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Hudson Tech
(NASDAQ:HDSN)
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Rating:57Neutral
Price Target:
$6.50
▲(2.52% Upside)
Action:Reiterated
Date:06/13/26
The score is held back primarily by the swing to negative operating/free cash flow and compressed margins despite strong revenue growth, partially offset by a very conservatively levered balance sheet. Technicals are mixed with short-term support but a longer-term downtrend. Valuation is reasonable at ~17x earnings, while earnings-call guidance points to margin recovery but with clear execution risk and a notable near-term operational risk from tornado damage at the main facility.
Positive Factors
Revenue Growth
Sustained top‑line expansion (TTM +195%) indicates meaningful demand capture in core refrigerant and reclamation channels. Durable volume growth supports scale benefits for fixed-cost absorption and provides a stable base for margin recovery if product mix and pricing normalize.
Negative Factors
Weak Cash Generation
Material negative operating and free cash flow versus prior years signals structural working capital or margin strain. Continued cash burn reduces ability to self‑fund investments and increases reliance on liquidity actions, elevating execution and funding risk over the coming quarters if not reversed.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained top‑line expansion (TTM +195%) indicates meaningful demand capture in core refrigerant and reclamation channels. Durable volume growth supports scale benefits for fixed-cost absorption and provides a stable base for margin recovery if product mix and pricing normalize.
Read all positive factors
Hudson Tech (HDSN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$271.34M
Dividend YieldN/A
Average Volume (3M)524.29K
Price to Earnings (P/E)20.2
Beta (1Y)0.94
Revenue Growth10.66%
EPS Growth-16.55%
CountryUS
Employees238
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.32
Shares Outstanding42,068,787
10 Day Avg. Volume685,702
30 Day Avg. Volume524,294
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 Cap0.82
Enterprise Value/Revenue0.89
Enterprise Value/Gross Profit3.60
Enterprise Value/Ebitda8.08
Forecast
1Y Price Target
$8.83Price Target Upside39.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)0.39
Revenue Forecast (FY)$250.31M
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:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Neutral
The call delivered a balanced message: positive operational and strategic progress (9% revenue growth, ERP integration, licensing deals, strengthened leadership and an unlevered $19M cash position) countered by near-term profitability headwinds (gross margin compressed to 20%, net income and operating income materially lower, and higher SG&A tied to ERP optimization). Management reiterated confidence in margin recovery to the mid-20s and expects higher volumes in Q2, but execution risks, early-stage commercialization of new licensing and external uncertainties (DLA outcome, macro/regulatory environment) leave the near-term financial picture mixed.Positive Updates
Revenue Growth
Revenue increased 9% year-over-year to $60.2 million in Q1 2026 (from $55.3 million in Q1 2025), driven by higher sales volume, firming HFC prices and warmer-than-typical weather in parts of the U.S.
Negative Updates
Gross Margin Pressure
Gross margin fell to 20% in Q1 2026 from 22% in Q1 2025 (gross profit $11.8M vs $12.1M), driven primarily by an unfavorable mix (fewer higher-margin HFOs sold in the quarter) and seasonal comps; management called Q1 a low-margin seasonal quarter.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Revenue increased 9% year-over-year to $60.2 million in Q1 2026 (from $55.3 million in Q1 2025), driven by higher sales volume, firming HFC prices and warmer-than-typical weather in parts of the U.S.
Read all positive updates
Company Guidance
Hudson said it expects continued volume improvement into the 2026 selling season (after reporting Q1 revenue of $60.2M, +9% YoY) but anticipates pricing to be lower versus the disrupted 2025 comparable; management reiterated a full‑year gross margin target in the mid‑20s (mid‑25s) after Q1 gross profit of $11.8M and a 20% gross margin, and said margins should recover into Q2/Q3. Management warned ERP optimization will keep elevated SG&A activity (Q1 SG&A $9.5M, up from $8.2M, with roughly half the increase tied to ERP costs) but does not expect major ERP disruptions, and expects continued investment in the business. Other metrics noted: Q1 operating income $1.5M, income before taxes $1.6M, net income $0.3M ($0.01 diluted EPS), cash of $19M at quarter‑end, $2.5M of buybacks in Q1, HFC pricing ~>$6/lb with R‑410A firming modestly, and an unlevered balance sheet while remaining opportunistic on buybacks and M&A.Hudson Tech Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
88
Very Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 251.42M | 246.61M | 237.12M | 289.02M | 325.23M | 192.75M |
| Gross Profit | 61.88M | 62.10M | 65.71M | 111.51M | 162.89M | 71.66M |
| EBITDA | 27.57M | 28.68M | 38.41M | 83.95M | 137.49M | 50.95M |
| Net Income | 14.24M | 16.67M | 24.39M | 52.25M | 103.80M | 32.26M |
Balance Sheet | ||||||
| Total Assets | 308.92M | 318.65M | 302.65M | 296.67M | 272.49M | 215.72M |
| Cash, Cash Equivalents and Short-Term Investments | 19.37M | 39.46M | 70.13M | 12.45M | 5.29M | 3.49M |
| Total Debt | 5.27M | 5.29M | 6.88M | 6.68M | 50.67M | 100.27M |
| Total Liabilities | 71.25M | 75.26M | 56.80M | 67.90M | 97.62M | 144.78M |
| Stockholders Equity | 237.68M | 243.39M | 245.85M | 228.77M | 174.88M | 70.94M |
Cash Flow | ||||||
| Free Cash Flow | -34.84M | -8.21M | 86.51M | 54.97M | 59.16M | -3.15M |
| Operating Cash Flow | -30.12M | -3.16M | 91.81M | 58.55M | 62.81M | -1.23M |
| Investing Cash Flow | -6.95M | -7.29M | -25.97M | -3.58M | -3.66M | -1.92M |
| Financing Cash Flow | -24.61M | -20.23M | -8.15M | -47.82M | -57.35M | 5.29M |
Hudson Tech Technical Analysis
Positive
6.34
Price Trends
5.59
Positive
5.96
Positive
6.89
Negative
Market Momentum
0.22
Negative
69.40
Neutral
89.39
Negative
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 5.85, above the 50-day MA of 5.59, and below the 200-day MA of 6.89, indicating a neutral trend. The MACD of 0.22 indicates Negative momentum. The RSI at 69.40 is Neutral, neither overbought nor oversold. The STOCH value of 89.39 is Negative, 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% | |
60 Neutral | $914.67M | 12.25 | 14.03% | 1.19% | -8.43% | 222.90% | |
57 Neutral | $271.34M | 20.25 | 5.69% | ― | 10.66% | -16.55% | |
56 Neutral | $1.18B | -62.41 | -2.02% | ― | -20.16% | 83.66% | |
52 Neutral | $352.95M | -10.18 | -7.28% | ― | 314.95% | 58.49% | |
51 Neutral | $1.05B | -41.46 | -38.79% | ― | 175.93% | 11.30% | |
45 Neutral | $320.85M | -3.57 | -21.83% | 1.61% | -3.44% | -444.16% |
* Basic Materials Sector Average
HDSN
Hudson Tech
6.45
-1.67
-20.57%
GEVO
Gevo
1.45
-0.08
-5.23%
GPRE
Green Plains
16.89
8.97
113.26%
KOP
Koppers Holdings
47.56
14.17
42.42%
OEC
Orion SA
5.69
-5.34
-48.39%
LWLG
Lightwave Logic
6.83
5.36
364.63%
Hudson Tech Corporate Events
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 ...
Business Operations and StrategyExecutive/Board Changes
Hudson Tech Refreshes Board With New Independent Directors
Positive
Apr 13, 2026
On April 10, 2026, Hudson Technologies’ board elected veteran financiers Alan Sheriff and Jeffrey R. Feeler as independent directors, with Sheriff joining the nominating and governance committee and Feeler becoming chair of the audit committ...
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.