Hudson Technologies, Inc. Q1 FY2026 earnings call

Kenneth Gaglione discussed operational progress like strengthening management, board additions, ERP launch, license agreement. Revenue outperformed expectations despite ERP challenges. ERP now integrated. Management team restructured. Board composition enhanced. Supported DLA, discussed regulatory impacts.

Revenue for the first quarter was $60.2 million, a 9% increase from the prior year. Gross margin was 20% in Q1 '26 compared to 22% in Q1 '25, impacted by year-over-year sales mix.

First quarter revenue outperformed expectations. Guided mid-25s for overall margin, expecting improvement in Q2 and Q3. Expect cash flow generation and continue capital allocation with share repurchases and strategic opportunities.

Uncertainty in global supply chains, conflicting state legislations on HFC phasedown, uncertain outcome of DLA contract, macroeconomic impact on refrigerant supply.

Q: Ryan Sigdahl asked about gross margin and ERP transition cost.

A: Kenneth Gaglione said it's a tough comp vs last year's Q1, mid-25s margin guidance, ERP incremental cost was a strong contributor.

Q: Jason Tilchen asked about Q2 guide and services diversification.

A: Kenneth Gaglione said expected higher volume but lower pricing vs last year due to HFO shortage, identified opportunities but no detail.

Q: Matthew Maus asked about R-410A price, Solstice licensing, and capital allocation.

A: Kenneth Gaglione said R-410A pricing firming, Solstice licensing positive but no traction yet, capital allocation with opportunistic buybacks and strategic opportunities.