Core Viewpoint - Hudson Technologies, Inc. reported strong financial results for the fourth quarter and full year 2025, highlighting significant revenue growth and successful acquisitions, while also facing challenges related to increased costs and operational losses. Financial Performance - Fourth quarter revenue increased by 28% to $44.4 million compared to $34.6 million in the same period of 2024 [6][7] - Annual revenue for 2025 reached $246.6 million, a 4% increase from $237.1 million in 2024, driven by a 6% growth in sales volume [13] - Gross margin for the fourth quarter was 8.0%, down from 16.7% in the fourth quarter of 2024, impacted by $4.2 million in inventory-related costs [7] - The company reported an operating loss of $11.2 million for the fourth quarter, compared to a loss of $3.2 million in the prior year [12] Refrigerant Reclamation and Market Strategy - The company achieved an 18% growth in refrigerant reclamation volume for the second consecutive year, which is a key component of its long-term strategy [2] - Hudson Technologies has expanded its capabilities and geographic reach in securing recovered refrigerants, bolstered by acquisitions of USA Refrigerants in 2024 and Refrigerants Inc. in December 2025 [2] Capital Allocation and Share Repurchase - The company maintained a strong cash position of $39.5 million as of December 31, 2025, and repurchased $14 million of common stock in the fourth quarter [3][4] - The board approved a share repurchase authorization of up to $20 million for both 2025 and 2026 [4] Future Outlook - Hudson Technologies anticipates low-to-mid single-digit revenue growth in the first quarter of 2026 despite initial inefficiencies from a new ERP system implemented on February 1, 2026 [9] - The company remains committed to expanding its leadership in lifecycle refrigerant management as the phase-out of HFC refrigerants continues [5]

Core Points - Hudson Technologies, Inc. will host a panel discussion titled "Reclaiming the Future Together™- Power On the Growth of Refrigerant Reclamation" on September 22, 2025, at NASDAQ MarketSite as part of Climate Week NYC 2025 [1][2] - The panel will address the economic benefits of refrigerant reclamation, stakeholder roles in raising awareness, and the environmental impact of refrigerant recovery and reuse [3] - The event will feature industry experts, including Brian F. Coleman, CEO of Hudson Technologies, who emphasizes the importance of responsible refrigerant management [3] Company Overview - Hudson Technologies is a leading provider of sustainable refrigerant products and services, recognized as one of the largest refrigerant reclaimers in the U.S. [6] - The company has invested significantly in advanced separation technology to recover various refrigerants, restoring them to standards for reuse as certified EMERALD Refrigerants™ [6] - Hudson's services include refrigerant management, reclamation, and predictive diagnostic offerings, contributing to carbon offset projects [6] Industry Context - Climate Week NYC 2025 will take place from September 21 to 28, featuring over 600 events aimed at fostering dialogue on climate policy among global leaders [7] - The event is organized by Climate Group in partnership with the United Nations General Assembly, highlighting the importance of collaboration across sectors to address climate challenges [2][7]

Financial Data and Key Metrics Changes - Hudson Technologies reported revenues of $72.8 million for Q2 2025, a decrease of 3% compared to the same quarter last year [18] - Gross margin improved to 31% from 30% in Q2 2024, driven by favorable market pricing trends [19] - Net income increased to $10.2 million or $0.23 per diluted share, compared to $9.6 million or $0.20 per diluted share in the previous year [20] Business Line Data and Key Metrics Changes - The company experienced slightly lower sales volume compared to Q2 2024, attributed to cooler spring weather and supply shortages [6][18] - Continued strength in the reclamation business was noted, leveraging enhanced refrigerant recovery capabilities [6] - The average selling price of refrigerants increased, with HSC pricing reaching $8 per pound during the quarter [8][20] Market Data and Key Metrics Changes - The regulatory landscape remains influenced by the AIM Act, which mandates the phase-down of HFCs [9] - The company is closely monitoring developments with the EPA regarding regulations that could impact the industry [9] Company Strategy and Development Direction - Hudson Technologies is focused on expanding its purchasing presence in the marketplace and enhancing its reclamation capabilities [6][12] - The company aims to bridge the supply gaps created by the phase-down cycles of HFCs and promote recovery and reclamation activities [14][15] - The capital allocation strategy includes investing in organic growth, pursuing acquisitions, and opportunistic stock repurchases [10][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a slow start to the cooling season but expressed confidence in strong execution for the remainder of the selling season [22] - The company believes its recovery and reclamation capabilities position it well for future growth as the supply of newly manufactured refrigerants becomes limited [22] - Management remains optimistic about the long-term growth opportunities presented by the phase-down of HFCs [13][14] Other Important Information - The company ended the quarter with $84.3 million in cash and no debt, reflecting a strong unlevered balance sheet [20] - Hudson repurchased $2.7 million of stock during the second quarter, with a total of $4.5 million in shares repurchased in 2025 [20] Q&A Session Summary Question: Did the company see any benefit from the repair mix being up in the quarter? - Management noted that repair versus replace was an element of Q2 activity, leading to strong demand in the core business [25] Question: Can the company quantify the A2L market size? - The A2L market is currently relatively small for Hudson, but there is aftermarket demand due to changes in OEM units [26] Question: What is the current price of HFCs? - HFC prices peaked at around $8 per pound, with slight retraction observed [30] Question: How is the reclamation business performing? - The company does not report reclamation activity until the end of the year but is encouraged by the activity going into Q3 [31] Question: What is the status of the DLA contract? - The DLA contract is no longer a small business set aside, and the company is cautious about the competitive landscape for the new contract [62] Question: How do tariffs impact pricing? - Tariffs primarily affect imported refrigerants, benefiting prices for U.S.-sourced reclaimed refrigerants [69] Question: Will the volume of industrial gases and refrigerants in the DLA contract increase? - The company does not have clarity on the new contract's volume expectations but will provide updates once awarded [74]