EX-99.1 2 tm2530368d1_ex99-1.htm EXHIBIT99.1

Exhibit 99.1

 

 

HUDSON TECHNOLOGIES REPORTS THIRD quarter 2025 reSults

 

 

·Third quarter revenue grew 20% to $74.0 million; Gross margin improved to 32.0%
·Net income grew 59% to $12.4 million or $0.27 per diluted share
·Substantial cash position and no debt at September 30, 2025

 

WOODCLIFF LAKE, NJ – November 5, 2025 – 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,” Mr. Bertaux concluded.

 

Three Months Results

 

For the quarter ended September 30, 2025, Hudson reported:

 

·Revenues increased 20% to $74.0 million compared to revenues of $61.9 million in the comparable 2024 period. The revenue improvement reflects increased sales volume and higher average pricing for refrigerants sold as compared to the third quarter of 2024.
·Gross margin of 32.0%, compared to 25.7% in the third quarter of 2024 was primarily driven by increased pricing as compared to the third quarter of 2024.
·Selling, general and administrative expenses increased to $8.9 million compared to $8.1 million in the third quarter of 2024.
·Operating income doubled to $14.0 million, compared to operating income of $7.0 million in the prior year period.
·Net income improved by 59% to $12.4 million or $0.28 per basic and $0.27 per diluted share in the third quarter of 2025, compared to net income of $7.8 million or $0.17 per basic and diluted share in the same period of 2024.

 

 

 

 

 

Nine Month Results

 

For the nine months ended September 30, 2025, Hudson reported:

 

·Revenues of $202.2 million decreased slightly compared to revenues of $202.5 million for the first nine months of 2024. Revenues declined primarily related to a slight decrease in sales pricing, partially offset with a slight increase in sales volume during the first nine months of 2025.
·Gross margin of 29.0%, compared to gross margin of 29.6% in the first nine months of 2024.
·Selling, general and administrative expenses increased to $26.3 million compared to $25.0 million in the first nine months of 2024. The increase in SG&A is related to the Company’s initiative to strategically add staffing, which began in 2024.
·Operating income of $29.8 million compared to operating income of $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, compared to net income of $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.

  

Conference Call Information

 

Hudson Technologies will host a conference call and webcast today, Wednesday, November 5, 2025 at 5:00 p.m. Eastern Time to discuss the Company’s third quarter 2025 results.

 

Please visit this link at least 5 minutes prior to the scheduled start time in order to register and receive dial-in and webcast details.

 

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.

 

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.

 

 

 

 

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 its existing credit facility, 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, 2024 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.

 

 Investor Relations Contact:
John Nesbett/Jennifer Belodeau

IMS Investor Relations
(203) 972-9200

hudson@imsinvestorrelations.com

Company Contact:
Brian Bertaux, Chief Financial Officer
Hudson Technologies, Inc.
(845) 735-6000
bbertaux@hudsontech.com 

 

 

 

 

Hudson Technologies, Inc. and Subsidiaries

Consolidated Balance Sheets

(Amounts in thousands, except for share and par value amounts)

 

   September 30,   December 31, 
   2025   2024 
   (unaudited)     
Assets          
Current assets:          
Cash and cash equivalents  $89,681   $70,134 
Trade accounts receivable – net of allowance for credit losses of $977 and $1,079, respectively   25,366    13,629 
Inventories   97,414    96,247 
Income tax receivable   4,284    6,284 
Prepaid expenses and other current assets   17,614    9,218 
Total current assets   234,359    195,512 
           
Property, plant and equipment, less accumulated depreciation   22,781    21,554 
Goodwill   62,280    62,280 
Intangible assets, less accumulated amortization   11,632    14,100 
Right of use asset   5,537    6,878 
Other assets   2,357    2,328 
Total Assets  $338,946   $302,652 
           
Liabilities and Stockholders’ Equity          
Current liabilities:          
Trade accounts payable  $19,994   $8,692 
Accrued expenses and other current liabilities   42,202    33,813 
Accrued payroll   1,837    3,704 
Other short-term liabilities       1,600 
Total current liabilities   64,033    47,809 
Deferred tax liability   5,536    4,076 
Long-term lease liabilities   3,488    4,917 
Total Liabilities   73,057    56,802 
           
Commitments and contingencies          
           
Stockholders’ equity:          
Preferred stock, shares authorized 5,000,000: Series A Convertible preferred stock, $0.01 par value ($100 liquidation preference value); shares authorized 150,000; none issued or outstanding        
Common stock, $0.01 par value; shares authorized 100,000,000; issued and outstanding: 43,598,202 and 44,284,374, respectively   436    443 
Additional paid-in capital   105,538    110,792 
Retained earnings   159,915    134,615 
Total Stockholders’ Equity   265,889    245,850 
           
Total Liabilities and Stockholders’ Equity  $338,946   $302,652 

 

 

 

 

Hudson Technologies, Inc. and Subsidiaries

Consolidated Statements of Income

(unaudited)

(Amounts in thousands, except for share and per share amounts)

 

   Three months   Nine months 
   ended September 30,   ended September 30, 
   2025   2024   2025   2024 
Revenues  $74,012   $61,943   $202,204   $202,475 
Cost of sales   50,338    46,001    143,651    142,541 
Gross profit   23,674    15,942    58,553    59,934 
                     
Operating expenses:                    
Selling, general and administrative   8,883    8,059    26,318    25,019 
Amortization   823    910    2,468    2,368 
Total operating expenses   9,706    8,969    28,786    27,387 
                     
Operating income   13,968    6,973    29,767    32,547 
                     
Other (income) expense:                    
Interest expense (income)   (792)   (315)   (2,019)   51 
Other income   (1,600)   (2,250)   (1,600)   (2,250)
Total other income   (2,392)   (2,565)   (3,619)   (2,199)
                     
Income before income taxes   16,360    9,538    33,386    34,746 
                     
Income tax expense   3,986    1,732    8,086    7,793 
                     
Net income  $12,374   $7,806   $25,300   $26,953 
                     
Net income per common share – Basic  $0.28   $0.17   $0.58   $0.59 
Net income per common share – Diluted  $0.27   $0.17   $0.56   $0.57 
Weighted average number of shares outstanding – Basic   43,652,094    45,435,458    43,778,866    45,486,263 
Weighted average number of shares outstanding – Diluted   45,245,197    47,135,443    45,329,681    47,278,638 

 

 

 

 

Hudson Technologies, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(unaudited)

(Amounts in thousands)

 

   Nine months 
   ended September 30, 
   2025   2024 
Cash flows from operating activities:          
Net income  $25,300   $26,953 
Adjustments to reconcile net income to cash provided by operating activities:          
Depreciation   2,105    2,274 
Amortization of intangible assets   2,468    2,368 
Gain on measurement of earn-out liability   (1,600)    
Impairment of long lived assets       441 
Lower of cost or net realizable value inventory adjustment   211    3,811 
Allowance for credit losses   300    14 
Share based compensation   631    808 
Amortization of deferred finance costs   170    171 
Deferred tax expense (benefit)   1,460    (1,020)
Changes in assets and liabilities:          
Trade accounts receivable   (12,038)   (733)
Inventories   (1,378)   52,189 
Prepaid and other assets   (8,595)   (6,732)
Lease obligations       (6)
Income taxes receivable   2,000    1,794 
Accounts payable and accrued expenses   18,347    (11,229)
Cash provided by operating activities   29,381    71,103 
           
Cash flows from investing activities:          
Payments for acquisition       (20,670)
Additions to property, plant, and equipment   (3,942)   (3,752)
Cash used in investing activities   (3,942)   (24,422)
           
Cash flows from financing activities:          
Proceeds from issuance of common stock   45     
Excess tax benefits from exercise of stock options       (4)
Repurchase of common shares   (5,820)   (2,636)
Excise tax on repurchase of common shares   (117)    
Cash used in financing activities   (5,892)   (2,640)
           
Increase in cash and cash equivalents   19,547    44,041 
Cash and cash equivalents at beginning of period   70,134    12,446 
Cash and cash equivalents at end of period  $89,681   $56,487 
           
Supplemental disclosure of cash flow information:          
Cash paid for interest  $431   $529 
Cash paid for income taxes – net  $4,627   $7,042 
           
Property and equipment included in accrued expenses and other current liabilities  $3   $