Hudson Technologies reported Q2 2024 revenue of $75.28 million, down 16.8% year over year, as depressed product pricing and a softer DLA contract more than offset a 17% volume increase in refrigerant sales. Gross margin contracted to 30.0% from 41.0% a year ago, reflecting depressed market prices that weighed on pricing and margins during the selling season. Despite the near-term pricing headwinds, Hudson delivered a solid quarterly profit with operating income of $12.80 million and net income of $9.59 million ($0.21 per share). Management characterized the pricing environment as temporary and anticipates meaningful upside as reclamation activities scale and virgin refrigerant supply tightens. The June acquisition of USA Refrigerants is a strategic centerpiece of Hudson’s long-term plan to grow reclaimed refrigerant volumes and margins; onboarding occurred in June and the company expects benefits to accrue through the balance of 2024 and into 2025, with the potential for double-margin recognition on reclaimed gas versus virgin product. Hudson ended the period with no debt and robust liquidity ($30.5 million cash; $59 million available on a revolving facility; total liquidity of $89.5 million), supporting a disciplined capital-allocation framework that prioritizes working capital needs, acquisitions, and opportunistic share repurchases. Management underscored three near-term catalysts to watch: (1) the final EPA Refrigerant Management Rule, (2) the evolution of HFC pricing and the 2023-24 inventory data (EPA data), and (3) the DoD forward-purchasing activity. If pricing remains adverse but the regulatory environment remains favorable, Hudson projects full-year 2024 revenue of roughly $240–$250 million with ~30% gross margins, highlighting the company’s confidence in longer-term growth through reclamation, regulatory tailwinds, and supply-demand dynamics in the refrigerant market.