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]

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]

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]

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]