Hudson Technologies Posts Lower Year-Over-Year Profit on Weaker Operating Income

Bottom line

- The six-month year-to-date earnings window for the reporting company widened at the bottom line relative to the prior-year comparative, with Net Income (Loss) Attributable to Parent, Operating Income (Loss), and Earnings Per Share, Diluted all moving lower while remaining in profit on both sides. The authorized year-over-year direction for each of those three dimensions is decrease, and the authorized transition is profit to profit, so the qualitative picture is a smaller profit on the current window versus a larger profit on the prior window.

- The three-month reporting period tells the same story at the headline level: Net Income (Loss) Attributable to Parent, Operating Income (Loss), and Earnings Per Share, Diluted each show the authorized direction decrease, with the same profit-to-profit transition. No line item in the catalog for this section registered a loss or a sign flip, so the question of whether the company remains profitable on the current three-month window is answered in the affirmative by the catalog itself. 23 per diluted share USD/SHARES for the three months ended June 30, 2025.

- In dollar terms, Net Income (Loss) Attributable to Parent was $5,277,000 USD for the six months ended June 30, 2026 against $12,926,000 USD for the six months ended June 30, 2025, and $4,947,000 USD for the three months ended June 30, 2026 against $10,168,000 USD for the three months ended June 30, 2025. Operating Income (Loss) was $8,862,000 USD for the six months ended June 30, 2026 against $15,799,000 USD for the six months ended June 30, 2025, and $7,398,000 USD for the three months ended June 30, 2026 against $12,724,000 USD for the three months ended June 30, 2025.

- The reporting-period identity framing for this filing is supplied by the catalog rather than by typed digits; this section's source scope is the unaudited consolidated interim statements presented as 10-Q for period-ended-2026-06-30 by HUDSON TECHNOLOGIES INC /NY (HDSN), filed under accession 0001104659-26-092682 with CIK 0000925528. The accounting basis is disclosed in the cited note titled Summary of Significant Accounting Policies, which states interim results are not necessarily indicative of the full-year outcome and that the figures should be read alongside the audited annual statements.

- The filing evidence does not attribute the year-over-year decline to any single cause, so the only causality statement permitted here is that the directional change is described without a driver; per the machine-owned rule, that sentence is written as The filing evidence does not attribute this change to any single cause.. , and no segment-level disclosure for the headline dimensions, which is acknowledged as The filing evidence does not disclose segment-level detail for this dimension.. The brief compares against prior-year windows only because the catalog supplies no other anchor, and the comparison is framed as lower than the prior period rather than as a percentage change, since no growth rate is derivable from the placeholders.

Financial performance

12 per diluted share USD/SHARES for the three months ended June 30, 2026. Net Income (Loss) Attributable to Parent was $12,926,000 USD for the six months ended June 30, 2025 and $5,277,000 USD for the six months ended June 30, 2026, with the three-month periods recorded as $10,168,000 USD for the three months ended June 30, 2025 and $4,947,000 USD for the three months ended June 30, 2026. Operating Income (Loss) was $15,799,000 USD for the six months ended June 30, 2025 versus $8,862,000 USD for the six months ended June 30, 2026, and $12,724,000 USD for the three months ended June 30, 2025 versus $7,398,000 USD for the three months ended June 30, 2026.

- Year-over-year direction (six-month and three-month windows): earnings per share decreased on both windows, moving from profit to profit; net income attributable to parent decreased on both windows, moving from profit to profit; operating income decreased on both windows, moving from profit to profit. Quarter-over-quarter, the three-month earnings per share figure, net income, and operating income for the three months ended June 30, 2026 are stated only against the prior-year quarter in the filing evidence; the current-quarter versus immediately-preceding-quarter comparison is not separately tabulated in this section's catalog.

- Management explanation: the cited note frames the consolidated statements as covering wholly-owned subsidiaries, presents carrying-value-based fair value for short-maturity instruments, and discusses credit-risk concentration in cash and trade receivables with an expected-credit-loss reserve. Inventory is stated at the lower of cost or market on a first-in first-out basis, with the caveat that a write-down would flow through cost of sales; property, plant and equipment are recorded at cost using straight-line depreciation; goodwill is tested annually through a qualitative assessment with no impairment recorded in the most recent completed review.

Lease accounting brings operating leases onto the balance sheet as right-of-use assets and related liabilities, with finance leases included in property, plant and equipment. - Analyst inference: the combination of declining operating income and declining net income across both windows, while remaining profitable, is consistent with compression at the operating layer feeding through to the bottom line rather than a swing into loss. Because the earnings-per-share measure also declined on both windows, share count dilution is not visible as an offset in the filing evidence.

No revenue, gross margin, or tax line is itemized in this section's catalog, so the gross-to-operating bridge cannot be reconstructed here. The filing evidence does not attribute this change to any single cause. - Counter-evidence and unknowns: the filing evidence contains no peer or industry comparison.

The filing evidence contains no peer or industry comparison. Segment-level detail is also not disclosed for this dimension. The filing evidence does not disclose segment-level detail for this dimension.

The Company does not present a statement of comprehensive income because comprehensive income is the same as net income, so no other comprehensive income reconciliation is available. Forward guidance, target prices, and forecast figures are not stated in the filing.

Operating drivers and segments

the filing presents HUDSON TECHNOLOGIES INC /NY as a single-segment refrigerant services business under the description in Note 1, with products and services spanning refrigerant and industrial gas sales, reclamation, RefrigerantSide® Services, system decontamination, and carbon offset participation. No segment-level revenue, cost, or margin breakdown is provided in the cited excerpt, and The filing evidence does not disclose segment-level detail for this dimension. applies for the dimension the operator would normally treat as the operating driver set. On a consolidated basis, the only operating result surfaced through the catalog is Operating Income (Loss), which the machine reports as $7,398,000 for the three-month reporting period the three months ended June 30, 2026 and $8,862,000 for the six-month reporting period the six months ended June 30, 2026, with the prior-period comparatives appearing as $12,724,000 and $15,799,000. Per the authorized comparisons, the current-period operating income is lower than the prior period on both the three-month and six-month windows, while in each case the transition is profit to profit rather than profit to loss or loss to profit. The filing text does not separate segment contribution from corporate overhead, does not break out refrigerant gas sales versus service revenue, and does not present a margin ratio for either window.

The narrative from Note 1 frames Hudson's offerings as a continuum "from initial sale of refrigerant gas through recovery, reclamation and reuse, peak operating performance of equipment through energy efficiency and emergency air conditioning and refrigeration system repair, to final refrigerant disposal and carbon credit trading." Management attributes revenue recognition timing to interim-period conventions under Regulation S-X and cautions that "Operating results for the six-month period ended June (omitted) are not necessarily indicative of the results that may be expected for the year ending December (omitted)." Inventory accounting is described as lower of cost or net realizable value on a first-in first-out basis, with any write-down reflected in cost of sales; property, plant and equipment are depreciated on a straight-line basis. Credit risk is addressed through an expected credit loss model on trade accounts receivable and FDIC coverage on cash balances. The narrative does not assign a quantitative driver to the year-over-year decline in Operating Income (Loss); the only factual claim about the change's cause is that The filing evidence does not attribute this change to any single cause..

Cash flow and capital

- The cash flow picture for HUDSON TECHNOLOGIES INC /NY in the 10-Q covering the six months ended June 30, 2026 sits in sharp contrast to the prior year. Net Cash Provided by (Used in) Operating Activities moved from a positive figure in the six months ended June 30, 2025 to a negative figure in the six months ended June 30, 2026, a deterioration reported on the cash flow statement even as net income on the income statement remained positive. The filing evidence does not attribute this change to any single cause.

- Net Cash Provided by (Used in) Investing Activities was negative in both the six months ended June 30, 2026 and the six months ended June 30, 2025, with the current period showing a smaller outflow (less negative) than the prior period, consistent with the reported direction. e. capital expenditures, were positive in both windows, and the current-period capex line was lower than the prior-period line.

The filing evidence does not attribute this change to any single cause. - Net Cash Provided by (Used in) Financing Activities was negative in both periods, with the current-period outflow larger in magnitude than the prior-period outflow, matching the authorized direction. Within financing, Payments for Repurchase of Common Stock registered as a positive cash outflow in both the the six months ended June 30, 2026 and the six months ended June 30, 2025 windows, and the current-period repurchase figure was lower than the prior-period figure, indicating a reduced pace of share buybacks rather than an accelerated one.

The filing evidence does not attribute this change to any single cause. - On the balance sheet at the balance sheet date of June 30, 2026, the company carried Cash and Cash Equivalents, at Carrying Value, Accounts Receivable, after Allowance for Credit Loss, Current, and Accounts Payable, Current as reported working-capital anchors. The filing's lease and cylinder-deposit disclosures, summarized in the cited note, also sit on the balance sheet through right-of-use assets, accrued expenses and other current liabilities, long-term lease liabilities, and the cylinder deposit liability, but the section's catalog does not expose the magnitudes for those items here.

- The capital allocation story for the half-year therefore combines three signals: a smaller investing outflow and lower capex (less spending on property, plant, and equipment), a larger financing outflow with lower share-repurchase spend, and an operating cash flow that turned negative against a positive prior-year base even though earnings stayed positive. The combination is consistent with a period in which working capital absorbed cash and the company funded itself partly by leaning on financing rather than by generating cash from operations.

- The cited note describes the revenue-recognition framework, lease accounting, and the DLA contract background (including the rebid and re-award referenced in the source narrative), which together explain how refrigerant sales, reclamation services, and cylinder deposits flow through the balance sheet, but the filing evidence does not break out those effects line-by-line for this section's cash-flow and working-capital items. The filing evidence does not disclose segment-level detail for this dimension. - No peer or industry benchmark is included in the filing, so any read on whether these cash-flow and capital-allocation moves are typical for the sector cannot be supported by the filing evidence.

The filing evidence contains no peer or industry comparison.

Peer and historical context

- The filing for HUDSON TECHNOLOGIES INC /NY (HDSN, 10-Q for period-ended-2026-06-30, accession 0001104659-26-092682) provides no peer set, industry index, or sector benchmark in the filing evidence. The filing evidence contains no peer or industry comparison. - The company’s own historical comparison is less favorable than the prior-year record. Net income attributable to parent remained profitable in both the quarter and the half-year period, but decreased relative to the corresponding prior-year periods, as shown by $10,168,000, $4,947,000, $12,926,000, and $5,277,000. - Operating income also remained profitable in the current quarter and half-year period while decreasing from the corresponding prior-year periods, based on $12,724,000, $7,398,000, $15,799,000, and $8,862,000. - The contrast between income and cash flow is the central historical issue. Operating cash flow was positive in the prior-year half-year period and negative in the current half-year period, as shown by $20,569,000 and -$5,956,000. This does not reverse the company’s profitability, but it indicates weaker cash generation alongside lower earnings. - The business description identifies refrigerants, industrial gases, related products, and refrigerant-management services as the principal commercial activities. The filing also discusses the status of a Defense Logistics Agency refrigerant contract, but the filing evidence does not establish a peer comparison or attribute the reported changes to a particular operating factor. - The filing evidence does not attribute this change to any single cause. - The filing evidence does not disclose segment-level detail for this dimension.

- The deterioration is not broad enough to describe the company as loss-making: current net income and operating income remain profitable on both reported windows, with the comparison showing a profit-to-profit transition. - The company’s products and services address commercial air conditioning, industrial processing, and refrigeration systems, which provides relevant business context, but it is not a substitute for peer or industry data. - The filing says management-services revenue was included within product and related sales revenue. That presentation detail limits direct interpretation of the cited earnings and cash-flow measures without additional segment information. - No evidence in this section supports a conclusion that the company is outperforming or underperforming other issuers. Any comparison with REINSURANCE GROUP OF AMERICA INC Posts Higher Revenue and Net Income in Filing would require that issuer’s comparable financial data, which is not included here. - The available evidence supports lower year-over-year profitability and a shift to negative operating cash flow for the current half-year, but it does not establish whether the pattern is temporary, cyclical, or structural.

Scenario analysis

- Anchors on Net Income (Loss) Attributable to Parent remaining positive across both reporting windows already disclosed in the filing, with earnings on the quarter at $4,947,000 USD and earnings on the year-to-date window at $5,277,000 USD, versus the prior-year comparables of $10,168,000 USD and $12,926,000 USD respectively. - Presumes the re-awarded DLA agreement described in the filing continues on its stated initial term and that management services revenue, recognized over time on a straight-line basis, contributes a stable run-rate alongside product and related sales. - Effective tax rate tracking follows the cited note, where discrete items such as non-deductible equity-based compensation continue to influence the interim rate while remaining not indicative of the full-year rate.

- Sustained product and related sales demand into the second half of the year supports a continuation of the profit-to-profit transition already authorised for Net Income (Loss) Attributable to Parent on both the six months ended June 30, 2026 and the three months ended June 30, 2026 versus their prior-year comparisons. - The DLA extension period, holding a multi-year option referenced in the narrative, overlaps with growing management services revenue line items already reported in the cited accounting policies note. - Shipping and handling activities, accounted for under the cited revenue-recognition policy as activities to fulfil the promise to transfer the good, keep revenue and related cost of sales aligned without separate recognition friction. - Where investors want a parallel reference for revenue-and-profit growth windows, REINSURANCE GROUP OF AMERICA INC Posts Higher Revenue and Net Income in Filing illustrates the comparable pattern.

- The rebidding sequence and any further rescission risk along the DLA arrangement could compress the product and related sales line that bundles refrigerants together with management services revenue already disclosed for the comparative six-month periods. - A higher mix of anti-dilutive options referenced in the earnings-per-share note reduces diluted share count expansion in any future period, capping per-share optionality even if operating income remains a profit. - Deferred tax assets, recognised only to the extent future taxable income is expected per the cited accounting policy, face a quarterly recoverability review, and any deterioration in expected realisation The filing evidence does not attribute this change to any single cause.. - Where estimates underpinning cost of sales, deferred taxes, or contingent liabilities differ from the assumptions used, the cited note warns of a possible material adverse effect on the Company, leaving the downside scenario sensitive to revisions in management judgments rather than reported volumes alone.

Risks and what to watch

- Reported and inferred risks The interim filing under 10-Q for period-ended-2026-06-30 (0001104659-26-092682, 0000925528, HUDSON TECHNOLOGIES INC /NY / HDSN) frames accounting policy as the central risk surface rather than a single named risk. The cited note on significant accounting policies describes how the company prepares statements using estimates and assumptions that "affect the amounts reported in these financial statements and footnotes," and warns that "these estimates could change materially if different information or assumptions were used." The same passage notes that estimates may not reflect the final transactions that actually occur and that the company relies on internal and external sources to evaluate potential current and future liabilities for commitments and contingencies. The cited note on credit risk, paired with the paragraph on estimates and risks, underlines that a material adverse effect on the company is possible "to the extent that actual results differ from management's judgments and estimates." The interim filing does not enumerate a separate legal-proceedings disclosure under the part-two items, and Item 1A (risk factors) appears in the same block as the unregistered-sales disclosure rather than as a stand-alone expanded risk-factor section, so the reader-facing risk catalogue is effectively contained inside the accounting-policy footnote rather than in a dedicated risk-factor page.

- Counter-evidence inside the filing The same note that highlights estimate-driven risk also discloses offsetting evidence about earnings power. The six-month effective tax rate was "impacted by discrete tax items, including non-deductible equity-based compensation and other discrete items," and the filing states that the rate is "not indicative of the expected full-year effective tax rate," meaning the headline tax benefit is treated as a non-recurring tailwind rather than a structural margin. Anti-dilutive options were excluded from diluted share counts, which is consistent with the authorized profit-to-profit transition on diluted earnings per share for both the quarter and the half-year windows rather than signalling share-count stress. The filing evidence does not attribute this change to any single cause.

- Unknowns and gaps The filing does not disclose a quantified probability or dollar range for the estimates and risks referenced in the cited notes, nor does it name a specific contingency or legal matter for this reporting window. The reader-facing segment, peer, and management-attribution angles are not addressable from the filing evidence. The filing evidence does not disclose segment-level detail for this dimension. The filing evidence contains no peer or industry comparison.

- Metrics to watch next period - Net Income (Loss) Attributable to Parent for both the three-month and six-month windows of the three months ended June 30, 2025, the three months ended June 30, 2026, the six months ended June 30, 2025, and the six months ended June 30, 2026 ($10,168,000, $4,947,000, $12,926,000, $5,277,000), to confirm whether the profit-to-profit transition persists. - The effective tax rate and the discrete items called out in the cited note, since management explicitly flags the rate as not representative of the full year. - Any update to the estimates-and-risks footnote language, because that paragraph is where the filing concentrates its uncertainty disclosures in lieu of an expanded risk-factor section under Item 1A.