Financial Data and Key Metrics Changes - In Q4 2025, Hudson Technologies 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, the company achieved $246.6 million in revenue, a 4% increase from 2024, with a 6% increase in sales volume [27] - The 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 in Q4 2025, compared to a net loss of $2.6 million 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 Hudson's organic growth strategy [5] - The company achieved an 18% increase in reclamation volume for the second consecutive year, attributed to increased awareness among contractors [11] - Revenue from the Defense Logistics Agency (DLA) contract was $38 million in 2025, with expectations to maintain this run rate through 2026 [27][64] 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 [50] Company Strategy and Development Direction - Hudson is focused on investing in infrastructure, inventory, and ERP systems to enhance operational efficiency and customer service [6] - The company aims to diversify revenue streams to reduce seasonality and dependence on a few dominant refrigerants [9] - Hudson plans to continue its disciplined approach to accretive acquisitions and strategic expansion in the commercial market [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth opportunities in 2026, supported by a strong foundation and a commitment to sustainable refrigerant lifecycle management [30][21] - 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 - Hudson repurchased $20 million in stock during 2025 and plans to continue opportunistic buybacks in 2026 [28] - The company went live with a new ERP system in February 2026, which is expected to improve operational connectivity and efficiency [7] 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 to expand service offerings beyond traditional refrigerant distribution [35][42] Question: Update on HFC pricing trends and expectations for 2026 - Management noted that HFC pricing is currently stable with slight appreciation expected, and they do not foresee significant changes in pricing for 2026 [49][52] Question: Inventory needs for 2026 and factors affecting gross margin - Management confirmed they have sufficient inventory to meet demand for 2026 and emphasized the importance of pricing and operational efficiencies in improving gross margins [56][57] Question: Update on the DLA bid process and revenue expectations - Management indicated optimism regarding the DLA contract renewal process and projected a similar revenue run rate of $38 million for 2026 under the existing contract [64]

Core Viewpoint - Hudson Technologies, Inc. has appointed Kenneth Gaglione as Chairman of the Board, President, and CEO, effective November 24, 2025, aiming to leverage his extensive experience for the company's growth in the HVAC sector [1][4]. Company Leadership - Kenneth Gaglione has a strong background in the refrigerants and specialty chemicals industries, having previously served as Vice President of Operations at Hudson Technologies from 2020 to 2023, where he led strategic production initiatives and improved supply chain capabilities [2][4]. - Gaglione's prior experience includes a role as Global Marketing Director at Honeywell International, overseeing aftermarket distribution and strategic planning for refrigerant product lines [3]. Strategic Focus - Under Gaglione's leadership, Hudson Technologies plans to emphasize organic growth within the HVAC sector while pursuing inorganic opportunities through strategic alliances and partnerships [4]. - The company aims to expand its position as a leading provider of innovative and sustainable refrigerant solutions [4]. Company Overview - Hudson Technologies is a prominent provider of sustainable refrigerant products and services, with nearly three decades of commitment to environmental standards and customer service [5]. - The company is recognized as one of the largest refrigerant reclaimers in the U.S., investing significantly in advanced separation technology for refrigerant recovery [5]. - Hudson's offerings include refrigerant and industrial gas sales, refrigerant management services, and web-based monitoring services for refrigeration systems [5].