Hudson Technologies Reports First Quarter 2025 Results

Core Insights - Hudson Technologies, Inc. reported a revenue of $55.3 million for Q1 2025, a decrease of 15$65.3 million in Q1 2024, primarily due to lower refrigerant prices despite a slight increase in sales volume [9][16] - The gross margin for Q1 2025 was 22%, down from 33% in the same period last year, largely driven by price compression in the refrigerant market [9][16] - The company has a strong balance sheet with $81 million in cash and no debt as of March 31, 2025, and has repurchased$4.5 million of common stock in 2025 [4][8] Financial Performance - Revenues for Q1 2025 were $55.3 million, down 15$65.3 million in Q1 2024 [9][16] - Gross profit decreased to $12.1 million in Q1 2025 from$21.4 million in Q1 2024, reflecting the decline in gross margin [9][16] - Operating income fell to $3.1 million in Q1 2025 from$12.8 million in the prior year [9][16] - Net income for Q1 2025 was $2.8 million, or$0.06 per share, compared to $9.6 million, or$0.21 per share, in Q1 2024 [9][16] Market and Strategic Insights - The company anticipates continued growth in its reclamation business due to the phase-down of HFC refrigerants under the AIM Act, which is expected to reduce the supply of virgin HFCs [3] - Several states are implementing requirements for the use of reclaimed refrigerants in municipal buildings, creating additional demand opportunities [3] - Hudson Technologies is focused on responsible refrigerant management and has strengthened its capabilities through the acquisition of USA Refrigerants [2][3] Cash Flow and Capital Allocation - Cash provided by operating activities was $14.2 million in Q1 2025, compared to a cash used of$0.9 million in the same period last year [19] - The company invested $1.4 million in property, plant, and equipment during the quarter [20] - Hudson Technologies continues to pursue a capital allocation strategy that includes organic growth investments, acquisitions, and stock repurchases [4][8]