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Hudson Technologies Inc. (HDSN-8.28%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024. The company, incorporated in New York, is a refrigerant services company that provides solutions for the refrigeration industry, including the sale, recovery, reclamation, and reuse of refrigerant gases.
For the year ended December 31, 2024, Hudson Technologies reported revenues of $237.1 million, a decrease of 18% from the previous year. This decline was primarily due to lower selling prices of certain refrigerants.
The cost of sales for 2024 was $171.4 million, representing 72% of sales, up from 61% the previous year. This increase in cost percentage was attributed to lower revenue from reduced selling prices and additional inventory reserve impacts.
Selling, general, and administrative expenses rose by $2.5 million to $33 million in 2024, primarily due to increased personnel costs, professional fees, and acquisition costs. Approximately $0.7 million of these were non-recurring charges.
Hudson Technologies reported a net income of $24.4 million for the year ended December 31, 2024, a decrease of $27.8 million from the previous year. This decline is attributed to lower sales prices of certain refrigerants and higher SG&A costs.
The company completed the acquisition of USA United Suppliers of America, Inc. (d/b/a USA Refrigerants) and B&B Jobber Services, Inc. on June 6, 2024, for approximately $20.7 million in cash, with a potential additional payment of up to $2 million.
Hudson Technologies has a revolving credit facility with Wells Fargo Bank, National Association, allowing borrowings up to $75 million, which expires in March 2027. The company was in compliance with all covenants under this facility as of December 31, 2024.
The company has identified risks related to changes in commodity prices, customer concentration, and regulatory compliance that could materially affect its operations and financial condition. The United States Defense Logistics Agency accounted for more than 10% of Hudson's revenues for the year ended December 31, 2024.
Hudson Technologies operates in a highly regulated industry and is subject to extensive federal, state, and local laws. The company maintains compliance with regulations from agencies such as the EPA, OSHA, and the Department of Transportation.
The company has implemented various cybersecurity measures to protect its information systems and data, including risk assessments, incident detection and response, and vendor risk management programs.
Hudson Technologies has been awarded several U.S. and foreign patents related to its proprietary technologies and services. The company also relies on trade secrets and proprietary know-how to protect its technology.
The company's business is subject to seasonal variations, with peak sales of refrigerants occurring in the first nine months of each year. Weather conditions and economic downturns could negatively impact the company's financial results.
The company has not declared or paid any cash dividends on its common stock to date and does not anticipate doing so in the foreseeable future, as it intends to retain earnings to finance operations and business development.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Hudson Technologies Inc. annual 10-K report dated March 12, 2025. To report an error, please email earnings@qz.com.