# Hudson Technologies, Inc

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/en/companies/Hudson Technologies, Inc).

## Overview

Hudson Technologies Inc. is a U.S.-based refrigerant management and distribution company that sells refrigerants, industrial gases, cylinders, and related products, with a strong emphasis on refrigerant sales and recovery/reclaim-related activity. It also serves as prime contractor on a U.S. Defense Logistics Agency contract that supplies refrigerants and compressed gases to military and federal customers.

## Products & services

• Refrigerants sales and distribution
• RefrigerantSide® Services
• Industrial gases supply
• Cylinders and related items
• DLA-managed refrigerant and gas logistics

- **Refrigerants** (75%) — Virgin and reclaimed refrigerants sold to refrigeration industry customers and government users.
- **RefrigerantSide® Services** (10%) — Services tied to refrigerant management, recovery, and related customer support.
- **Industrial gases** (8%) — Compressed gases and related products sold mainly through the DLA and military channels.
- **Cylinders and related items** (7%) — Cylinders and ancillary products used to store, transport, and manage gases.

- Refrigerants sales and distribution
- RefrigerantSide® Services
- Industrial gases supply
- Cylinders and related items
- DLA-managed refrigerant and gas logistics

## Customers

Hudson sells primarily to wholesalers, brokers, contractors, and end-users in the refrigeration industry, with demand concentrated in the continental United States. It also serves the U.S. Defense Logistics Agency and, through that contract, U.S. military commands, federal civilian agencies, and foreign militaries.

- **Refrigeration wholesalers and brokers** (primary) — Buy refrigerants in bulk for resale into the HVACR supply chain and value availability, pricing, and product mix.
- **Contractors and service companies** (primary) — Buy refrigerants and related products for installation, maintenance, and repair of cooling systems.
- **Industrial and end-user customers** (secondary) — Buy refrigerants and gases for direct operational use in refrigeration and cooling applications.
- **U.S. Defense Logistics Agency** (primary) — Buys refrigerants, compressed gases, cylinders, and related items for military and federal supply needs.
- **Military and federal agencies** (secondary) — Use products supplied under the DLA contract for base and installation support.

- Refrigeration wholesalers and brokers buy inventory for resale
- Contractors buy refrigerants for installation and service work
- End-users buy refrigerants to maintain cooling systems
- DLA buys refrigerants, gases, and cylinders for military supply chains
- Military and federal agencies value reliable regulated supply

## Geography

The company’s commercial refrigeration customer base is primarily located in the continental United States, and management notes that receivables are concentrated there. Its government business extends beyond the U.S. to foreign militaries through the DLA contract, but the core operating footprint remains U.S.-centric.

- Core commercial demand is concentrated in the continental United States
- DLA contract serves U.S. military commands and federal agencies
- Foreign militaries are also served under the government contract
- U.S.-centric footprint reduces currency complexity but raises domestic exposure
- No country-level revenue split was disclosed in the excerpts

## Strategy

Hudson’s strategy centers on maintaining access to refrigerant supply, monetizing its inventory and distribution network, and preserving its government contract position. The company is also investing in operational systems, including ERP replacement, while managing working capital through cash flow and its credit facility.

- **Secure refrigerant sourcing and inventory availability** (short-term) — Supply constraints and phase-down rules can limit sales volume and pricing power.
- **Retain and expand the DLA relationship** (short-term) — The government contract is a meaningful revenue source and validates the company’s logistics capability.
- **Improve operating efficiency and systems** (medium-term) — ERP and process upgrades support inventory control, receivables management, and scalability.

- Protect refrigerant supply as regulated production phases down
- Defend and renew the DLA contract through competitive rebidding
- Grow RefrigerantSide® Services alongside product sales
- Manage seasonality and working capital through inventory discipline
- Upgrade ERP and operating systems to support execution

## Risks

Hudson is exposed to regulatory and supply-chain risk because refrigerants are highly regulated and some legacy products are being phased out. It also has customer concentration risk, with the DLA representing more than 10% of revenue in recent periods, and its results are seasonal with the strongest revenue typically in the second and third quarters.

- **Regulatory phase-down of HCFC and HFC refrigerants** [high] — The company depends on products that are being restricted or phased out, which can limit supply and alter pricing.
- **Customer concentration at the DLA** [high] — The DLA accounted for more than 10% of revenue in recent periods, so contract changes would affect results.
- **Seasonality and working-capital swings** [medium] — Revenue peaks in the second and third quarters, which can cause large movements in receivables and inventory.
- **Inventory price and sourcing risk** [medium] — The company holds significant inventory and must source products on commercially reasonable terms.

- Refrigerant phase-down rules can reduce available supply over time
- Customer concentration increases dependence on the DLA contract
- Seasonality can create large swings in receivables and cash flow
- Inventory pricing risk matters because product values can move quickly
- Regulatory changes could affect demand, sourcing, and margins

## Accounting

The most important accounting judgments are inventory valuation, reserves, and goodwill/intangible asset impairment, because product values and demand can shift with regulation and seasonality. Revenue and receivables are also affected by timing, especially around the DLA contract and the company’s second-half sales pattern.

- **Inventory reserves and valuation** — Can change gross margin and reported asset values
- **Goodwill and intangible asset impairment** — Could create non-cash charges if expected cash flows weaken
- **Seasonal revenue and working-capital timing** — Affects quarterly comparability of revenue, receivables, and operating cash flow
- **Revenue concentration disclosures** — Important for assessing concentration risk and revenue stability

- Inventory reserves matter because refrigerant values can change quickly
- Goodwill and intangibles require impairment testing for acquisition risk
- Seasonality affects quarterly revenue, receivables, and cash flow comparability
- DLA contract revenue and receivables affect concentration disclosures
- ERP capitalization and related costs affect operating expense timing

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*Last updated: 2026-09-24T11:10:26.421108+00:00*