Hudson Technologies Reports 15% Revenue Decline and Net Income Drop in Q1 2025

Hudson Technologies, Inc. reported a decline in financial performance for the first quarter of 2025, with revenues totaling $55.3 million, a decrease of 15% from $65.3 million in the same period last year. The company's net income also fell significantly, dropping to $2.8 million from $9.6 million in the prior year, primarily due to a 20% decrease in selling prices of certain refrigerants, despite an increase in sales volume. Gross profit for the quarter was $12.1 million, reflecting a gross margin of 22%, down from 33% in the previous year.

The company's operational metrics showed a notable increase in trade accounts receivable, which rose to $27.5 million from $13.6 million at the end of 2024, attributed to seasonal timing. Additionally, Hudson's inventory decreased to $78.3 million from $96.2 million, indicating a reduction in stock levels. The company reported cash and cash equivalents of $81.0 million, an increase of approximately $10.9 million from the previous quarter, highlighting improved liquidity.

Strategically, Hudson Technologies completed the acquisition of USA United Suppliers of America, Inc. and B&B Jobber Services, Inc. in June 2024 for approximately $20.7 million. This acquisition is expected to enhance the company's refrigerant distribution capabilities and broaden its customer network. The acquisition contributed $5.9 million in revenue and $1.4 million in net income for the quarter ended March 31, 2025. The company also repurchased 308,588 shares of its common stock during the quarter, totaling $1.8 million, as part of its ongoing share repurchase program.

Looking ahead, Hudson Technologies remains focused on navigating the challenges posed by fluctuating refrigerant prices and regulatory changes under the American Innovation and Manufacturing Act. The company is optimistic about its ability to meet working capital requirements through anticipated cash flows from operations and available funds under its credit facility. However, it acknowledges that future compliance with financial covenants may be influenced by external economic conditions and market dynamics.