Hudson Tech (HDSN) AI Stock Analysis

• Market Cap: $307.04M
• Dividend Yield: N/A
• Average Volume (3M): 224.40K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.86
• 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: 43,003,185
• 10 Day Avg. Volume: 276,527
• 30 Day Avg. Volume: 224,400
• PEG Ratio: -0.56
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 1.19
• P/FCF Ratio: -35.87
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 0.95
• Enterprise Value/Gross Profit: 3.49
• Enterprise Value/Ebitda: 6.80
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.45
• Revenue Forecast (FY): $247.43M

• Rating: 60 Neutral
• Price Target: $7.50 ▲(5.04% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

HDSN scores strongest on financial stability due to a very low-leverage balance sheet, but the overall rating is held back by weakened cash-flow consistency (negative OCF/FCF in 2025) and a weak technical trend (below key moving averages with negative MACD). Valuation is reasonable and the earnings-call tone is constructive, while corporate events are mixed due to the contract bid-protest overhang despite strategic expansion efforts.

Positive Factors

Balance Sheet Strength

Hudson’s very low leverage and growing equity base provide durable financial flexibility to fund operations, acquisitions, or absorb shocks. Low debt reduces refinancing and solvency risk, supporting strategic optionality and resilience over the next several quarters to years.

Strategic Acquisition & Reclamation

The Refrigerants Inc. acquisition expands Hudson’s access to reclaimed product and EPA-certified reclamation capabilities, directly aligning with AIM Act-driven demand for lower-GWP refrigerants. This strengthens aftermarket supply, supports margin durability, and bolsters long-term market positioning in a regulated industry.

Operational Leadership Continuity

Promoting a seasoned operations executive with an employment agreement (non-compete, severance, equity vesting) preserves institutional knowledge and aligns incentives. That continuity reduces execution risk during leadership transitions and supports reliable supply‑chain and military contract operations.

Negative Factors

Cash Flow Instability

Operating and free cash flow turned negative in 2025 after prior years of positive cash generation, and OCF has been inconsistent historically. This weakens internal funding for inventory, capex and M&A, increases reliance on cash reserves or external financing, and raises execution risk.

Contract Award Uncertainty

The DLA bid protest and rescission of the new award create material government-contract revenue visibility risk. Although Hudson will continue under the existing contract through July 2026, uncertainty around the $210M award threatens multi-year backlog assumptions and complicates revenue and cash flow planning.

Revenue & Margin Volatility

Revenue has been volatile—strong in 2021–2022, weaker in 2023–2024—and margins have compressed markedly from 2022 peaks. This indicates less resilient earnings power and greater sensitivity to pricing and market imbalances, increasing downside risk if macro or regulatory timing shifts persist.

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, including the sale of its energy management software licenses, hardware devices, and subscription services for its cloud-based analytics platforms. Additionally, the company offers consulting and support services to help clients implement and maximize the effectiveness of their energy management solutions. Significant partnerships with energy suppliers and technology firms further bolster its revenue, enabling HDSN to expand its market reach and enhance its product offerings. The growing demand for energy efficiency solutions and sustainability initiatives among businesses is a critical factor contributing to HDSN's earnings.

Hudson Tech Financial Statement Overview

Summary

Strong balance sheet (very low leverage and a solid equity base) is a major positive, but operating performance has cooled from the 2022 peak and cash flow reliability deteriorated materially with negative operating and free cash flow in 2025.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	236.85M	246.61M	237.12M	289.02M	325.23M	192.75M
Gross Profit	64.33M	62.10M	65.71M	111.51M	162.89M	71.66M
EBITDA	33.00M	18.56M	35.69M	83.95M	137.49M	50.95M
Net Income	22.73M	16.67M	24.39M	52.25M	103.80M	32.26M
Balance Sheet
Total Assets	338.95M	318.65M	302.65M	296.67M	272.49M	215.72M
Cash, Cash Equivalents and Short-Term Investments	89.68M	39.46M	70.13M	12.45M	5.29M	3.49M
Total Debt	3.49M	3.23M	6.88M	6.68M	50.67M	100.27M
Total Liabilities	73.06M	75.26M	56.80M	67.90M	97.62M	144.78M
Stockholders Equity	265.89M	243.39M	245.85M	228.77M	174.88M	70.94M
Cash Flow
Free Cash Flow	44.60M	-8.21M	86.51M	54.97M	59.16M	-3.15M
Operating Cash Flow	50.09M	-3.16M	91.81M	58.55M	62.81M	-1.23M
Investing Cash Flow	-5.49M	-7.29M	-25.97M	-3.58M	-3.66M	-1.92M
Financing Cash Flow	-11.40M	-20.23M	-8.15M	-47.82M	-57.35M	5.29M

Hudson Tech Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 7.14 is below the 20-day moving average (MA) of 7.30, below the 50-day MA of 7.20, and below the 200-day MA of 8.18, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 45.92 is Neutral, neither overbought nor oversold. The STOCH value of 45.24 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%
HDSN	60 Neutral	$307.04M	17.68	8.75%	―	-4.24%	-23.16%
KOP	60 Neutral	$757.10M	9.60	2.99%	1.19%	-9.62%	-76.62%
GPRE	58 Neutral	$1.02B	-5.45	-14.87%	―	-12.07%	-821.68%
GEVO	48 Neutral	$450.69M	-14.33	-9.27%	―	675.75%	42.00%
LWLG	47 Neutral	$763.51M	-23.57	-56.26%	―	-11.12%	8.76%
OEC	46 Neutral	$294.87M	-4.24	-7.24%	1.61%	-4.31%	-206.57%

Hudson Tech Corporate Events

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.

Hudson Tech Acquires Refrigerants Inc. for Expansion

Hudson Technologies, Inc. announced on December 17, 2025, its acquisition of Denver-based Refrigerants Inc., an EPA-certified reclaimer and refrigerant distributor, for an initial purchase price of $2.5 million. The move strengthens Hudson’s presence in key markets, expands its access to recovered refrigerants, and aligns with the company’s strategy to bolster its aftermarket supply chain amid regulatory changes like the AIM Act’s phase-down of virgin HFC refrigerants. The acquisition is expected to bring additional growth opportunities, leveraging Refrigerants Inc.’s longstanding customer base and expertise to enhance Hudson’s leadership in sustainable refrigerant reclamation.

The most recent analyst rating on (HDSN) stock is a Buy 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 Board Member Brian F. Coleman Resigns

On December 9, 2025, Brian F. Coleman resigned from his position as a member of the Board of Directors of Hudson Technologies, Inc., effective immediately. His resignation was not due to any disagreement with the company, ensuring stability and continuity in the company’s operations and governance.

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