Hudson Tech (HDSN) AI Stock Analysis

• Market Cap: $399.13M
• Dividend Yield: N/A
• Average Volume (3M): 240.54K
• Price to Earnings (P/E): 23.2
• Beta (1Y): 0.72
• Revenue Growth: -14.17%
• EPS Growth: -49.13%
• Country: US
• Employees: 238
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.23
• Shares Outstanding: 43,668,370
• 10 Day Avg. Volume: 200,921
• 30 Day Avg. Volume: 240,538
• PEG Ratio: -0.20
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 1.07
• P/FCF Ratio: 2.92
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 1.28
• Enterprise Value/Gross Profit: 5.09
• Enterprise Value/Ebitda: 13.56
• 1Y Price Target: $10.50
• Price Target Upside: 14.88% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 69 Neutral
• Price Target: $10.00 ▲(9.41% Upside)

Hudson Tech's overall stock score reflects strong financial performance and a solid balance sheet, tempered by bearish technical indicators and valuation concerns. The earnings call provided a balanced view with optimism about future growth, despite current challenges.

Positive Factors

Strong Cash Position

A robust cash position with no debt enhances financial flexibility, enabling Hudson Tech to invest in growth opportunities and weather economic downturns.

Reclamation Business Growth

Growth in the reclamation business indicates strategic alignment with environmental regulations, offering a sustainable revenue stream and competitive edge.

Improved Gross Margin

Improved gross margins reflect effective cost management and pricing strategies, contributing to long-term profitability and operational efficiency.

Negative Factors

Revenue Decline

A decline in revenue poses a challenge to growth momentum, requiring strategic initiatives to reverse the trend and sustain market position.

Weather Dependency

Dependence on weather conditions introduces volatility in sales, necessitating diversification to mitigate seasonal impacts on revenue.

Seasonal Sales Fluctuations

Seasonal fluctuations can affect annual performance, highlighting the need for strategic planning to manage cyclical demand variations effectively.

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 Tech generates revenue through multiple streams, primarily by offering subscription-based software services, licensing its proprietary technologies, and providing consulting services for system integration and optimization. A significant portion of its income comes from long-term contracts with enterprise clients who require ongoing support and updates for their technology implementations. Additionally, HDSN has formed strategic partnerships with leading firms in the tech industry, allowing it to expand its market reach and enhance its product offerings, further contributing to its earnings.

Hudson Tech Financial Statement Overview

Summary

Hudson Tech's financial performance is strong, with stable profitability, prudent cash flow management, and a solid balance sheet. However, recent pressures on revenue and asset growth suggest a need for strategic initiatives to sustain momentum.

Income Statement

Hudson Tech's income statement shows a remarkable recovery from past losses, with consistent net profit margins and positive revenue growth over the past few years. The TTM data reflects a slight decline in revenue and profitability, but overall, the company maintains solid gross and EBIT margins, indicating good operational efficiency. However, the recent trend of shrinking revenues and margins may pose a challenge if not addressed.

Balance Sheet

The balance sheet indicates a strong equity base with a low debt-to-equity ratio, suggesting financial stability. The equity ratio is healthy, ensuring limited leverage risks. However, the reduction in total assets and stockholders' equity over the recent period may signal potential constraints in asset growth and capital utilization.

Cash Flow

Hudson Tech has shown impressive cash flow management with robust free cash flow generation and positive operating cash flow trends. The company has successfully increased free cash flow despite reduced revenue, reflecting efficient cost management and capital expenditure control. However, the slight decline in operating cash flow in the TTM period warrants monitoring.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	224.78M	237.12M	289.02M	325.23M	192.75M	147.60M
Gross Profit	56.59M	65.71M	111.51M	162.89M	71.66M	35.41M
EBITDA	21.27M	35.69M	83.95M	137.49M	50.95M	13.03M
Net Income	18.17M	24.39M	52.25M	103.80M	32.26M	-5.21M
Balance Sheet
Total Assets	317.85M	302.65M	296.67M	272.49M	215.72M	161.65M
Cash, Cash Equivalents and Short-Term Investments	84.29M	70.13M	12.45M	5.29M	3.49M	1.35M
Total Debt	3.94M	6.88M	6.68M	50.67M	100.27M	93.92M
Total Liabilities	63.07M	56.80M	67.90M	97.62M	144.78M	121.03M
Stockholders Equity	254.78M	245.85M	228.77M	174.88M	70.94M	40.62M
Cash Flow
Free Cash Flow	66.45M	86.51M	54.97M	59.16M	-3.15M	10.22M
Operating Cash Flow	71.55M	91.81M	58.55M	62.81M	-1.23M	11.69M
Investing Cash Flow	-5.09M	-25.97M	-3.58M	-3.66M	-1.92M	-470.00K
Financing Cash Flow	-12.69M	-8.15M	-47.82M	-57.35M	5.29M	-12.47M

Hudson Tech Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 9.14
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HDSN, the sentiment is Neutral. The current price of 9.14 is below the 20-day moving average (MA) of 9.14, below the 50-day MA of 9.68, and above the 200-day MA of 7.65, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 45.46 is Neutral, neither overbought nor oversold. The STOCH value of 59.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HDSN.

Hudson Tech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HDSN	―	$399.13M	23.19	7.22%	―	-14.17%	-49.13%
KOP	―	$576.68M	41.22	2.92%	1.06%	-6.20%	-80.00%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
GPRE	―	$675.98M	-4.28	-18.95%	―	-15.66%	-237.12%
GEVO	―	$553.81M	-9.29	-11.71%	―	341.75%	20.16%
OEC	―	$299.28M	20.53	3.11%	1.55%	-3.79%	-79.76%
LWLG	―	$623.90M	-27.99	-65.80%	―	4.52%	6.57%

Hudson Tech Corporate Events

Hudson Tech Secures $210M Contract with DLA

On October 22, 2025, Hudson Technologies announced it has been awarded a new contract as the prime contractor with the United States Defense Logistics Agency (DLA), valued at approximately $210 million for the first five-year base period. This contract, which Hudson has held since 2016, involves the management and supply of refrigerants and related items to U.S. Military Commands and Federal civilian agencies, reinforcing the company’s strong partnership with the DLA and its role in providing critical materials to military installations.

The most recent analyst rating on (HDSN) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Hudson Tech stock, see the HDSN Stock Forecast page.

Hudson Technologies Reports Strong Q2 Despite Challenges

Hudson Technologies’ recent earnings call painted a generally positive picture, highlighting solid financial performance and a strong cash position, while also addressing challenges such as a slow start to the cooling season and potential regulatory uncertainties. The company emphasized its strategic focus on growth opportunities in the reclamation and refrigerant markets, despite slight declines in refrigerant prices.

Hudson Technologies Reports Solid Q2 2025 Results

Hudson Technologies, Inc. is a prominent player in the Heating, Ventilation, Air Conditioning, and Refrigeration industry, known for its sustainable refrigerant products and services, including reclamation and system decontamination. In its latest earnings report for the second quarter of 2025, Hudson Technologies reported revenues of $72.8 million, with a gross margin of 31% and net income of $10.2 million. Despite a slight decrease in revenue compared to the previous year, the company maintained a strong financial position with $84.3 million in cash and no debt. Key highlights include a 3% decrease in quarterly revenue due to reduced sales volume, offset by increased pricing of certain refrigerants, and a slight increase in selling, general, and administrative expenses. The company also reported a net income increase from $9.6 million in the same quarter of 2024 to $10.2 million in 2025. Looking ahead, Hudson Technologies remains focused on meeting customer demands and supporting the transition to lower GWP technologies, viewing the phase-down of HFCs as a significant long-term growth opportunity. The company is committed to investing in organic growth, pursuing strategic acquisitions, and maintaining disciplined capital deployment to enhance shareholder value.