Hudson Technologies (HDSN)
NASDAQ:HDSN
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Hudson Tech
(NASDAQ:HDSN)
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Rating:56Neutral
Price Target:
$6.50
▲(11.30% Upside)
Action:ReiteratedDate:03/19/26
The score is held back primarily by weakened cash flow reliability (negative operating/free cash flow in 2025) and clear technical downtrending (below key moving averages with negative MACD). These risks are partially offset by a very strong balance sheet with minimal leverage, moderate valuation (P/E ~17.7), and an earnings-call outlook that includes specific guidance and expected easing of ERP-related inefficiencies, albeit with notable near-term margin and contract-visibility headwinds.
Positive Factors
Strong, low‑leverage balance sheet
Near‑zero leverage and a rebuilt equity base give Hudson durable financial flexibility to fund capex, tuck‑in acquisitions, opportunistic buybacks, and absorb cyclical working capital swings in the refrigerant cycle without raising external debt or risking solvency.
Negative Factors
Inconsistent and negative cash generation
A swing to negative operating and free cash flow in 2025, and historical inconsistency, raises persistent working‑capital and execution risk. Weak cash conversion limits ability to self‑fund growth or weather pricing shocks without drawing on liquidity or altering capital allocation plans.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong, low‑leverage balance sheet
Near‑zero leverage and a rebuilt equity base give Hudson durable financial flexibility to fund capex, tuck‑in acquisitions, opportunistic buybacks, and absorb cyclical working capital swings in the refrigerant cycle without raising external debt or risking solvency.
Read all positive factors
Hudson Tech (HDSN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$248.02M
Dividend YieldN/A
Average Volume (3M)398.36K
Price to Earnings (P/E)―
Beta (1Y)0.88
Revenue Growth-4.24%
EPS Growth-23.16%
CountryUS
Employees238
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-0.20
Shares Outstanding42,468,822
10 Day Avg. Volume383,545
30 Day Avg. Volume398,362
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 Cap0.87
Enterprise Value/Revenue0.87
Enterprise Value/Gross Profit3.46
Enterprise Value/Ebitda8.41
Forecast
1Y Price Target
$9.50Price Target Upside62.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.45
Revenue Forecast (FY)$247.43M
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:Mar 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Neutral
The call conveyed a balanced message: operational and strategic positives (meaningful Q4 revenue growth, full-year volume gains, consecutive 18% reclamation growth, strategic acquisitions, pilot programs, inventory rebuild and buybacks) demonstrate strong market positioning and long-term opportunity. However, near-term financial headwinds — particularly Q4 inventory-related charges, a material Q4 operating and net loss, compressed full-year margins, higher SG&A (including severance), ERP implementation inefficiencies and uncertainty around a rescinded DLA award — temper the outlook. Management presented initiatives to address these issues and expects ERP issues to abate, but near-term execution and margin recovery remain key risks.Positive Updates
Strong Q4 Revenue Growth
Q4 2025 revenue of $44.4 million, up 28% year-over-year, driven primarily by increased sales volume and stronger execution in the back half of 2025.
Negative Updates
Q4 Profitability and Inventory-Related Charges
Q4 2025 gross profit fell to $3.5 million from $5.8 million a year earlier. Management attributed the quarter to inventory-related charges (management cited a $4.2 million lower-of-cost-or-market adjustment impacting gross profit and referenced $8.2 million in inventory-related items included in Q4 operating loss) that materially pressured profitability.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Q4 Revenue Growth
Q4 2025 revenue of $44.4 million, up 28% year-over-year, driven primarily by increased sales volume and stronger execution in the back half of 2025.
Read all positive updates
Company Guidance
The company provided narrow, specific near‑term guidance and several quantifiable targets: it expects Q1 2026 revenue to rise a low‑ to mid‑single‑digit percentage versus Q1 2025, and ERP‑related start‑up inefficiencies seen in early 2026 are not expected to persist into Q2 and beyond; management said 2026 gross margin should be comparable to 2025’s ~25.2% if pricing remains unchanged. Management also indicated the DLA business generated $38 million in 2025 and should continue under the existing contract through 2026, the firm rebuilt inventory to roughly a historical ~6 months of days on hand after a light 2024, and it finished 2025 with $39.5 million of cash. Finally, Hudson repurchased $20 million of stock in 2025 (including $14 million in Q4) and plans opportunistic buybacks in 2026 under a $20 million authorization.Hudson Tech Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
88
Very Positive
Cash Flow
34
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 246.61M | 237.12M | 289.02M | 325.23M | 192.75M |
| Gross Profit | 62.10M | 65.71M | 111.51M | 162.89M | 71.66M |
| EBITDA | 24.55M | 35.69M | 83.95M | 137.49M | 50.95M |
| Net Income | 16.67M | 24.39M | 52.25M | 103.80M | 32.26M |
Balance Sheet | |||||
| Total Assets | 318.65M | 302.65M | 296.67M | 272.49M | 215.72M |
| Cash, Cash Equivalents and Short-Term Investments | 39.46M | 70.13M | 12.45M | 5.29M | 3.49M |
| Total Debt | 3.23M | 6.88M | 6.68M | 50.67M | 100.27M |
| Total Liabilities | 75.26M | 56.80M | 67.90M | 97.62M | 144.78M |
| Stockholders Equity | 243.39M | 245.85M | 228.77M | 174.88M | 70.94M |
Cash Flow | |||||
| Free Cash Flow | -8.21M | 86.51M | 54.97M | 59.16M | -3.15M |
| Operating Cash Flow | -3.16M | 91.81M | 58.55M | 62.81M | -1.23M |
| Investing Cash Flow | -7.29M | -25.97M | -3.58M | -3.66M | -1.92M |
| Financing Cash Flow | -20.23M | -8.15M | -47.82M | -57.35M | 5.29M |
Hudson Tech Technical Analysis
Negative
5.84
Price Trends
6.73
Negative
6.91
Negative
8.03
Negative
Market Momentum
-0.25
Negative
38.86
Neutral
27.82
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 5.84 is below the 20-day moving average (MA) of 5.95, below the 50-day MA of 6.73, and below the 200-day MA of 8.03, indicating a bearish trend. The MACD of -0.25 indicates Negative momentum. The RSI at 38.86 is Neutral, neither overbought nor oversold. The STOCH value of 27.82 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 |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | $732.35M | 4.53 | 2.99% | 1.19% | -9.62% | -76.62% | |
58 Neutral | $1.18B | -5.45 | -15.81% | ― | -12.07% | -821.68% | |
56 Neutral | $248.02M | -8.53 | 6.59% | ― | -4.24% | -23.16% | |
56 Neutral | $1.14B | -20.52 | -46.11% | ― | -11.12% | 8.76% | |
53 Neutral | $557.27M | -13.83 | 0.26% | ― | 675.75% | 42.00% | |
53 Neutral | $356.78M | -4.24 | -16.31% | 1.61% | -4.31% | -206.57% |
* Basic Materials Sector Average
HDSN
Hudson Tech
5.84
0.49
9.16%
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Gevo
2.30
1.24
118.57%
GPRE
Green Plains
16.96
13.07
335.99%
KOP
Koppers Holdings
37.29
13.25
55.12%
OEC
Orion SA
6.34
-5.09
-44.54%
LWLG
Lightwave Logic
7.66
6.72
714.89%
Hudson Tech Corporate Events
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...
Business Operations and StrategyExecutive/Board Changes
Hudson Tech Appoints Robert Stoody as Senior Operations VP
Positive
Feb 2, 2026
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...
Business Operations and StrategyLegal Proceedings
Hudson Tech Faces Bid Protest, DLA Rescinds Contract
Negative
Jan 30, 2026
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 ...
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.