Hudson Technologies Q2 2026 Earnings Report

Hudson Technologies EPS Results

• Actual EPS: $0.12
• Consensus EPS: $0.18
• Beat/Miss: Missed by -$0.06
• One Year Ago EPS: N/A

Hudson Technologies Revenue Results

• Actual Revenue: $78.35 million
• Expected Revenue: $74.20 million
• Beat/Miss: Beat by +$4.15 million
• YoY Revenue Growth: N/A

Hudson Technologies Announcement Details

• Quarter: Q2 2026
• Date: 8/5/2026
• Time: After Market Closes
• Conference Call Date: Wednesday, August 5, 2026
• Conference Call Time: 5:00PM ET

Hudson Technologies (NASDAQ:HDSN) is a U.S.-based provider of refrigerant management and sustainability solutions, specializing in the recovery, reclamation and recycling of refrigerant gases. The company’s core business centers on collecting used refrigerants—such as CFCs, HCFCs and HFCs—from industrial, commercial and institutional customers, processing them in certified reclamation facilities and returning material that meets industry purity standards.

Headquartered in Purchase, New York, Hudson Technologies operates a network of reclamation centers across the continental United States. In addition to its core recovery and reclamation operations, the company offers a suite of auxiliary services that includes on-site leak detection, system charging and cylinder rental. These services are designed to help customers comply with environmental regulations, minimize refrigerant losses and reduce greenhouse-gas emissions.

Since its founding, Hudson Technologies has built its reputation on environmental stewardship and regulatory expertise, supporting clients in sectors such as HVAC, food and beverage refrigeration, pharmaceuticals and light manufacturing. By providing both reclaimed and virgin refrigerants—along with destruction services for non-reclaimable gases—the company aims to deliver comprehensive refrigerant management programs that align with global sustainability goals.

Hudson Technologies Q2 2026 Earnings Call Transcript

Key Takeaways

• Negative Sentiment: Profitability declined amid weaker pricing and higher costs: Q2 revenue rose 8% to $78.3 million on 12% volume growth, but a 6% drop in average selling prices, freight inflation, ERP costs and legal expenses reduced gross margin to 26% from 31% and net income to $4.9 million from $10.2 million.
• Negative Sentiment: HFC refrigerant prices remain under pressure due to excess channel inventory, illegal imports and limited sustained hot weather. Management expects prices to stabilize but cannot predict when illegal-import issues will be resolved, and lowered its full-year 2026 gross-margin outlook to the low-to-mid 20% range.
• Positive Sentiment: Hudson secured the five-year, $210 million DLA contract re-award, resolving a seven-month challenge and providing greater visibility into its government business.
• Positive Sentiment: Growth investments are expanding Hudson’s longer-term opportunities: the small recovery truck pilot is revenue-positive, predictive servicing has won four contracts this year, and the company plans broader rollouts while pursuing extractive-distillation technology to reclaim more complex refrigerant blends.
• Neutral Sentiment: The Illinois facility, temporarily idled for about three weeks after tornado damage, is fully operational again; insurance is expected to cover restoration costs, with no inventory loss or detectable damage to separation columns.

Presentation

[Operator]

Greetings. Welcome to the Hudson Technologies second quarter 2026 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, John Nesbett of IMS Investor Relations. You may begin.

[John Nesbett, Investor Relations at IMS Investor Relations]

Thank you. Good evening, and welcome to our conference call to discuss Hudson Technologies' financial results for the second quarter of 2026. On the call today are Ken Gaglione, President and Chief Executive Officer, and Brian Bertaux, Chief Financial Officer. I'll now take a moment to read the safe harbor statement. During the course of this conference call, we'll make certain forward-looking statements. All statements that address expectations, opinions, or predictions about the future are forward-looking statements. Although they reflect our current expectations and are based on our best view of the industry and of our business as we see them today, they are not guarantees of future performance. Please understand that these statements involve a number of risks and assumptions, and since these elements can change and certain cases are not within our control, we would ask that you consider interpreting them in that light.

[John Nesbett, Investor Relations at IMS Investor Relations]

We urge you to review Hudson's most recent Form 10-K and other subsequent SEC filings for a discussion of the principal risks and uncertainties that affect our business and our performance and the factors that could cause our actual results to differ materially. With that, we will now turn the call over to Ken Gaglione. Please go ahead, Ken.

[Ken Gaglione, Chairman of the Board, President, and CEO at Hudson Technologies]

Hey, good evening, and thank you for joining us to discuss our second quarter results. The refrigerant selling season is underway, and I'm generally pleased with our strong second quarter results against some rather challenging market and business conditions. Our priority remains long-term value creation, including our focus on operational excellence through the improvement of our core capabilities and longer-term efforts to create less cyclical, more diversified sources of revenue with the goal of reducing our dependency on spot refrigerant pricing. We continue to execute on that vision in the second quarter by investing in the talent and technology we need to accomplish these goals with the backdrop of weaker-than-expected HFC market prices, illustrating the importance of shifting our business model to have less exposure to variations in pricing dynamics.

[Ken Gaglione, Chairman of the Board, President, and CEO at Hudson Technologies]

We're in an inflationary economy. This tends to favor repair versus replacement of HVAC units and resulting demand for aftermarket refrigerants; this is counter to what we saw in the quarter. There are several possible reasons for softness in HFC prices. At this point, we can only speculate that a few factors are contributing to the softness, including recent information we've seen about illegally imported refrigerants coming across the southern border, excess channel inventory, simply that while there have been short bursts of higher temperatures this summer, we haven't really seen a prolonged period of hot weather for a long enough period of time. The industry is acting on the question of illegal imports; we're optimistic the situation will improve in the long run. Additionally, the forecasted El Niño effect and accompanying warmer weather may also benefit our business as we round out the selling season.

[Ken Gaglione, Chairman of the Board, President, and CEO at Hudson Technologies]

For the quarter, sales revenue was up 8%, driven by a strong 12% increase in sales volume. While our increase in reclamation volume again demonstrates our customers' strong commitment to refrigerant lifecycle management and Hudson's expanding network for recovered refrigerant sources. These positive results were offset by the HFC refrigerant pricing and higher costs related to our investments, both of which impacted net income. Brian will provide more detail on our financial results in a moment. Turning to our business with the DLA, orders during the second quarter were in line with our annual run rate for the DLA contract. The five-year annual contract that was awarded to us and then rescinded due to a competitor's challenge is still in review.

[Ken Gaglione, Chairman of the Board, President, and CEO at Hudson Technologies]

During the quarter, we were awarded a bridge contract, which keeps the current contract terms and conditions intact for four months through November 29th, 2026, with two additional three-month extensions through May of 2027. We are very confident this open matter will be resolved shortly. Next, we often get questions about Hudson's activity in the rapidly expanding data center market. Most of what we read and hear about data centers today is focused on the immediate build opportunity for direct and indirect cooling and the role traditional HVAC systems play. These are generally first-fill opportunities for new systems dominated by virgin refrigerants sold to OEMs or through OEM channels. Hudson's business is centered on specialized high-speed recovery and legacy reclaimed refrigerant supply to the aftermarket.

[Ken Gaglione, Chairman of the Board, President, and CEO at Hudson Technologies]

Today, we have a nascent business with data centers, which is not a meaningful portion of our business today; we expect this segment to be a much larger opportunity in three to five years as data center HVAC systems begin to need optimization, resupply, or decommissioning. We will continue to look for ways to optimize our presence in the data center market. This expected future demand is yet another reason for investment today in operational readiness. First, as I noted earlier, recovered refrigerants are an important feedstock for operations.

[Ken Gaglione, Chairman of the Board, President, and CEO at Hudson Technologies]

During the quarter, we saw continued growth in recovered refrigerant volume as we leverage our past investments and acquisitions that expanded our recovery ability and more recently, the successful pilot of aftermarket small recovery trucks, or SRT, in the New York City area that further facilitates our lifecycle refrigerant management program by focusing on high-density, lower-volume recoveries that our legacy service operations did not address. The solution is high-speed, EPA compliant and allows our contractor partners to focus on other value-added revenue-generating activities. By focusing on the contractor, we are not only expanding our access to recovered refrigerant but also helping to increase overall industry recovery rates by simplifying the recovery and reward transaction so it is effortless as possible while still complying with EPA reporting requirements.

[Ken Gaglione, Chairman of the Board, President, and CEO at Hudson Technologies]

Second, when we receive recovered refrigerant from contractors for reclamation, those cylinders can contain one refrigerant or may be mixed with multiple refrigerants. Hudson has two of the seven reclamation facilities in this country that can separate mixed refrigerants from a cylinder using fractional distillation. This enables the conversion of recovered refrigerant feedstock into saleable products with greater efficiency compared to simple distillation or other methods. While fractional distillation is not new, the proprietary way we accomplish the separation is one of Hudson's core competencies. We're building on that expertise, and during the quarter, we announced our intent to partner with Icorium, an NSF I-Corps startup company based in Lawrence, Kansas, to scale their patented extractive distillation technology to increase our ability to separate complicated next-generation azeotropes and HFO refrigerant blends in one of the most efficient ways possible.

[Ken Gaglione, Chairman of the Board, President, and CEO at Hudson Technologies]

Unlocking this traditionally difficult separation capability allows Hudson to extract the most refrigerant from every pound of recovered gas, promoting faster transition of feedstock into working capital and producing a sustainable competitive advantage in the process. The intended partnership with Icorium is just one component of Hudson's advanced operations directive, which we expect will enable the company to expand both capability and capacity ahead of the next EPA phase down and before expected increase in that data center-related demand. As announced previously, our facility in Illinois experienced extensive damage from a tornado on June 11th, causing us to temporarily idle operations while the plant was secured. The good news is that the damage was mostly related to the building structure, and no one was injured, with the storm removing the roof and the equipment attached to it, and water damage to the interior of the facility.

[Ken Gaglione, Chairman of the Board, President, and CEO at Hudson Technologies]

While the plant was without power for approximately one week, there was no detectable damage to the separation columns or to our product inventory. Facility was completely out of service for approximately three weeks with no loss of inventory and is now fully functioning while major repairs are underway. Expenses related to the full restoration will be covered by insurance and are not reflected in our second quarter PNL. Now I'll turn the call over to Brian. Please go ahead, Brian.

[Brian Bertaux, CFO at Hudson Technologies]

Thank you, Ken, and good evening, everybody. I will now review our second quarter 2026 financial results with a comparison to the second quarter of 2025. Hudson reported $78.3 million in revenue, an increase of 8%. We posted a strong 12% growth in sales volume, which was partially offset by a 6% decline in average refrigerant sales price. During the 2025 quarter, essentially all refrigerant market prices rose as a result of supply chain constraints amid the EPA-mandated transition to HFO refrigerants. Gross margin was 26% compared to 31% in the 2025 quarter. The drivers to the gross margin decline were twofold. First, as previously noted, HFO supply chain constraints caused a temporary positive impact on all refrigerant pricing in the 2025 quarter. This pricing comparison resulted in a 232 basis point reduction in gross margin for the 2026 quarter.

[Brian Bertaux, CFO at Hudson Technologies]

Second, we experienced higher operating expenses, primarily due to increased fuel costs in the quarter related to the conflict in the Middle East and the corresponding impact to freight costs. SG&A expenses were $12.4 million in the 2026 quarter, an increase of $3.1 million. The drivers to the increased SG&A costs were also twofold. We incurred costs related to the optimization of the recently launched ERP system, as well as legal expenses incurred related to the re-award of our DLA contracts. Second, we increased staffing and consulting resources that reflect our newly reinvigorated focus on longer-term initiatives to increase shareholder value, as Ken noted. Net interest was flat in the 2026 quarter compared to net interest income of $700,000 last year, reflecting a lower cash balance on our unlevered balance sheet.

[Brian Bertaux, CFO at Hudson Technologies]

Hudson recorded net income of $4.9 million, or $0.12 per diluted share, compared to net income of $10.2 million, or $0.23 per diluted share, in the 2025 quarter. The decline in net income reflects the combination of a continued trough in HFC refrigerant market pricing; inflationary pressures, primarily in freight; our ERP optimization; as well as legal and consulting support to continue our reinvigorated commitment to investing in the future for long-term shareholder value creation. The company continues to have an unlevered balance sheet ending the quarter with $26 million in cash and no debt, reflecting a sequential $6 million increase in cash versus our cash position at March 31st, 2026. Our capital allocation strategy remains focused on organic and strategic growth, as well as opportunistic share repurchases. We did not purchase any shares of the company's stock during the 2026 quarter, reflecting our near-term cash management strategy.

[Brian Bertaux, CFO at Hudson Technologies]

We have purchased $2.5 million in shares thus far in 2026. At this time, with the trough in refrigerant market pricing and inflationary pressure expected to continue, we are revising our full-year 2026 gross margin target from mid-20% to low-to-mid-20%. In addition, as we continue to invest resources for long-term shareholder value creation, we expect second-half SG&A expenses to continue to show increases over 2025, but to a lesser extent than the first half. I will now turn the call back over to Ken.

[Ken Gaglione, Chairman of the Board, President, and CEO at Hudson Technologies]

Thank you, Brian. We can't avoid the reality of soft market prices for HFCs and the impact it has on our profitability. Despite this headwind, we had a very strong quarter focusing on meeting the growing service and refrigerant needs of our customers. The industry will continue to pursue the development and use of new lower GWP refrigerants, and we believe Hudson has the expertise, facilities, and distribution network to bridge the transition now and in the future. To secure our vision, we are making the incremental investments needed to make Hudson a more flexible, efficient competitor and ultimately the preferred source for diverse refrigerant lifecycle management solutions. Thank you for your attention. Operator, we'll now open the floor to questions.

[Operator]

Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Once again, please press star one if you have a question or comment. The first question comes from Jason Tilchen with Canaccord Genuity. Please proceed.

[Jason Tilchen, Analyst at Canaccord Genuity]

Good afternoon. Thanks for taking my questions. Maybe one for Ken to start. Just wondering if you could maybe share an update on how the ERP implementation progressed during the quarter. Maybe what are some of the early learnings as you continue to roll that out? Related to that, what may be the specific magnitude of the cost of the expenses for the optimization that were incurred during Q2, when those may start to roll off as well? Thanks.

[Ken Gaglione, Chairman of the Board, President, and CEO at Hudson Technologies]

Hi, Jason. Thanks for the question. The ERP system optimization, I think, has gone better in the second quarter. It's definitely been a process, and the magnitude of the cost—we spent a lot to optimize and get things sorted out—we're seeing that cost is going to be reduced in the second half. It's not going to continue at the same rate. There's over $1 million in the first half that we've invested in ERP optimization, and it'll be lower in the second half.

[Jason Tilchen, Analyst at Canaccord Genuity]

Great. Thank you. In the prepared remarks, you mentioned that the dynamic you saw with pricing in the quarter didn't necessarily match the sort of typical dynamic you would see in an inflationary economy. You mentioned some of those potential causes of the softness in pricing. I'm just wondering what you think is needed in order to maybe drive more of a normalization in that behavior, and any other sort of thoughts that you have on the operating environment would be helpful. Thanks.

[Ken Gaglione, Chairman of the Board, President, and CEO at Hudson Technologies]

Yeah, it's definitely not a typical increase that we would have seen or a typical firming that we would have seen going into the season on HFCs. What it's telling us is that, I think, in my opinion, there's excess channel inventory on HFCs that are keeping prices suppressed. I also think, and this is sort of new information, that there is more of an impact on illegal refrigerants coming in than we might have expected previously. That's also having a dampening effect. What will impact the rest of the season is going to be prolonged heat, and I think we are seeing some of that. I think it would also help if some of the inflationary pressures were reduced, but I'm not really forecasting that. I think that's going to stay the same for the rest of the year.

[Jason Tilchen, Analyst at Canaccord Genuity]

Okay, great. Last quick one from me is maybe one for Brian. Could you just provide a little bit more color on the specifics around some of the areas where, from an operating perspective, where you're seeing those inflationary pressures and to the magnitude that you expect them to persist in the second half?

[Brian Bertaux, CFO at Hudson Technologies]

Yeah. It's across several different areas, but primarily in freight. Freight's where we saw the biggest increase. Unfortunately, in this dynamic, we can typically, in the past, you could always pass along freight in the pricing. With this trough in HFC pricing, that didn't happen. With that increase in freight, that was certainly a contributor to the margin decline.

[Jason Tilchen, Analyst at Canaccord Genuity]

Thanks very much.

[Operator]

The next question comes from Gerry Sweeney with Roth Capital. Please proceed.

[Gerry Sweeney, Analyst at Roth Capital]

Hey, Ken and Brian, thanks for taking our call.

[Ken Gaglione, Chairman of the Board, President, and CEO at Hudson Technologies]

Hey, Gerry.

[Gerry Sweeney, Analyst at Roth Capital]

I had a question about the distillation technology. Obviously, it sounds like it potentially helps you separate mixed gas or dirty gas, and gas comes back in all shapes, forms, and fashions that's related to the quality. Do you have any idea of how much more gases could potentially open up for you for reclaim? Because my understanding was some of the mixed gas, it was too mixed that made the fractional distillation very challenging, or you had to run it through multiple times to sort of get to a point where you could use it.

[Ken Gaglione, Chairman of the Board, President, and CEO at Hudson Technologies]

Right. You hit it exactly right, Gerry. What makes it inefficient is multiple passes through a very tall column to separate some of these more complicated blends or highly contaminated gases, correct? There are gases that we are unable to or components that we are unable to do effectively with fractional distillation that we will be able to effectively do tomorrow with extractive. That's a key unlock for us. We'll be able to share more detail about what that is and what the volume is going forward. That is absolutely a critical component for us. The second part of the story is this also unlocks our ability to move potentially into adjacencies that we would not have been able to access otherwise with fractional distillation.

[Gerry Sweeney, Analyst at Roth Capital]

What would be some of those adjacencies if you have the ability to?

[Ken Gaglione, Chairman of the Board, President, and CEO at Hudson Technologies]

Yeah, I'm not going to get into it, in broad strokes, right? This is a much more sensitive type of separation. It gets us to a higher purity level; it's a more sensitive type of distillation. That puts us into a space where higher purity materials for other market segments in other areas; that's where this is going to come into play.

[Gerry Sweeney, Analyst at Roth Capital]

This may be too early to ask, but the economics behind it, the cost, is it as efficient as the current system, or how should we think about it from that perspective?

[Ken Gaglione, Chairman of the Board, President, and CEO at Hudson Technologies]

I'm sorry. Go ahead, Gerry.

[Gerry Sweeney, Analyst at Roth Capital]

I wasn't sure if there would be an advantage. It provided more of an advantage on a cost basis.

[Ken Gaglione, Chairman of the Board, President, and CEO at Hudson Technologies]

I think it is early to say; right now we're estimating that it's going to be mostly useful for those complicated, highly contaminated blends. As we get to scale down the road, it should be a cost equivalent basis as fractional.

[Gerry Sweeney, Analyst at Roth Capital]

Got it. Okay. I appreciate it. I'll follow up with you offline as well. Thanks.

[Ken Gaglione, Chairman of the Board, President, and CEO at Hudson Technologies]

Yep. Thanks, Gerry.

[Operator]

Once again, if you have a question or comment, please indicate so by pressing star one on your touch-tone phone. The next question comes from Josh Nichols with B. Riley Securities. Please proceed.

[Matthew Maus, Analyst at B. Riley Securities]

Hi, this is Matthew on for Josh. Thanks for taking my questions. In terms of pricing, you're running down about 6% against last year's peak. I'm wondering, as those comps ease through the back half, do you see current price levels holding, and would you call the trend stabilizing or still under pressure?

[Ken Gaglione, Chairman of the Board, President, and CEO at Hudson Technologies]

We would see them stabilizing. There was just a small uptick in R-410A in Q2 versus Q1, very small, and we think it's stabilizing. Just call it in the $6 area. $6 per share.

[Matthew Maus, Analyst at B. Riley Securities]

Got it. How much of a factor is the illegal import pressure on pricing? Do you expect that to ease with enforcement? How persistent is that? If you could quantify that a little bit in terms of the impact.

[Ken Gaglione, Chairman of the Board, President, and CEO at Hudson Technologies]

It's hard to quantify, as you might expect. I think it's a bigger factor than we would have thought at the beginning of the year. We are working with industry partners and our consortia of interested parties here to understand what the magnitude is. It is in the millions of pounds, is what I've come to understand. This is a significant issue for the industry, and it is being addressed. What's going to be the second half outlook? I'm optimistic, but I can't say with any certainty that this is going to be settled by the end of the year.

[Matthew Maus, Analyst at B. Riley Securities]

Got it. That was helpful. I guess the last question from me is just more on the Icorium technology. Just wondering what it does for your yield in terms of how much more recovered product you can convert to saleable versus conventional fractional distillation.

[Ken Gaglione, Chairman of the Board, President, and CEO at Hudson Technologies]

I'll say this, I think it's a very exciting technology; it is a commercialization. We are taking something. We've done a lot of work on this over the past couple of years. I think that there's a huge opportunity here to separate out, as I said earlier, a component that we've not yet been able to separate effectively with fractional distillation, and we can do that with extractive. That's been demonstrated. That alone is going to justify the investment. The improvement in yield on, let's say, regular could cross gases. That's yet to be determined; we are expecting this to be quite significant.

[Matthew Maus, Analyst at B. Riley Securities]

Got it. That was all from me. Thanks for taking my questions.

[Ken Gaglione, Chairman of the Board, President, and CEO at Hudson Technologies]

Thank you.

[Operator]

Thank you. The next question is coming from Ryan Sigdahl with Craig-Hallum. Please proceed.

[Ryan Sigdahl, Analyst at Craig-Hallum]

Hey, good afternoon, guys. I will be the first to congratulate you guys on getting the five-year, $210 million Defense Logistics Agency. It hit just now. Congratulations.

[Ken Gaglione, Chairman of the Board, President, and CEO at Hudson Technologies]

Thank you.

[Ryan Sigdahl, Analyst at Craig-Hallum]

My question is, you mentioned increased staffing as you focus on some of these longer-term initiatives. You talked about service in the past, et cetera. I guess my inclination is you must be feeling pretty good about the pipeline of opportunities given your bringing on fixed costs ahead of that. Can you give us an update, kind of what you're working on, your confidence level, and any other details there?

[Ken Gaglione, Chairman of the Board, President, and CEO at Hudson Technologies]

Yeah, absolutely. Thanks, Ryan. Appreciate the notice. For everyone's benefit, what came across the wire as we were speaking is the DLA re-award has been rewarded. That matter is now behind us. It's been a seven-month stretch; we're very pleased that DLA has recognized and validated our commitment to their success. Thanks, Ryan. Yeah. When it comes to the investment, there's two or three major pillars here. I'm going to include the extractive distillation in this because they're all linked together. Our predictive modeling business, that's a nascent service area, has actually done quite well. We have won four contracts this year so far for predictive servicing on multiple chillers. We're focusing that activity; to support that activity, we need to have a improved skill sets and new skill sets in the organization.

[Ken Gaglione, Chairman of the Board, President, and CEO at Hudson Technologies]

That's what we're really focusing on, is the predictive modeling services, as well as the small truck recovery program, where we've added staff and we're adding locations to support that. That's already revenue positive. We are excited by the pilot work that's been done in the New York City area. We're going to continue that in other areas of the country, other major metropolitan areas, with the rollout continuing for the rest of the year. Those are the areas where we're supporting staffing as well as regular services businesses. We're at capacity with our services group. We have done some data center work with our regular services group this year, and that's very exciting. I don't talk too much about it, but it's a great growth area for us as that goes forward.

[Ken Gaglione, Chairman of the Board, President, and CEO at Hudson Technologies]

As I mentioned in my comments, we're going to need the service team to support it. Those are the areas that we've been investing in.

[Brian Bertaux, CFO at Hudson Technologies]

I'll even add to that. We have competitors on the line. We're investing with consultants and such for things that we can't speak to now but that we feel will have very good impact on shareholder value in the future. One day in the near future, we'll be looking forward to speaking to those.

[Ryan Sigdahl, Analyst at Craig-Hallum]

Good teaser for your competitors on the line, Brian. To look out behind their back. Maybe just one other one. You guys have done a nice job of outperforming, growing volume. I can't help but given the decrement to gross margin. Are you guys emphasizing volume over price and margin, and are you able to do that in the market if you wanted to?

[Ken Gaglione, Chairman of the Board, President, and CEO at Hudson Technologies]

Yeah, that's a good question. We are balancing this. We actually pulled back volume when the market prices started to erode further back in June. We made a strategic decision to start focusing on a higher-margin product mix. We did give up some revenue on top line just to look at higher-margin product sales. We do have that ability, but it is a balancing act, and it was impaired somewhat in June by the plant being down. Some of our R-22 sales could not be executed in June as a result of the plant being down. Those either got pushed into this quarter or didn't happen at all. It is a balancing act, but we are able to fine-tune that as we go forward.

[Ryan Sigdahl, Analyst at Craig-Hallum]

Thanks, Ken, Brian. Good luck, guys.

[Brian Bertaux, CFO at Hudson Technologies]

Thank you.

[Ken Gaglione, Chairman of the Board, President, and CEO at Hudson Technologies]

Thanks.

[Operator]

We have reached the end of the question-and-answer session, and I will now turn the call over to management for our closing remarks.

[Ken Gaglione, Chairman of the Board, President, and CEO at Hudson Technologies]

Okay. Thank you, operator. Thank you, everyone, for your interest in Hudson Technologies, particularly this quarter. I want to thank again our employees for their continued support and dedication to our business and both our long-term shareholders and those that recently joined us for their support during an exciting period of the company's evolution. This was a tough quarter. We had a lot of headwinds with the plant and the accident. Again, our employees pulled us through, and I am extremely proud of the work that's been done to grow sales, grow volume in that environment. Thank you, everyone. We look forward to speaking to you after the third quarter results. Have a good night.

[Operator]

Thank you. This concludes today's conference and you may disconnect your lines at this time. Thank you for your participation.

Participants

Executives

• Ken Gaglione, Chairman of the Board, President, and CEO
• Brian Bertaux, CFO

Analysts

• John Nesbett, Investor Relations at IMS Investor Relations
• Jason Tilchen, Analyst at Canaccord Genuity
• Gerry Sweeney, Analyst at Roth Capital
• Matthew Maus, Analyst at B. Riley Securities
• Ryan Sigdahl, Analyst at Craig-Hallum