to $56,802,000 at the end of 2024[8] - Cash and cash equivalents at the end of Q3 2025 were $89,681,000, compared to $70,134,000 at the end of 2024, marking a 27.9% increase[8] - The company's inventory as of September 30, 2025, was valued at $97.414 million, an increase from $96.247 million as of December 31, 2024[79] - Trade receivables at September 30, 2025, were $25.4 million, an increase of $11.8 million from $13.6 million at December 31, 2024[151] Cash Flow and Operating Activities - Cash provided by operating activities for the nine months ended September 30, 2025, was $29,381,000, down from $71,103,000 in the same period of 2024[17] - Net cash provided by operating activities for the nine-month period ended September 30, 2025, was $29.4 million, compared to $71.1 million for the comparable 2024 period[152] Share Repurchase and Acquisitions - The Company completed the acquisition of USA Refrigerants and B&B Jobber Services for approximately $20.7 million in cash, with a potential contingent payment of up to $2.0 million[24] - The Company incurred $5,820,000 in share repurchases during the nine months ended September 30, 2025[17] - During the nine-month period ended September 30, 2025, the Company repurchased 939,259 shares for a total of $5.8 million at an average price of $6.20 per share[122] - The acquisition resulted in the recognition of $14.5 million of goodwill, with $12.9 million being tax-deductible[119] Debt and Financing - The Company has borrowing availability of approximately $40 million from the Amended Wells Fargo Facility as of September 30, 2025, with no outstanding balance[114] - The Amended Wells Fargo Facility requires the Company to maintain minimum liquidity of at least $5 million, with at least $3 million from availability[108] - The Amended Wells Fargo Facility has a maturity date of March 2, 2027, unless terminated sooner due to an event of default[167] Market and Regulatory Environment - The AIM Act mandates a cumulative 40% reduction in HFC production and consumption from baseline levels for the years 2024 through 2029[28] - The Company is exposed to market risks from fluctuations in the demand, price, and availability of refrigerants, which could materially affect revenue[177] Tax and Accounting - The company assesses uncertain tax positions and believes it had no uncertain tax positions as of September 30, 2025[59] - The company is currently evaluating the impact of new accounting standards, including ASU 2023-09 and ASU 2024-03, on its consolidated financial statements[71][72] Stock Options and Compensation - The intrinsic value of options outstanding at September 30, 2025, was $16.8 million, compared to $8.6 million at December 31, 2024[100] - Share-based compensation expense for the nine-month periods ended September 30, 2025, and 2024 was $0.6 million and $0.8 million, respectively[92]