Hudson Technologies (HDSN)
NASDAQ:HDSN
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Hudson Tech
(NASDAQ:HDSN)
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Rating:53Neutral
Price Target:
$5.00
▼(-21.14% Downside)
Action:Reiterated
Date:05/21/26
The score is held back primarily by negative TTM operating/free cash flow and clear technical weakness (downtrend below key moving averages). These are partially offset by a strong low-leverage balance sheet and earnings-call expectations for seasonal volume improvement and gross margin recovery, while valuation remains a headwind due to the very high P/E.
Positive Factors
Conservative balance sheet
Extremely low leverage and substantial equity provide durable financial flexibility, allowing Hudson to absorb cash-flow volatility, pursue opportunistic buybacks or M&A, and fund ERP and commercialization work without near-term refinancing pressure. This materially lowers solvency risk over the medium term.
Negative Factors
Negative operating and free cash flow
Sharp negative operating and free cash flow reverses prior years' strength and raises structural execution risk. Persistent cash burn can constrain capital allocation, limit M&A or buybacks, and force external financing or working-capital tradeoffs if not reversed by sustained margin and volume improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Extremely low leverage and substantial equity provide durable financial flexibility, allowing Hudson to absorb cash-flow volatility, pursue opportunistic buybacks or M&A, and fund ERP and commercialization work without near-term refinancing pressure. This materially lowers solvency risk over the medium term.
Read all positive factors
Hudson Tech (HDSN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$217.50M
Dividend YieldN/A
Average Volume (3M)440.56K
Price to Earnings (P/E)188.5
Beta (1Y)0.88
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. Volume724,468
30 Day Avg. Volume440,557
Financial Highlights & Ratios
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 Cap0.90
Enterprise Value/Revenue0.78
Enterprise Value/Gross Profit3.18
Enterprise Value/Ebitda8.81
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. 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; ...
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...
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 | 22.33M | 24.55M | 35.69M | 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 | 3.16M | 3.23M | 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
Negative
6.34
Price Trends
5.84
Negative
6.47
Negative
7.58
Negative
Market Momentum
-0.32
Positive
37.22
Neutral
60.26
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 6.34 is above the 20-day moving average (MA) of 5.53, above the 50-day MA of 5.84, and below the 200-day MA of 7.58, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 37.22 is Neutral, neither overbought nor oversold. The STOCH value of 60.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $1.06B | 8.60 | -2.02% | ― | -20.16% | 83.66% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | $762.16M | 26.63 | 14.03% | 1.19% | -8.43% | 222.90% | |
57 Neutral | $2.03B | -41.31 | -38.79% | ― | 175.93% | 11.30% | |
53 Neutral | $217.50M | 188.52 | 5.69% | ― | 10.66% | -16.55% | |
51 Neutral | $413.80M | -7.45 | -7.28% | ― | 314.95% | 58.49% | |
51 Neutral | $381.19M | -9.25 | -21.83% | 1.61% | -3.44% | -444.16% |
* Basic Materials Sector Average
HDSN
Hudson Tech
5.06
-2.21
-30.40%
GEVO
Gevo
1.77
0.66
59.46%
GPRE
Green Plains
15.47
11.26
267.46%
KOP
Koppers Holdings
40.36
10.41
34.77%
OEC
Orion SA
7.02
-3.38
-32.53%
LWLG
Lightwave Logic
12.85
11.77
1089.81%
Hudson Tech Corporate Events
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...
Business Operations and StrategyExecutive/Board Changes
Hudson Tech Reshapes Leadership to Drive Operational Growth
Positive
Mar 18, 2026
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 par...
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.