Three Month Results

For the quarter ended December 31, 2025, Hudson reported:

• Revenues increased 28% to $44.4 million compared to revenues of $34.6 million in the comparable 2024 period. The increase was primarily related to stronger sales volume.
• Gross margin of 8.0% compared to 16.7% in the fourth quarter of 2024. The 2025 gross margin included $4.2 million of inventory related costs, including a lower of cost or market adjustment related to the fourth quarter inventory build.
• Selling, general and administrative expenses of $13.9 million compared to $8.0 million in the fourth quarter of 2024. SG&A in the fourth quarter of 2025 included $4.0 million of executive severance costs. Non-GAAP Adjusted SG&A was $9.9 million compared to $8.0 million in the fourth quarter of 2024 with the variance related to increased headcount. 
• Operating loss of $11.2 million compared to an operating loss of $3.2 million in the prior year period. The 2025 operating loss includes the $8.2 million in inventory and severance costs noted above. Non-GAAP Adjusted operating loss, which excludes the $4.0 million severance cost was $7.2 million compared to $3.2 million in the 2024 quarter.
• Net loss of $8.6 million or a loss of $0.20 per basic and diluted share, which includes the after-tax impact of the $8.2 million of costs noted above, compares to a net loss of $2.6 million or $0.06 per basic and diluted share in the prior year period. Non-GAAP Adjusted net loss, which excludes the after-tax impact of the $4.0 million executive severance cost, was $5.4 million or $0.13 per diluted share compared to a non-GAAP Adjusted net loss of $2.6 million or $0.06 per diluted share in the prior year period.

Full Year 2025 Results

For the full year ended December 31, 2025, Hudson reported:

• Revenues increased 4% to $246.6 million compared to revenues of $237.1 million for 2024. The increase in revenues was related to a 6% growth in sales volume partially offset by a decrease in refrigerant pricing.
• Gross margin of 25.2% compared to gross margin of 27.7% for full year 2024, which included the decrease in refrigerant pricing coupled with higher freight costs.
• Selling, general and administrative expenses were $40.2 million compared to $33.0 million in 2024. Non-GAAP Adjusted SG&A was $36.2 million compared to $32.6 million, with the variance to 2024 primarily related to the mid-year 2024 increase to the sales staff.
• Operating income was $18.6 million compared to $29.3 million in 2024. Non-GAAP Adjusted operating income was $22.6 million compared to $29.7 million in 2024.
• Net income of $16.7 million or $0.38 per basic and $0.37 per diluted share compared to net income of $24.4 million or $0.54 per basic and $0.52 per diluted share. Non-GAAP Adjusted net income was $19.7 million or $0.44 per diluted share compared to $24.7 million or $0.52 per diluted share.

At December 31, 2025 Hudson Technologies reported $39.5 million in cash and cash equivalents.

Subsequent to the end of the fourth quarter, on February 1, 2026 Hudson went live with a new ERP system. As is common with new ERP implementations, Hudson has experienced some startup inefficiencies that it expects will negatively impact first quarter 2026 revenues. Despite this headwind, Hudson anticipates that it will achieve a low-to-mid single digit revenue growth percentage in first quarter 2026 as compared to first quarter 2025. Hudson does not expect inefficiencies from the ERP launch to persist into the second quarter of 2026.