Hudson Technologies, Inc. (NASDAQ: HDSN) announced results for the third quarter and nine months ended September 30, 2025.

Brian Bertaux, Chief Financial Officer of Hudson Technologies, commented, “Hudson achieved strong third quarter results to close out the 2025 nine-month selling season, highlighted by revenue growth of 20%, improved gross margin of 32%, and a 59% increase in net income to $12.4 million or $0.27 per diluted share. Additionally, we continue to expand our strategic supply chain of after-market refrigerants through outreach and awareness campaigns to encourage the return of used refrigerant by contractors servicing cooling systems.

“Revenue growth in the quarter was driven by increased sales volume and higher average pricing for refrigerants sold, with our strong gross margin of 32.0% reflecting the more favorable pricing environment. We are maintaining our expectation of mid-twenty percent gross margin for the full year as the fourth quarter period has historically resulted in seasonally lower revenue and gross margin as a large portion of our customers transition to heating applications for the fall and winter seasons.

“Subsequent to the close of the quarter, we announced that we have again been awarded a contract to support the U.S. military as prime contractor with the U.S. Defense Logistics Agency (DLA), after a standard competitive review and rebidding process. The indefinite delivery, indefinite quantity contract comprises the supply of certain refrigerants, industrial gases and equipment and is valued at $210 million for the first five-year base period, with a five-year renewal option. Hudson has served as prime contractor to the DLA since 2016 and we believe our selection demonstrates the strength of our nine-year partnership and our success providing critical materials to the nation’s many military installations and facilities. We look forward to continuing our relationship as a valued partner to the U.S. military.

“We move toward the close of 2025 having further strengthened our unlevered balance sheet with approximately $90 million in cash at September 30, 2025. We continue to maintain a disciplined capital allocation strategy which includes: investing in organic growth, pursuing acquisition opportunities that have the potential to strengthen our capabilities or enhance our footprint, and the opportunistic repurchase of our stock. During the third quarter the Company repurchased $1.3 million in common stock, bringing our total repurchases to date in 2025 to $5.8 million under our stock buyback program.”

Third Quarter 2025 Results

• Revenues increased 20% to $74.0 million compared to $61.9 million in the third quarter of 2024, reflecting increased sales volume and higher average pricing.
• Gross margin of 32.0% versus 25.7% in the third quarter of 2024, primarily driven by increased pricing.
• Selling, general and administrative expenses were $8.9 million versus $8.1 million in the prior-year period.
• Operating income doubled to $14.0 million, compared to $7.0 million in the prior-year period.
• Net income improved 59% to $12.4 million, or $0.28 per basic and $0.27 per diluted share, versus $7.8 million, or $0.17 per basic and diluted share, in the third quarter of 2024.

Nine Months Ended September 30, 2025

• Revenues of $202.2 million versus $202.5 million for the first nine months of 2024; pricing slightly lower year-over-year, partially offset by a slight increase in volume.
• Gross margin of 29.0% versus 29.6% in the first nine months of 2024.
• Selling, general and administrative expenses were $26.3 million versus $25.0 million in the prior-year period, reflecting strategic staffing additions that began in 2024.
• Operating income of $29.8 million versus $32.5 million in the first nine months of 2024.
• Net income of $25.3 million, or $0.58 per basic and $0.56 per diluted share, versus $27.0 million, or $0.59 per basic and $0.57 per diluted share, in the first nine months of 2024.

At September 30, 2025, the Company reported $89.7 million in cash and cash equivalents and no debt.

Conference Call Information

A replay of the teleconference will be available until December 5, 2025, and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 53054.

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About Hudson Technologies

Hudson Technologies, Inc. is a leading provider of innovative and sustainable refrigerant products and services to the Heating Ventilation Air Conditioning and Refrigeration industry. For nearly three decades, we have demonstrated our commitment to our customers and the environment by becoming one of the first in the United States and largest refrigerant reclaimers through multimillion dollar investments in the plants and advanced separation technology required to recover a wide variety of refrigerants and restoring them to Air-Conditioning, Heating, and Refrigeration Institute standard for reuse as certified EMERALD Refrigerants™. The Company’s products and services are primarily used in commercial air conditioning, industrial processing and refrigeration systems, and include refrigerant and industrial gas sales, refrigerant management services consisting primarily of reclamation of refrigerants and RefrigerantSide® Services performed at a customer’s site, consisting of system decontamination to remove moisture, oils and other contaminants. The Company’s SmartEnergy OPS® service is a web-based real time continuous monitoring service applicable to a facility’s refrigeration systems and other energy systems. The Company’s Chiller Chemistry® and Chill Smart® services are also predictive and diagnostic service offerings. As a component of the Company’s products and services, the Company also generates carbon offset projects.™.

The Company’s products and services are primarily used in commercial air conditioning, industrial processing and refrigeration systems, and include refrigerant and industrial gas sales, refrigerant management services consisting primarily of reclamation of refrigerants and RefrigerantSide® Services performed at a customer’s site, consisting of system decontamination to remove moisture, oils and other contaminants. The Company’s SmartEnergy OPS® service is a web-based real time continuous monitoring service applicable to a facility’s refrigeration systems and other energy systems. The Company’s Chiller Chemistry® and Chill Smart® services are also predictive and diagnostic service offerings. As a component of the Company’s products and services, the Company also generates carbon offset projects.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Statements contained herein which are not historical facts constitute forward-looking statements. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, changes in the laws and regulations affecting the industry, changes in the demand and price for refrigerants (including unfavorable market conditions adversely affecting the demand for, and the price of, refrigerants), the Company’s ability to source refrigerants, regulatory and economic factors, seasonality, competition, litigation, the nature of supplier or customer arrangements that become available to the Company in the future, adverse weather conditions, possible technological obsolescence of existing products and services, possible reduction in the carrying value of long-lived assets, estimates of the useful life of its assets, potential environmental liability, customer concentration, the ability to obtain financing, the ability to meet financial covenants under existing credit facilities, any delays or interruptions in bringing products and services to market, the timely availability of any requisite permits and authorizations from governmental entities and third parties as well as factors relating to doing business outside the United States, including changes in the laws, regulations, policies, and political, financial and economic conditions, including inflation, interest and currency exchange rates, of countries in which the Company may seek to conduct business, the Company’s ability to successfully integrate any assets it acquires from third parties into its operations, and other risks detailed in the Company’s 10-K for the year ended December 31, 2025 and other subsequent filings with the Securities and Exchange Commission. The words “believe”, “expect”, “anticipate”, “may”, “plan”, “should” and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made.