📊 HDSN Key Takeaways
Is Hudson Technologies Inc. /Ny (HDSN) a Good Investment?
Hudson Technologies faces severe operational deterioration with negative operating cash flow of -$12.8M despite 4% revenue growth, indicating fundamental business issues. Net income collapsed 31.7% YoY while achieving only 0.5% net margin, and free cash flow of -$13.9M means the company is burning cash. While the strong balance sheet (Debt/Equity 0.11x, Current Ratio 3.38x) provides a financial cushion, the negative cash conversion and declining profitability suggest structural problems requiring urgent operational improvement.
Hudson shows solid fundamentals with strong liquidity, low leverage, and respectable margins for a distributor, supporting earnings stability. However, modest revenue growth, flat net income, negative free cash flow, and a sharp decline in diluted EPS indicate weaker cash conversion and possible dilution risk, tempering near‑term upside.
Why Buy Hudson Technologies Inc. /Ny Stock? HDSN Key Strengths
- Strong balance sheet with low leverage (0.11x Debt/Equity ratio)
- Excellent liquidity position (3.38x current ratio with $19.4M cash)
- Adequate interest coverage of 6.8x demonstrates debt service capacity
- Strong balance sheet with low leverage (0.10x D/E)
- Robust interest coverage (86.7x) and ample liquidity (3.26x current)
- Consistent profitability with 25% gross and 7.5% operating margins
HDSN Stock Risks: Hudson Technologies Inc. /Ny Investment Risks
- Operating cash flow is negative at -$12.8M, indicating working capital or operational crisis despite positive revenue
- Net income declined 31.7% YoY while revenue grew only 4%, showing margin compression and operational inefficiency
- Return on equity and assets essentially zero (0.1%), demonstrating capital is not being deployed productively
- Free cash flow of -$13.9M with -23.1% FCF margin indicates company is cash-flow negative and depleting reserves
- Negative free cash flow despite profitability, implying weak cash conversion
- Diluted EPS down 28.8% YoY, suggesting dilution/share count headwinds
- Low top-line growth (+4% YoY) increases sensitivity to margin compression
Key Metrics to Watch
- Operating cash flow trend (currently -$12.8M; must return to positive)
- Net margin expansion and gross margin sustainability at 19.7%
- Working capital efficiency and inventory turnover driving the cash flow deficit
- Cash position depletion rate given -$13.9M annual free cash burn
- Free cash flow (OCF - Capex)
- Gross margin trend
Hudson Technologies Inc. /Ny (HDSN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.38x current ratio provides a solid financial cushion.
HDSN Profit Margin, ROE & Profitability Analysis
HDSN vs Industrial Sector: How Hudson Technologies Inc. /Ny Compares
How Hudson Technologies Inc. /Ny compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Hudson Technologies Inc. /Ny Stock Overvalued? HDSN Valuation Analysis 2026
Based on fundamental analysis, Hudson Technologies Inc. /Ny has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Hudson Technologies Inc. /Ny Balance Sheet: HDSN Debt, Cash & Liquidity
HDSN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Hudson Technologies Inc. /Ny's revenue has grown significantly by 50% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.10 reflects profitable operations.
HDSN Revenue Growth, EPS Growth & YoY Performance
HDSN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $55.3M | $330.0K | $0.01 |
| Q3 2025 | $61.9M | $7.8M | $0.17 |
| Q2 2025 | $72.8M | $9.6M | $0.20 |
| Q1 2025 | $55.3M | $2.8M | $0.06 |
| Q3 2024 | $61.9M | $7.8M | $0.17 |
| Q2 2024 | $140.5M | $9.6M | $0.20 |
| Q1 2024 | $65.3M | $9.6M | $0.20 |
| Q3 2019 | $40.5M | $2.7M | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Hudson Technologies Inc. /Ny Dividends, Buybacks & Capital Allocation
HDSN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Hudson Technologies Inc. /Ny (CIK: 0000925528)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HDSN
What is the AI rating for HDSN?
Hudson Technologies Inc. /Ny (HDSN) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HDSN's key strengths?
Claude: Strong balance sheet with low leverage (0.11x Debt/Equity ratio). Excellent liquidity position (3.38x current ratio with $19.4M cash). ChatGPT: Strong balance sheet with low leverage (0.10x D/E). Robust interest coverage (86.7x) and ample liquidity (3.26x current).
What are the risks of investing in HDSN?
Claude: Operating cash flow is negative at -$12.8M, indicating working capital or operational crisis despite positive revenue. Net income declined 31.7% YoY while revenue grew only 4%, showing margin compression and operational inefficiency. ChatGPT: Negative free cash flow despite profitability, implying weak cash conversion. Diluted EPS down 28.8% YoY, suggesting dilution/share count headwinds.
What is HDSN's revenue and growth?
Hudson Technologies Inc. /Ny reported revenue of $60.2M.
Does HDSN pay dividends?
Hudson Technologies Inc. /Ny does not currently pay dividends.
Where can I find HDSN SEC filings?
Official SEC filings for Hudson Technologies Inc. /Ny (CIK: 0000925528) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HDSN's EPS?
Hudson Technologies Inc. /Ny has a diluted EPS of $0.01.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HDSN a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Hudson Technologies Inc. /Ny has a SELL rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is HDSN stock overvalued or undervalued?
Valuation metrics for HDSN: ROE of 0.1% (sector avg: 15%), net margin of 0.5% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy HDSN stock in 2026?
Our dual AI analysis gives Hudson Technologies Inc. /Ny a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HDSN's free cash flow?
Hudson Technologies Inc. /Ny's operating cash flow is $-12.8M, with capital expenditures of $1.1M. FCF margin is -23.1%.
How does HDSN compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 0.5% (avg: 10%), ROE 0.1% (avg: 15%), current ratio 3.38 (avg: 1.8).