Cash conversion efficiency is currently strained, evidenced by a $33.7 million free cash flow burn in 2025Q4 and erratic OCF/NI ratios that reached -38.80 in 2026Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | -30.12M | -3.16M | 91.81M | 58.55M | 62.81M | -1.23M | 11.69M | 33.82M | 36.33M | 18.37M | 9.35M | -10.5M | 1.7M | -6.42M | -9.27M | 613K | 3.13M | 3.36M | -4.39M | 382K | -1.21M | 106K | 856K | -768K | -1.34M | -2.36M | -727K | -3.4M | 600K | 1.6M | -3.2M |
| Operating CF Margin % | - | -1.28% | 38.72% | 20.26% | 19.31% | -0.64% | 7.92% | 20.87% | 21.82% | 13.08% | 8.86% | -13.17% | 3.05% | -10.94% | -16.42% | 1.38% | 8.39% | 13.9% | -13.23% | 1.42% | -5.15% | 0.55% | 5.86% | -4.28% | -6.72% | -11.37% | -4.7% | -18.99% | 2.58% | 6.96% | -16.33% |
| Operating CF Growth % | -603.14% | -103.44% | 56.82% | -6.79% | 5215.23% | -110.51% | -65.44% | -6.91% | 97.82% | 96.47% | 189% | -717.46% | 126.51% | 30.75% | -1611.58% | -80.4% | -6.9% | 176.56% | -1248.95% | 131.65% | -1238.68% | -87.62% | 211.46% | 42.77% | 43.16% | -224.76% | 78.62% | -666.67% | -62.5% | 150% | -10.34% |
| Net Income | 14.24M | 16.67M | 24.39M | 52.25M | 103.8M | 32.26M | -5.21M | -25.94M | -55.66M | 11.16M | 10.64M | 4.76M | -720K | -5.84M | 12.8M | 0 | 701K | -2.5M | 6.67M | -1.96M | 2.11M | 2.27M | 264K | -2.43M | -2.52M | -2.4M | -2.4M | -4M | -2.7M | -16.3M | -2.1M |
| Depreciation & Amortization | 1.74M | 5.99M | 6.39M | 5.78M | 5.98M | 6.18M | 6.1M | 7.12M | 7.13M | 3.38M | 2.23M | 2.07M | 979K | 808K | 556K | 497K | 540K | 524K | 547K | 561K | 565K | 619K | 733K | 1.2M | 1.14M | 1.22M | 1.29M | 1.3M | 1.2M | 1.5M | 1.1M |
| Stock-Based Compensation | 0 | 1.1M | 842K | 2.31M | 922K | 511K | 656K | 1.83M | 1.4M | 1.5M | 706K | 203K | 708K | 122K | 134K | 69K | 195K | 381K | 59K | 4.85M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 698K | -42K | -482K | 4.31M | -1.45M | 337K | 163K | 749K | -1.03M | 4M | 1.08M | 2.77M | -857K | -1.45M | -1.04M | 583K | 451K | 0 | -2.6M | -1.27M | -252K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2M | -300K |
| Other Non-Cash Items | 3.25M | 661K | 2.93M | 4.67M | 8.06M | -4.11M | -2.93M | 1.98M | 29.92M | 1.05M | 718K | -227K | 526K | 5.81M | 41K | 1.03M | 88K | 406K | 27K | -65K | 289K | 0 | 0 | 0 | 0 | 0 | 0 | 200K | 100K | 0 | 100K |
| Working Capital Changes | -50.05M | -27.54M | 57.74M | -10.78M | -54.5M | -36.4M | 12.91M | 48.09M | 54.09M | -2.86M | -5.85M | -20.18M | 1.03M | -5.9M | -21.79M | -1.6M | 1.13M | 4.92M | -9.11M | -1.73M | -3.92M | -2.91M | -163K | 21K | -81K | -1.23M | 352K | -900K | 1.9M | 6.8M | -2M |
| Change in Receivables | -957K | -3.41M | 11.46M | -4.96M | -7.75M | -4.46M | -2.63M | 6.08M | 287K | 4.5M | -404K | -545K | -293K | -1.78M | 468K | -712K | -261K | 137K | -12K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -49.09M | -40.91M | 60.25M | -6.81M | -53.07M | -46.88M | 18.71M | 43.46M | 43.33M | -840K | -6.7M | -23.43M | -1.15M | 486K | -22.43M | 477K | -1.8M | 7.2M | -11.01M | -209K | -6.25M | -3.48M | -74K | 380K | -580K | -486K | 580K | 800K | 500K | 5.3M | -3.7M |
| Change in Payables | 10.98M | 20.23M | -12.73M | 9.46M | 0 | 0 | 0 | 0 | -423K | 6.03M | 173K | 4.26M | 316K | -2.1M | 542K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -6.95M | -7.29M | -25.97M | -3.58M | -3.66M | -1.92M | -470K | -1.01M | -1.09M | -209.99M | -1.73M | -3.33M | -8.03M | -397K | -2M | -946K | -618K | -430K | -593K | -446K | -469K | -715K | -236K | -519K | -80K | 554K | -853K | -1.8M | -600K | -1.1M | -3.4M |
| Capital Expenditures | -4.71M | -5.05M | -5.3M | -3.58M | -3.66M | -1.92M | -1.47M | -1.01M | -1.09M | -1.02M | -1.73M | -889K | -716K | -550K | -1.25M | -903K | -595K | -391K | -558K | -446K | -469K | -629K | -385K | -520K | -324K | -374K | -853K | -1.8M | -600K | -1.1M | -2M |
| CapEx % of Revenue | 1.88% | 2.05% | 2.24% | 1.24% | 1.13% | 1% | 1% | 0.62% | 0.66% | 0.73% | 1.64% | 1.12% | 1.28% | 0.94% | 2.21% | 2.04% | 1.6% | 1.62% | 1.68% | 1.66% | 2% | 3.27% | 2.63% | 2.89% | 1.62% | 1.8% | 5.52% | 10.06% | 2.58% | 4.78% | 10.2% |
| Acquisitions | 0 | 0 | -20.67M | 0 | 0 | 0 | 0 | 0 | 0 | -208.97M | 0 | -2.42M | -7.3M | 164K | -730K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -2.24M | -2.24M | 0 | 0 | 0 | 0 | 1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -86K | -4K | -19K | 0 | -9K | 0 | 0 | 0 | 0 | -2.5M |
| Cash from Financing | -24.61M | -20.23M | -8.15M | -47.82M | -57.35M | 5.29M | -12.47M | -32.48M | -37.97M | 162.7M | 25.06M | 14.15M | 6.6M | 3.49M | 11.3M | 365K | 1.12M | -2.85M | 4.91M | -246K | 1.64M | 628K | -661K | 1.4M | 585K | 2.33M | -40K | 7M | 200K | -300K | 4.5M |
| Debt Issued (Net) | 0 | 0 | 0 | -47.16M | -48.05M | 7.75M | -12.53M | -31.14M | -36.94M | 169.83M | -24.52M | 14.14M | -9.33M | 2.38M | 11.17M | 452K | -4.01M | -4.25M | 4.57M | 5.09M | 1.61M | 227K | -707K | 535K | 565K | -765K | -40K | 1.2M | 200K | -4.2M | 4.5M |
| Equity Issued (Net) | -20.51M | -19.97M | -8.15M | 39K | 182K | 201K | 63K | 9K | 17K | 807K | 51.06M | 460K | 15.93M | 1.11M | 122K | 3K | 5.13M | 1.41M | 341K | -5.33M | 21K | 401K | 46K | 863K | 20K | 3.09M | 0 | 5.8M | 0 | 3.9M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -20.56M | -20.01M | -8.15M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -5.34M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -200K |
| Other Financing | -4.1M | -259K | -7K | -694K | -9.48M | -2.65M | 0 | -1.35M | -1.04M | -7.94M | -1.49M | -445K | 0 | 0 | 0 | -90K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | -61.68M | -30.68M | 57.69M | 7.15M | 1.8M | 2.14M | -1.25M | 328K | -2.73M | -28.93M | 32.67M | 323K | 266K | -3.32M | 33K | 32K | 3.63M | 85K | -69K | -310K | -41K | 19K | -41K | 111K | -837K | 519K | -1.62M | 1.7M | 200K | 200K | -2.1M |
| Free Cash Flow | -34.84M | -8.21M | 86.51M | 54.97M | 59.16M | -3.15M | 10.22M | 32.81M | 35.24M | 17.34M | 7.62M | -11.4M | 975K | -6.98M | -10.53M | -333K | 2.51M | 2.93M | -4.98M | -64K | -1.68M | -523K | 471K | -1.29M | -1.67M | -2.73M | -1.58M | -5.2M | 0 | 500K | -5.2M |
| FCF Margin % | -13.86% | -3.33% | 36.48% | 19.02% | 18.19% | -1.63% | 6.92% | 20.25% | 21.16% | 12.35% | 7.22% | -14.3% | 1.75% | -11.9% | -18.66% | -0.75% | 6.73% | 12.12% | -15.02% | -0.24% | -7.15% | -2.72% | 3.22% | -7.17% | -8.35% | -13.17% | -10.22% | -29.05% | - | 2.17% | -26.53% |
| FCF Growth % | -134.44% | -109.49% | 57.39% | -7.08% | 1977.97% | -130.83% | -68.86% | -6.89% | 103.18% | 127.76% | 166.77% | -1269.64% | 113.97% | 33.75% | -3063.06% | -113.27% | -14.33% | 158.81% | -7684.38% | 96.18% | -220.46% | -211.04% | 136.57% | 22.69% | 39.09% | -73.1% | 69.62% | - | -100% | 109.62% | 5.45% |
| FCF per Share | -0.82 | -0.19 | 1.84 | 1.16 | 1.26 | -0.07 | 0.24 | 0.77 | 0.83 | 0.41 | 0.22 | -0.34 | 0.03 | -0.28 | -0.40 | -0.01 | 0.11 | 0.15 | -0.25 | -0.00 | -0.06 | -0.02 | 0.02 | -0.24 | -0.32 | -0.54 | -0.31 | -1.02 | - | 0.10 | -1.16 |
| FCF Conversion (FCF/Net Income) | -2.45x | -0.19x | 3.76x | 1.12x | 0.61x | -0.04x | -2.24x | -1.30x | -0.65x | 1.65x | 0.88x | -2.21x | -2.36x | 1.10x | -0.72x | 0.59x | 4.46x | -1.35x | -0.66x | -0.19x | -0.57x | 0.05x | 3.24x | 0.32x | 0.53x | 0.98x | 0.30x | 0.85x | -0.22x | -0.10x | 1.52x |
| Interest Paid | 156K | 0 | 690K | 4.47M | 11.7M | 10.16M | 11.38M | 15.16M | 0 | 2.03M | 964K | 0 | 0 | 838K | 652K | 862K | 915K | 1.32M | 1.2M | 768K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 473K | 0 | 8.99M | 18.54M | 15.46M | 128K | 0 | 0 | 0 | 6.83M | 4.99M | 0 | 0 | 1.08M | 2.55M | 59K | 29K | 41K | 700K | 35K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Inventory-Driven Cash Volatility
As evidenced by the erratic OCF/NI ratios ranging from -38.80 to 5.13 in recent quarters, HDSN's reported net income frequently fails to translate into operational cash, suggesting that non-cash inventory adjustments and accruals significantly distort the company's true underlying cash-generating capacity during volatile market cycles.
The extreme variance in the conversion of net income to operating cash flow highlights a fundamental disconnect between accounting profitability and liquidity. Investors should monitor whether these discrepancies are purely timing-related or indicative of persistent difficulties in monetizing inventory during periods of refrigerant price compression.
Based on quarterly financial data, HDSN's free cash flow trajectory has been highly inconsistent, swinging from a peak of $40.6M in 2024Q2 to a significant burn of $33.7M in 2025Q4, which underscores the company's vulnerability to seasonal demand and commodity price fluctuations.
The inability to maintain positive free cash flow suggests that the business model remains highly sensitive to external market conditions rather than internal operational efficiency. This erratic performance may complicate long-term capital planning and suggests that cash generation is currently more a function of market pricing than structural cost control.
According to reported cash flow statements, working capital swings have been a primary driver of liquidity volatility, with a $25.9M outflow in 2025Q4 alone, indicating that the company's inventory-heavy business model requires substantial cash buffers to manage the cyclical nature of refrigerant procurement and sales.
The significant cash outflows tied to working capital changes suggest that HDSN is frequently forced to tie up liquidity in inventory to prepare for seasonal demand. This dynamic creates a recurring drag on cash flow that may limit the company's ability to pursue strategic growth initiatives without external financing.
As reported in recent filings, HDSN has continued to execute share repurchases, including $14.1M in 2025Q4, despite experiencing significant negative free cash flow, which warrants further investigation into the sustainability of returning capital to shareholders while operational cash generation remains under pressure.
The decision to prioritize share buybacks during periods of cash burn may indicate management's confidence in long-term valuation, yet it simultaneously reduces the liquidity cushion available for operational contingencies. Investors should monitor whether this capital allocation strategy remains prudent if the current cash flow volatility persists into future quarters.
Quick answers to the most common questions about buying HDSN stock.
Hudson Technologies, Inc. (HDSN) generated $-3.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Hudson Technologies, Inc. (HDSN) reported negative free cash flow of $8.2M in 2025, indicating capital requirements exceeded cash from operations.
Hudson Technologies, Inc. (HDSN) spent $5.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Hudson Technologies, Inc. (HDSN) spent $20.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.