Earnings call transcript: Hudson Technologies Q3 2026 miss sends shares lower

Hudson Technologies reported weaker-than-expected third-quarter results for 2026, with earnings per share of $0.05 on revenue of $59.4 million, falling short of analyst estimates of $0.21 per share and $74.98 million in sales. Lower prices for hydrofluorocarbons (HFCs) and reduced demand for the refrigerant contributed to the decline, despite gross margins reaching 25%, which exceeded internal expectations.

Shares dropped 10.52% in after-hours trading to $4.68, near the stock's 52-week low. Revenue declined by 20% from the prior year, with sales volume shrinking by 9% and average selling prices falling by 17%. Net income also dropped to $2.0 million, or $0.05 per diluted share, down from $12.4 million a year earlier. Management noted that pricing is expected to remain relatively flat in 2027.

The company ended the quarter with $35.3 million in cash and no debt. Hudson's CEO, Ken Gaglione, stated that the company chose to focus on profitable sales rather than volume during the quarter, as ample channel inventory kept pricing low. CFO Brian Bertaux said pricing has stabilized, and the company expects similar pricing in 2027.