Hudson Technologies reported second quarter revenue of $78.3 million, an 8% increase year-over-year that surpassed analyst estimates of $74.2 million. However, diluted earnings per share came in at $0.12, missing expectations of $0.17 and declining from $0.23 in the same quarter last year, as profitability was hampered by margin compression and higher operating costs.
Key Highlights
- Second quarter revenue growth of 8% was driven by a 12% increase in sales volume, which was partially offset by a 6% decline in selling prices.
- Gross margin contracted to 26% from 31% in the prior-year period, which the company attributed to lower refrigerant market pricing and increased fuel costs.
- The company lowered its full-year 2026 gross margin guidance from a "mid-twenty percent" target to a "low-to-mid-twenty percent" range, citing expectations of subdued pricing and inflationary pressures.
- Net income for the quarter was $4.9 million, a significant decrease from the $10.2 million reported in the second quarter of 2025.