Hudson Technologies Posts 9% Q1 Revenue Growth to $60.2M, Profit Slides as Q2 Revenue Set at $73-76M
Hudson Technologies’ Q1 revenue grew 9% to $60.2M on 20% higher sales volume and HFC prices above $6 per pound, while net income tumbled to $0.3M from $2.8M on a 2-point gross margin decline and ERP implementation costs. The company repurchased $2.5M in stock and forecasted Q2 revenue of $73-76M.
1. Q1 Financial Results
Hudson Technologies reported first quarter revenue of $60.2 million, up 9% from $55.3 million a year earlier driven by 20% higher refrigerant sales volume and firmer HFC prices above $6 per pound. Gross margin declined to 20% from 22%, operating income fell to $1.5 million from $3.1 million, and net income dropped to $0.3 million ($0.01 per share) from $2.8 million ($0.06 per share).
2. ERP Implementation and Costs
The company’s new ERP system went live on February 1, triggering typical implementation inefficiencies that increased SG&A expense to $9.5 million from $8.2 million. Management reports the rollout is progressing better than anticipated and initial benefits to management information systems are beginning to materialize.
3. Strategic Initiatives and Licensing
During the quarter Hudson repurchased $2.5 million of common stock under its opportunistic buyback program and expanded its management team and board of directors. The company also signed a licensing agreement for reclamation and resale of next-generation HFO refrigerants, positioning it to capitalize on the market’s shift to lower-GWP products.
4. Second Quarter Outlook
With HFC prices firming as the selling season intensifies, Hudson projects second quarter 2026 revenue of $73 million to $76 million. The company remains focused on operational excellence and seizing growth opportunities in both legacy HFC and emerging HFO refrigerant markets.