HUDSON TECHNOLOGIES REPORTS THIRD QUARTER 2026 RESULTS
HUDSON TECHNOLOGIES INC /NY (HDSN) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 HUDSON TECHNOLOGIES REPORTS THIRD QUARTER 2026 RESULTS Entered into Joint Development Agreement to Advance Next-generation Separation Technology Re-awarded DLA contract valued at $210 million Debt-free with $35.3 million in cash Maintaining Full Year Gross Margin Tar
How this was made
The 30-second read
Why it matters
The earnings miss and margin decline are likely to drive short‑term selling pressure, though the company's cash position and new contract award may support longer‑term stability.
Market read
Primary earnings disclosure for a mid‑cap industrial stock; immediate relevance for traders focused on HVAC/R sector and earnings‑driven moves.
What to watch
Cash balance of $35M and debt‑free status provide financial flexibility for future investments.
HUDSON TECHNOLOGIES REPORTS THIRD QUARTER 2026 RESULTS
Third-quarter revenue, gross margin and net income declined materially from the prior-year period amid lower refrigerant pricing and sales volume, while nine-month sales volume grew 9%, the Company maintained its full-year gross-margin target, and it remained debt-free with $35.3 million in cash.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended September 30GAAP | $59.4M | – | – |
| Sales volume, three months ended September 30other | (9%) | – | (9%) |
| Selling prices, three months ended September 30other | (17%) | – | (17%) |
| Cost of sales, three months ended September 30GAAP | $44.62M | – | – |
| Gross profit, three months ended September 30GAAP | $14.8M | – | – |
| Gross margin, three months ended September 30GAAP | 25% | – | – |
| Selling, general and administrative expenses, three months ended September 30GAAP | $10.8M | – | – |
| Amortization, three months ended September 30GAAP | $740 | – | – |
| Total operating expenses, three months ended September 30GAAP | $11.55M | – | – |
| Operating income, three months ended September 30GAAP | $3.25M | – | – |
| Income before income taxes, three months ended September 30GAAP | $3.22M | – | – |
| Income tax expense, three months ended September 30GAAP | $1.18M | – | – |
| Net income, three months ended September 30GAAP | $2M | – | – |
| Basic earnings per common share, three months ended September 30GAAP | $0.05 | – | – |
| Diluted earnings per common share, three months ended September 30GAAP | $0.05 | – | – |
| Revenue, nine months ended September 30GAAP | $197.9M | – | – |
| Sales volume, nine months ended September 30other | 9% | – | 9% |
| Selling prices, nine months ended September 30other | (9%) | – | (9%) |
| Cost of sales, nine months ended September 30GAAP | $150.6M | – | – |
| Gross profit, nine months ended September 30GAAP | $47.34M | – | – |
| Gross margin, nine months ended September 30GAAP | 24% | – | – |
| Selling, general and administrative expenses, nine months ended September 30GAAP | $32.8M | – | – |
| Amortization, nine months ended September 30GAAP | $2.45M | – | – |
| Total operating expenses, nine months ended September 30GAAP | $35.23M | – | – |
| Operating income, nine months ended September 30GAAP | $12.11M | – | – |
| Income before income taxes, nine months ended September 30GAAP | $12.26M | – | – |
| Income tax expense, nine months ended September 30GAAP | $4.94M | – | – |
| Net income, nine months ended September 30GAAP | $7.3M | – | – |
| Basic earnings per common share, nine months ended September 30GAAP | $0.17 | – | – |
| Diluted earnings per common share, nine months ended September 30GAAP | $0.17 | – | – |
| Cash provided by operating activities, nine months ended September 30GAAP | $4.26M | – | – |
| Additions to property, plant, and equipment, nine months ended September 30GAAP | −$2.13M | – | – |
| Cash and cash equivalents, September 30GAAP | $35.3M | – | – |
Full-year 2026 outlook
- Gross marginlow-to-mid-twenty percent range
Capital returns
- Repurchase of common stock: $(2,491) for the nine months ended September 30, 2026, compared with $(5,820) for the nine months ended September 30, 2025.
- Excise tax on repurchase of common stock: $(3,771) for the nine months ended September 30, 2026, compared with $(117) for the nine months ended September 30, 2025.
What drove it
- Third-quarter revenue reflected continued softness in HFC market pricing and lower sales volume.
- Muted customer demand and adequate refrigerant inventories compressed third-quarter sales activity.
- The prior-year third quarter benefited from broad refrigerant price increases amid supply chain constraints related to the EPA-mandated transition to HFO refrigerants.
- Nine-month revenue reflected strong 9% sales volume growth that substantially offset a 9% decline in selling prices.
- The Company entered into a joint development agreement with Icorium for advanced next-generation separation technology.
- The Company was re-awarded a DLA contract valued at $210 million.
Concerns
- Third-quarter gross margin was 25%, compared with 32% in the third quarter of 2025, primarily reflecting 17% lower refrigerant market pricing.
- Nine-month gross margin was 24%, compared with 29% in the first nine months of 2025, reflecting lower refrigerant market pricing and increased operating costs, primarily fuel costs.
- Third-quarter selling, general and administrative expenses increased to $10.8 million from $8.9 million, reflecting ERP optimization investment and additional staffing and consulting resources.
- Nine-month selling, general and administrative expenses increased to $32.8 million from $26.3 million, reflecting increased operational, legal, staffing, and consulting investments.
- Nine-month cash provided by operating activities was $4,264, compared with $29,381 in the prior-year period.
What to watch
- HFC market pricing, customer demand, and refrigerant inventory levels.
- Whether the Company sustains its full-year 2026 gross margin target in the low-to-mid-twenty percent range.
- Operating-cost pressure, particularly fuel costs, and the level of strategic, ERP, staffing, legal, and consulting investment.
- Progress expanding operating capacity and capabilities and developing next-generation separation technology with Icorium.
- Execution under the re-awarded DLA contract valued at $210 million.
Balance sheet and cash flow
- Cash and cash equivalents were $35,262 at September 30, 2026, compared with $39,456 at December 31, 2025.
- The Company stated that it was debt-free.
- Total assets were $319,826 at September 30, 2026, compared with $318,648 at December 31, 2025.
- Inventories were $131,513 at September 30, 2026, compared with $135,923 at December 31, 2025.
- Trade accounts receivable were $29,786 at September 30, 2026, compared with $17,098 at December 31, 2025.
- Total liabilities were $74,302 at September 30, 2026, compared with $75,258 at December 31, 2025.
- Total stockholders' equity was $245,524 at September 30, 2026, compared with $243,390 at December 31, 2025.
- Cash used in investing activities was $(2,196) for the nine months ended September 30, 2026, compared with $(3,942) for the nine months ended September 30, 2025.
- Cash used in financing activities was $(6,262) for the nine months ended September 30, 2026, compared with $(5,892) for the nine months ended September 30, 2025.
- Cash and cash equivalents at end of period were $35,262 for the nine months ended September 30, 2026, compared with $89,681 for the nine months ended September 30, 2025.
Analysis
Hudson reported a weaker third quarter against a comparably strong prior-year pricing environment. Revenue was $59.4 million compared with $74.0 million in the comparable 2025 period. The Company attributed the result to a 9% decrease in sales volume and a 17% decrease in selling prices, citing muted customer demand and adequate refrigerant inventories. The prior-year period had benefited from broad refrigerant price increases amid supply-chain constraints related to the EPA-mandated transition to HFO refrigerants.
Profitability declined sharply with pricing. Gross margin was 25%, compared with 32% in the third quarter of 2025, and net income was $2.0 million, or $0.05 per diluted share, compared with $12.4 million, or $0.27 per diluted share. Selling, general and administrative expenses rose to $10.8 million from $8.9 million as Hudson continued ERP optimization and added staffing and consulting resources to support longer-term initiatives.
The nine-month result presents a more balanced demand picture but remains lower in profitability. Revenue was $197.9 million compared with $202.2 million in the first nine months of 2025 as 9% sales-volume growth substantially offset a 9% decline in selling prices. Gross margin was 24%, compared with 29%, reflecting lower refrigerant market pricing and higher operating costs, primarily fuel costs. Net income was $7.3 million, or $0.17 per diluted share, compared with $25.3 million, or $0.56 per diluted share.
Cash conversion was also weaker over the nine-month period. Cash provided by operating activities was $4,264 compared with $29,381, while cash and cash equivalents were $35.3 million at September 30, 2026. The Company described its balance sheet as debt-free. It used $(2,491) for common-stock repurchases and incurred $(3,771) of excise tax on repurchases during the nine-month period.
Management maintained its full-year 2026 gross-margin expectation in the low-to-mid-twenty percent range. Strategic activity included a joint development agreement with Icorium for next-generation separation technology, internal work to expand operating capacity and capabilities, and a re-awarded DLA contract valued at $210 million. The principal reported variables entering the fourth quarter are refrigerant pricing, customer demand, inventory conditions, fuel costs, and the ability to contain costs while sustaining the gross-margin target.
Management, verbatim
Third-quarter revenue reflected continued softness in HFC market pricing and lower sales volume. In this market landscape, we prioritized profitable sales and cost containment, enabling us to achieve gross margin of 25%, roughly consistent with gross margin in the second quarter of 2026.
Ken Gaglione, President and Chief Executive Officer of Hudson Technologies
Despite the challenging pricing environment, we were pleased to achieve volume growth of 9% in the nine-month selling season, reflecting our leadership position and the strength of our customer relationships.
Ken Gaglione, President and Chief Executive Officer of Hudson Technologies
We further strengthened our debt-free balance sheet during the quarter, ending with $35 million in cash.
Ken Gaglione, President and Chief Executive Officer of Hudson Technologies
Not in the filing
stated, not guessed- Prior-quarter revenue, gross margin, operating income, net income, EPS, and cash-flow figures were not reported on the respective line items.
- Segment revenue and segment profitability were not reported.
- Non-GAAP financial measures were not reported.
- Free cash flow was not reported.
- A numerical total-debt balance was not reported.
- Dividend payments and dividend guidance were not reported.
- Full-year 2026 revenue, operating-expense, tax-rate, EPS, cash-flow, and capital-return guidance were not reported.
- Previous-release outlook was not provided, so a comparison of actual results with prior guidance is unavailable.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Hudson Technologies (NASDAQ:HDSN) is a mid‑cap provider of refrigerant recovery and reclamation services. The filing is the first public disclosure of its Q3 2026 financials.
Ticker impact
Hudson Technologies filed its Form 8‑K reporting Q3 2026 results, revealing $59.4M revenue, a 9% YoY decline and reduced gross margin to 25%.
likely downside as investors price in weaker pricing and reaffirmed margin outlook
The company disclosed a significant revenue drop and margin decline, with no offsetting guidance uplift, which typically triggers sell pressure.
Market effects
Refrigerant and HFC market softness may affect peers in the HVAC/R sector.
U.S. HVAC/R stocks could see modest weakness.
Limited to niche industrial segment.
Counterpoint
If the company can secure the re‑awarded $210M DLA contract and the joint development agreement yields cost efficiencies, the stock could rebound.
Key entities
- CompanyHudson Technologies Inc.
Provider of refrigerant products and services, subject of the earnings release.
- CompanyIcorium
Partner in a joint development agreement for next‑generation separation technology.
