Financial Data and Key Metrics Changes - Hudson Technologies reported a 20% increase in revenue for Q3 2025, reaching $74 million, driven by increased sales volume and higher average sales prices of refrigerants [6][18] - Gross margin improved to 32%, reflecting a 630 basis point increase compared to Q3 2024, with gross profit rising to $23.7 million from $15.9 million [6][18] - Net income increased by 59% to $12.4 million, or $0.27 per share, compared to $7.8 million, or $0.17 per share in the previous year [6][19] Business Line Data and Key Metrics Changes - The growth in revenue was attributed to both increased sales volume and higher average sales prices, particularly in the refrigerant market [6][18] - Hudson's reclamation business saw positive growth, reflecting the company's outreach efforts to encourage the return of used refrigerants [6][11] Market Data and Key Metrics Changes - The HFC market pricing was approximately $8 per pound in Q3, with R-410A representing about 70% of total aftermarket demand for HFCs [6][7] - The EPA reported a 19% growth in refrigerant reclamation activity for the industry in 2024, with Hudson's reclamation growing at a similar rate [6][9] Company Strategy and Development Direction - The company is focused on advancing its growth strategy through both organic and inorganic opportunities, with an emphasis on acquiring a CEO with experience in larger companies and acquisitions [6][4][32] - Hudson aims to capitalize on the ongoing phase-down of HFC refrigerants, viewing it as a significant long-term growth opportunity [6][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current market dynamics, despite the anticipated supply-demand imbalance extending to 2029 [6][12][32] - The company is closely monitoring EPA proposals that may impact the refrigerant market and is positioned to benefit from state-level initiatives promoting lower GWP refrigerants [6][13][14] Other Important Information - Hudson was awarded a renewal contract valued at $210 million with the U.S. Defense Logistics Agency, reinforcing its position as a prime contractor since 2016 [6][8] - The company ended the quarter with $90 million in cash and a focus on opportunistic share repurchases, having repurchased $1.3 million of stock in Q3 2025 [6][19] Q&A Session Summary Question: What alternative skill sets are being sought in the new CEO? - Management is looking for a candidate with a larger company background, experience in acquisitions, and skills in organic growth beyond just refrigerant reclamation [6][24][32] Question: What are the expectations for HFC pricing next year? - Management expects HFC pricing to remain consistent with this year, despite market volatility [6][28] Question: How does the EPA data impact Hudson's strategy? - Management acknowledges the need to reduce exposure to gas market fluctuations and plans to pursue both organic growth and M&A opportunities [6][32] Question: What is the expected revenue from the DLA contract? - The revenue from the DLA contract is expected to be consistent with previous levels, around $30 million to $35 million [6][33] Question: Will A2Ls become a core part of the business? - A2Ls are expected to grow in importance as the market transitions, alongside the continued demand for existing HFCs [6][35]

Core Insights - Hudson Technologies reported strong financial results for Q3 2025, with a revenue growth of 20%, improved gross margin of 32%, and a net income increase of 59% to $12.4 million or $0.27 per diluted share [2][7][8] Financial Performance - For Q3 2025, revenues reached $74.0 million, up from $61.9 million in Q3 2024, driven by increased sales volume and higher average pricing for refrigerants [8][21] - Gross margin improved to 32.0% compared to 25.7% in Q3 2024, primarily due to favorable pricing conditions [8][21] - Operating income doubled to $14.0 million from $7.0 million in the prior year [8] - Selling, general and administrative expenses rose to $8.9 million from $8.1 million in Q3 2024 [8] Year-to-Date Results - For the nine months ended September 30, 2025, revenues were $202.2 million, slightly down from $202.5 million in the same period of 2024, attributed to a slight decrease in sales pricing [6][14] - Net income for the nine months was $25.3 million or $0.58 per basic share, compared to $27.0 million or $0.59 per basic share in the first nine months of 2024 [14][21] Strategic Developments - Hudson Technologies was awarded a $210 million contract to supply refrigerants and industrial gases to the U.S. military, reinforcing its long-standing partnership with the Defense Logistics Agency [4] - The company maintains a strong cash position of approximately $90 million and has no debt as of September 30, 2025 [5][9] Capital Allocation - The company continues to pursue a disciplined capital allocation strategy, focusing on organic growth, acquisition opportunities, and stock repurchases, having repurchased $5.8 million in common stock in 2025 [5]

Core Insights - Hudson Technologies, Inc. announced strong preliminary financial results for Q3 2025, with a revenue growth of 20% to $74.0 million compared to $61.9 million in Q3 2024, and a net income growth of 59% to $12.4 million, or $0.27 per diluted share [5] Leadership Changes - Brian Coleman has stepped down as Chairman and CEO effective immediately after leading the company since June 2020 [1][2] - Vincent Abbatecola, Lead Independent Director, expressed gratitude for Coleman's contributions, particularly during challenging times [3] - Brian Bertaux, CFO, will serve as interim CEO while the Board evaluates candidates for a permanent replacement [4] Financial Performance - The company expects to report a gross margin of 32% for Q3 2025 [5] - Full financial results will be announced on November 5, 2025 [5] Company Overview - Hudson Technologies is a leading provider of sustainable refrigerant products and services, focusing on the HVAC and refrigeration industry [6] - The company has invested significantly in advanced separation technology for refrigerant reclamation, positioning itself as one of the largest refrigerant reclaimers in the U.S. [6] - Its services include refrigerant management, system decontamination, and real-time monitoring of refrigeration systems [6]

Financial Data and Key Metrics Changes - Company reported revenue of $55.3 million for Q1 2025, a 15% decrease compared to the same period in 2024, primarily due to lower refrigerant market prices offsetting sales volume gains [19][20] - Gross margin decreased to 22% from 33% year-over-year, attributed to low refrigerant market prices [20] - Operating income fell to $3.1 million, a decrease of $9.7 million compared to $12.8 million in Q1 2024 [20] - Net income was $2.8 million or $0.06 per diluted share, down from $9.6 million or $0.20 per diluted share in the previous year [21] Business Line Data and Key Metrics Changes - The reclamation business saw increased reclaim volume during the first quarter, supported by the strategic acquisition of USA Refrigerants [6] - Revenue from the DLA contract remained consistent with a historical mid $30 million annualized run rate [19] Market Data and Key Metrics Changes - Refrigerant pricing was approximately 40% lower than the previous year's first quarter, with certain HFC prices still under $6 per pound at the close of Q1 [5][7] - The demand for new lower GWP refrigerants is currently exceeding production volumes, with expectations for production to balance out with demand by the latter part of the cooling season [10] Company Strategy and Development Direction - Company is focused on improving purchasing presence in the marketplace and enhancing reclamation capabilities [6] - The capital allocation strategy emphasizes organic growth, strategic acquisitions, and opportunistic stock repurchases [11][21] - The transition to lower GWP refrigerants presents a long-term growth opportunity for the reclamation business as the supply of virgin HFCs declines [15] Management's Comments on Operating Environment and Future Outlook - Management noted the current microeconomic environment is volatile, with tariff costs affecting supply side costs for both virgin refrigerants and cylinders [8][9] - There is optimism regarding the industry's transition to lower GWP refrigerants, which is expected to create substantial long-term growth opportunities [24] Other Important Information - The company ended the quarter with $81 million in cash and no debt, indicating a strong unlevered balance sheet [11][21] - The company has repurchased a total of $4.5 million of common stock under its buyback plan in 2025 [11][21] Q&A Session Summary Question: What is driving the recent price stability and increases? - Management indicated that supply chain disruptions and tariffs have contributed to higher prices, but the permanence of these price changes will be clearer as the cooling season progresses [28][30] Question: How does the cylinder shortage impact Hudson's competitive positioning? - Management acknowledged that while Hudson has advantages with reusable cylinders, supply disruptions are occurring due to longer lead times for valve manufacturing and increased demand for disposable cylinders [31][32] Question: Is there any benefit to reclamation from current macroeconomic conditions? - Management reported an increase in reclaimed volumes in Q1 and expects continued growth in reclamation due to educational efforts and partnerships with customers [34] Question: How have imports of refrigerants through Mexico been affected by tariffs? - Management noted that while there is limited production capacity in Mexico, the overall market is more impacted by tariffs on imports from India and China [38][39] Question: What are the capital allocation plans for stock buybacks? - Management confirmed that they will continue to proceed opportunistically with the remaining $5.2 million allocated for buybacks [47] Question: How is inventory trending for the rest of the year? - Management believes they are approaching normalized inventory levels [48]

Financial Data and Key Metrics Changes - Company reported revenue of $55.3 million for Q1 2025, a 15% decrease compared to the same period in 2024, primarily due to lower refrigerant market prices offsetting increased sales volume [18][19] - Gross margin decreased to 22% from 33% year-over-year, attributed to low refrigerant market prices [19] - Operating income fell to $3.1 million, a decrease of $9.7 million compared to the previous year [19] - Net income was $2.8 million or $0.06 per diluted share, down from $9.6 million or $0.20 per diluted share in Q1 2024 [20] Business Line Data and Key Metrics Changes - The reclamation business saw increased reclaim volume during the first quarter, supported by the strategic acquisition of USA Refrigerants [6] - Revenue from the DLA contract remained consistent with a historical mid $30 million annualized run rate [18] Market Data and Key Metrics Changes - Pricing for certain HFCs was reported to be under $6 per pound at the close of Q1, but has since increased to over $6 per pound [7] - The demand for new lower GWP refrigerants is currently exceeding production volumes, with expectations for production to balance out with demand by the latter part of the cooling season [9] Company Strategy and Development Direction - Company is focused on improving purchasing presence in the marketplace and enhancing reclamation capabilities [6] - The capital allocation strategy emphasizes organic growth, strategic acquisitions, and opportunistic stock repurchases [11][20] - The transition to lower GWP refrigerants presents a long-term growth opportunity for the reclamation business as the supply of virgin HFCs declines [15] Management's Comments on Operating Environment and Future Outlook - Management noted the microeconomic environment is volatile, with tariff costs beginning to affect supply side costs [8] - There is uncertainty regarding costs and prices due to fluctuations in tariffs and supply disruptions related to the transition to next-generation refrigerants [8][10] - Management remains optimistic about the industry's transition representing a significant long-term growth opportunity [22] Other Important Information - Company ended the quarter with $81 million in cash and no debt, strengthening its unlevered balance sheet [11][20] - A total of $4.5 million of common stock has been repurchased under the stock buyback plan in 2025 [20] Q&A Session Summary Question: What is driving the recent price increases? - Management indicated that supply chain disruptions and tariffs have contributed to higher prices, but the permanence of these price changes will be clearer as the cooling season progresses [25][27] Question: How does the cylinder shortage impact margins? - Management acknowledged that while Hudson has advantages with reusable cylinders, supply disruptions are occurring due to longer lead times for valve manufacturing and increased demand for disposable cylinders [28][30] Question: Is there any benefit to reclamation from current macroeconomic conditions? - Management reported an increase in reclaimed volumes and expects continued growth in reclamation due to educational efforts and partnerships [31] Question: How have imports of refrigerants through Mexico been affected by tariffs? - Management noted that while there is limited production capacity in Mexico, the overall market is more impacted by tariffs on goods from India and China [36][38] Question: How is the cooler weather in the Northeast affecting demand? - Management stated that cooler weather does not significantly impact demand until late May, when warmer temperatures typically lead to increased cooling system usage [38] Question: What are the expectations for the DLA contract sales in 2025? - Management expects DLA contract sales to trend around mid $30 million for 2025 [44] Question: What are the capital allocation plans for stock buybacks? - Management confirmed they will continue to proceed opportunistically with the remaining $5.2 million allocated for buybacks [46] Question: How is inventory trending for the rest of the year? - Management believes they are approaching normalized inventory levels [47]

Core Insights - Hudson Technologies, Inc. reported a revenue of $55.3 million for Q1 2025, a decrease of 15% compared to $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% from $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]