Hudson Tech (HDSN) AI Stock Analysis

• Market Cap: $299.30M
• Dividend Yield: N/A
• Average Volume (3M): 446.09K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.85
• Revenue Growth: -4.24%
• EPS Growth: -23.16%
• Country: US
• Employees: 238
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.27
• Shares Outstanding: 43,003,185
• 10 Day Avg. Volume: 400,338
• 30 Day Avg. Volume: 446,087
• 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: 1.22
• Enterprise Value/Revenue: 1.54
• Enterprise Value/Gross Profit: 5.68
• Enterprise Value/Ebitda: 11.07
• 1Y Price Target: $9.50
• Price Target Upside: 35.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.47
• Revenue Forecast (FY): $239.49M

• Rating: 72 Outperform
• Price Target: $8.00 ▲(14.29% Upside)

Hudson Tech's overall stock score reflects its solid financial performance and strategic initiatives, such as the acquisition of Refrigerants Inc. and a significant contract renewal. While technical indicators suggest potential bearish momentum, the company's reasonable valuation and strong earnings call results provide a balanced outlook. Leadership transition and regulatory challenges are notable risks.

Positive Factors

Strategic Acquisition

The acquisition of Refrigerants Inc. enhances Hudson Tech's market reach and strengthens its supply chain, aligning with regulatory trends and supporting long-term growth in the refrigerant reclamation sector.

Contract Renewal

The renewal of a significant contract with the U.S. Defense Logistics Agency secures a stable revenue stream and reinforces Hudson Tech's market position as a key supplier to federal agencies.

Strong Financial Performance

Robust financial performance with significant revenue and income growth indicates effective operational management and a strong market position, supporting future strategic initiatives.

Negative Factors

Leadership Transition

The leadership transition introduces uncertainty, potentially affecting strategic direction and execution, which could impact Hudson Tech's long-term growth and stability.

Regulatory Delays

Potential regulatory delays could slow market shifts and impact Hudson Tech's ability to capitalize on new industry standards, affecting future growth opportunities.

Decline in Free Cash Flow

A significant decline in free cash flow growth could constrain Hudson Tech's ability to invest in new opportunities and maintain financial flexibility, impacting long-term sustainability.

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

Hudson Tech demonstrates a solid financial position with strong profitability and a robust balance sheet characterized by low leverage. While revenue and profit margins have shown some decline, the company maintains efficient operations. The cash flow situation requires attention due to the negative growth in free cash flow, but liquidity remains adequate.

Income Statement

Hudson Tech's income statement shows a stable revenue growth rate of 5.37% in the TTM period, indicating positive momentum. The gross profit margin of 27.16% and net profit margin of 9.60% reflect solid profitability, although they have decreased compared to previous years. The EBIT and EBITDA margins are healthy at 12.70% and 12.94%, respectively, suggesting efficient operational management. However, the decline in margins from previous years highlights potential challenges in maintaining cost efficiency.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.013, indicating minimal leverage and financial risk. The return on equity (ROE) is 8.97%, which, while lower than previous years, still reflects a decent return for shareholders. The equity ratio stands at 78.42%, showcasing a robust capital structure with a significant portion of assets financed by equity.

Cash Flow

The cash flow statement reveals a decline in free cash flow growth by 32.89%, which is a concern. However, the operating cash flow to net income ratio of 0.78 and free cash flow to net income ratio of 0.89 indicate that the company is generating sufficient cash relative to its net income, ensuring liquidity. The negative growth in free cash flow suggests potential challenges in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	236.85M	237.12M	289.02M	325.23M	192.75M	147.60M
Gross Profit	64.33M	65.71M	111.51M	162.89M	71.66M	35.41M
EBITDA	33.00M	35.69M	83.95M	137.49M	50.95M	13.03M
Net Income	22.73M	24.39M	52.25M	103.80M	32.26M	-5.21M
Balance Sheet
Total Assets	338.95M	302.65M	296.67M	272.49M	215.72M	161.65M
Cash, Cash Equivalents and Short-Term Investments	89.68M	70.13M	12.45M	5.29M	3.49M	1.35M
Total Debt	3.49M	6.88M	6.68M	50.67M	100.27M	93.92M
Total Liabilities	73.06M	56.80M	67.90M	97.62M	144.78M	121.03M
Stockholders Equity	265.89M	245.85M	228.77M	174.88M	70.94M	40.62M
Cash Flow
Free Cash Flow	44.60M	86.51M	54.97M	59.16M	-3.15M	10.22M
Operating Cash Flow	50.09M	91.81M	58.55M	62.81M	-1.23M	11.69M
Investing Cash Flow	-5.49M	-25.97M	-3.58M	-3.66M	-1.92M	-470.00K
Financing Cash Flow	-11.40M	-8.15M	-47.82M	-57.35M	5.29M	-12.47M

Hudson Tech Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 7 is below the 20-day moving average (MA) of 7.23, below the 50-day MA of 7.66, and below the 200-day MA of 7.95, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 41.49 is Neutral, neither overbought nor oversold. The STOCH value of 20.73 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
HDSN	72 Outperform	$299.30M	13.95	8.75%	―	-4.24%	-23.16%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
KOP	58 Neutral	$534.48M	33.96	2.99%	1.19%	-9.62%	-76.62%
GPRE	56 Neutral	$700.45M	-3.37	-22.21%	―	-12.07%	-821.68%
GEVO	55 Neutral	$523.39M	-10.76	-9.27%	―	675.75%	42.00%
OEC	48 Neutral	$292.54M	-8.87	-7.24%	1.61%	-4.31%	-206.57%
LWLG	40 Underperform	$495.92M	-19.68	-56.26%	―	-11.12%	8.76%

Hudson Tech Corporate Events

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.

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.

Hudson Tech Expands Share Repurchase Program

On December 1, 2025, Hudson Technologies announced an increase in its share repurchase authorization, allowing the company to buy back up to $20 million in shares during 2025 and 2026. This decision reflects Hudson’s strong capital generation and aligns with its strategy to return capital to shareholders while maintaining growth investments. The repurchase program provides flexibility in purchasing shares through various means, depending on market conditions and other factors.

Hudson Tech Appoints Kenneth Gaglione as New CEO

On November 13, 2025, Hudson Technologies announced the appointment of Kenneth Gaglione as Chairman of the Board, President, and CEO, effective November 24, 2025. Gaglione, who previously served as Vice President of Operations at Hudson, brings extensive experience in the refrigerants and specialty chemicals industries. His leadership is expected to drive organic growth within the HVAC sector and pursue strategic alliances, enhancing Hudson’s competitive positioning as a leading provider of refrigerant solutions.

Hudson Tech CEO Resignation Amid Strong Q3 Results

On November 3, 2025, Hudson Technologies announced the immediate resignation of Brian F. Coleman from his roles as Chairman, President, and CEO. The company is in the final stages of selecting a new CEO and has appointed CFO Brian Bertaux as interim CEO. The announcement coincided with the release of strong preliminary third-quarter financial results, showing a 20% revenue increase and a 59% net income growth compared to the previous year. This transition marks a significant moment for Hudson Technologies, as it positions itself for future growth with a strong financial standing and strategic industry positioning.

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.