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Hudson Tech
(NASDAQ:HDSN)
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Rating:58Neutral
Price Target:
$6.50
▲(2.52% Upside)
Action:Reiterated
Date:08/18/26
HDSN scores in the upper-50s primarily because strong balance-sheet strength is being offset by weakened operating fundamentals—material margin compression and currently negative operating/free cash flow. The latest earnings update adds support from volume-led revenue growth and improved contract visibility (DLA reaward), but the lowered gross-margin outlook and cost pressures constrain the score. Technicals are mixed (below the 200-day, MACD negative), and valuation looks only moderate with a ~29.6 P/E and no dividend yield provided.
Positive Factors
Very low leverage and strong liquidity
Minimal leverage and substantial cash reduce financial risk, interest burden and refinancing dependence. This gives Hudson flexibility to fund reclamation capacity, service expansion and working-capital needs while operating conditions remain uneven.
Negative Factors
Negative operating and free cash flow
Sustained negative cash conversion reduces financial flexibility and may reflect higher working-capital requirements or weaker earnings quality. Although liquidity is strong, continued outflows could constrain investment capacity and increase reliance on existing cash reserves.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage and strong liquidity
Minimal leverage and substantial cash reduce financial risk, interest burden and refinancing dependence. This gives Hudson flexibility to fund reclamation capacity, service expansion and working-capital needs while operating conditions remain uneven.
Read all positive factors
Hudson Tech (HDSN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$238.64M
Dividend YieldN/A
Average Volume (3M)506.24K
Price to Earnings (P/E)29.6
Beta (1Y)0.84
Revenue Growth14.30%
EPS Growth-49.26%
CountryUS
Employees281
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.21
Shares Outstanding42,088,547
10 Day Avg. Volume387,774
30 Day Avg. Volume506,237
Financial Highlights & Ratios
PEG Ratio-0.61
Price to Book (P/B)1.21
Price to Sales (P/S)1.19
P/FCF Ratio-35.87
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$7.31Price Target Upside15.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)0.38
Revenue Forecast (FY)$253.36M
Hudson Tech Business Overview & Revenue Model
Company Description
Hudson Technologies, Inc. (HDSN) operates as a dedicated provider of specialized refrigerant services, addressing persistent issues within the refrigeration industry, primarily throughout the United States. The company's core business involves the...
How the Company Makes Money
Hudson Technologies primarily makes money by selling refrigerants and providing refrigerant-related services, with a major emphasis on refrigerant reclamation. Key revenue streams include: (1) Refrigerant sales: Hudson sells refrigerants to custom...
Hudson Tech Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Neutral
Mixed results: the company delivered top-line growth (revenue +8%, volume +12%), strengthened strategic capabilities (Icorium partnership, SRT pilot, predictive servicing wins), and maintained a clean balance sheet ($26M cash, no debt). However, meaningful margin compression (gross margin down to 26% from 31%), a 6% decline in average selling price, a roughly 52% drop in net income, higher SG&A and freight inflation, and a downward revision to gross margin guidance temper near-term outlook. Management emphasized long-term strategic investments to diversify and de-risk the business.Positive Updates
Revenue Growth
Revenue of $78.3M, up 8% year-over-year driven by higher sales volume.
Negative Updates
Gross Margin Compression
Gross margin declined to 26% from 31% a year earlier (a 500 basis point decline). Management attributed ~232 basis points to comparison against 2025 HFO-driven pricing and the remainder to higher operating costs.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Revenue of $78.3M, up 8% year-over-year driven by higher sales volume.
Read all positive updates
Company Guidance
Management revised full‑year 2026 gross‑margin guidance from “mid‑20%” to “low‑to‑mid‑20%,” expects second‑half SG&A to remain above 2025 levels though lower than the elevated H1 run‑rate, and said ERP optimization costs exceeded $1.0M in H1 and should decline in H2; they see 410A pricing stabilizing around $6.00 per pound, finished Q2 with $26.0M cash and no debt (a $6.0M sequential cash increase vs. March 31), repurchased $2.5M of stock YTD (none in Q2), and noted a DLA bridge contract through Nov. 29, 2026 (with two 3‑month extensions to May 2027) and a subsequently announced five‑year, $210M reaward — all set against Q2 operating metrics of $78.3M revenue (+8% y/y), sales volume +12%, average refrigerant price -6%, gross margin 26% (vs. 31% a year ago) and net income $4.9M ($0.12/sh) as the company invests for longer‑term, less cyclical growth.Hudson Tech Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
90
Very Positive
Cash Flow
27
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 256.92M | 246.61M | 237.12M | 289.02M | 325.23M | 192.75M |
| Gross Profit | 59.76M | 62.10M | 65.71M | 111.51M | 162.89M | 71.66M |
| EBITDA | 21.82M | 28.68M | 38.41M | 83.95M | 137.49M | 50.95M |
| Net Income | 9.02M | 16.67M | 24.39M | 52.25M | 103.80M | 32.26M |
Balance Sheet | ||||||
| Total Assets | 322.06M | 318.65M | 302.65M | 296.67M | 272.49M | 215.72M |
| Cash, Cash Equivalents and Short-Term Investments | 25.60M | 39.46M | 70.13M | 12.45M | 5.29M | 3.49M |
| Total Debt | 3.71M | 5.29M | 6.88M | 6.68M | 50.67M | 100.27M |
| Total Liabilities | 78.80M | 75.26M | 56.80M | 67.90M | 97.62M | 144.78M |
| Stockholders Equity | 243.26M | 243.39M | 245.85M | 228.77M | 174.88M | 70.94M |
Cash Flow | ||||||
| Free Cash Flow | -34.51M | -8.21M | 86.51M | 54.97M | 59.16M | -3.15M |
| Operating Cash Flow | -29.69M | -3.16M | 91.81M | 58.55M | 62.81M | -1.23M |
| Investing Cash Flow | -7.06M | -7.29M | -25.97M | -3.58M | -3.66M | -1.92M |
| Financing Cash Flow | -21.94M | -20.23M | -8.15M | -47.82M | -57.35M | 5.29M |
Hudson Tech Technical Analysis
Positive
6.34
Price Trends
5.91
Positive
5.82
Positive
6.46
Negative
Market Momentum
-0.06
Positive
56.00
Neutral
35.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HDSN, the sentiment is Positive. The current price of 6.34 is above the 20-day moving average (MA) of 5.96, above the 50-day MA of 5.91, and below the 200-day MA of 6.46, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 56.00 is Neutral, neither overbought nor oversold. The STOCH value of 35.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HDSN.
Hudson Tech Risk Analysis
Hudson Tech disclosed 16 risk factors in its most recent earnings report. Hudson Tech reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hudson Tech Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $891.49M | -10.27 | -16.91% | 0.68% | -4.98% | -710.42% | |
60 Neutral | $364.01M | -3.60 | -24.91% | 1.18% | -1.02% | -734.16% | |
58 Neutral | $238.64M | 29.60 | 3.64% | ― | 14.30% | -49.26% | |
58 Neutral | $1.09B | 9.02 | 15.54% | ― | -21.51% | ― | |
51 Neutral | $1.17B | -46.96 | -30.34% | ― | 165.22% | 3.72% | |
47 Neutral | $417.83M | -1.77 | -51.42% | ― | 121.37% | -264.53% |
* Basic Materials Sector Average
HDSN
Hudson Tech
6.15
-3.36
-35.33%
GEVO
Gevo
1.60
0.01
0.63%
GPRE
Green Plains
16.14
7.80
93.53%
KOP
Koppers Holdings
47.45
17.90
60.56%
OEC
Orion SA
6.23
-3.91
-38.55%
LWLG
Lightwave Logic
7.42
5.37
261.95%
Hudson Tech Corporate Events
Business Operations and Strategy
Hudson Tech Regains Long-Term DLA Refrigerant Contract
Positive
Aug 6, 2026
On August 5, 2026, Hudson Technologies, Inc. announced it had been re-awarded an Indefinite Delivery Indefinite Quantity contract by the U.S. Defense Logistics Agency, restoring a deal that had been rescinded amid a bid protest filed in January 20...
Business Operations and Strategy
Hudson Tech assesses tornado damage at Champaign facility
Negative
Jun 12, 2026
On the evening of June 11, 2026, Hudson Technologies’ primary refrigerant reclamation facility in Champaign, Illinois, known as the Mattis Facility, was heavily damaged by strong storms and tornadoes, while the company’s other nearby f...
Executive/Board ChangesShareholder Meetings
Hudson Technologies Shareholders Reelect Directors, Approve Governance Items
Positive
Jun 11, 2026
At its Annual Meeting of Shareholders held on June 10, 2026, Hudson Technologies, Inc. shareholders elected Loan N. Mansy, Richard Parrillo, Eric A. Prouty and Alan Sheriff as directors to serve until the 2028 annual meeting, reinforcing continuit...
Business Operations and Strategy
Hudson Tech Secures Extension of Key DLA Contract
Positive
May 28, 2026
On May 27, 2026, Hudson Technologies Company, a subsidiary of Hudson Technologies, Inc., secured a bridge modification from the U.S. Defense Logistics Agency that extends the expiration of its long-running refrigerant and compressed gases contract...
Business Operations and StrategyPrivate Placements and Financing
Hudson Tech Expands Credit Facility Letter of Credit
Positive
May 20, 2026
On May 19, 2026, Hudson Technologies Company and Hudson Holdings, Inc., with Hudson Technologies, Inc. as guarantor, entered into a Fifth Amendment to their Amended and Restated Credit Agreement with Wells Fargo Bank, National Association, and oth...
Business Operations and Strategy
Hudson Tech Board Signals Confidence with Insider Stock Purchases
Positive
May 18, 2026
On May 18, 2026, Hudson Technologies announced that all members of its board of directors and certain senior executives had purchased additional shares of the company’s common stock in open-market transactions, signaling internal confidence ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.