HUDSON TECHNOLOGIES INC /NY Segments Disclosure
Note 16 – Segment information
The Company determines operating segments based on how its CODM manages the business, makes operating decisions around the allocation of resources, and evaluates operating performance. The Company’s CODM are its Chief Executive Officer and Chief Financial Officer, who review its operating results on a consolidated basis. The Company operates in one segment and has one reportable segment.
The Company’s CODM use consolidated net income, as shown on the consolidated income statements as the measure of segment profitability. The CODM use net income to evaluate the Company’s ongoing operations and for internal planning and forecasting purposes. This analysis is used in making strategic investment decisions. The Company’s measure of segment assets is reported on the consolidated balance sheets as total assets.
The table below summarizes the significant expenses regularly provided to the CODM for the years ended December 31, 2025, 2024, and 2023 (in thousands).
| Year ended December 31, | ||||||||
2025 | 2024 | 2023 | |||||||
Revenues | $ | 246,614 | $ | 237,118 | $ | 289,025 | |||
Less: |
|
|
| |
| | |||
Cost of materials and plant overhead |
| 169,577 |
| 157,508 |
| 163,701 | |||
Payroll expense and benefits |
| 37,748 |
| 31,625 |
| 28,186 | |||
Interest (income) expense – net |
| (2,532) |
| (476) |
| 8,352 | |||
Depreciation and amortization |
| 5,991 |
| 6,387 |
| 5,782 | |||
Professional fees | 6,751 | 6,720 | 4,423 | ||||||
Other operating expenses1 |
| 7,988 |
| 5,577 |
| 8,761 | |||
Income taxes |
| 6,024 |
| 7,639 |
| 17,573 | |||
Other income |
| (1,600) |
| (2,250) |
| — | |||
Net income | $ | 16,667 | $ | 24,388 | $ | 52,247 | |||
1Other operating expenses include miscellaneous, individually insignificant operating expenses. The Company’s CODM reviews these items in aggregate.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 16, 2026 | Showing above |
| 2024 | Mar 12, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.