Hudson Technologies, Inc. reported fourth‑quarter revenue of $44.4 million, a 28% year‑over‑year increase that beat the consensus estimate of $38.99 million by $5.41 million, or 14%. The lift was largely driven by an 18% rise in refrigerant reclamation volume, the second consecutive year of growth, as regulatory mandates such as the AIM Act continue to expand demand for the company’s core service.
The company’s earnings per share fell to –$0.13, missing the consensus estimate of –$0.08 by $0.05, a miss of 62.5%. The wider loss was driven by $4.2 million in inventory‑related costs, including a lower‑of‑cost‑or‑market adjustment, and executive severance expenses that added to operating costs.
Gross profit for the quarter was $3.5 million, down 39.7% from $5.8 million in Q4 2024. Gross margin contracted to 8.0% from 16.7% year‑over‑year, reflecting the impact of inventory write‑downs and a shift in the mix toward lower‑margin segments.
Operating loss widened to $5.2 million from $3.1 million in the prior year, as higher costs and one‑time charges offset the revenue growth. The company’s cash and cash equivalents stood at $39.5 million at year‑end, unchanged from the previous year, providing a solid liquidity base for future growth and acquisitions.
Management indicated that revenue in Q1 2026 is expected to rise low‑ to mid‑single‑digit versus Q1 2025, and that the recent ERP implementation issues are expected to resolve. CEO Kenneth Gaglione emphasized the continued regulatory tailwinds and the strategic value of the company’s recent acquisitions.
Investors reacted cautiously to the results, with the revenue beat tempered by the EPS miss and margin compression, underscoring the company’s ongoing profitability challenges despite top‑line growth.
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