Key Highlights

  • Hudson Technologies shares are trading 15.68% lower at $4.41 on Thursday, October 29, 2026.
  • Third-quarter revenue declined to $59.4 million from $74.0 million, as volume slipped 9% and prices dropped 17%.
  • Gross margin came in at 25%, compared with 32% in the same quarter a year earlier.
  • Net income was $2.0 million, or $0.05 per share, against $12.4 million, or $0.27 diluted.
  • Cash stood at $35.3 million on September 30, 2026, and the company reports no debt.

Hudson Technologies Shares Tumble: What Drove the 15.68% Drop After Third-Quarter Results?

Hudson Technologies (NASDAQ:HDSN) shares are trading 15.68% lower at $4.41 on Thursday, October 29, 2026, a penny stock price under $5, following the company's third-quarter report on Wednesday, October 28. Revenue declined to $59.4 million from $74.0 million in the prior-year period. The implied prior close is about $5.23 (calculated).

Hudson supplies refrigerant products and services to the HVACR industry and is among the largest refrigerant reclaimers in the United States. Its offerings include recovery, reclamation and on-site system decontamination, as well as carbon offset projects.

Refrigerant Pricing Pressure: How Did Volume and Price Combine to Cut Revenue by 20%?

Sales volume fell 9% and selling prices dropped 17%. Management pointed to ongoing weakness in HFC pricing and subdued customer demand. A year earlier, the company had gained from price increases linked to supply constraints during the EPA-mandated shift to HFO refrigerants.

Revenue for nine months was $197.9 million against $202.2 million, a fall of about 2.1% (calculated), so the third quarter was the softer part of the year.

The quarterly revenue decline of about 19.7% (calculated) reflected a smaller shipment base and lower pricing per unit at once.

Hudson Profit Squeeze: How Much Did Margins and Earnings Shrink?

Gross margin was 25% for the quarter versus 32%, and 24% for nine months versus 29%. Net income was $2.0 million, or $0.05 per basic and diluted share, against $12.4 million, or $0.28 basic and $0.27 diluted. For nine months, net income was $7.3 million, or $0.17 per share, versus $25.3 million, or $0.58 basic and $0.56 diluted.

Applying those margins, third-quarter gross profit comes to roughly $14.9 million compared with about $23.7 million a year ago (calculated). That difference of about $8.8 million sits next to a $10.4 million fall in net income (calculated).

Cash totaled $35.3 million on September 30, against $39.5 million on December 31, 2025, while inventory was $131.5 million versus $135.9 million. The company says it carries no debt.

Hudson Guidance and Buybacks: What Did Management Hold Steady?

The company still expects full-year 2026 gross margin in the low-to-mid-twenty percent range, the same as its earlier guidance. It bought back $2.5 million of common stock over nine months compared with $5.8 million a year earlier, and booked $3.8 million of excise tax tied to repurchases.

Hudson also signed a joint development agreement with Icorium on next-generation separation technology and won a renewed Defense Logistics Agency contract worth $210 million.

What to Watch Next: Fourth-Quarter Pricing Versus the Low-to-Mid-Twenty Margin Range

Gross margin of 24% over nine months falls within the guided range, so the fourth-quarter report should show whether HFC pricing steadies or slips further. Investors will also track inventory of $131.5 million, the pace of buybacks and any early benefit from the separation technology agreement.