Hudson Technologies (HDSN) Stock Forecast & Price Target

Hudson Technologies Inc. reported a gross profit of $22.8 million for Q2/25, resulting in a gross margin of approximately 31%, which reflects a significant year-over-year improvement of about 133 basis points and a sequential increase of 951 basis points, largely attributed to rising refrigerant prices. The company also achieved a net income of approximately $10.2 million in the same quarter, marking a 6.1% increase year-over-year, representing its second consecutive profitable quarter following a loss in Q4/24. Additionally, the strong demand for HFC refrigerants helped sustain market prices around $8/lb during Q2, indicating a favorable market environment for Hudson's product offerings.

Hudson Technologies Inc. reported a year-over-year revenue decline of 3.2% in Q2/25, totaling $72.8 million, which reflects ongoing challenges in the market despite a modest increase in GAAP diluted EPS. The company has also encountered pricing pressures due to lower tariff rates on imports from key trading partners, underscoring potential vulnerabilities in its cost structure and revenue generation. Furthermore, the anticipated regulatory actions from the EPA regarding the mandated use of reclaimed refrigerants have been slower than expected, which could hinder future growth prospects in the refrigerant management sector.