Financial Data and Key Metrics Changes - In Q4 2025, the company recorded revenue of $44.4 million, an increase of 28% compared to Q4 2024, primarily driven by increased sales volume [23] - For the full year 2025, total revenue was $246.6 million, a 4% increase from 2024, with a 6% increase in sales volume [26] - Gross margin for 2025 was 25.2%, down from 27.7% in 2024, reflecting lower refrigerant market prices and higher freight costs [26] - The company reported a net loss of $8.6 million or $0.20 per diluted share in Q4 2025, compared to a net loss of $2.6 million or $0.06 per diluted share in Q4 2024 [25] Business Line Data and Key Metrics Changes - The core business of refrigerant reclamation, sales, and associated services remains the focus of the company's organic growth strategy [6] - The company achieved an 18% increase in reclamation volume for the second consecutive year, attributed to contractor-level activities [12] - Revenue from the Defense Logistics Agency (DLA) contract was $38 million in 2025, with expectations to maintain this run rate through 2026 [26][63] Market Data and Key Metrics Changes - The average price of HFCs at the end of 2025 was slightly below $6 per pound, with a slight increase observed in early 2026 [16] - The market is currently balanced in terms of supply and demand, with signs of small price appreciation for refrigerants [49] Company Strategy and Development Direction - The company is focused on investing in infrastructure, inventory, and ERP systems to enhance operational efficiency and customer service [7] - Plans include expanding service capabilities in the commercial market and pursuing accretive acquisitions to strengthen geographical presence [10] - The company aims to diversify revenue streams to reduce seasonality and dependence on a few dominant refrigerants [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth opportunities in 2026, emphasizing a strong foundation and commitment to sustainable refrigerant lifecycle management [30] - The company is determined to maintain its position as a valued partner to the DLA while navigating the bid protest situation [14] Other Important Information - The company repurchased $20 million in stock during 2025 and plans to continue opportunistic buybacks in 2026 [10][28] - A new ERP system was implemented in February 2026, expected to improve operational connectivity and efficiency [8][28] Q&A Session Summary Question: Discussion on service opportunities and HVAC optimization - Management highlighted the focus on proactive services for chiller operations and the potential for expanding service offerings beyond traditional refrigerant distribution [35][41] Question: Aspirational revenue targets outside direct refrigerant distribution - Management indicated that while specific targets are being developed, the key focus is on reducing dependency on certain refrigerants [42][44] Question: Update on HFC pricing trends and expectations for 2026 - Management noted that HFC pricing is currently stable with slight appreciation expected, and the market is balanced in terms of supply and demand [49][50] Question: Inventory build and gross margin expectations for 2026 - Management stated that gross margins for 2026 are expected to be comparable to 2025 if pricing remains stable [62] Question: Update on the DLA bid process timeline - Management expressed optimism about maintaining the current contract run rate of $38 million through 2026, despite the ongoing bid protest [63]

Core Viewpoint - Hudson Technologies, Inc. has acquired Refrigerants Inc. for an initial purchase price of $2.5 million, aiming to expand its recovery network and geographic footprint in the refrigerant reclamation industry [1] Group 1: Acquisition Details - The acquisition of Refrigerants Inc. is part of Hudson's strategy to enhance its core refrigerants reclamation business by increasing access to recovered refrigerant sources [3] - Refrigerants Inc. has over two decades of experience in the industry, providing a full range of refrigerant lifecycle management services [2] Group 2: Strategic Importance - The acquisition is expected to strengthen Hudson's position in key markets for refrigerant sales and the aftermarket supply chain, which is crucial due to the AIM Act's phase-down of virgin HFC refrigerants [4] - Hudson anticipates leveraging Refrigerants Inc.'s established customer base to enhance its recovered refrigerant volume and improve its reclamation practices [4] Group 3: Company Background - Hudson Technologies is recognized as a leading provider of sustainable refrigerant products and services, with significant investments in advanced separation technology for refrigerant recovery [5] - The company offers various services, including refrigerant management and predictive diagnostic services, contributing to its commitment to environmental sustainability [5]