# Hudson Technologies (HDSN.US)

Canonical: https://gigainvestors.com/s/HDSN

Analysis as of: 2026-10-16T07:28:59.833Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $5.04 per share; close as of 2026-10-15.

Estimated value: low $13.06 per share, central $14.79 per share, high $17.10 per share. Buy at or below the central value $14.79 per share. Valuation as of 2026-10-16T07:28:59.833Z; scenarios are not confidence intervals.

Expected annual return: 26.1% at the stated quote. About 26.1% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 3

- Operating margin variation: 1.88×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.11×

- FY2018: -0.26×

- FY2019: -0.10×

- FY2020: 0.04×

- FY2021: 0.22×

- FY2022: 0.40×

- FY2023: 0.27×

- FY2024: 0.12×

- FY2025: 0.08×

- LTM to Jun 2026: 0.05×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 7.7%

- ROIC, second-lowest year: -12.5%

- Typical minus recent gross margin: 2.9 pp

- Typical gross margin (annual median): 26.1%

- Recent gross margin (lower of latest and 3-year median): 23.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.1%

- ROIC including acquisitions, ten-year median: 10.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 5.9%

- FY2018: -22.6%

- FY2019: -12.5%

- FY2020: 5.5%

- FY2021: 34.1%

- FY2022: 67.6%

- FY2023: 33.4%

- FY2024: 18.5%

- FY2025: 9.5%

- LTM to Jun 2026: 4.8%

### economics: pass

- Owner earnings / net income, 5-yr: 1.05×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $240M

- Net income, five-year total: $229M

- Return on incremental invested capital: 13.8%

- Working capital / revenue, annual change: -4.2 pp

- Working capital / revenue, change between three-year averages: -35.7 pp

- Working capital / revenue, final three-year average: 51.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.13×

- FY2022: 1.02×

- FY2023: 1.04×

- FY2024: 1.04×

- FY2025: 1.06×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 5.9% vs 18.5%

- Per-share earnings: 0.26 to 0.52 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 2.9%

- Ordinary dilution, 5-year annual growth: 1.1%

- Market cap gain: -$47M

- Cumulative retained earnings: $154M

- Diluted shares, 10-year annual growth: 2.9%

- Diluted shares, 5-year annual growth: 1.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 9.0%

- Per-share value change: $0.26

- Per-share value, starting three-year median: $0.26

- Per-share value, ending three-year median: $0.52

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 5.2%

- Buyback history: 2 years

- Debt-funded buybacks: No

- Acquisition spending: $92M

- Cumulative net income, 10 years: $164M

- ROIC, first three-year median: 5.9%

- ROIC, last three-year median: 18.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.30

- FY2017: $0.26

- FY2018: -$1.31

- FY2019: -$0.61

- FY2020: -$0.12

- FY2021: $0.69

- FY2022: $2.20

- FY2023: $1.10

- FY2024: $0.52

- FY2025: $0.37

### accounting: fail

- earnings not backed by cash

- Sloan accruals: 6.2%

- Receivables to sales index (DSRI): 0.83×

- Restructuring years, last five: 0

- Earnings backed by cash: No

- Operating cash / earnings: -0.19×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.31×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 1.1%

- FY2017: -2.2%

- FY2018: -40.3%

- FY2019: -33.2%

- FY2020: -10.5%

- FY2021: 15.5%

- FY2022: 15.0%

- FY2023: -2.1%

- FY2024: -22.3%

- FY2025: 6.2%

## Holders

## Price story

Down 66% since Feb 2024 · sales +4.2%

Story as of 2026-10-16T09:58:52.259Z; price observation 2026-10-15.

Price needs cash profits to shrink 13.7% a year for ten years

- 2025-07-31: Hudson Technologies maintains mid-20% gross margin target for 2025 backed by strong Q3 outlook ([seekingalpha.com](https://seekingalpha.com/news/4475094-hudson-technologies-maintains-midminus-20-percent-gross-margin-target-for-2025-backed-by?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2025–2026

sales +4.2%; source https://www.sec.gov/Archives/edgar/data/925528/000110465926028445/hdsn-20251231x10k.htm; observed 2026-03-16.

- FY2017: $140M 

- FY2018: $167M 

- FY2019: $162M 

- FY2020: $148M 

- FY2021: $193M 

- FY2022: $325M 

- FY2023: $289M 

- FY2024: $237M 

- FY2025: $247M 

- FY2026: $257M 

### Gross margin · FY2026

gross margin 23.3%; source https://www.sec.gov/Archives/edgar/data/925528/000110465926028445/hdsn-20251231x10k.htm; observed 2026-03-16.

- FY2017: 27.1% 

- FY2019: 10.6% 

- FY2020: 24.0% 

- FY2021: 37.2% 

- FY2022: 50.1% 

- FY2023: 38.6% 

- FY2024: 27.7% 

- FY2025: 25.2% 

- FY2026: 23.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty chemicals; annual sales are USD 246.6 million.

- Source: https://www.sec.gov/Archives/edgar/data/925528/000110465926028445/hdsn-20251231x10k.htm (filed 2026-03-16); FY2025: revenue 246614000; grossProfit 62097000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); HDSN.US: Hudson Technologies, Inc., through its subsidiary, Hudson Technologies Company, provides solutions to recurring problems within the refrigeration industry in the United States. The company offers refrigerant and industrial gas; refrigerant management services comprising primarily of reclamation of refrigerants, laboratory testing through its laboratory, and banking storage services; and RefrigerantSide Services comprising system decontamination to remove moisture, oils, and other contaminants intended to restore systems to designed capacity. It also provides diagnostic services for use in the prediction of potential problems in air conditioning, process cooling, and refrigeration systems; Chiller Chemistry, which integrates several fluid tests of an operating system and the corresponding laboratory results into an engineering report; Fluid Chemistry for use in identification of systems that require further examination; and SmartEnergy OPS, a system for measuring, modifying, and improving the efficiency of energy systems, including air conditioning and refrigeration systems, in industrial and commercial applications. In addition, the company provides a snapshot of a packaged chiller's operating efficiency and health through ChillSmart, a maintenance tool. Further, it is involved in the generation of carbon offset projects. The company serves commercial, industrial, and governmental customers, as well as refrigerant wholesalers, distributors, contractors, and refrigeration equipment manufacturers. Hudson Technologies, Inc. was founded in 1990 and is headquartered in Woodcliff Lake, New Jersey.

### Why customers stay

Margins ranged from 25.2% to 38.6% during 2023–25; it earns 7.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); FY2023: grossProfit / revenue = 38.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); FY2024: grossProfit / revenue = 27.7%.

- Source: https://www.sec.gov/Archives/edgar/data/925528/000110465926028445/hdsn-20251231x10k.htm (filed 2026-03-16); FY2025: grossProfit / revenue = 25.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); 10-year return on capital observations [[2017,0.059492097931942364],[2018,-0.22578241650624148],[2019,-0.1253958165728077],[2020,0.05462185267595737],[2021,0.3407498115590492],[2022,0.6755352543902141],[2023,0.33387298805177923],[2024,0.1854497291033519],[2025,0.09470520660257435],[2026,0.04839738866928483]]; median 0.07709865226725836. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid no dividends in 10 years; bought back USD 20 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); FY2016: growth capex 1710184; upkeep 22816; owner earnings 10637000. Growth capex / owner earnings = 0.16077691078311554.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); FY2017: growth capex 969484; upkeep 52516; owner earnings 11157000. Growth capex / owner earnings = 0.08689468495115174.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); FY2021: growth capex 0; upkeep 1922000; owner earnings 36517000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); FY2022: growth capex 0; upkeep 3659000; owner earnings 106119000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); FY2023: growth capex 0; upkeep 3580000; owner earnings 54449000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); FY2024: growth capex 0; upkeep 5300000; owner earnings 25475000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/925528/000110465926028445/hdsn-20251231x10k.htm (filed 2026-03-16); FY2025: growth capex 0; upkeep 5052000; owner earnings 17606000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/925528/000110465926028445/hdsn-20251231x10k.htm (filed 2026-03-16); FY2025: cash repurchases 20014000 USD.

### Are managers owners

Insiders own 13.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); HDSN.US SharesStats.PercentInsiders = 13.703000000000001 percentage points; cache date 2026-10-05.

### What the price says

The price assumes cash profits shrink 13.7% yearly over ten years; actual growth was 8.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); Ten-year compound average after fade. Initial solved rate -0.20347846099989503. Price 5.04; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.1748580471786106 → FY2025 0.39028044307714516. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $6.10 per share

- 2016-11: $7.61 per share

- 2016-12: $8.01 per share

- 2017-01: $7.26 per share

- 2017-02: $7.16 per share

- 2017-03: $6.60 per share

- 2017-04: $7.10 per share

- 2017-05: $8.16 per share

- 2017-06: $8.45 per share

- 2017-07: $8.09 per share

- 2017-08: $8.90 per share

- 2017-09: $7.81 per share

- 2017-10: $5.92 per share

- 2017-11: $5.74 per share

- 2017-12: $6.07 per share

- 2018-01: $6.28 per share

- 2018-02: $6.10 per share

- 2018-03: $4.94 per share

- 2018-04: $4.38 per share

- 2018-05: $2.20 per share

- 2018-06: $2.01 per share

- 2018-07: $1.82 per share

- 2018-08: $1.87 per share

- 2018-09: $1.28 per share

- 2018-10: $0.83 per share

- 2018-11: $1.09 per share

- 2018-12: $0.89 per share

- 2019-01: $1.17 per share

- 2019-02: $1.26 per share

- 2019-03: $1.93 per share

- 2019-04: $1.35 per share

- 2019-05: $1.60 per share

- 2019-06: $0.86 per share

- 2019-07: $0.61 per share

- 2019-08: $0.50 per share

- 2019-09: $0.71 per share

- 2019-10: $0.63 per share

- 2019-11: $0.68 per share

- 2019-12: $0.98 per share

- 2020-01: $0.82 per share

- 2020-02: $0.82 per share

- 2020-03: $0.69 per share

- 2020-04: $0.88 per share

- 2020-05: $0.89 per share

- 2020-06: $1.01 per share

- 2020-07: $1.07 per share

- 2020-08: $1.15 per share

- 2020-09: $1.15 per share

- 2020-10: $1.04 per share

- 2020-11: $1.34 per share

- 2020-12: $1.09 per share

- 2021-01: $1.37 per share

- 2021-02: $1.45 per share

- 2021-03: $1.61 per share

- 2021-04: $2.06 per share

- 2021-05: $2.82 per share

- 2021-06: $3.40 per share

- 2021-07: $3.46 per share

- 2021-08: $3.26 per share

- 2021-09: $3.53 per share

- 2021-10: $3.54 per share

- 2021-11: $3.77 per share

- 2021-12: $4.44 per share

- 2022-01: $3.73 per share

- 2022-02: $3.82 per share

- 2022-03: $6.21 per share

- 2022-04: $6.71 per share

- 2022-05: $10.00 per share

- 2022-06: $7.51 per share

- 2022-07: $8.91 per share

- 2022-08: $8.30 per share

- 2022-09: $7.35 per share

- 2022-10: $9.21 per share

- 2022-11: $11.29 per share

- 2022-12: $10.12 per share

- 2023-01: $10.21 per share

- 2023-02: $10.13 per share

- 2023-03: $8.73 per share

- 2023-04: $7.73 per share

- 2023-05: $8.74 per share

- 2023-06: $9.62 per share

- 2023-07: $9.09 per share

- 2023-08: $12.06 per share

- 2023-09: $13.30 per share

- 2023-10: $12.88 per share

- 2023-11: $12.35 per share

- 2023-12: $13.49 per share

- 2024-01: $12.68 per share

- 2024-02: $14.65 per share

- 2024-03: $11.01 per share

- 2024-04: $9.92 per share

- 2024-05: $8.91 per share

- 2024-06: $8.79 per share

- 2024-07: $8.56 per share

- 2024-08: $8.22 per share

- 2024-09: $8.34 per share

- 2024-10: $7.67 per share

- 2024-11: $5.94 per share

- 2024-12: $5.58 per share

- 2025-01: $5.80 per share

- 2025-02: $5.76 per share

- 2025-03: $6.17 per share

- 2025-04: $6.69 per share

- 2025-05: $7.15 per share

- 2025-06: $8.12 per share

- 2025-07: $9.39 per share

- 2025-08: $10.16 per share

- 2025-09: $9.93 per share

- 2025-10: $9.08 per share

- 2025-11: $6.80 per share

- 2025-12: $6.85 per share

- 2026-01: $7.17 per share

- 2026-02: $7.11 per share

- 2026-03: $5.88 per share

- 2026-04: $6.26 per share

- 2026-05: $5.32 per share

- 2026-06: $5.74 per share

- 2026-07: $6.04 per share

- 2026-08: $5.34 per share

- 2026-09: $5.15 per share

- 2026-10: $5.04 per share

## Annual estimated value (USD per share)

- FY2016: low $3.91 per share, central $5.20 per share, high $5.96 per share

- FY2017: low $3.35 per share, central $4.73 per share, high $5.54 per share

- FY2018: low $3.19 per share, central $3.63 per share, high $4.21 per share

- FY2019: low $3.85 per share, central $5.50 per share, high $6.46 per share

- FY2023: low $15.75 per share, central $22.40 per share, high $26.28 per share

- FY2024: low $14.21 per share, central $19.60 per share, high $22.78 per share

- FY2025: low $12.02 per share, central $13.57 per share, high $15.64 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/925528/000110465926028445/hdsn-20251231x10k.htm); period 2025-12-31, filed 2026-03-16.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.