Hudson Technologies Reports 8% Revenue Growth in Q2 2026, Net Income Declines

Hudson Technologies, Inc. reported its financial results for the second quarter of 2026, revealing a revenue increase of 8% to $78.3 million compared to $72.8 million in the same period last year. For the first half of 2026, revenues also rose by 8% to $138.5 million from $128.2 million in the prior year. However, the company's net income for the second quarter decreased to $4.9 million, down from $10.2 million in the previous year, primarily due to increased selling, general, and administrative (SG&A) expenses, which rose to $12.4 million from $9.3 million, and a decline in gross margin from 31% to 26%.

The company’s gross profit for the second quarter was $20.7 million, a decrease of $2.1 million from the previous year, attributed to lower average sales prices of refrigerants and higher freight costs. For the first half of 2026, gross profit was $32.5 million, down from $34.9 million in the same period of 2025. The effective tax rate for the second quarter increased to 27.6% from 18.8% due to discrete tax items, including non-deductible equity-based compensation.

In terms of operational developments, Hudson Technologies has seen a significant increase in trade accounts receivable, which rose to $43.3 million from $17.1 million at the end of 2025, reflecting seasonal revenue patterns. The company’s inventory decreased to $128.1 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 $15.8 million in revenue for the first half of 2026.

Strategically, Hudson Technologies completed the acquisition of Denver Refrigerants Inc. in December 2025, which is expected to enhance its market reach and operational capabilities. The company has also been active in share repurchases, having repurchased 416,480 shares for $2.5 million during the first half of 2026. Looking ahead, Hudson Technologies anticipates continued revenue growth driven by increased sales volumes, although it remains cautious about the impact of lower average market prices for refrigerants and rising operational costs. The company is committed to maintaining compliance with its financial covenants under its credit facility, which currently has approximately $40 million available for borrowing.