Entered into Joint Development Agreement to Advance Next-generation Separation Technology
Re-awarded DLA contract valued at $210 million
Debt-free with $35.3 million in cash
Maintaining Full Year Gross Margin Target

THIRD-QUARTER 2026 FINANCIAL SUMMARY:

  • Revenue of $59.4 million
    • Sales Volume: (9%)
    • Pricing: (17%)
  • Gross margin of 25%
  • Net income of $2.0 million, or diluted earnings per share of $0.05

WOODCLIFF LAKE, N.J., Oct. 28, 2026 (GLOBE NEWSWIRE) — Hudson Technologies, Inc. (NASDAQ: HDSN) announced its financial results for the third quarter and nine-month period ended September 30, 2026.

Ken Gaglione, President and Chief Executive Officer of Hudson Technologies, said, “We continued to execute our priorities and advance strategic initiatives to strengthen Hudson’s competitive position and long-term growth prospects. During the quarter, we entered into a joint development agreement with Icorium for advanced next-generation separation technology that has the potential to enable the more efficient separation of complex, mixed refrigerants, enhancing our existing distillation technology. Additionally, we made solid progress in the quarter advancing our internal efforts to expand our operating capacity and capabilities. Together, these actions reinforce our confidence in Hudson’s ability to build on its established market position as industry conditions evolve.

“Third-quarter revenue reflected continued softness in HFC market pricing and lower sales volume. In this market landscape, we prioritized profitable sales and cost containment, enabling us to achieve gross margin of 25%, roughly consistent with gross margin in the second quarter of 2026. Despite the challenging pricing environment, we were pleased to achieve volume growth of 9% in the nine-month selling season, reflecting our leadership position and the strength of our customer relationships.

“We further strengthened our debt-free balance sheet during the quarter, ending with $35 million in cash. As we move through the fourth quarter and prepare for 2027, we remain focused on our core refrigerant sales, recovery and reclamation activities while strategically positioning the Company in our evolving industry. Our longstanding relationships, technical expertise and financial flexibility provide a strong foundation to expand our service offerings, enhance our competitive positioning and reduce our exposure to fluctuations in refrigerant pricing,” Mr. Gaglione concluded.

Three Months Results

For the quarter ended September 30, 2026, Hudson reported:

Revenue was $59.4 million, compared with $74.0 million in the comparable 2025 period reflecting a 9% decrease in sales volume and a 17% decrease in selling prices. Revenue reflected continued softness in HFC market pricing and lower sales volume as muted customer demand and adequate refrigerant inventories compressed sales activity against the 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 following the elevated pricing environment in the prior-year quarter.

Selling, general and administrative expenses were $10.8 million, compared with $8.9 million in the third quarter of 2025. The increase reflected continued investment in optimizing the ERP system launched earlier this year, as well as additional staffing and consulting resources supporting the Company’s longer-term value-creation initiatives.

Net income was $2.0 million, or $0.05 per basic and diluted share, compared with $12.4 million, or $0.28 per basic and $0.27 per diluted share, in the third quarter of 2025.

Nine Months Results

For the nine months ended September 30, 2026, Hudson reported:

Revenue was $197.9 million, compared with $202.2 million in the first nine months of 2025. Strong 9% sales volume growth substantially offset a 9% decline in selling prices relative to the prior-year period, which benefited from broad refrigerant price increases amid the supply chain constraints described above.

Gross margin was 24%, compared with 29% in the first nine months of 2025. The decline in gross margin was two-fold, reflecting lower refrigerant market pricing related to the previously noted increase in refrigerant prices in the 2025 period and increased operating costs, primarily fuel costs.

Selling, general and administrative expenses were $32.8 million, compared with $26.3 million in the first nine months of 2025, reflecting increased operational, legal, staffing, and consulting investments supporting the Company’s strategic priorities.

Net income was $7.3 million, or $0.17 per basic and diluted share, compared with $25.3 million, or $0.58 per basic and $0.56 per diluted share, in the first nine months of 2025.

At September 30, 2026 the Company reported $35.3 million in cash and cash equivalents.

Full Year Gross Margin Guidance

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

Conference Call Information

Hudson Technologies will host a conference call and webcast today, Wednesday, October 28, 2026 at 5:00 p.m. Eastern Time to discuss the Company’s third-quarter 2026 results.

Please visit this link at least 5 minutes prior to the scheduled start time in order to register and receive dial-in and webcast details.

A replay of the teleconference will be available until November 27, 2026, and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 54581.  

About Hudson Technologies

Hudson Technologies, Inc. is a leading provider of innovative and sustainable refrigerant products and services to the Heating Ventilation Air Conditioning and Refrigeration industry. For nearly three decades, we have demonstrated our commitment to our customers and the environment by becoming one of the first in the United States and largest refrigerant reclaimers through multimillion dollar investments in the plants and advanced separation technology required to recover a wide variety of refrigerants and restoring them to Air-Conditioning, Heating, and Refrigeration Institute standard for reuse as certified EMERALD Refrigerants™. The Company’s products and services are primarily used in aftermarket service of commercial air conditioning, industrial processing and refrigeration systems. These include refrigerant and industrial gas sales, refrigerant management services consisting primarily of recovery and reclamation of refrigerants and RefrigerantSide® Services performed at a customer’s site, consisting of system decontamination to remove moisture, oils and other contaminants. The Company’s Chiller Chemistry® and Chill Smart® services are predictive and diagnostic service offerings. As a component of the Company’s products and services, the Company also generates carbon offset projects.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Statements contained herein which are not historical facts constitute forward-looking statements. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  Such factors include, but are not limited to, changes in the laws and regulations affecting the industry, changes in the demand and price for refrigerants (including unfavorable market conditions adversely affecting the demand for, and the price of, refrigerants), the Company’s ability to source refrigerants, regulatory and economic factors, seasonality, competition, litigation, the nature of supplier or customer arrangements that become available to the Company in the future, adverse weather conditions, possible technological obsolescence of existing products and services, possible reduction in the carrying value of long-lived assets, estimates of the useful life of its assets, potential environmental liability, customer concentration, the ability to obtain financing, the ability to meet financial covenants under its existing credit facility, any delays or interruptions in bringing products and services to market, the timely availability of any requisite permits and authorizations from governmental entities and third parties as well as factors relating to doing business outside the United States, including changes in the laws, regulations, policies, and political, financial and economic conditions, including inflation, interest and currency exchange rates, of countries in which the Company may seek to conduct business, the Company’s ability to successfully integrate any assets it acquires from third parties into its operations, and other risks detailed in the Company’s 10-K for the year ended December 31, 2025 and other subsequent filings with the Securities and Exchange Commission. The words “believe”, “expect”, “anticipate”, “may”, “plan”, “should” and similar expressions identify forward-looking statements.  Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made.

 Investor Relations Contact:
John Nesbett/Jennifer Belodeau
IMS Investor Relations
(203) 972-9200
jnesbett@imsinvestorrelations.com		 Company Contact:
Brian J. Bertaux, CFO and Secretary
Hudson Technologies, Inc.
(845) 735-6000
bbertaux@hudsontech.com

 
Hudson Technologies, Inc. and Subsidiaries
Consolidated Balance Sheets
(Amounts in thousands, except for share and par value amounts)
 
  September 30,       December 31, 
  2026   2025
  (unaudited)        
Assets              
Current assets:              
Cash and cash equivalents $ 35,262     $ 39,456  
Trade accounts receivable – net of allowance for credit losses of $712 and $941, respectively   29,786       17,098  
Inventories   131,513       135,923  
Income tax receivable   5,475       5,916  
Prepaid expenses and other current assets   15,642       12,445  
Total current assets   217,678       210,838  
               
Property, plant and equipment, less accumulated depreciation   21,845       23,623  
Goodwill   65,282       65,282  
Intangible assets, less accumulated amortization   8,843       11,294  
Right of use assets   4,206       5,290  
Other assets   1,972       2,321  
Total Assets $ 319,826     $ 318,648  
               
Liabilities and Stockholders’ Equity              
Current liabilities:              
Accounts payable $ 18,137     $ 21,112  
Accrued expenses and other current liabilities   41,425       38,772  
Accrued payroll   3,567       4,712  
Other short-term liabilities   1,000       —  
Total current liabilities   64,129       64,596  
Deferred tax liability   6,696       4,034  
Long-term lease liabilities   2,351       3,233  
Long-term severance payable   326       1,595  
Other long-term liabilities   800       1,800  
Total Liabilities   74,302       75,258  
               
Commitments and contingencies              
               
Stockholders’ equity:              
Preferred stock, shares authorized 5,000,000: Series A Convertible preferred stock, $0.01 par value ($100 liquidation preference value); shares authorized 150,000; none issued or outstanding   —       —  
Common stock, $0.01 par value; shares authorized 100,000,000; issued and outstanding: 42,088,547 and 41,647,221, respectively   421       416  
Additional paid-in capital   86,504       91,692  
Retained earnings   158,599       151,282  
Total Stockholders’ Equity   245,524       243,390  
               
Total Liabilities and Stockholders’ Equity $ 319,826     $ 318,648  
               

Hudson Technologies, Inc. and Subsidiaries
Consolidated Statements of Income
(unaudited)
(Amounts in thousands, except for share and per share amounts)
 
  Three months      Nine months
  ended September 30,    ended September 30, 
  2026      2025      2026      2025
Revenues $ 59,422     $ 74,012     $ 197,918     $ 202,204  
Cost of sales   44,622       50,338       150,580       143,651  
Gross profit   14,800       23,674       47,338       58,553  
                       
Operating expenses:                      
Selling, general and administrative   10,809       8,883       32,774       26,318  
Amortization   740       823       2,451       2,468  
Total operating expenses   11,549       9,706       35,225       28,786  
                       
Operating income   3,251       13,968       12,113       29,767  
                       
Other (income) expense:                      
Interest expense (income)   (36 )     (792 )     (216 )     (2,019 )
Other expense (income)   71       (1,600 )     71       (1,600 )
Total other (income) expense   35       (2,392 )     (145 )     (3,619 )
                       
Income before income taxes   3,216       16,360       12,258       33,386  
                       
Income tax expense   1,176       3,986       4,941       8,086  
                       
Net income $ 2,040     $ 12,374     $ 7,317     $ 25,300  
                       
Net income per common share – Basic $ 0.05     $ 0.28     $ 0.17     $ 0.58  
Net income per common share – Diluted $ 0.05     $ 0.27     $ 0.17     $ 0.56  
Weighted average number of shares outstanding – Basic   42,088,547       43,652,094       42,159,455       43,778,866  
Weighted average number of shares outstanding – Diluted   42,194,417       45,245,197       42,313,493       45,329,681  
                               

Hudson Technologies, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(unaudited)
(Amounts in thousands)
 
  Nine months
  ended September 30, 
  2026      2025
Cash flows from operating activities:          
Net income $ 7,317     $ 25,300  
Adjustments to reconcile net income to cash provided by operating activities:          
Depreciation   2,632       2,105  
Amortization of intangible assets   2,451       2,468  
Gain on measurement of earn-out liability   —       (1,600 )
Lower of cost or net realizable value inventory adjustment   (2,497 )     211  
Allowance for credit losses   79       300  
Share based compensation   1,079       631  
Amortization of deferred finance costs   170       170  
Deferred tax expense   2,662       1,460  
Changes in assets and liabilities:          
Trade accounts receivable   (12,767 )     (12,038 )
Inventories   8,031       (1,378 )
Prepaid and other assets   (3,019 )     (8,595 )
Income taxes receivable   441       2,000  
Accounts payable and accrued expenses   (2,315 )     18,347  
Cash provided by operating activities   4,264       29,381  
           
Cash flows from investing activities:          
Additions to property, plant, and equipment   (2,125 )     (3,942 )
Disposal write-off of fixed assets   (71 )     —  
Cash used in investing activities   (2,196 )     (3,942 )
           
Cash flows from financing activities:          
Proceeds from issuance of common stock   —       45  
Repurchase of common stock   (2,491 )     (5,820 )
Excise tax on repurchase of common stock   (3,771 )     (117 )
Cash used in financing activities   (6,262 )     (5,892 )
           
Increase (decrease) in cash and cash equivalents   (4,194 )     19,547  
Cash and cash equivalents at beginning of period   39,456       70,134  
Cash and cash equivalents at end of period $ 35,262     $ 89,681  
           
Supplemental disclosure of cash flow information:          
Cash paid for interest $ 285     $ 431  
Cash paid for income taxes – net $ 1,838     $ 4,627  
           
Property and equipment included in accrued expenses and other current liabilities $ 50     $ 3  


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Hudson Technologies, Inc.