Forensic Analysis · Trading Companies & Distributors · as of Sep 27, 2026
Hudson Technologies Inc (HDSN)
A forensic read on Hudson Technologies Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Safe
Financial health
8.6
Distress distance
Clean
Earnings quality
3
Forensic signals
16.8
P / E (ttm)
6.8%
ROE
$259M
Market cap
4.0%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Hudson Technologies Inc earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads 8.6, placing it in the Safe zone. 3 forensic signals were flagged in its latest SEC filings, led by shareholder returns.
What the filings flag
FCF ($8M)
FY2025
Shareholder returns.Returned $20M to shareholders (buybacks + dividends) in FY2025, but free cash flow was ($8M) after capex — there was no free cash flow to fund the payout from at all, and operating cash flow itself was negative or zero that year too. The entire return is coming from debt or cash reserves, not cash the business itself generated — a harder case than returns merely running ahead of free cash flow, since here there was none to run ahead of.
+14.9%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +14.9% relative to their own average in FY2025 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building faster than is comfortable — part of profit is sitting in the balance sheet rather than turning to cash. The build is led by inventory up +41% against +8% in cost of sales and receivables up +25% against revenue +4%. A cash-flow measure on the same base agrees: reported earnings ran ahead of operating cash by 10% of net operating assets, against an accruals ratio of 14.9%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average.
6.4%
FY2025
Return on invested capital.Return on invested capital is 6.4% in the latest fiscal year and slipping across FY2023–FY2025 from 25.9%. After-tax operating profit was $58M in FY2023 and $14M in FY2025, with operating income at 27.0% of revenue in FY2023, 12.4% in FY2024 and 7.5% in FY2025. The capital base behind it went from $226M in FY2023 to $215M in FY2025 (-5%), while the revenue it carried went from $289M to $247M. Across FY2024–FY2025, $33M went into capital expenditure and acquisitions against $6M of total depreciation and amortisation. The base is struck net of amortisation, write-downs and the current liabilities that fund it, so it moved by less than that spending net of the wear, and this row does not say which of those absorbed the difference.
Key fundamentals
Latest Revenue$246.6M
Revenue Growth YoY+4.0%
Revenue CAGR (2yr)-7.6%
Net Margin6.8%
Free Cash Flow-$8.2M
Return on Equity6.8%
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Hudson Technologies Inc's actual 10-K/10-Q/8-K filings?