Hudson's Volume Streak Ends as HFC Prices Fall

The Tip Desk · October 28, 2026 · 2 min read

Third-quarter revenue was $59.4 million as volume fell 9% and pricing dropped 17%, with net income of $2.0 million, or $0.05 a share.

Hudson Technologies, Inc. (HDSN), a refrigerant products and services provider, reported third-quarter revenue of $59.4 million, down from $78.3 million in the second quarter, when revenue rose 8% year over year.

Sales volume turned negative at 9% after 12% volume growth in the second quarter, ending two sequential quarters of double-digit volume growth. Pricing declined 17%, a steeper drop than the 6% pricing decline in the second quarter.

The company said third-quarter revenue reflected continued softness in HFC market pricing and lower sales volume. It attributed the year-over-year decline to muted customer demand and adequate refrigerant inventories, against a prior-year period that benefited from broad refrigerant price increases amid supply-chain constraints related to the EPA-mandated transition to HFO refrigerants.

Gross margin was 25%, compared with 32% in the third quarter of 2025, primarily reflecting 17% lower refrigerant market pricing after the elevated pricing environment in the year-ago quarter. The company said it prioritized profitable sales and cost containment in that landscape.

Net income was $2.0 million, or $0.05 a share, compared with $12.4 million, or $0.27 a share diluted, a year earlier. Selling, general and administrative expenses were $10.8 million, versus $8.9 million in the year-ago third quarter. The company said the increase reflected continued investment in optimizing the ERP system launched earlier this year, as well as additional staffing and consulting resources supporting longer-term value-creation initiatives.

For the nine months ended September 30, 2026, revenue was $197.9 million, compared with $202.2 million in the first nine months of 2025. The company said 9% sales volume growth substantially offset a 9% decline in selling prices relative to the prior-year period. Nine-month gross margin was 24%, compared with 29% a year earlier. The company said the decline reflected lower refrigerant market pricing related to the 2025 price increases and increased operating costs, primarily fuel costs. Nine-month net income was $7.3 million, or $0.17 a share.

President and Chief Executive Officer Ken Gaglione said the company entered into a joint development agreement with Icorium for advanced next-generation separation technology that has the potential to enable more efficient separation of complex, mixed refrigerants, enhancing existing distillation technology. The company also said it was re-awarded a DLA contract valued at $210 million and made progress expanding operating capacity.

Cash and cash equivalents were $35.3 million at September 30, 2026, up from $25.6 million at June 30, 2026. The company remained debt-free. Gaglione said the company ended the quarter with $35 million in cash and remained focused on core refrigerant sales, recovery and reclamation as it prepared for 2027.

The company continues to expect full-year 2026 gross margin in the low-to-mid-twenty percent range, consistent with its previously announced target.