Hudson Technologies Reports 9% Revenue Growth to $60.2 Million in Q1 2026

Hudson Technologies, Inc. reported its financial results for the first quarter of 2026, revealing revenues of $60.2 million, a 9% increase from $55.3 million in the same period last year. The growth in revenue was primarily driven by higher sales volumes, although this was partially offset by a less favorable mix of refrigerants sold. The company's gross profit for the quarter was $11.8 million, down from $12.1 million a year earlier, resulting in a gross margin of 20%, compared to 22% in the prior year. The decline in gross profit and margin was attributed to the product mix sold during the period.

Operating expenses rose to $10.4 million from $9.0 million in the previous year, largely due to increased selling, general, and administrative (SG&A) costs, which reached $9.5 million, up from $8.2 million. This increase was driven by higher professional fees and IT expenses. The company reported a net income of $330,000, a significant decrease from $2.8 million in the first quarter of 2025, reflecting the impact of increased operating costs and lower gross margins. The effective tax rate for the quarter was notably high at 79.3%, influenced by non-deductible equity-based compensation and other discrete tax items.

In terms of operational metrics, Hudson Technologies experienced a substantial increase in trade accounts receivable, which rose to $33.5 million from $17.1 million at the end of 2025, primarily due to seasonal timing. The company’s inventory decreased to $130.7 million from $135.9 million, indicating a focus on managing stock levels amid fluctuating market conditions. The company continues to rely heavily on its contract with the United States Defense Logistics Agency (DLA), which accounted for approximately 12.8% of its revenue in the latest quarter.

Strategically, Hudson Technologies completed the acquisition of Denver Refrigerants Inc. in December 2025 for approximately $2.2 million, with potential contingent payments of up to $2.0 million. This acquisition is expected to enhance the company’s market reach and distribution capabilities. Additionally, the company has been actively repurchasing shares, having bought back 416,480 shares at a cost of $2.5 million during the quarter. Looking ahead, Hudson Technologies anticipates that its operational performance will improve as it navigates seasonal demand fluctuations and continues to integrate its recent acquisition into its operations. The company remains focused on maintaining compliance with its financial covenants under its credit facility while managing its liquidity and capital resources effectively.