HDSN

Hudson Technologies’ second quarter was marked by robust sales growth but a negative market reaction, as profitability fell short of expectations. Management pointed to several factors behind the margin compression, including softer-than-anticipated hydrofluorocarbon (HFC) refrigerant prices, inflationary freight costs, and incremental investments in operations and technology. CEO Kenneth Gaglione described the quarter as “challenging,” citing the impact of illegal refrigerant imports and unseasonably mild weather on pricing, while also noting that an increase in sales volume and expanded recovery capabilities demonstrated continued customer demand for the company’s services. Is now the time to buy HDSN? Find out in our full research report (it’s free). Revenue: $78.35 million vs analyst estimates of $74.2 million (7.5% year-on-year growth, 5.6% beat) Adjusted EPS: $0.12 vs analyst expectations of $0.17 (27.3% miss) Operating Margin: 9.4%, down from 17.5% in the same quarter last year Market Capitalization: $232.7 million While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Jason Tilchen (Canaccord Genuity) asked about ERP system optimization expenses and their expected duration. CEO Kenneth Gaglione responded that implementation costs exceeded $1 million in the first half but will decline in the second half as issues are resolved. Jason Tilchen (Canaccord Genuity) inquired about the drivers of HFC price softness. Gaglione attributed it to excess inventory and the growing impact of illegal imports, noting the industry is addressing the problem but resolution will take time. Gerard Sweeney (ROTH Capital) focused on the impact of new distillation technology on reclaimable gas volumes and potential adjacent markets. Gaglione explained that extractive distillation could unlock higher purity yields and enable entry into new market segments, though economic benefits are still being evaluated. Matthew Maus (B. Riley Securities) asked for clarification on current refrigerant pricing trends and the persistence of illegal import pressures. Gaglione indicated that prices have stabilized but remain under pressure, with illegal imports still a significant factor. Ryan Sigdahl (Craig-Hallum) questioned the rationale for increased staffing and its connection to future growth opportunities. Gaglione emphasized investment in predictive modeling and expanded recovery programs, while CFO Bertaux alluded to additional initiatives that could drive shareholder value in the future. In upcoming quarters, the StockStory team will closely monitor (1) progress on regulatory actions to curb illegal refrigerant imports and their effects on HFC pricing, (2) the scaling and commercialization of new distillation technologies and expansion of small truck recovery programs, and (3) initial revenue contributions from data center and predictive modeling services. Execution on these fronts will be critical for Hudson’s margin recovery and long-term growth. Hudson Technologies currently trades at $5.63, down from $6.22 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 5:00 p.m. ET Investor Relations - John Nesbett President and Chief Executive Officer - Kenneth Gaglione Chief Financial Officer - Brian Bertaux Operator: Greetings. Welcome to the Hudson Technologies Second Quarter 2026 Earnings Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, John Nesbett of IMS Investor Relations. You may begin. John Nesbett: Thank you. Good evening, and welcome to our conference call to discuss Hudson Technologies' financial results for the second quarter of 2026. On the call today are Ken Gaglione, President and Chief Executive Officer; and Brian Bertaux, Chief Financial Officer. I'll now take a moment to read the safe harbor statement. During the course of this conference call, we'll make certain forward-looking statements. All statements that address expectations, opinions or predictions about the future are forward-looking statements. Although they reflect our current expectations and are based on our best view of the industry and of our business as we see them today, they are not guarantees of future performance. Please understand that these statements involve a number of risks and assumptions. And since these elements can change and in certain cases are not within our control, we would ask that you consider and interpret them in that light. We urge you to review Hudson's most recent Form 10-K and other subsequent SEC filings for a discussion of the principal risks and uncertainties that affect our business and our performance and the factors that could cause our actual results to differ materially. With that, we will now turn the call over to Ken Gaglione. Please go ahead, Ken. Kenneth Gaglione: Hey. Good evening, and thank you for joining us to discuss our second quarter results. The refrigerant selling season is underway, and I am generally pleased with our strong second quarter results against some rather challenging market and business conditions. Our priority remains long-term value creation, including our focus on operational excellence through the improvement of our core capabilities and longer-term efforts to create less cyclical, more diversified sources of revenue with the goal of reducing our dependency on spot refrigerant pricing. We continued to execute on that vision in the second quarter by investing in the talent and technology we need to accomplish these goals with the backdrop of weaker-than-expected HFC market prices, illustrating the importance of shifting our business model to have less exposure to variations in pricing dynamics. We're in an inflationary economy, and this tends to favor repair versus replacement of HVAC units and resulting demand for aftermarket refrigerants, but this is counter to what we saw in the quarter. There are several possible reasons for softness in HFC prices. At this point, we can only speculate that a few factors are contributing to the softness, including recent information we've seen about illegally imported refrigerants coming across the southern border, excess channel inventory or simply that while there have been short bursts of higher temperatures this summer, we haven't really seen a prolonged period of hot weather for a long enough period of time. The industry is acting on the question of illegal imports and we're optimistic the situation will improve in the long run. Additionally, the forecasted El Niño effect and accompanying warmer weather may also benefit our business as we round out the selling season. For the quarter, sales revenue was up 8%, driven by a strong 12% increase in sales volume, while our increase in reclamation volume again demonstrates our customers' strong commitment to refrigerant life cycle management and Hudson's expanding network of recovered refrigerant sources. These positive results were offset by the HFC refrigerant pricing and higher costs related to our investments, both of which impacted net income. Brian will provide more detail on our financial results in a moment. Turning to our business with the DLA. Orders during the second quarter were in line with our annual run rate for the DLA contract. The 5-year annual contract that was awarded to us and then rescinded due to a competitor's challenge is still in review. During the quarter, we were awarded a bridge contract, which keeps the current contract terms and conditions intact for 4 months through November 29, 2026, with 2 additional 3-month extensions through May of 2027. We are very confident this open matter will be resolved shortly. Next, we often get questions about Hudson's activity in the rapidly expanding data center market. Most of what we read and hear about data centers today is focused on the immediate build opportunity for direct and indirect cooling and the role traditional HVAC systems play. These are generally first-fill opportunities for new systems dominated by virgin refrigerants sold to OEMs or through OEM channels. Hudson's business is centered on specialized high-speed recovery and legacy reclaimed refrigerant supply to the aftermarket. Today, we have a nascent business with data centers, which is not a meaningful portion of our business today, but we expect this segment to be a much larger opportunity in 3 to 5 years as data center HVAC systems begin to need optimization, resupply or decommissioning. We will continue to look for ways to optimize our presence in the data center market. This expected future demand is yet another reason for investment today in operational readiness. First, as I noted earlier, recovered refrigerants are an important feedstock for operations. During the quarter, we saw continued growth in recovered refrigerant volume as we leverage our past investments and acquisitions that expanded our recovery ability and more recently, the successful pilot of aftermarket small recovery trucks, or SRT, in the New York City area that further facilitates our life cycle refrigerant management program by focusing on high-density, lower-volume recoveries that our legacy service operations did not address. The solution is high speed, EPA compliant and allows our contractor partners to focus on other value-added revenue-generating activities. By focusing on the contractor, we are not only expanding our access to recovered refrigerant, but also helping to increase overall industry recovery rates by simplifying the recovery and reward transaction so it is effortless as possible while still complying with EPA reporting requirements. Second, when we receive recovered refrigerant from contractors for reclamation, the cylinders can contain one refrigerant or may be mixed with multiple refrigerants. Hudson has 2 of the 7 reclamation facilities in this country that can separate mixed refrigerants from a cylinder using fractional distillation. This enables the conversion of recovered refrigerant feedstock into salable products with greater efficiency compared to simple distillation or other methods. While fractional distillation is not new, the proprietary way we accomplish the separation is one of Hudson's core competencies. We're building on that expertise. And during the quarter, we announced our intent to partner with Icorium, an NSF Innovation Corps start-up company based in Lawrence, Kansas, to scale their patented extractive distillation technology to increase our ability to separate complicated next-generation azeotropes and HFO refrigerant blends in one of the most efficient ways possible. Unlocking this traditionally difficult separation capability allows Hudson to extract the most refrigerant from every pound of recovered gas, permitting faster transition of feedstock into working capital and producing a sustainable competitive advantage in the process. The intended partnership with Icorium is just one component of Hudson's advanced operations directive, which we expect will enable the company to expand both capability and capacity ahead of the next EPA phase down and before expected increase in that data center-related demand. As announced previously, our facility in Illinois experienced extensive damage from a tornado on June 11, causing us to temporarily idle operations while the plant was secured. The good news is that the damage was mostly related to the building structure and no one was injured with the storm removing the roof and the equipment attached to it and water damage to the interior of the facility. While the plant was without power for approximately 1 week, there was no detectable damage to the separation columns or to our product inventory. Facility was completely out of service for approximately 3 weeks with no loss of inventory and is now fully functioning while major repairs are underway. Expenses related to the full restoration will be covered by insurance and are not reflected in our second quarter P&L. Now I'll turn the call over to Brian. Please go ahead, Brian. Brian Bertaux: Thank you, Ken, and good evening, everybody. I will now review our second quarter 2026 financial results with a comparison to the second quarter of 2025. Hudson reported $78.3 million in revenue, an increase of 8%. We posted a strong 12% growth in sales volume, which was partially offset by a 6% decline in average refrigerant sales price. During the 2025 quarter, essentially all refrigerant market prices rose as a result of supply chain constraints amid the EPA-mandated transition to HFO refrigerants. Gross margin was 26% compared to 31% in the 2025 quarter. The drivers to the gross margin decline were twofold. First, as previously noted, HFO supply chain constraints caused a temporary positive impact on all refrigerant pricing in the 2025 quarter. This pricing comparison resulted in a 232 basis point reduction in gross margin for the 2026 quarter. Second, we experienced higher operating expenses, primarily due to increased fuel costs in the quarter related to the conflict in the Middle East and the corresponding impact to freight costs. SG&A expenses were $12.4 million in the 2026 quarter, an increase of $3.1 million. The drivers to the increased SG&A costs were also twofold. We incurred costs related to the optimization of the recently launched ERP system as well as legal expenses incurred related to the reaward of our DLA contract. Second, we increased staffing and consulting resources that reflect our newly reinvigorated focus on longer-term initiatives to increase shareholder value, as Ken noted. Net interest was flat in the 2026 quarter compared to net interest income of $700,000 last year, reflecting a lower cash balance on our unlevered balance sheet. Hudson recorded net income of $4.9 million or $0.12 per diluted share, compared to net income of $10.2 million or $0.23 per diluted share in the 2025 quarter. The decline in net income reflects the combination of a continued trough in HFC refrigerant market pricing, inflationary pressures, primarily in freight, our ERP optimization as well as legal and consulting support to continue our reinvigorated commitment to investing in the future for long-term shareholder value creation. The company continues to have an unlevered balance sheet, ending the quarter with $26 million in cash and no debt, reflecting a sequential $6 million increase in cash versus our cash position at March 31, 2026. Our capital allocation strategy remains focused on organic and strategic growth as well as opportunistic share repurchases. We did not purchase any shares of the company's stock during the 2026 quarter, reflecting our near-term cash management strategy. We have purchased $2.5 million in shares thus far in 2026. At this time, with the trough in refrigerant market pricing and inflationary pressure expected to continue, we are revising our full year 2026 gross margin target from mid-20% to low-to-mid-20%. In addition, as we continue to invest resources for long-term shareholder value creation, we expect second half SG&A expenses to continue to show increases over 2025, but to a lesser extent than the first half. I will now turn the call back over to Ken. Kenneth Gaglione: Thank you, Brian. We can't avoid the reality of soft market prices for HFCs and the impact it has on our profitability. But despite this headwind, we had a very strong quarter, focusing on meeting the growing service and refrigerant needs of our customers. The industry will continue to pursue the development and use of new lower GWP refrigerants, and we believe Hudson has the expertise, facilities and distribution network to bridge the transition now and in the future. To secure our vision, we are making the incremental investments needed to make Hudson a more flexible, efficient competitor and ultimately, the preferred source for diverse refrigerant life cycle management solutions. Thank you for your attention. Operator, we'll now open the call to questions. Operator: [Operator Instructions] First question comes from Jason Tilchen with Canaccord Genuity. Jason Tilchen: Maybe one for Ken to start. Just wondering if you could maybe share some of the -- share an update on how the ERP implementation progressed during the quarter. Maybe what are some of the early learnings as you continue to roll that out? And related to that, what may be the specific magnitude of the costs -- those expenses for the optimization that were incurred during Q2, when those may start to roll off as well? Kenneth Gaglione: Jason, thanks for the question. Yes, the ERP system optimization, I think, has gone better in the second quarter. It's definitely been a process. And I think that the cost -- magnitude of the cost, yes, we've spent a lot to optimize and get things sorted out. But we're seeing that cost is going to be reduced in the second half. It's not going to continue at the same rate. So there's over $1 million in the first half that we've invested in ERP optimization, and it will be lower in the second half. Jason Tilchen: Great. And then in the prepared remarks, you mentioned that the dynamic you saw with pricing in the quarter didn't necessarily match the sort of typical dynamic you would see in an inflationary economy. You mentioned some of those potential causes of the softness in pricing. Just wondering what you think is needed in order to maybe drive more of a normalization in that behavior and any other sort of thoughts that you have on the operating environment would be helpful. Kenneth Gaglione: Yes, it's definitely not a typical increase that we would have seen or a typical firming that we would have seen going into the season on HFCs. What it's telling us is that I think, in my opinion, there's excess channel inventory on HFCs that are keeping prices suppressed. I also think, and this is sort of new information, that there is more of an impact on illegal refrigerants coming in than we might have expected previously. So that's also having a dampening effect. What will impact the rest of the season is going to be prolonged heat, and I think we are seeing some of that. I think it would also help if some of the inflationary pressures were reduced, but I'm not really forecasting that. I think that's going to stay the same for the rest of the year. Jason Tilchen: Okay. Great. And then last quick one for me is, maybe one for Brian, just could you provide a little bit more color on the specifics around some of those -- some of the areas where from an operating perspective, where you're seeing those inflationary pressures and to the magnitude that you expect them to persist in the second half? Brian Bertaux: Yes. So it's across several different areas, but primarily in freight. So freight is where we saw the biggest increase. And unfortunately, in this dynamic, we can typically -- in the past, you could always pass along freight in the pricing. But with this trough in HFC pricing, that didn't happen. So with that increase in freight, that was certainly a contributor to the margin decline. Operator: The next question comes from Gerry Sweeney with ROTH Capital. Gerard Sweeney: I had a question about the distillation technology. Obviously, it sounds like it potentially helps you separate mixed gas or dirty gas and gas comes back in all shapes, forms and fashions as that's related to the quality. Do you have any idea of how much more gas this could potentially open up for you for reclaim? Because my understanding was some of the mixed gas -- it was too mixed that made the fractional distillation very challenging or you had to run it through multiple times to sort of get to a point where you need to use it. Kenneth Gaglione: Right. You hit it exactly right, Gerry. What makes it inefficient is multiple passes through a very tall column to separate some of these more complicated blends or highly contaminated gases, correct? There are gases that we are unable to -- or components that we are unable to do effectively with fractional distillation that we will be able to effectively do tomorrow with extractive. That's a key unlock for us. And we'll be able to share more detail about what that is and what the volume is going forward. But that is absolutely a critical component for us. The second part of the story is this also unlocks our ability to move potentially into adjacencies that we would not have been able to access otherwise with fractional distillation. Gerard Sweeney: What would be some of those adjacencies if you have the ability to? Kenneth Gaglione: Yes. I'm not going to get into it. But in broad strokes, right, this is a much more sensitive type of separation. So it gets us to a higher purity level and it's a more sensitive type of distillation. So that puts us into a space where higher purity materials for other market segments in other areas, that's where this is going to come into play. Gerard Sweeney: And this may be too early to ask, but the economics behind the cost, is it as efficient as the current system? Or how should we think about it from that perspective? Kenneth Gaglione: I don't think it's -- sorry, go ahead, Gerry. Gerard Sweeney: I wasn't sure if there would be an advantage. It provided more of an advantage on a cost basis. Kenneth Gaglione: I think it is early to say. But right now, we're estimating that it's going to be mostly useful for those complicated, highly contaminated blends. But as we get to scale down the road, then it should be on a -- it should be a cost equivalent basis as fractional. Operator: [Operator Instructions] The next question comes from Josh Nichols with B. Riley Securities. Matthew Maus: This is Matthew on for Josh. So in terms of pricing, you're running down about like 6% against last year's peak. I'm wondering, as those comps ease through the back half, do you see current price levels holding? And would you call the trend stabilizing or still under pressure? Kenneth Gaglione: We would see them stabilizing. So there was just a small uptick in 410A in Q2 versus Q1, very small, and we think it's stabilizing, just call it in the $6 area. $6 per pound. Matthew Maus: Got it. And how much of a factor is the illegal import pressure on pricing? Like, do you expect that to ease with enforcement? How persistent is that? And, yes, if you could quantify that a little bit in terms of the impact. Kenneth Gaglione: It's hard to quantify, as you might expect, but I think it's a bigger factor than we would have thought at the beginning of the year. But we are working with industry partners and our consortia of interested parties here to understand what the magnitude is. But it is in the millions of pounds is what I've come to understand. So this is a significant issue for the industry, and it is being addressed. What's going to be the second half outlook? I'm optimistic, but I can't say with any certainty that this is going to be settled by the end of the year. Matthew Maus: Got it. That was helpful. I guess last question for me is just more on the Icorium technology. Just wondering what it does for your yield in terms of how much more recovered product you can convert to salable versus conventional fractional distillation. Kenneth Gaglione: Yes. And I'll say this. I think it's a very exciting technology, but it is a commercialization. So we are taking something. We've done a lot of work on this over the past couple of years. I think that there's a huge opportunity here to separate out, as I said earlier, a component that we've not yet been able to separate effectively with fractional distillation, and we can do that with extractive. That's been demonstrated. So that alone is going to justify the investment. And then the improvement in yield on regular -- let's say, regular cross gases, that's yet to be determined. But we are expecting this to be quite significant. Operator: The next question is coming from Ryan Sigdahl with Craig-Hallum. Ryan Sigdahl: I will be the first to congratulate you guys on getting the 5-year, $210 million Defense Logistics Agency. It hit just now. So congratulations. My question is, so -- you mentioned increased staffing as you focus on some of these longer-term initiatives. You talked about service in the past, et cetera. But I guess my inclination is you must be feeling pretty good about the pipeline of opportunities given you're bringing on fixed costs ahead of that. But can you give us an update kind of what you're working on, your confidence level and any other details there? Kenneth Gaglione: Yes, absolutely. And thanks, Ryan. Appreciate the notice. For everyone's benefit, what came across the wire as we were speaking is the DLA reaward has been reawarded. So that matter is now behind us. It's been a 7-month stretch and we're very pleased that DLA has recognized and validated our commitment to their success. So thanks, Ryan. Yes. When it comes to the investment, right, there's 2 or 3 major pillars here. And I'm going to include the extractive distillation in this because they're all linked together. But our predictive modeling business, and that's a nascent service area, has actually done quite well. We have won 4 contracts this year so far for predictive servicing on multiple chillers. We're focusing that activity and to support that activity, we need to have improved skill sets and new skill sets in the organization. So that's what we're really focusing on is the predictive modeling services as well as the small truck recovery program, where we've added staff and we're adding locations to support that. That's already revenue positive and we are excited by the pilot work that's been done in the New York City area. And we're going to continue that in other areas of the country, other major metropolitan areas with the rollout continuing for the rest of the year. So those are the areas where we're supporting staffing as well as regular services business. We're at capacity with our services group. We have done some data center work with our regular services group this year, and that's very exciting. I don't talk too much about it, but it's a great growth area for us as that goes forward. And as I mentioned in my comments, we're going to need the service team to support it. So those are the areas that we've been investing in. Brian Bertaux: And I'll even add to that. We have competitors on the line. So we are investing with consultants and such for things that we can't speak to now, but that we feel will have very good impact on shareholder value in the future. So one day in the near future, we'll be looking forward to speaking to those. Ryan Sigdahl: Good teaser for your competitors on the line, Brian, to look out behind their back. Maybe just one other one. You guys have done a nice job of outperforming growing volume. I can't help, but given the decrement to gross margin. Are you guys emphasizing volume over price and margin? And are you able to do that in the market if you wanted to? Kenneth Gaglione: Yes, it's a good question. So we are balancing this. So we actually pulled back volume when the market prices started to erode further back in June. We made a strategic decision to start focusing on higher-margin product mix. So we did give up some revenue on top line just to look at higher-margin product sales. So we do have that ability, but it is a balancing act. And it was impaired somewhat in June by the plant being down. Some of our R-22 sales could not be executed in June as a result of the plant being down. So those either got pushed into the next quarter -- into this quarter or didn't happen at all. So it is a balancing act, but we are able to fine-tune that as we go forward. Operator: We have reached the end of the question-and-answer session, and I will now turn the call over to management for closing remarks. Kenneth Gaglione: Okay. Thank you, operator. And thank you, everyone, for your interest in Hudson Technologies, particularly this quarter. I want to thank again our employees for their continued support and dedication to our business and both our long-term shareholders and those that recently joined us for their support during an exciting period of the company's evolution. This was a tough quarter. We had a lot of headwinds with the plant and the accident. But again, our employees pulled us through, and I am extremely proud of the work that's been done to grow sales, grow volume in that environment. So thank you, everyone. We look forward to speaking to you after the third quarter results. Have a good night. Operator: Thank you. This concludes today's conference and you may disconnect your lines at this time. Thank you for your participation. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Hudson Technologies (HDSN) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the specialty equipment distributors industry, including Hudson Technologies (NASDAQ:HDSN) and its peers. Historically, specialty equipment distributors have boasted deep selection and expertise in sometimes narrow areas like single-use packaging or unique lighting equipment. Additionally, the industry has evolved to include more automated industrial equipment and machinery over the last decade, driving efficiencies and enabling valuable data collection. Specialty equipment distributors whose offerings keep up with these trends can take share in a still-fragmented market, but like the broader industrials sector, this space is at the whim of economic cycles that impact the capital spending and manufacturing propelling industry volumes. The 8 specialty equipment distributors stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 5.1%. In light of this news, share prices of the companies have held steady as they are up 4.2% on average since the latest earnings results. Founded in 1991, Hudson Technologies (NASDAQ:HDSN) specializes in refrigerant services and solutions, providing refrigerant sales, reclamation, and recycling. Hudson Technologies reported revenues of $78.35 million, up 7.5% year on year. This print exceeded analysts’ expectations by 5.6%. Despite the top-line beat, it was still a mixed quarter for the company. Ken Gaglione, President and Chief Executive Officer of Hudson Technologies, commented, “Our selling season is underway and second quarter sales revenue and volume growth exceeded expectations despite significant headwinds in the quarter, including a continued trough in HFC market prices and inflationary pressures. We continued to deliver for our customers driving our second 2026 sequential quarter of double-digit volume growth. In fact, our trailing twelve months volume is up double-digits. We also continued our efforts towards reinvigorating our focus on long-term shareholder value creation, announcing a preliminary agreement for a major partnership for advanced separation technology and making investments in our plants that will expand capacity and capability. The market seems disappointed with the results as the stock is down 10.2% since reporting and currently trades at $5.58. Is now the time to buy Hudson Technologies? Access our full analysis of the earnings results here, it’s free. Founded in 1947, Richardson Electronics (NASDAQ:RELL) is a distributor of power grid and microwave tubes as well as consumables related to those products. Richardson Electronics reported revenues of $66.2 million, up 27.6% year on year, outperforming analysts’ expectations by 19.6%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates. Richardson Electronics delivered the biggest analyst estimate beat and fastest revenue growth of the whole group. The market seems happy with the results as the stock is up 14.7% since reporting. It currently trades at $20.65. Is now the time to buy Richardson Electronics? Access our full analysis of the earnings results here, it’s free. Known for distributing John Deere tractors and LESCO turf care products, SiteOne Landscape Supply (NYSE:SITE) provides landscaping products and services to professionals, including irrigation, lighting, and nursery supplies. SiteOne reported revenues of $1.53 billion, up 4.7% year on year, falling short of analysts’ expectations by 0.7%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates. The stock is flat since the results and currently trades at $103.86. Read our full analysis of SiteOne’s results here. Formerly a subsidiary of Hertz Corporation and with a logo that still bears some similarities to its former parent, Herc Holdings (NYSE:HRI) provides equipment rental and related services to a wide range of industries. Herc reported revenues of $1.20 billion, up 20.2% year on year. This number surpassed analysts’ expectations by 4.9%. Zooming out, it was a satisfactory quarter as it also logged a beat of analysts’ EPS estimates but full-year revenue guidance missing analysts’ expectations significantly. Herc had the weakest full-year guidance update among its peers. The stock is up 4.9% since reporting and currently trades at $167.90. Read our full, actionable report on Herc here, it’s free. Founded as Lollicup, Karat Packaging (NASDAQ: KRT) distributes and manufactures environmentally-friendly disposable foodservice packaging solutions. Karat Packaging reported revenues of $136.3 million, up 9.9% year on year. This result topped analysts’ expectations by 0.6%. Overall, it was an exceptional quarter as it also put up a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates. The stock is up 12.8% since reporting and currently trades at $47.78. Read our full, actionable report on Karat Packaging here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. 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This article first appeared on GuruFocus. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Hudson Technologies Inc (NASDAQ:HDSN) reported an 8% increase in sales revenue, driven by a strong 12% growth in sales volume during the second quarter. The company successfully secured a bridge contract for the DLA, keeping terms intact through November 2026 with extension options, and the five-year contract was re-awarded, resolving a seven-month dispute. Hudson Technologies Inc (NASDAQ:HDSN) is investing in innovative technologies, including a partnership with Icorium to scale extractive distillation, which will enhance its ability to separate complex refrigerant blends and create a sustainable competitive advantage. The company's small recovery truck (SRT) pilot in New York City was successful and is revenue positive, with plans to expand to other major metropolitan areas, expanding its access to recovered refrigerant feedstock. Hudson Technologies Inc (NASDAQ:HDSN) maintains a strong, unlevered balance sheet, ending the quarter with $26 million in cash and no debt, providing financial flexibility for strategic growth initiatives. Hudson Technologies Inc (NASDAQ:HDSN) experienced a 6% decline in average refrigerant sales price, driven by softer-than-expected HFC market prices due to factors like illegal imports and excess channel inventory. Gross margin decreased to 26% from 31% in the prior year quarter, impacted by lower pricing and higher operating expenses, including increased fuel and freight costs due to the Middle East conflict. Net income fell to $4.9 million, or $0.12 per diluted share, down from $10.2 million, or $0.23 per diluted share, reflecting the trough in HFC pricing and increased SG&A costs. SG&A expenses rose by $3.1 million due to ERP system optimization costs, legal expenses related to the DLA contract dispute, and increased staffing and consulting resources for long-term initiatives. The company's Illinois facility was temporarily idled for approximately three weeks after a tornado caused extensive structural damage, disrupting operations and impacting sales execution in June. Warning! GuruFocus has detected 4 Warning Signs with HDSN. Is HDSN fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide an update on the DLA contract status and the recent award? A: Ken Gaglione, President and CEO, confirmed that the DLA contract has been re-awarded to Hudson, resolving a seven-month review period following a competitor's challenge. The company was previously operating under a bridge contract through November 2026, but the re-award validates Hudson's commitment to the DLA's success and removes this overhang. Q: What is driving the softness in HFC refrigerant pricing, and what is needed for normalization? A: Ken Gaglione, President and CEO, cited three primary factors: excess channel inventory, the impact of illegally imported refrigerants coming across the southern border (which he noted is a bigger factor than previously expected, potentially in the millions of pounds), and a lack of prolonged hot weather. He believes the industry is acting on illegal imports and that prolonged heat, potentially from an El Nino effect, could benefit the remainder of the selling season. Q: Can you elaborate on the ERP implementation costs and when they will roll off? A: Ken Gaglione, President and CEO, stated that the ERP system optimization went better in Q2 and that the company invested over $1 million in the first half of 2026. He confirmed these costs will be lower in the second half of the year as the optimization process matures. Q: How should we think about the economics and yield improvements from the Icorium extractive distillation technology? A: Ken Gaglione, President and CEO, explained that the technology is a commercialization effort that will unlock the ability to separate complicated next-generation azeotropes and HFO blends that fractional distillation cannot effectively handle. While it is early to quantify the cost basis, he expects it to be cost-equivalent to fractional distillation at scale. The technology also opens adjacencies in higher-purity markets, and the improvement in yield on regular cross-gases is expected to be "quite significant." Q: Are you emphasizing volume over price and margin given the gross margin decline? A: Ken Gaglione, President and CEO, clarified that the company is balancing this dynamic. In June, when market prices eroded further, Hudson made a strategic decision to pull back volume and focus on higher-margin product mix, giving up some top-line revenue. He noted that R22 sales were also impaired in June due to the tornado-related plant shutdown, pushing some sales into Q3. Q: What is the current state of HFC pricing, and do you see it stabilizing? A: Brian Berteau, CFO, stated that pricing appears to be stabilizing, with a small uptick in R-410A in Q2 versus Q1. He indicated prices are hovering around the $6 per credit area and expects them to hold at current levels as year-over-year comparisons ease in the back half. Q: Can you provide more color on the inflationary pressures impacting the business? A: Brian Berteau, CFO, identified freight as the primary area of inflationary pressure, driven by the conflict in the Middle East. He noted that in the past, the company could pass along freight costs in pricing, but with the trough in HFC pricing, that was not possible, contributing to the gross margin decline. Q: What are the key areas of investment and staffing increases for long-term initiatives? A: Ken Gaglione, President and CEO, highlighted three pillars: the predictive modeling business, which has won four contracts this year for chiller servicing; the small truck recovery (SRT) program, which is already revenue-positive and expanding beyond New York City to other major metropolitan areas; and the regular services group, which is at capacity and has done data center work. Brian Berteau, CFO, added that the company is also investing in consultants for initiatives that cannot yet be disclosed but are expected to positively impact shareholder value. Q: How much of a factor are illegal imports on pricing, and how persistent is the issue? A: Ken Gaglione, President and CEO, said it is hard to quantify but is a bigger factor than expected at the beginning of the year. He noted the industry is working with partners and consortia to understand the magnitude, which is in the millions of pounds. While optimistic, he cannot say with certainty the issue will be settled by the end of the year. Q: What is the status of the Illinois facility following the tornado damage? A: Ken Gaglione, President and CEO, reported that the facility was out of service for approximately three weeks but is now fully functioning. The damage was mostly structural, with no loss of inventory or damage to separation columns. Expenses related to restoration will be covered by insurance and were not reflected in the Q2 P&L. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Hudson Technologies, Inc.? Here are five stocks we like better. Second-quarter revenue rose 8% to $78.3 million as refrigerant sales volumes increased 12%, but lower average prices and higher freight costs reduced gross margin to 26% from 31% a year earlier. Net income declined to $4.9 million, or $0.12 per diluted share. Hudson lowered its full-year 2026 gross-margin outlook to the low-to-mid-20% range, citing continued pricing and inflationary pressures, while elevated SG&A spending is expected to persist as the company invests in ERP optimization and strategic initiatives. The company secured a new five-year, $210 million Defense Logistics Agency contract and is expanding refrigerant recovery and reclamation capabilities, including a potential technology partnership to process difficult next-generation refrigerants. Investors Are Moving into Bonds and Small Cap Stocks: Here's Why Hudson Technologies (NASDAQ:HDSN) reported second-quarter revenue growth driven by higher refrigerant sales volumes, though lower HFC refrigerant prices, higher freight costs and increased spending on technology and longer-term initiatives weighed on profitability. Revenue for the second quarter of 2026 rose 8% year over year to $78.3 million. Sales volume increased 12%, partially offset by a 6% decline in average refrigerant selling prices. Net income fell to $4.9 million, or $0.12 per diluted share, from $10.2 million, or $0.23 per diluted share, a year earlier. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Gross margin declined to 26% from 31% in the prior-year quarter. Chief Financial Officer Brian Bertaux said the comparison was affected by elevated refrigerant prices in the 2025 quarter, when supply-chain constraints related to the EPA-mandated transition to HFO refrigerants boosted market pricing. Bertaux also cited higher operating costs, particularly freight expenses tied to increased fuel costs during the conflict in the Middle East. He said Hudson had historically been able to pass freight costs through in pricing, but that was more difficult during the current trough in HFC pricing. → 3 Drone Stocks That Should Soar After the Summer Slump President and Chief Executive Officer Ken Gaglione said the company believes excess channel inventory and illegally imported refrigerants are contributing to softer HFC pricing. He also pointed to the absence of a prolonged period of hot weather during the selling season to date. Hudson is working with industry partners on the illegal-import issue, which Gaglione said involves “millions of pounds” of refrigerant, although he said the company could not quantify its precise market impact. Gaglione said pricing appeared to be stabilizing, noting a small sequential increase in R-410A pricing during the second quarter. He also said prolonged heat could support demand during the balance of the selling season. Second-quarter revenue: $78.3 million, up 8% year over year. Sales volume: Up 12%. Average refrigerant selling price: Down 6%. Gross margin: 26%, versus 31% a year earlier. Cash at quarter-end: $26 million, with no debt. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure Hudson revised its full-year 2026 gross-margin target to the low-to-mid-20% range, from a previous expectation of mid-20% margins. Bertaux said the company expects inflationary pressures to continue and anticipates second-half SG&A expenses will remain above 2025 levels, though increases should be less pronounced than in the first half. SG&A expense rose $3.1 million to $12.4 million in the quarter. The increase included costs to optimize Hudson’s recently launched ERP system, legal costs associated with its Defense Logistics Agency contract process, and additional staffing and consulting resources for strategic initiatives. Gaglione said Hudson spent more than $1 million during the first half on ERP optimization and expects those costs to decline in the second half. The company did not repurchase stock during the second quarter, citing near-term cash management, although it has repurchased $2.5 million of shares so far in 2026. During the call, management said the Defense Logistics Agency re-awarded Hudson a five-year, $210 million contract. The award followed a seven-month review after a previously awarded contract was rescinded following a competitor challenge. Hudson had received a bridge contract during the review period that maintained existing terms through Nov. 29, 2026, with potential extensions through May 2027. Gaglione said the company is continuing to build less cyclical revenue sources through refrigerant recovery, reclamation and services. Hudson reported continued growth in recovered refrigerant volumes and is expanding a pilot program using small recovery trucks in New York City to address high-density, lower-volume recovery opportunities. The company also announced its intention to partner with Icorium, a Lawrence, Kansas-based NSF I-Corps startup, to scale patented extractive distillation technology. Gaglione said the technology could improve Hudson’s ability to separate difficult next-generation azeotropes, HFO blends and highly contaminated recovered refrigerants. He said the technology has demonstrated an ability to separate components that Hudson has not been able to process effectively through conventional fractional distillation. Hudson has two of the country’s seven reclamation facilities capable of separating mixed refrigerants through fractional distillation, according to Gaglione. He said extractive distillation could also potentially open opportunities in adjacent markets requiring higher-purity materials, though the company did not provide details. Hudson’s Illinois facility was temporarily idled after a June 11 tornado damaged the building, removed its roof and caused interior water damage. Gaglione said no employees were injured, and there was no detectable damage to separation columns or product inventory. The plant was without power for about a week and fully out of service for roughly three weeks. It has since returned to full operation while major repairs continue. Hudson said restoration expenses will be covered by insurance and were not reflected in second-quarter results. Gaglione said the outage limited some R-22 sales in June, with certain orders either shifting into the current quarter or not occurring. He added that Hudson pulled back some volume as market prices weakened in June, shifting its sales focus toward higher-margin product mix. Looking longer term, management said data centers are not currently a meaningful portion of Hudson’s business. The company expects the market could become a larger opportunity in three to five years as cooling systems require optimization, refrigerant resupply or decommissioning. Hudson Technologies, Inc is a U.S.-based provider of refrigerant management and sustainability solutions, specializing in the recovery, reclamation and recycling of refrigerant gases. The company's core business centers on collecting used refrigerants—such as CFCs, HCFCs and HFCs—from industrial, commercial and institutional customers, processing them in certified reclamation facilities and returning material that meets industry purity standards. Headquartered in Purchase, New York, Hudson Technologies operates a network of reclamation centers across the continental United States. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Hudson Technologies Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Hudson Technologies (HDSN) came out with quarterly earnings of $0.12 per share, missing the Zacks Consensus Estimate of $0.17 per share. This compares to earnings of $0.23 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -29.41%. A quarter ago, it was expected that this refrigerant services company would post earnings of $0.05 per share when it actually produced earnings of $0.01, delivering a surprise of -80%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Hudson Tech, which belongs to the Zacks Industrial Services industry, posted revenues of $78.35 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 6.37%. This compares to year-ago revenues of $72.85 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Hudson Tech shares have lost about 7.7% since the beginning of the year versus the S&P 500's gain of 13%. While Hudson Tech has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Hudson Tech was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.18 on $75.51 million in revenues for the coming quarter and $0.35 on $253.34 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Industrial Services is currently in the bottom 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, ClearSign Technologies (CLIR), has yet to report results for the quarter ended June 2026. This combustion systems technology company is expected to post quarterly loss of $0.25 per share in its upcoming report, which represents a year-over-year change of +16.7%. The consensus EPS estimate for the quarter has been revised 6.8% higher over the last 30 days to the current level. ClearSign Technologies' revenues are expected to be $0.61 million, up 369.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hudson Technologies, Inc. (HDSN) : Free Stock Analysis Report ClearSign Technologies Corporation (CLIR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Second quarter revenue grew 8% driven by strong volumePosts trailing twelve month double-digit volume growthOperations fully restored at tornado impacted facilityAnnounces Icorium partnership Maintains unlevered balance sheet with $25.6 million cash position WOODCLIFF LAKE, N.J., Aug. 05, 2026 (GLOBE NEWSWIRE) -- Hudson Technologies, Inc. (NASDAQ: HDSN) announced results for the second quarter and six months ended June 30, 2026. SECOND QUARTER 2026 FINANCIAL HIGHLIGHTS: Revenues of $78.3 million Sales Volume +12%Pricing -6% Gross Margin of 26% Net income of $4.9 million Diluted EPS of $0.12 Ken Gaglione, President and Chief Executive Officer of Hudson Technologies, commented, “Our selling season is underway and second quarter sales revenue and volume growth exceeded expectations despite significant headwinds in the quarter, including a continued trough in HFC market prices and inflationary pressures. We continued to deliver for our customers driving our second 2026 sequential quarter of double-digit volume growth. In fact, our trailing twelve months volume is up double-digits. We also continued our efforts towards reinvigorating our focus on long-term shareholder value creation, announcing a preliminary agreement for a major partnership for advanced separation technology and making investments in our plants that will expand capacity and capability. “As disclosed previously, one of our Illinois facilities experienced an operational disruption in mid-June due to tornado damage. We are happy to report there were no injuries to our people, and the facility was quickly restored to pre-storm output with only minimal interruption to our customers. We are very grateful to our team for restoring operations and their determination to service our customers despite production disruptions. All costs to restore the facility and related business interruption are expected to be covered through insurance. “Following the close of the quarter, we announced our intention to partner with Icorium, an advanced separation technology company based in Kansas, to commercialize and scale their patented extractive distillation technology as an important component of Hudson’s operational excellence strategy. This exciting technology complements and advances conventional fractional distillation by increasing the ability to purify more complicated refrigerant mixtures with greater productivity and efficiency. Converting more recovered refrigerant into saleable product unlocks working capital and creates a new competitive edge as the industry phases out conventional refrigerants. “We are encouraged by our progress in the areas we can control, including driving trailing-twelve-month double digit sales volume growth, generating cash, and executing our long-term growth and diversification strategy. As we move through the second half of the year, we continue to focus on revenue growth and improving quarterly operating margins. At the same time, we remain committed to making strategic investments to further our reinvigorated focus on longer-term initiatives to increase shareholder value through operational excellence, ensuring we have the right team in place, and evaluating and acting on strategic diversification opportunities that strengthen our competitive advantage today and reduce our exposure to seasonality in the future,” Mr. Gaglione concluded. Three Months Results For the quarter ended June 30, 2026, Hudson reported: Revenue was $78.3 million, up 8% from $72.8 million in the comparable 2025 period reflecting a 12% increase in sales volume, partially offset by 6% lower selling prices compared with the prior-year period where all refrigerant market prices rose as a result of supply chain constraints related to the EPA mandated transition to HFO refrigerants. Gross margin was 26%, compared with 31% in the second quarter of 2025. The decline in gross margin was two-fold, reflecting 6% lower refrigerant market pricing related to the previously noted increase in refrigerant prices in the 2025 quarter and increased operating costs primarily in fuel from geopolitically driven inflationary pressure. Selling, general and administrative expenses increased to $12.4 million from $9.3 million in the second quarter of 2025. The increase in SG&A expenses was two-fold, reflecting costs related to the optimization of the recently launched ERP system as well as legal expenses incurred related to the Company’s DLA contract. Second, the Company increased staffing and consulting resources that reflect the Company’s newly reinvigorated focus on longer-term initiatives to increase shareholder value. Net income was $4.9 million, or $0.12 per basic and diluted share, compared with $10.2 million, or $0.23 per basic and diluted share, in the second quarter of 2025. Six Months Results For the six months ended June 30, 2026, Hudson reported: Revenue was $138.5 million, up 8% from $128.2 million in the first six months of 2025 reflecting a 17% increase in sales volume, partially offset by a 7% decline in selling prices compared with the prior-year period where all refrigerant market prices rose as a result of supply chain constraints as described above. Gross margin was 23%, compared to 27% in the first six 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 in fuel costs as described above. Selling, general and administrative expenses increased to $22.0 million from $17.4 million in the first six months of 2025. The increase in SG&A expenses was related to the increased operational, legal and staffing and consulting costs that impacted the second quarter. Net income was $5.3 million, or $0.13 per basic and $0.12 per diluted share, compared with $12.9 million, or $0.29 per basic and $0.28 per diluted share, in the first six months of 2025. At June 30, 2026 the Company reported $25.6 million in cash and cash equivalents. Full Year Gross Margin Guidance With its visibility today, and the expectation of continued subdued refrigerant market pricing and inflationary pressures through the close of 2026, the Company is revising its previously announced full year 2026 gross margin target from mid-twenty percent to low-to-mid-twenty percent. Conference Call Information Hudson Technologies will host a conference call and webcast today, Wednesday, August 5, 2026 at 5:00 p.m. Eastern Time to discuss the Company’s second 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 September 2, 2026, and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 54215. 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. Hudson Technologies, Inc. and SubsidiariesConsolidated Balance Sheets(Amounts in thousands, except for share and par value amounts) Hudson Technologies, Inc. and SubsidiariesConsolidated Statements of Income(unaudited)(Amounts in thousands, except for share and per share amounts) Hudson Technologies, Inc. and SubsidiariesConsolidated Statements of Cash Flows(unaudited)(Amounts in thousands)

WOODCLIFF LAKE, N.J., July 22, 2026 (GLOBE NEWSWIRE) -- Hudson Technologies, Inc. (NASDAQ: HDSN) will host a conference call and webcast on Wednesday, August 5, 2026, at 5:00 p.m. Eastern Time to discuss the Company’s second 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 September 2, 2026, and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 54215. 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 commercial air conditioning, industrial processing and refrigeration systems, and include refrigerant and industrial gas sales, refrigerant management services consisting primarily of 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 SmartEnergy OPS® service is a web-based real time continuous monitoring service applicable to a facility’s refrigeration systems and other energy systems. The Company’s Chiller Chemistry® and Chill Smart® services are also 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.

Let’s dig into the relative performance of Hudson Technologies (NASDAQ:HDSN) and its peers as we unravel the now-completed Q1 specialty equipment distributors earnings season. Historically, specialty equipment distributors have boasted deep selection and expertise in sometimes narrow areas like single-use packaging or unique lighting equipment. Additionally, the industry has evolved to include more automated industrial equipment and machinery over the last decade, driving efficiencies and enabling valuable data collection. Specialty equipment distributors whose offerings keep up with these trends can take share in a still-fragmented market, but like the broader industrials sector, this space is at the whim of economic cycles that impact the capital spending and manufacturing propelling industry volumes. The 8 specialty equipment distributors stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 1.8% while next quarter’s revenue guidance was 1.2% below. Luckily, specialty equipment distributors stocks have performed well with share prices up 11.1% on average since the latest earnings results. Founded in 1991, Hudson Technologies (NASDAQ:HDSN) specializes in refrigerant services and solutions, providing refrigerant sales, reclamation, and recycling. Hudson Technologies reported revenues of $60.15 million, up 8.7% year on year. This print exceeded analysts’ expectations by 5.2%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ adjusted operating income and EPS estimates. Ken Gaglione, President and Chief Executive Officer of Hudson Technologies commented, ”Our first quarter was one of operational and strategic progress, highlighted by enhancements to our management team, critical partnership development and our increased focus on operational excellence as we move into the core of our selling season. Hudson Technologies scored the highest guidance raise of the whole group. Still, the market seems discontent with the results. The stock is down 11.5% since reporting and currently trades at $5.79. Read our full report on Hudson Technologies here, it’s free. Founded in 1947, Richardson Electronics (NASDAQ:RELL) is a distributor of power grid and microwave tubes as well as consumables related to those products. Richardson Electronics reported revenues of $55.47 million, up 3.1% year on year, outperforming analysts’ expectations by 4.4%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates. The market seems happy with the results as the stock is up 53.7% since reporting. It currently trades at $18.08. Is now the time to buy Richardson Electronics? Access our full analysis of the earnings results here, it’s free. Known for distributing John Deere tractors and LESCO turf care products, SiteOne Landscape Supply (NYSE:SITE) provides landscaping products and services to professionals, including irrigation, lighting, and nursery supplies. SiteOne reported revenues of $940.1 million, flat year on year, falling short of analysts’ expectations by 4.2%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates. SiteOne delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 22.2% since the results and currently trades at $111.25. Read our full analysis of SiteOne’s results here. Owning the largest rental fleet in the world, United Rentals (NYSE:URI) provides equipment rental and related services to construction, industrial, and infrastructure industries. United Rentals reported revenues of $3.99 billion, up 7.2% year on year. This number beat analysts’ expectations by 2.4%. Overall, it was a very strong quarter as it also produced a solid beat of analysts’ adjusted operating income estimates. The stock is up 34.9% since reporting and currently trades at $1,083. Read our full, actionable report on United Rentals here, it’s free. Founded as Lollicup, Karat Packaging (NASDAQ: KRT) distributes and manufactures environmentally-friendly disposable foodservice packaging solutions. Karat Packaging reported revenues of $116.9 million, up 12.9% year on year. This result surpassed analysts’ expectations by 3.5%. It was a very strong quarter as it also recorded a solid beat of analysts’ EBITDA estimates. Karat Packaging had the weakest guidance update among its peers. The stock is up 1.1% since reporting and currently trades at $30.75. Read our full, actionable report on Karat Packaging here, it’s free. Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure? These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.

Hudson Technologies began 2026 with first quarter results that were marked by strong revenue growth but pressured profitability, leading to a significant negative market reaction. Management attributed the sales increase to robust demand for refrigerants, driven by unseasonably warm weather in the Southwest and heightened inventory-building among customers. However, CEO Kenneth Gaglione acknowledged that the new enterprise resource planning (ERP) system’s implementation, along with a challenging sales mix compared to last year’s high-margin period, weighed on margins. Gaglione emphasized, “Revenue growth was stronger than we had expected...but the initial headwinds had less of an impact than we anticipated.” Is now the time to buy HDSN? Find out in our full research report (it’s free). Revenue: $60.15 million vs analyst estimates of $57.15 million (8.7% year-on-year growth, 5.2% beat) Adjusted EPS: $0.01 vs analyst expectations of $0.05 (80% miss) Adjusted EBITDA: $2.52 million vs analyst estimates of $4.23 million (4.2% margin, 40.4% miss) Revenue Guidance for Q2 CY2026 is $74.5 million at the midpoint, roughly in line with what analysts were expecting Operating Margin: 2.4%, down from 5.6% in the same quarter last year Market Capitalization: $208.7 million While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Ryan Sigdahl (Craig-Hallum): Pressed management on why gross margins reached multi-year lows despite higher HFC prices; CEO Kenneth Gaglione attributed it to a tough comparison against last year’s product mix and seasonality, with expectations for margin improvement ahead. Ryan Sigdahl (Craig-Hallum): Asked about the cost impact and duration of ERP implementation; CFO Brian Bertaux explained that ERP-related expenses contributed to higher SG&A and that optimization costs will persist through the year. Ryan Sigdahl (Craig-Hallum): Inquired about the effect of early-season weather on demand patterns; Gaglione confirmed that warmer conditions led to inventory builds, but that weather trends have since normalized. Jason Tilchen (Canaccord Genuity): Requested detail on Q2 revenue guidance and margin cadence; Gaglione expects higher volume but noted that last year’s HFO shortage inflated prior-year pricing, making the current environment less favorable for price-driven gains. Matthew Maus (B. Riley): Sought updates on licensing agreements for new refrigerant blends and capital allocation; Gaglione said traction is early but promising, and that the company will balance buybacks with strategic investments as cash flow improves. In future quarters, our analysts will be monitoring (1) evidence of margin recovery as the product mix shifts and the ERP system stabilizes, (2) progress on service diversification initiatives and early results from new refrigerant licensing agreements, and (3) regulatory and supply chain developments that could impact demand for reclaimed refrigerants. Execution in these areas will be critical for Hudson’s long-term earnings consistency. Hudson Technologies currently trades at $5.12, down from $6.54 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week - FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.