Hudson Technologies 2025 Q3 Earnings Net Income Surges 58.5% as Revenue Beats Estimates

Hudson Technologies (HDSN) reported fiscal 2025 Q3 earnings on Nov 8, 2025, with results exceeding expectations. Revenue rose 19.5% year-over-year to $74.01 million, driven by strong demand in core segments. The company’s net income surged 58.5% to $12.37 million, while EPS climbed 64.7% to $0.28. Despite positive financials, the stock faced mixed post-earnings price action, reflecting broader market dynamics and leadership transition concerns.

Revenue

Hudson Technologies’ total revenue for Q3 2025 reached $74.01 million, a 19.5% increase from $61.94 million in the prior-year period. The growth was primarily fueled by product and related sales, which contributed $72.02 million, accounting for 97.6% of total revenue. RefrigerantSide Services added $2 million, reflecting ongoing diversification into service offerings. This segment breakdown underscores the company’s reliance on core product sales while highlighting incremental progress in expanding its service portfolio.

Earnings/Net Income

The company’s earnings per share (EPS) surged 64.7% to $0.28 in Q3 2025, compared to $0.17 in Q3 2024. Net income also saw robust growth, rising to $12.37 million, a 58.5% increase from $7.81 million in the prior-year quarter. These results reflect improved operational efficiency and favorable pricing dynamics in key markets. The significant EPS growth positions Hudson Technologies favorably against industry benchmarks.

Post-Earnings Price Action Review

The strategy of buying Hudson Technologies shares on the date of its earnings announcement and holding for 30 days yielded cumulative returns of 24.8% over the past three years, outpacing the average annual return of 7.9%. While this indicates positive price appreciation post-earnings, the returns lagged behind the S&P 500’s 31.4% cumulative performance during the same period. This suggests that while the stock benefits from earnings-driven momentum, it has not yet demonstrated consistent outperformance relative to broader market trends.

CEO Commentary

During the earnings call, interim CEO Brian Bertaux highlighted the company’s strong Q3 performance, stating, “Our 19.5% revenue growth and 58.5% net income increase underscore our ability to capitalize on market tailwinds and operational efficiencies.” He emphasized strategic priorities, including expanding RefrigerantSide Services to reduce reliance on volatile refrigerant pricing and accelerating R&D in alternative refrigerant solutions. Bertaux also addressed the CEO search, noting the board’s focus on appointing a leader with expertise in both organic and inorganic growth.

Guidance

Management reaffirmed confidence in full-year 2025 guidance, projecting revenue of $241.4 million and adjusted EPS of $0.47. For Q4 2025, the company anticipates seasonal softness due to customer transitions from cooling to heating applications but expects to maintain gross margins above 30%. Bertaux noted, “While HFC pricing normalization may temper near-term margins, our strong liquidity position and $10 million buyback authorization provide flexibility to navigate market fluctuations.”

Additional News

Recent developments include the departure of CEO Brian Coleman and the appointment of CFO Brian Bertaux as interim CEO, sparking investor uncertainty. Analyst ratings have been mixed, with Craig-Hallum downgrading shares to “Hold” despite Q3 results beating expectations. Institutionally, Westerly Capital Management and Bank of America increased stakes in HDSN, reflecting confidence in its long-term prospects. Additionally, the company renewed a $210 million contract with the U.S. Defense Logistics Agency, securing a key revenue stream.