Hudson Technologies (HDSN) Stock Forecast & Price Target

Hudson Technologies Inc. displayed a strong financial performance in Q2/25, reporting a gross profit of $22.8 million, which reflects a gross margin of approximately 31%, up 133 basis points year-over-year and 951 basis points sequentially, largely due to rising refrigerant prices. The company also achieved a net income of approximately $10.2 million, marking a 6.1% increase year-over-year and indicating its second consecutive profitable quarter following a previous loss. Notably, the demand for HFC refrigerants surged in Q2, helping to sustain market prices around $8 per pound, further contributing to the positive outlook for Hudson Technologies.

Hudson Technologies Inc. reported a year-over-year decline in revenues for Q2/25, totaling $72.8 million, down 3.2%, which indicates potential challenges in maintaining sales momentum in a competitive market. Despite a modest increase in GAAP diluted EPS of approximately 11% to $0.23, the overall revenue drop raises concerns about the company's growth prospects. Furthermore, the company faces regulatory risks due to slower-than-expected actions from the EPA regarding the mandate for reclaimed refrigerants, which could impact future operational efficiency and profitability.