Kodak Narrows Q3 Loss, Resolves Going Concern Doubt with Pension Settlement

TL;DR

**Kodak's pension settlement is a game-changer, but the nine-month loss means they're not out of the woods yet; proceed with caution.**

AI Summary

Eastman Kodak Co. reported a mixed financial performance for the nine months ended September 30, 2025. Total revenues increased slightly to $779 million from $777 million in the prior year, driven by a rise in sales revenue to $665 million from $654 million, while services revenue decreased to $114 million from $123 million. Despite the revenue increase, the company posted a net loss of $20 million for the nine-month period, a significant decline from net earnings of $76 million in the same period of 2024. This loss was primarily influenced by a substantial increase in 'Other charges (income), net' to $21 million from a $2 million income, and a lower pension income of $54 million compared to $124 million in 2024. However, for the three months ended September 30, 2025, Kodak reported net earnings of $13 million, down from $18 million in Q3 2024, on total revenues of $269 million, up from $261 million. A critical development is the resolution of the 'going concern' doubt, as Kodak extended maturity dates for Term Loans and the L/C Facility Agreement, and settled approximately $2.1 billion of pension obligations under the Kodak Retirement Income Plan (KRIP), with excess assets expected to revert to the company in December 2025.

Why It Matters

This filing signals a pivotal moment for Eastman Kodak, as the resolution of its 'going concern' doubt removes a significant overhang for investors, potentially stabilizing its stock. The successful settlement of $2.1 billion in pension obligations and the expected reversion of excess cash in December 2025 provide a much-needed liquidity injection, which could be used to pay down debt or invest in strategic growth initiatives. However, the nine-month net loss of $20 million, a sharp reversal from a $76 million profit, indicates ongoing operational challenges and competitive pressures in its core markets. Employees might see increased job security with the improved financial stability, while customers could benefit from renewed investment in product development, though the long-term competitive landscape remains tough.

Risk Assessment

Risk Level: medium — While the 'going concern' doubt has been resolved due to the extension of debt maturities and the $2.1 billion pension settlement, the company still reported a net loss of $20 million for the nine months ended September 30, 2025, a significant drop from $76 million in net earnings in the prior year. This indicates underlying operational profitability challenges despite the improved liquidity position.

Analyst Insight

Investors should monitor Kodak's use of the expected cash reversion from the KRIP in December 2025. While the 'going concern' issue is resolved, the nine-month net loss suggests operational improvements are still critical. Await further details on strategic investments or debt reduction plans before making significant long-term commitments.

Financial Highlights

debt To Equity

N/A

revenue

$779M

operating Margin

N/A

total Assets

N/A

total Debt

N/A

net Income

($20M)

eps

($0.55)

gross Margin

21.2%

cash Position

$168M

revenue Growth

+0.3%

Revenue Breakdown

Key Numbers

• $779M — Total revenues (Increased from $777M for the nine months ended September 30, 2024)
• $20M — Net loss (For the nine months ended September 30, 2025, compared to $76M net earnings in 2024)
• $2.1B — Pension obligations settled (Under the Kodak Retirement Income Plan (KRIP))
• $15M — Remaining pension liabilities (To be transferred to PBGC by November 2025)
• $168M — Cash and cash equivalents (As of September 30, 2025, down from $201M at December 31, 2024)
• $497M — Short-term borrowings and current portion of long-term debt (As of September 30, 2025, a significant increase from $1M at December 31, 2024)
• $10M — Long-term debt, net of current portion (As of September 30, 2025, a significant decrease from $466M at December 31, 2024)
• 96.4 million — Common shares outstanding (As of October 31, 2025)
• $124M — Series C preferred stock exchange to common stock (Non-cash financing activity for the nine months ended September 30, 2025)
• $19M — Earnings from operations (For the three months ended September 30, 2025, compared to a loss of $8M in 2024)

Key Players & Entities

• EASTMAN KODAK COMPANY (company) — Registrant
• Kennedy Lewis Investment Management LLC (company) — Original Term Loan Lenders affiliate
• Alter Domus (US) LLC (company) — Administrative agent for Credit Agreement
• New York Stock Exchange (regulator) — Exchange where KODK is registered
• Pension Benefit Guaranty Corporation (regulator) — Recipient of remaining KRIP liabilities
• Financial Accounting Standards Board (regulator) — Issuer of ASUs
• $2.1 billion (dollar_amount) — Amount of pension obligations settled under KRIP
• $20 million (dollar_amount) — Net loss for the nine months ended September 30, 2025
• $76 million (dollar_amount) — Net earnings for the nine months ended September 30, 2024
• $13 million (dollar_amount) — Net earnings for the three months ended September 30, 2025

FAQ

Risk Factors

• Liquidity and Going Concern [high — financial]: The company has addressed 'going concern' doubts by extending loan maturity dates and settling significant pension obligations. However, short-term borrowings increased substantially to $497M from $1M, indicating ongoing reliance on short-term financing.
• Pension Obligation Settlement [medium — financial]: Kodak settled approximately $2.1 billion of pension obligations under the KRIP. While this resolves a major liability, the immediate impact on cash flow and the expectation of excess asset reversion in December 2025 are key factors.
• Increased Other Charges [medium — financial]: Other charges (income), net increased to $21 million for the nine months ended September 30, 2025, from a $2 million income in the prior year. This significantly impacted the net loss.
• Decreased Pension Income [medium — financial]: Pension income excluding service cost component decreased to $54 million from $124 million year-over-year. This reduction in non-operating income contributed to the net loss.
• Shift in Revenue Mix [low — operational]: While total revenues saw a slight increase, there was a notable decrease in services revenue, which fell by 7.3% to $114 million. This suggests a potential shift or challenge in the services segment.
• Reduced Cash Position [medium — financial]: Cash and cash equivalents decreased to $168 million as of September 30, 2025, from $201 million at December 31, 2024. This reduction in liquidity requires careful management.

Industry Context

Eastman Kodak operates in a challenging and evolving industry, facing competition from digital imaging giants and specialized printing technology providers. The shift from traditional film to digital has reshaped the market, requiring companies like Kodak to diversify into areas such as advanced materials and functional printing solutions. The industry is characterized by rapid technological advancements and a need for continuous innovation to maintain market share.

Regulatory Implications

Kodak's financial restructuring and pension plan settlements may attract scrutiny from regulatory bodies overseeing financial markets and employee benefits. Compliance with reporting requirements and adherence to terms of debt agreements are critical. The company's ability to manage its debt obligations and maintain adequate liquidity will be closely monitored.

What Investors Should Do

1. Monitor the impact of pension asset reversion
2. Analyze the sustainability of revenue growth
3. Evaluate the management of increased short-term debt
4. Assess the impact of 'Other charges'

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Reporting period showing a net loss of $20M despite slight revenue growth, impacted by increased other charges and lower pension income.
• 2025-09-30: Three months ended September 30, 2025 — Reported net earnings of $13M, a decrease from $18M in Q3 2024, on increased total revenues of $269M.
• 2025-11-01: Pension liabilities to be transferred to PBGC — Marks the completion of the transfer of remaining pension liabilities, a key step in the pension settlement process.
• 2025-12-01: Expected reversion of excess pension assets — Investors are looking for the return of excess assets from the pension plan, which could improve the company's cash position.

Glossary

Other charges (income), net

This line item includes various expenses or income not directly related to the core operations of the business, such as restructuring costs, legal settlements, or gains/losses on asset sales. (A significant increase in this category to $21M from a $2M income negatively impacted net earnings for the nine-month period.)

Pension income excluding service cost component

This represents the expected return on pension plan assets minus the cost of employee service during the period. It's an accounting adjustment that can affect reported earnings. (A substantial decrease in this income (from $124M to $54M) contributed to the net loss for the nine months ended September 30, 2025.)

Going concern

A business is considered a 'going concern' if it is expected to continue operating for the foreseeable future without the threat of liquidation. (The company has taken steps, including loan extensions and pension settlements, to alleviate prior 'going concern' doubts.)

KRIP

Kodak Retirement Income Plan, a significant defined benefit pension plan for employees. (The settlement of approximately $2.1 billion of obligations under this plan is a major event impacting the company's financial condition.)

PBGC

Pension Benefit Guaranty Corporation, a U.S. government agency that insures the pensions of private-sector workers. (Remaining pension liabilities are to be transferred to the PBGC, indicating a transfer of risk and obligation.)

Year-Over-Year Comparison

Compared to the prior year, Eastman Kodak reported a significant shift from net earnings of $76 million to a net loss of $20 million for the nine months ended September 30, 2025. This was driven by a substantial increase in 'Other charges (income), net' and a decrease in pension income. While total revenues saw a marginal increase from $777 million to $779 million, the gross profit improved from $152 million to $165 million, indicating better cost management in core operations. New risks related to increased short-term borrowings and the ongoing management of liquidity are now more prominent.

Key Financial Figures

• $0.01 — ch registered Common stock, par value $0.01 per share KODK New York Stock Excha
• $200 m — lion if the Term Loans are paid down to $200 million, which is referred to as the "Del

Filing Documents

• kodk-20250930.htm (10-Q) — 4651KB
• kodk-ex10_1.htm (EX-10.1) — 1434KB
• kodk-ex10_2.htm (EX-10.2) — 1387KB
• kodk-ex31_1.htm (EX-31.1) — 15KB
• kodk-ex31_2.htm (EX-31.2) — 16KB
• kodk-ex32_1.htm (EX-32.1) — 10KB
• kodk-ex32_2.htm (EX-32.2) — 9KB
• 0001193125-25-269608.txt ( ) — 21388KB
• kodk-20250930.xsd (EX-101.SCH) — 1387KB
• kodk-20250930_htm.xml (XML) — 4867KB

— Financial Information

Part I. — Financial Information Item 1.

Financial Statements

Financial Statements 2 Consolidated Statement of Operations (Unaudited) 2 Consolidated Statement of Comprehensive Income (Unaudited) 3 Consolidated Statement of Financial Position (Unaudited) 4 Consolidated Statement of Cash Flows (Unaudited) 5 Consolidated Statement of Equity (Deficit) (Unaudited) 6

Notes to Financial Statements (Unaudited)

Notes to Financial Statements (Unaudited) 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 33 Liquidity and Capital Resources 43 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 47 Item 4.

Controls and Procedures

Controls and Procedures 47

— Other Information

Part II. — Other Information Item 1.

Legal Proceedings

Legal Proceedings 49 Item 1A.

Risk Factors

Risk Factors 49 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 49 Item 3. Defaults Upon Senior Securities 49 Item 4. Mine Safety Disclosures 49 Item 5. Other Information 49 Item 6. Exhibits 50 Index to Exhibits 50

Signatures

Signatures 52 1 Table of Contents

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements EASTMAN KODAK COMPANY C ONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, (in millions, except per share data) 2025 2024 2025 2024 Revenues Sales $ 229 $ 221 $ 665 $ 654 Services 40 40 114 123 Total revenues 269 261 779 777 Cost of revenues Sales 174 185 532 534 Services 27 31 82 91 Total cost of revenues 201 216 614 625 Gross profit 68 45 165 152 Selling, general and administrative expenses 41 44 127 136 Research and development costs 7 8 25 25 Restructuring costs and other 1 1 12 6 Other operating income, net — — — ( 16 ) Earnings (loss) from operations before interest expense, pension income excluding service cost component, other charges (income), net and income taxes 19 ( 8 ) 1 1 Interest expense 18 14 47 44 Pension income excluding service cost component ( 16 ) ( 42 ) ( 54 ) ( 124 ) Other charges (income), net 1 ( 1 ) 21 ( 2 ) Earnings (loss) from operations before income taxes 16 21 ( 13 ) 83 Provision for income taxes 3 3 7 7 NET EARNINGS (LOSS) $ 13 $ 18 $ ( 20 ) $ 76 Basic net (loss) earnings per share attributable to Eastman Kodak Company common shareholders $ ( 0.08 ) $ 0.16 $ ( 0.55 ) $ 0.73 Diluted net (loss) earnings per share attributable to Eastman Kodak Company common shareholders $ ( 0.08 ) $ 0.15 $ ( 0.55 ) $ 0.67 Number of common shares used in basic and diluted net (loss) earnings per share Basic 89.8 80.3 83.8 80.0 Diluted 89.8 92.7 83.8 92.1 The accompanying notes are an integral part of these consolidated financial statements. 2 Table of Contents EASTMAN KODAK COMPANY C ONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited) Three

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