Hudson Technologies (HDSN) Q1 2026 earnings summary

Executive summary

• Achieved 9% year-over-year revenue growth in Q1 2026 to $60.2 million, driven by strong sales execution, 20% sales volume growth, warm weather, and firming HFC prices.

• Implemented a new ERP system, restructured management, and added new board members to support long-term growth and operational efficiency.

• Signed licensing agreement for reclamation and resale of next-generation HFO refrigerants, expanding service offerings.

• Repurchased $2.5 million in stock during the quarter.

• Focused on diversifying revenue streams and reducing business seasonality through expanded services and new refrigerant reclamation agreements.

Financial highlights

• Revenue rose to $60.2 million, up from $55.3 million in Q1 2025.

• Gross profit was $11.8 million (20% margin), down from $12.1 million (22% margin) last year, due to less favorable sales mix.

• SG&A expenses increased to $9.5 million from $8.2 million, mainly due to ERP implementation and strategic initiatives.

• Operating income was $1.5 million, down from $3.1 million; net income was $0.3 million ($0.01 per share) versus $2.8 million ($0.06 per share) in Q1 2025.

• Ended Q1 with $19.4 million in cash and no debt; operating cash flow was negative $12.8 million compared to positive $14.2 million in Q1 2025.

Outlook and guidance

• Q2 2026 revenue guidance is $73–76 million, supported by firming HFC prices.

• Expect gross margin to improve through the selling season, targeting mid-20s% for the year.

• Anticipate higher sales volume in Q2, but pricing to be lower year-over-year due to normalization after last year's HFO shortage.

• Continued investment in ERP optimization and strategic initiatives expected to maintain SG&A at current levels.