Hudson Technologies Reports Q2 2025 Revenue Decline, Net Income Increase

Hudson Technologies, Inc. reported its financial results for the second quarter of 2025, revealing a revenue of $72.8 million, a decrease of 3% from $75.3 million in the same period last year. For the first half of 2025, revenues totaled $128.2 million, down 9% from $140.5 million in the prior year. The decline in revenue was attributed to lower sales volumes of refrigerants, primarily due to milder weather conditions affecting demand in the Northeast and Midwest regions. Despite the revenue drop, net income for the second quarter increased to $10.2 million, up from $9.6 million in the previous year, driven by higher average selling prices for refrigerants.

The company's gross profit for the second quarter was $22.8 million, reflecting a slight increase from $22.6 million in the prior year, while gross margins improved to 31%. However, for the six-month period, gross profit fell to $34.9 million, down from $44.0 million, with gross margins decreasing to 27%. Selling, general, and administrative expenses rose to $9.3 million for the second quarter, up from $9.0 million, primarily due to increased staffing costs. The company also reported net interest income of $0.7 million for the quarter, a significant improvement from the net interest expense of $0.2 million in the same period last year.

In terms of operational developments, Hudson Technologies completed the acquisition of USA Refrigerants in June 2024 for approximately $20.7 million, which is expected to enhance its refrigerant distribution capabilities and broaden its customer network. The acquisition has contributed to an increase in trade accounts receivable, which rose to $35.9 million as of June 30, 2025, compared to $13.6 million at the end of 2024. The company’s cash and cash equivalents also increased to $84.3 million, up from $70.1 million at the end of the previous year.

Looking ahead, Hudson Technologies remains focused on navigating the challenges posed by fluctuating refrigerant prices and regulatory changes under the AIM Act, which mandates a phase-down of hydrofluorocarbon refrigerants. The company is well-positioned with a strong liquidity position, having $40 million available under its revolving credit facility, and is committed to maintaining compliance with its financial covenants. However, the company acknowledges that its future performance may be influenced by external factors, including market conditions and regulatory developments.