Hudson Tech (HDSN) AI Stock Analysis

• Market Cap: $246.74M
• Dividend Yield: N/A
• Average Volume (3M): 341.50K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.90
• Revenue Growth: -4.24%
• EPS Growth: -23.16%
• Country: US
• Employees: 238
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -0.20
• Shares Outstanding: 42,468,822
• 10 Day Avg. Volume: 469,080
• 30 Day Avg. Volume: 341,502
• PEG Ratio: -0.60
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 1.19
• P/FCF Ratio: -35.87
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 0.87
• Enterprise Value/Gross Profit: 3.44
• Enterprise Value/Ebitda: 8.36
• 1Y Price Target: $9.50
• Price Target Upside: 63.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.45
• Revenue Forecast (FY): $247.43M

• Rating: 56 Neutral
• Price Target: $6.50 ▲(11.88% Upside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is held back primarily by weakened cash flow reliability (negative operating/free cash flow in 2025) and clear technical downtrending (below key moving averages with negative MACD). These risks are partially offset by a very strong balance sheet with minimal leverage, moderate valuation (P/E ~17.7), and an earnings-call outlook that includes specific guidance and expected easing of ERP-related inefficiencies, albeit with notable near-term margin and contract-visibility headwinds.

Positive Factors

Strong, low‑leverage balance sheet

Near‑zero leverage and a rebuilt equity base give Hudson durable financial flexibility to fund capex, tuck‑in acquisitions, opportunistic buybacks, and absorb cyclical working capital swings in the refrigerant cycle without raising external debt or risking solvency.

Sustained reclamation volume growth

Consecutive 18% reclamation growth strengthens Hudson's reclaimed supply footprint amid regulatory phase‑downs of virgin refrigerant. Higher recovery volumes create a durable revenue base, scale advantages in processing, and better alignment with long‑term demand drivers.

Strategic acquisitions and geographic expansion

Targeted M&A expanded Hudson's recovery network and Western U.S. presence, improving service coverage and logistics. These structural footprint gains increase market share potential, create synergies in collection/processing, and raise barriers for smaller local competitors.

Negative Factors

Inconsistent and negative cash generation

A swing to negative operating and free cash flow in 2025, and historical inconsistency, raises persistent working‑capital and execution risk. Weak cash conversion limits ability to self‑fund growth or weather pricing shocks without drawing on liquidity or altering capital allocation plans.

Margin compression and inventory‑related charges

Declining gross margins, higher freight and inventory write‑downs indicate structural pressure on profitability absent price recovery or cost reductions. Inventory adjustments and episodic charges erode earnings resilience and require sustained operational fixes to restore prior margin levels.

DLA contract rescission creates revenue visibility risk

The rescission of a material DLA award (was $38M revenue in 2025) injects medium‑term uncertainty into backlog and revenue outlook. While current contract work continues through 2026, the contested award reduces visibility for recurring government volumes and complicates planning for capacity and investment.

Hudson Tech Business Overview & Revenue Model

Company Description

Hudson Technologies, Inc. a refrigerant services company, provides solutions to recurring problems within the refrigeration industry primarily in the United States. The company's products and services include refrigerant and industrial gas sales; refrigerant management services consisting primarily of reclamation of refrigerants, re-usable cylinder refurbishment, and hydrostatic testing services; and RefrigerantSide services comprising system decontamination to remove moisture, oils, and other contaminants. It also offers SmartEnergy OPS service, a web-based real time continuous monitoring service for facility's refrigeration systems and other energy systems applications; and Chiller Chemistry and Chill Smart services. In addition, the company participates in the generation of carbon offset projects. It serves commercial, industrial, and governmental customers, as well as refrigerant wholesalers, distributors, contractors, and refrigeration equipment manufacturers. Hudson Technologies, Inc. was incorporated in 1991 and is headquartered in Woodcliff Lake, New Jersey.

How the Company Makes Money

Hudson Technologies primarily makes money by selling reclaimed refrigerants and related services into the HVACR (heating, ventilation, air conditioning, and refrigeration) supply chain. Key revenue streams generally include: (1) sales of reclaimed refrigerants—Hudson sources used refrigerant from equipment owners, contractors, wholesalers, and other market participants, processes it to meet applicable purity specifications, and sells it to customers that need refrigerant for servicing existing systems; (2) refrigerant management services—activities such as recovering, handling, and managing refrigerants for customers (often tied to compliance and lifecycle management needs) which can support or bundle with product sales; and (3) ancillary revenue tied to the company’s position in refrigerant supply, including pricing and volume benefits that can be influenced by regulatory-driven transitions (e.g., phase-downs/phase-outs) that change virgin refrigerant availability and increase demand for reclaimed product. Specific material partnerships, customer concentration details, or contract structures: null.

Hudson Tech Financial Statement Overview

Summary

Mixed fundamentals: a very strong, low-leverage balance sheet (debt-to-equity near zero) supports stability, but profitability has cooled from the 2022 peak and 2025 cash flow deteriorated sharply with negative operating and free cash flow, raising near-term execution/working-capital risk.

Income Statement

Revenue has been volatile: strong growth in 2021–2022, followed by declines in 2023–2024 and a modest rebound in 2025. Profitability has compressed meaningfully from the 2022 peak (gross and net margins down sharply), and earnings power appears less resilient versus prior years. Still, the company remains solidly profitable in the most recent year, with positive net income and mid-single-digit net margin.

Balance Sheet

The balance sheet is a clear strength. Leverage is very low in recent years (debt-to-equity near zero in 2025) after a major deleveraging versus 2020–2021, and equity has grown substantially over time. Returns on equity remain positive, though down from the elevated 2021–2022 levels, indicating profitability has normalized even as the capital structure improved.

Cash Flow

Cash generation is the main concern. After strong operating cash flow and free cash flow in 2022–2024, 2025 swung to negative operating cash flow and negative free cash flow. Cash flow has also been inconsistent historically (negative operating cash flow in 2021 and 2025), which increases execution and working-capital risk even though profitability remains positive.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	246.61M	237.12M	289.02M	325.23M	192.75M
Gross Profit	62.10M	65.71M	111.51M	162.89M	71.66M
EBITDA	24.55M	35.69M	83.95M	137.49M	50.95M
Net Income	16.67M	24.39M	52.25M	103.80M	32.26M
Balance Sheet
Total Assets	318.65M	302.65M	296.67M	272.49M	215.72M
Cash, Cash Equivalents and Short-Term Investments	39.46M	70.13M	12.45M	5.29M	3.49M
Total Debt	3.23M	6.88M	6.68M	50.67M	100.27M
Total Liabilities	75.26M	56.80M	67.90M	97.62M	144.78M
Stockholders Equity	243.39M	245.85M	228.77M	174.88M	70.94M
Cash Flow
Free Cash Flow	-8.21M	86.51M	54.97M	59.16M	-3.15M
Operating Cash Flow	-3.16M	91.81M	58.55M	62.81M	-1.23M
Investing Cash Flow	-7.29M	-25.97M	-3.58M	-3.66M	-1.92M
Financing Cash Flow	-20.23M	-8.15M	-47.82M	-57.35M	5.29M

Hudson Tech Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HDSN, the sentiment is Negative. The current price of 5.81 is below the 20-day moving average (MA) of 6.45, below the 50-day MA of 6.97, and below the 200-day MA of 8.09, indicating a bearish trend. The MACD of -0.36 indicates Positive momentum. The RSI at 29.75 is Positive, neither overbought nor oversold. The STOCH value of 41.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HDSN.

Hudson Tech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
KOP	60 Neutral	$689.34M	9.60	2.99%	1.19%	-9.62%	-76.62%
GPRE	58 Neutral	$1.08B	-5.45	-15.81%	―	-12.07%	-821.68%
HDSN	56 Neutral	$246.74M	17.68	6.59%	―	-4.24%	-23.16%
GEVO	53 Neutral	$551.20M	-19.47	0.26%	―	675.75%	42.00%
LWLG	47 Neutral	$984.57M	-23.57	-62.24%	―	-11.12%	8.76%
OEC	46 Neutral	$276.87M	-4.24	-7.24%	1.61%	-4.31%	-206.57%

Hudson Tech Corporate Events

Hudson Tech Reshapes Leadership to Drive Operational Growth

On March 13, 2026, Senior Vice President of Sales & Marketing and board member Kathleen L. (Kate) Houghton resigned from Hudson Technologies, Inc., with the company stating her board departure did not stem from any disagreement. The move formed part of a broader management reshaping aimed at strengthening operations and repositioning leadership across sales, marketing and supply chain.

On March 18, 2026, Hudson announced that Rob Stoody was promoted to Senior Vice President of Operations, expanding his remit from supply chain to plant operations and logistics, while Mostafa Parsa was elevated to Vice President of Operations and former supply chain executive Cesar Alonso rejoined as Vice President of Supply Chain. Management highlighted these appointments as critical to improving operational efficiency, supporting growth initiatives and extending the company’s reach in an evolving refrigerant market.

As another pillar of the reorganization, long-time sales leader Kirk Reimer was named Vice President of Sales & Marketing, consolidating oversight of refrigerant sales, services and marketing, and experienced marketer Meredith Baskies joined as Director of Marketing reporting to him. Hudson’s leadership framed the new commercial team as central to capturing new market verticals, expanding partnerships and alliances, and enhancing the company’s competitive position and value creation for shareholders.

The most recent analyst rating on (HDSN) stock is a Buy with a $9.50 price target. To see the full list of analyst forecasts on Hudson Tech stock, see the HDSN Stock Forecast page.

Hudson Tech Appoints Robert Stoody as Senior Operations VP

On January 30, 2026, Hudson Technologies, Inc. appointed longtime executive Robert A. Stoody, 42, as Senior Vice President of Operations, recognizing his progression through key leadership roles including Vice President of Supply Chain and head of the Military and Gases Division, as well as prior industry experience leading Compressed Cylinder Services, Inc. and serving as Executive Vice President of Stoody Industrial & Welding Supply, Inc. His elevation to a top operational role is supported by an existing 2021 employment agreement that remains in force and provides non-compete protections for the company and outlines severance, bonus, and accelerated equity-vesting terms in the event of his involuntary separation without cause or a qualifying voluntary resignation, underscoring the company’s intent to secure leadership continuity and align executive incentives with long-term performance.

The most recent analyst rating on (HDSN) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Hudson Tech stock, see the HDSN Stock Forecast page.

Hudson Tech Faces Bid Protest, DLA Rescinds Contract

On January 30, 2026, Hudson Technologies reported that a competitor has filed a bid protest in the U.S. Court of Federal Claims over the United States Defense Logistics Agency’s evaluation of proposals and the October 2025 contract award to Hudson, which had been scheduled to begin in July 2026. As a result, the DLA has rescinded the 2025 contract award while it reviews its evaluation for potential corrective action, though Hudson will continue to provide logistics support under its existing contract through July 2026, allowing the company to maintain its decade-long relationship and operational continuity with the agency even as the award outcome and future revenue visibility from the new contract remain uncertain.

The most recent analyst rating on (HDSN) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on Hudson Tech stock, see the HDSN Stock Forecast page.