Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
☒
Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended: June 30, 2026
or
☐
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from to
Commission File Number
1-00087
EASTMAN KODAK COMPANY
(Exact name of Registrant as specified in its charter)
New Jersey
16-0417150
(State or other jurisdiction of incorporation or organization)
(IRS Employer Identification No.)
343 STATE STREET, ROCHESTER, New York
14650
(Address of principal executive offices)
(Zip Code)
(800) 356-3259
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Common
Trading Symbol(s)
Name of each exchange on which registered
Common stock, par value $0.01 per share
KODK
New York Stock Exchange
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the Registrant is a large, accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of July 29, 2026, the Registrant had 97.9 million shares of common stock, par value $0.01 per share, outstanding.
Form 10-Q
June 30, 2026
Page
Part I.—Financial Information
Item 1.
Financial Statements
2
Consolidated Statement of Operations (Unaudited)
Consolidated Statement of Comprehensive Income (Loss) (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)
8
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
29
Liquidity and Capital Resources
38
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
42
Item 4.
Controls and Procedures
Part II. —Other Information
Legal Proceedings
43
Item 1A.
Risk Factors
Unregistered Sales of Equity Securities and Use of Proceeds
Defaults Upon Senior Securities
Mine Safety Disclosures
Item 5.
Other Information
Item 6.
Exhibits
44
Index to Exhibits
Signatures
46
1
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
Three Months Ended
Six Months Ended
June 30,
(in millions, except per share data)
2026
2025
Revenues
Sales
$
276
226
505
436
Services
35
37
71
74
Total revenues
311
263
576
510
Cost of revenues
206
184
391
358
23
28
55
Total cost of revenues
229
212
437
413
Gross profit
82
51
139
97
Selling, general and administrative expenses
53
41
101
86
Research and development costs
9
17
18
Restructuring costs and other
11
Other operating expense, net
—
Earnings (loss) from operations before interest expense, pension income excluding service cost component, loss on early extinguishment of debt, other (income) charges, net and income taxes
15
(5
)
14
(18
Interest expense
12
Pension income excluding service cost component
(16
(9
(38
Loss on early extinguishment of debt
Other (income) charges, net
(8
20
Earnings (loss) from operations before income taxes
21
(24
(29
Provision for income taxes
7
NET EARNINGS (LOSS)
(26
(33
Basic net earnings (loss) per share attributable to Eastman Kodak Company common shareholders
0.13
(0.36
(0.07
(0.48
Diluted net earnings (loss) per share attributable to Eastman Kodak Company common shareholders
Number of common shares used in basic and diluted net earnings (loss) per share
Basic
97.8
80.9
97.6
80.7
Diluted
102.8
The accompanying notes are an integral part of these consolidated financial statements.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (Unaudited)
(in millions)
Other comprehensive income (loss), net of tax:
Currency translation adjustments
13
Pension and other postretirement benefit plan obligation activity, net of tax
(1
(13
(88
Other comprehensive income (loss), net of tax
(6
(75
COMPREHENSIVE INCOME (LOSS), NET OF TAX
19
(32
(108
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Unaudited)
December 31,
ASSETS
Cash and cash equivalents
290
337
Trade receivables, net of allowances of $7 at both periods
149
145
Inventories, net
253
218
Other current assets
141
Total current assets
766
841
Property, plant and equipment, net of accumulated depreciation of $507 and $499, respectively
196
191
Goodwill
Intangible assets, net
Operating lease right-of-use assets
34
Restricted cash
90
96
Pension and other postretirement assets
304
302
Other long-term assets
108
121
TOTAL ASSETS
1,527
1,617
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND EQUITY
Accounts payable, trade
Short-term borrowings and current portion of long-term debt
Current portion of operating leases
Other current liabilities
142
155
Total current liabilities
268
Long-term debt, net of current portion
208
Pension and other postretirement liabilities
186
Operating leases, net of current portion
27
30
Other long-term liabilities
246
207
Total liabilities
830
904
Commitments and Contingencies (Note 9)
Redeemable, convertible preferred stock, no par value, $100 per share liquidation preference
99
EQUITY
Common stock, $0.01 par value
Additional paid in capital
1,286
1,278
Treasury stock, at cost
Accumulated deficit
(520
(521
Accumulated other comprehensive loss
(115
(118
Total shareholders’ equity
623
614
TOTAL LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND EQUITY
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
Cash flows from operating activities:
Net earnings (loss)
Adjustments to reconcile to net cash used in operating activities:
Depreciation and amortization
Pension and postretirement income
(28
Change in fair value of preferred stock embedded derivative
10
Change in fair value of KRIP reversion investment assets
Asset impairment
Paid-in-kind interest expense
Non-cash changes in workers' compensation and employee benefit reserves
Stock based compensation
Net gain from sale of assets
Provision for deferred income taxes
Increase in trade receivables
(3
(Increase) decrease in miscellaneous receivables
Increase in inventories
(37
Increase (decrease) in trade payables
Decrease in liabilities excluding borrowings and trade payables
(23
(21
Other items, net
16
Total adjustments
Net cash used in operating activities
(25
(30
Cash flows from investing activities:
Additions to properties
(11
Proceeds from sale of preferred equity investment
Proceeds from redemption of KRIP reversion investments
87
Net proceeds from the sale of assets
Net cash provided by (used in) investing activities
78
(19
Cash flows from financing activities:
Repayment of Amended and Restated Term Loan Agreement
(101
Preferred stock cash dividend payments
(4
(2
Treasury stock purchases
Proceeds from exercise of employee stock options
Net cash used in financing activities
(106
Effect of exchange rate changes on cash, cash equivalents and restricted cash
Net decrease in cash, cash equivalents and restricted cash
(54
(48
Cash, cash equivalents and restricted cash, beginning of period
442
301
Cash, cash equivalents and restricted cash, end of period
388
Non-cash Financing Item:
Series B preferred stock embedded derivative liability at issuance
CONSOLIDATED STATEMENT OF EQUITY (DEFICIT) (Unaudited)
Six-Month Period Ending June 30, 2026
Eastman Kodak Company Common Shareholders
CommonStock
AdditionalPaid inCapital
Accumulated Deficit
AccumulatedOtherComprehensive Loss
TreasuryStock
Total
RedeemableConvertiblePreferred Stock
Equity (deficit) as of December 31, 2025
Net loss
Other comprehensive income (net of tax):
Pension and other postretirement liability adjustments
Extinguishment of 4.0% Series B preferred stock
100
(100
Issuance of 6.0% Series B preferred stock
(102
72
Preferred stock cash dividends
Preferred stock deemed dividends
Purchases of treasury stock (1)
Stock-based compensation
Equity (deficit) as of March 31, 2026
1,280
(537
(117
(27
600
Net earnings
Other comprehensive income (loss) (net of tax):
Equity (deficit) as of June 30, 2026
Six-Month Period Ending June 30, 2025
Equity (deficit) as of December 31, 2024
1,150
(393
(104
(12
641
(7
Preferred stock in-kind dividends
Equity (deficit) as of March 31, 2025
1,149
(400
(173
563
220
Preferred stock deemed dividend
Equity (deficit) as of June 30, 2025
1,147
(426
(179
(14
528
222
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1: BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS
BASIS OF PRESENTATION
The consolidated interim financial statements are unaudited, and certain information and footnote disclosures related thereto normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, the accompanying unaudited consolidated interim financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the results of operations, financial position and cash flows of Eastman Kodak Company and all companies directly or indirectly controlled, either through majority ownership or otherwise (“Kodak” or the “Company”). The results of operations for the interim periods are not necessarily indicative of the results for the entire fiscal year. These consolidated interim statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Form 10-K”).
RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS
No accounting pronouncements were recently adopted by Kodak.
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. ASU 2024-03 requires public business entities to disclose specified information about certain costs and expenses, including but not limited to purchases of inventory, employee compensation, depreciation, and intangible asset amortization, in a tabular format within the notes to their financial statements, as well as provide additional disclosures related to certain other specified expenses. The ASU may be applied on either a prospective or retrospective basis and is effective for annual reporting periods beginning after December 15, 2026 (January 1, 2027 for Kodak) and interim reporting periods beginning after December 15, 2027 (January 1, 2028 for Kodak). Kodak is currently evaluating the impact of this ASU.
In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other— Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. ASU 2025-06 modernizes the accounting for internal-use software to reflect the evolution of software development to using an incremental and iterative development method. Accordingly, the ASU removes all references in Subtopic 350-40 to prescriptive and sequential software development phases (or “project stages”), and requires an entity to start capitalizing software costs when both (1) management has authorized and committed to funding the software project and (2) it is probable that the project will be completed and the software will be used to perform the function intended. The ASU may be applied using either a prospective, retrospective, or modified transition approach, and is effective for annual reporting periods beginning after December 15, 2027 and interim reporting periods within such annual reporting periods (January 1, 2028 for Kodak). Kodak is currently evaluating the impact of this ASU.
In December 2025, the FASB issued ASU 2025-10, Government Grants (Topic 832). ASU 2025-10 establishes authoritative guidance on the accounting for government grants received by business entities, as GAAP previously did not provide specific authoritative guidance about the recognition, measurement and presentation of government grants. This ASU may be applied using either a retrospective, modified retrospective, or modified prospective approach, and is effective for annual reporting periods beginning after December 15, 2028 and interim reporting periods within such annual reporting periods (January 1, 2029 for Kodak). Kodak is currently evaluating the impact of this ASU.
In April 2026, the FASB issued ASU 2026-01, Equity (Topic 505): Initial Measurement of Paid-in-Kind Dividends on Equity-Classified Preferred Stock. ASU 2026-01 requires that such dividends be initially measured on the basis of the dividend rate stated in the preferred stock agreement. The ASU may be applied on either a prospective or modified retrospective basis, and is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods within those annual reporting periods (January 1, 2027 for Kodak). Kodak does not expect the guidance to have a material impact on Kodak's consolidated financial statements.
In May 2026, the FASB issued ASU 2026-02, Environmental Credits and Environmental Credit Obligations (Topic 818). ASU 2026-02 establishes specific authoritative guidance on how to recognize and measure environmental credits and the related obligations that result from regulatory compliance programs. Under this guidance, environmental credits will be required to be recognized as either assets or expenses, depending on the probable future use of such credits, while environmental credit obligations will be required to be recognized as liabilities based on events and activities occurring on or before the reporting date. The ASU will be applied on a retrospective basis through a cumulative-effect adjustment to the opening balance of retained earnings as of the beginning of the annual reporting period of adoption, and is effective for annual reporting periods beginning after December 15, 2027 and interim reporting periods within those annual reporting periods (January 1, 2028 for Kodak). Kodak is currently evaluating the impact of this ASU.
NOTE 2: CASH, CASH EQUIVALENTS AND RESTRICTED CASH
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Statement of Financial Position that sums to the total of such amounts shown in the Consolidated Statement of Cash Flows:
Restricted cash reported in Other current assets
Total cash, cash equivalents and restricted cash shown in the Consolidated Statement of Cash Flows
Restricted cash reported in Other current assets on the Consolidated Statement of Financial Position primarily represented amounts that support hedging activities as of June 30, 2026 and December 31, 2025.
Restricted cash included $25 million as of both June 30, 2026 and December 31, 2025, representing the cash collateral required to be posted by the Company under the Amended and Restated L/C Facility Agreement. In addition, restricted cash as of June 30, 2026 and December 31, 2025 included $58 million and $62 million, respectively, representing cash collateral supporting the Company’s undiscounted actuarial workers’ compensation obligations with the New York State Workers’ Compensation Board ("NYS WCB"). Restricted cash also included $5 million and $7 million of security posted related to Brazilian legal contingencies as June 30, 2026 and December 31, 2025, respectively.
NOTE 3: INVENTORIES, NET
Finished goods
91
84
Work in process
Raw materials
76
62
NOTE 4: OTHER CURRENT ASSETS
Short-term investments (1)
Contract assets
Estimated workers' compensation recoveries
Other
26
The Other component above consists of other miscellaneous current assets that, individually, were less than 5% of the total current assets component in the accompanying Consolidated Statement of Financial Position, and therefore have been aggregated in accordance with Regulation S-X.
NOTE 5: OTHER LONG-TERM LIABILITIES
Workers' compensation
49
Asset retirement obligations
Deferred taxes
Deferred brand licensing revenue
52
Environmental liabilities
Embedded preferred stock derivative liability (1)
40
25
The Other component above consists of other miscellaneous long-term liabilities that, individually, were less than 5% of the total liabilities component in the accompanying Consolidated Statement of Financial Position, and therefore have been aggregated in accordance with Regulation S-X.
NOTE 6: DEBT AND CREDIT FACILITIES
Term Loan Credit Agreement
On March 11, 2026, in connection with the Series B Preferred Stock Amendment (refer to Note 7, “Redeemable, Convertible Preferred Stock” for additional details on the Series B Preferred Stock Amendment), the Company and certain of its subsidiaries entered into the Fourth Amendment to the term loan credit agreement (the “Term Loan Amendment”), which amends the Company’s Amended and Restated Credit Agreement, dated as of June 30, 2023 (as amended, the “Term Loan Credit Agreement”) between the Company, certain of its subsidiaries, the lenders party thereto, and Alter Domus (US) LLC, as administrative agent. Under the Term Loan Credit Agreement, the term loan lenders provided the Company with a commitment to provide term loans in an aggregate principal amount of $450 million (the “Term Loans”). Certain holders of Series B Preferred Stock as well as funds under common management with holders of the Series B Preferred Stock are lenders under the Term Loan Credit Agreement.
The Term Loan Amendment required the Company to prepay an aggregate $50 million principal amount of Term Loans on or prior to March 18, 2026 and an additional $50 million principal amount of Term Loans on or prior to June 1, 2026, in each case, plus a prepayment premium equal to one percent.
On March 13, 2026, the Company paid $50 million of the outstanding principal amount of the Term Loans, $1 million in accrued uncapitalized interest and a prepayment premium equal to one percent of the principal amount paid. The Company recorded a loss on early extinguishment of debt of approximately $1 million during the first quarter of 2026.
On June 1, 2026, the Company entered into a Limited Waiver to the Term Loan Amendment which extended the due date of the June 1, 2026 term loan repayment to be payable on or before July 1, 2026.
On June 26, 2026, the Company paid $50 million of the outstanding principal amount of the Term Loans, $1 million in accrued uncapitalized interest and a prepayment premium equal to one percent of the principal amount paid. The Company recorded a loss on early extinguishment of debt of approximately $1 million during the second quarter of 2026.
NOTE 7: REDEEMABLE, CONVERTIBLE PREFERRED STOCK
Redeemable convertible preferred stock was as follows:
6.0% Series B Preferred Stock
-
4.0% Series B Preferred Stock
On February 25, 2021, the Company filed with the Department of Treasury of the State of New Jersey a Certificate of Amendment to the Second Amended and Restated Certificate of Incorporation of the Company (the “Series B Certificate of Designations”) which established the designation, number of shares, rights, preferences and limitations of the Company’s 4.0% Series B Convertible Preferred Stock, no par value (the “4.0% Series B Preferred Stock”), which became effective upon filing.
On February 26, 2021, the Company agreed to exchange one million shares of Series A Preferred Stock held by Southeastern Asset Management, Inc. (“Southeastern”) and Longleaf Partners Small-Cap Fund, C2W Partners Master Fund Limited and Deseret Mutual Pension Trust, which were investment funds managed by Southeastern at the time (such investment funds, collectively, the “Purchasers”), for shares of the Company’s 4.0% Series B Preferred Stock, on a one-for-one basis plus accrued and unpaid dividends. The fair value of the 4.0% Series B Preferred Stock at the time of issuance approximated $95 million. The Company classified the 4.0% Series B Preferred Stock as temporary equity in the Consolidated Statement of Financial Position.
Embedded Conversion Features
Kodak allocated $1 million of the fair value from the issuance of the 4.0% Series B Preferred Stock to a derivative liability based on the aggregate fair value of an embedded conversion feature on the date of issuance. The carrying value of the 4.0% Series B Preferred Stock at the time of issuance, $93 million ($95 million fair value of 4.0% Series B Preferred Stock on February 26, 2021 less $1 million allocated to the derivative liability and $1 million of transaction costs) was being accreted to the mandatory redemption amount using the effective interest method to Additional paid in capital in the Consolidated Statement of Financial Position as a deemed dividend from the date of issuance through the mandatory redemption date, May 28, 2026.
Dividend and Other Rights
Holders of 4.0% Series B Preferred Stock were entitled to cumulative dividends payable quarterly in cash at a rate of 4.0% per annum. If any shares of the 4.0% Series B Preferred Stock had not been converted prior to May 28, 2026, the Company was required to redeem such shares at $100 per share plus the amount of accrued and unpaid dividends.
Series B Preferred Stock Purchase
On December 5, 2025, certain funds affiliated with Kennedy Lewis (such funds, collectively, the “KL Funds”) purchased all outstanding shares of the 4.0% Series B Preferred Stock from the Purchasers or their successors in privately negotiated transactions.
Extinguishment of 4.0% Series B Preferred Stock
On March 11, 2026 (the “Amendment Date”), the Company filed with the Department of Treasury of the State of New Jersey a Certificate of Amendment to the Series B Certificate of Designations which amended certain terms of the Company’s 4.0% Series B Preferred Stock (the “Series B Preferred Stock Amendment”) and set forth the terms of the Company’s 6.0% Series B Convertible Preferred Stock, no par value (the “6.0% Series B Preferred Stock”).
The Company evaluated the amendment to the Series B Preferred Stock and determined that the 6.0% Series B Preferred Stock is substantially different from the 4.0% Series B Preferred Stock, primarily as a result of the embedded conversion option which is being accounted for separately as a derivative following the amendment. Accordingly, the Company accounted for the transaction as an extinguishment of the 4.0% Series B Preferred Stock and the issuance of a new 6.0% Series B Preferred Stock. The Company recognized a $2 million deemed dividend, recorded to Additional paid in capital in the Consolidated Statement of Financial Position, representing the excess of the fair value of the 6.0% Series B Preferred Stock over the carrying value of the 4.0% Series B Preferred Stock as of the Amendment Date.
The total fair value of the 6.0% Series B Preferred Stock on the Amendment Date was approximately $102 million, of which $30 million was allocated to the embedded conversion options and recorded separately as a derivative liability (See “Embedded Conversion Features” section below for additional details). The remaining $72 million is being accreted to the mandatory redemption amount using the effective interest method to Additional paid in capital in the Consolidated Statement of Financial Position as a deemed dividend from the Amendment Date through the mandatory redemption date, June 11, 2029. The Company has classified the 6.0% Series B Preferred Stock as temporary equity in the Consolidated Statement of Financial Position.
The 6.0% Series B Preferred Stock ranks senior to the Company's common stock, par value $.01 per share ("Common Stock") with respect to dividend rights and rights on liquidation, winding-up and dissolution. The 6.0% Series B Preferred Stock has a liquidation preference of $100 per share, and the holders of 6.0% Series B Preferred Stock are entitled to cumulative dividends payable quarterly in cash at a rate of 6.0% per annum. Holders of 6.0% Series B Preferred Stock will have certain limited special approval rights, including with respect to the issuance of pari passu or senior equity securities of the Company. The Series B Preferred Stock Amendment also includes certain limitations on the Company’s ability to incur certain debt for borrowed money without the consent of the holders of 66 2/3% of the outstanding 6.0% Series B Preferred Stock, provided that the Company would have the right to redeem the 6.0% Series B Preferred Stock in full for cash if such consent is not provided (subject to the terms set forth in the Series B Preferred Stock Amendment).
Redemption Features
If any shares of 6.0% Series B Preferred Stock have not been converted prior to June 11, 2029 (the “Mandatory Redemption Date”), the Company is required to redeem such shares at $100 per share plus the amount of accrued and unpaid dividends. As the Company concluded the 6.0% Series B Preferred Stock is considered more akin to a debt-type instrument, the redemption feature is considered to be clearly and closely related to the host contract and therefore was not required to be separated from the 6.0% Series B Preferred Stock.
Conversion Features
Each share of 6.0% Series B Preferred Stock is convertible, at the option of each holder at any time, into shares of Common Stock at the initial conversion rate of 10.00 shares of Common Stock for each share of 6.0% Series B Preferred Stock (equivalent to an initial conversion price of $10.00 per share of Common Stock). The initial conversion rate and the corresponding conversion price are subject to certain customary anti-dilution adjustments. If a holder elects to convert any shares of 6.0% Series B Preferred Stock during a specified period in connection with a fundamental change (as defined in the Series B Preferred Stock Amendment), such holder can elect to receive a make-whole premium, payable in additional shares of Common Stock, following the conversion of Series B Preferred Stock into shares of Common Stock if a fundamental change has occurred. In each case, the holder will also be entitled to receive shares with respect to accumulated dividends. In addition, the Company will have the right to require holders to convert any shares of 6.0% Series B Preferred Stock in connection with certain reorganization events in which case the conversion rate will be adjusted, subject to certain limitations.
The Company has the right, subject to certain conditions, to cause the mandatory conversion of the 6.0% Series B Preferred Stock into shares of Common Stock in three tranches, each representing one-third of the 6.0% Series B Preferred Stock if the closing price of the Common Stock has for 45 trading days within a period of 60 consecutive trading days a) equaled or exceeded $14.50 after eighteen months from the Amendment Date, b) equaled or exceeded $15.50 after twenty four months from the Amendment Date and c) equaled or exceeded $16.50 after thirty months from the Amendment Date (in each case, the amount per share is subject to adjustment in the same manner as the conversion price).
Upon a voluntary or mandatory conversion of the 6.0% Series B Preferred Stock, to the extent the Company would otherwise be required to issue shares of Common Stock in excess of the number permitted without obtaining shareholder or regulatory approval, the Company is required to pay cash in lieu of issuing such excess shares. The cash payment is determined based on the market value of the Common Stock as of the applicable conversion date.
The Company concluded the economic characteristics and risks of the embedded conversion features are not considered clearly and closely related to the 6.0% Series B Preferred Stock. Accordingly, these embedded conversion features were bifurcated from the 6.0% Series B Preferred Stock and separately accounted for on a combined basis as a single derivative liability. The Company allocated $30 million of the total fair value of the 6.0% Series B Preferred Stock to the derivative liability based on the aggregate fair value of the embedded conversion features as of the Amendment Date. The derivative is being accounted for at fair value with subsequent changes in the fair value being reported as part of Other (income) charges, net in the Consolidated Statement of Operations.
The fair value of the embedded derivative as of June 30, 2026 was a liability of $40 million and is included in Other long-term liabilities in the accompanying Consolidated Statement of Financial Position. Refer to Note 20, “Financial Instruments” for information on the valuation of the derivative.
Beneficial Ownership Side Letter
On March 11, 2026, in connection with the Series B Preferred Stock Amendment, the Company entered into an amendment to an existing agreement (the “Side Letter”) with Kennedy Lewis Management LP and Kennedy Lewis Capital Partners Master Fund III LP, KLIM Delta HQC3 LP, Kennedy Lewis (EU) SPV LP and KLCP Co-Investment Opportunities III LP, (each, a “Fund”) which provides that no Fund shall have the right to convert any shares of 6.0% Series B Preferred Stock to the extent that after giving effect to such conversion, the Fund, together with the Fund’s Attribution Parties (as defined in the Side Letter), would collectively beneficially own a number of shares of Common Stock of the Company in excess of 4.99% of the number of shares of Common Stock outstanding (the “Beneficial Ownership Limitation”). The Funds may increase or decrease the Beneficial Ownership Limitation at any time upon not less than sixty-one (61) days’ prior written notice to the Company.
Investor Rights Agreement
On March 11, 2026, in connection with the Series B Preferred Stock Amendment, the Company entered into an Investor Rights Agreement (the “Series B Investor Rights Agreement”) with Kennedy Lewis Investment Management LLC (together with its affiliates and certain funds, accounts or clients managed, advised or sub-advised by Kennedy Lewis Investment Management LLC or its affiliates, “Kennedy Lewis”). Under the terms of the Series B Investor Rights Agreement, Kennedy Lewis is entitled to certain preemptive rights in connection with future issuances of the Company’s equity securities and the Company is entitled to rights of first refusal in connection with any proposed transfer by Kennedy Lewis of the Series B Preferred Stock, in each case, subject to customary terms and conditions. In addition, the Company has agreed to provide Kennedy Lewis with a reasonable opportunity to participate in future debt financings.
Registration Rights Agreement
On March 11, 2026, in connection with the Series B Preferred Stock Amendment, the Company entered into a Registration Rights Agreement (the “Series B Registration Rights Agreement”) with Kennedy Lewis. Under the terms of the Series B Registration Rights Agreement, Kennedy Lewis (i) is entitled to require the Company to register for resale the shares of Common Stock issuable upon conversion of the Series B Preferred Stock, along with other shares of Common Stock held by Kennedy Lewis, on a shelf registration statement and (ii) has certain demand rights with respect to takedowns from such shelf registration statement. The Series B Registration Rights Agreement includes customary terms and conditions, including certain customary indemnification obligations.
NOTE 8: LEASES
Income recognized on operating lease arrangements for the three and six months ended June 30, 2026 and 2025 is presented below. Income recognized for sales-type lease arrangements for the three and six months ended June 30, 2026 was less than $1 million and $1 million, respectively. Income recognized for sales-type lease arrangements for the three and six months ended June 30, 2025 was less than $1 million and $1 million, respectively.
Lease income - operating leases:
Lease income
Variable lease income
Total lease income
NOTE 9: COMMITMENTS AND CONTINGENCIES
As of June 30, 2026, the Company had outstanding letters of credit of $24 million issued under the Amended and Restated L/C Facility Agreement, as well as bank guarantees and letters of credit of $2 million, surety bonds in the amount of $54 million, and restricted cash of $98 million, primarily related to cash collateral supporting the Company’s undiscounted actuarial workers’ compensation obligations with the NYS WCB, cash collateral to ensure payment of possible casualty and workers’ compensation claims, cash collateral supporting the outstanding letters of credit under the Amended and Restated L/C Facility Agreement, to ensure payment of possible legal contingencies, hedging activities, environmental liabilities, rental payments and to support various customs, tax and trade activities. The restricted cash is recorded in Other current assets and Restricted cash in the Consolidated Statement of Financial Position.
Kodak’s Brazilian operations are involved in various litigation matters in Brazil and have received or been the subject of numerous governmental assessments related to indirect and other taxes in various stages of litigation, as well as civil litigation and disputes associated with former employees and contract labor. The tax matters, which comprise the majority of the litigation matters, are primarily related to federal and state value-added taxes and income taxes. Kodak’s Brazilian operations are disputing these matters and intend to vigorously defend its position. Kodak routinely assesses all these matters as to the probability of ultimately incurring a liability in its Brazilian operations and records its best estimate of the ultimate loss in situations where it assesses the likelihood of loss as probable. As of June 30, 2026, Kodak’s Brazilian operations maintained accruals of less than $1 million for claims aggregating approximately $33 million inclusive of interest and penalties where appropriate. The unreserved portion of the indirect taxes, civil litigation and disputes involving former employees and contract labor claims, inclusive of any related interest and penalties, for which there was at least a reasonable possibility that a loss may be incurred, amounted to approximately $5 million.
In connection with assessments in Brazil, local regulations may require Kodak’s Brazilian operations to post security for a portion of the amounts in dispute. As of June 30, 2026, Kodak’s Brazilian operations have posted security composed of $5 million of pledged cash reported within Restricted cash in the Consolidated Statement of Financial Position and liens on certain Brazilian assets with a net book value of approximately $42 million. Generally, any encumbrances on the Brazilian assets would be removed to the extent the matter is resolved in favor of Kodak’s Brazilian operations. The matter securing the lien on the non-cash assets was resolved in favor of Kodak’s Brazilian operations on March 12, 2024. On September 29, 2025, the Notary Register Office confirmed the cancellation of the lien on Brazilian non-cash assets. Recognition of the enrollment by the Internal Revenue Service is in process.
In addition, Kodak is involved in various lawsuits, claims, investigations, remediations and proceedings, including, from time to time, commercial, customs, employment, environmental, tort and health and safety matters, which are being handled and defended in the ordinary course of business. Kodak is also subject, from time to time, to various assertions, claims, proceedings and requests for indemnification concerning intellectual property, including patent infringement suits involving technologies that are incorporated in a broad spectrum of Kodak’s products such as the terminated and ongoing patent infringement claims brought by FUJIFILM Corporation against Eastman Kodak Company (in the US) and its German subsidiaries (in Germany and the Unified Patent Court) alleging that certain of Kodak’s SONORA process free plates infringe four of FUJIFILM Corporation’s patents in the US, Germany and the UK. As a result of the outcome of litigation relating to the European claims, the German subsidiaries have no remaining exposure for damages with respect to three of the patents but, based on the outcome of one lawsuit in the Unified Patent Court, would be subject to infringement damages in Germany under the fourth patent if a different Kodak subsidiary is not successful in having the patent revoked in a pending parallel lawsuit. These matters, including the patent infringement claims where decisions have not become final, are in various stages of investigation and litigation and are being vigorously defended. Based on information currently available, Kodak does not believe that it is probable that the outcomes in these various matters, individually or collectively, will have a material adverse effect on its financial condition or results of operations. Litigation is inherently unpredictable, and judgments could be rendered or settlements entered that could adversely affect Kodak’s operating results or cash flows in a particular period.
Kodak routinely assesses all of its litigation and threatened litigation as to the probability of ultimately incurring a liability and records its best estimate of the ultimate loss in situations where it assesses the likelihood of loss as probable.
NOTE 10: GUARANTEES
In accordance with the terms of a settlement agreement concerning certain of the Company’s historical environmental liabilities at Eastman Business Park, a more than 1,200-acre technology center and industrial complex in Rochester, New York, in the event the historical liabilities exceed $99 million, the Company will become liable for 50% of the portion above $99 million with no limitation to the maximum potential future payments. There is no liability recorded for this guarantee.
Extended Warranty Arrangements
Kodak offers its customers extended warranty arrangements that are generally one year but may range from three months to six years after the original warranty period. The change in Kodak’s deferred revenue balance in relation to these extended warranty and maintenance arrangements from December 31, 2025 to June 30, 2026, which is reflected in Other current liabilities in the accompanying Consolidated Statement of Financial Position, was as follows:
Deferred revenue on extended warranties as of December 31, 2025
New extended warranty and maintenance arrangements deferred
Recognition of extended warranty and maintenance arrangement revenue
Deferred revenue on extended warranties as of June 30, 2026
NOTE 11: REVENUE
Disaggregation of Revenue
The following tables present revenue disaggregated by major product and geography:
Major Product:
Advanced
Materials
and
Print
Chemicals
Brand
All Other
Core products and services (1)
Plates, inks and other consumables
138
Ongoing service arrangements
31
Total annuities
169
176
Equipment & software
Film and chemicals
Total core products and services
195
104
299
Growth products (2)
Other (3)
105
65
328
341
47
166
375
179
554
181
June 30, 2025
129
135
164
170
68
178
252
75
243
256
314
327
134
343
147
490
Geography (1):
United States
70
81
162
Canada
North America
77
Europe, Middle East and Africa
73
Asia Pacific
Latin America
137
296
308
140
156
80
24
59
54
123
63
128
39
111
113
242
118
114
250
Contract Balances
The timing of revenue recognition, billings and cash collections results in billed trade receivables, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) in the Consolidated Statement of Financial Position. The contract assets are transferred to trade receivables when the rights to consideration become unconditional. The amount recorded for contract assets at June 30, 2026 and December 31, 2025 was $10 million and $5 million, respectively, and is reported in Other current assets in the Consolidated Statement of Financial Position. The contract liabilities primarily relate to brand licensing agreements, prepaid service contracts or upfront payments for certain equipment purchases. The amount recorded for contract liabilities in the Consolidated Statement of Financial Position at June 30, 2026 and December 31, 2025 was $88 million and $94 million, respectively, of which $39 million and $42 million, respectively, was reported in Other current liabilities and $49 million and $52 million, respectively, was reported in Other long-term liabilities.
Revenue recognized for the three and six months ended June 30, 2026 and 2025 that was included in the contract liability balance at the beginning of the respective fiscal years was $13 million and $35 million, respectively, in 2026 and $8 million and $23 million, respectively in 2025 and primarily represented revenue from prepaid service contracts and equipment sales. Contract liabilities as of June 30, 2026 included $21 million and $27 million of cash payments received during the three and six months ended June 30, 2026, respectively. Contract liabilities as of June 30, 2025 included $25 million and $29 million of cash payments received during the three and six months ended June 30, 2025, respectively.
Kodak does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less or for which revenue is recognized at the amount to which Kodak has the right to invoice for services performed.
Performance obligations with an original expected length of greater than one year generally consist of deferred service contracts, operating leases and licensing arrangements. As of June 30, 2026, there was approximately $78 million of unrecognized revenue from unsatisfied performance obligations. Approximately 10% of the revenue from unsatisfied performance obligations is expected to be recognized in the remainder of 2026, 15% in each of 2027 and 2028, 10% in 2029 and 50% thereafter.
NOTE 12: OTHER OPERATING EXPENSE, NET
Legal settlements and penalties
NOTE 13: OTHER (INCOME) CHARGES, NET
Interest income
Loss on foreign exchange transactions
Change in fair value of embedded preferred stock derivative liability (1)
Asset impairment (2)
NOTE 14: INCOME TAXES
Kodak’s income tax provision and effective tax rate were as follows:
(dollars in millions)
Effective tax rate
19.0
%
(8.3
)%
87.5
(13.8
Provision (benefit) for income taxes at U.S. statutory tax rate
Difference between tax at effective vs. statutory rate
For the three and six months ended June 30, 2026, the difference between Kodak’s effective tax rate and the U.S. statutory rate of 21.0% was primarily attributable to: (1) the movement of valuation allowances associated with changes in net deferred tax assets from current losses and earnings, (2) the jurisdictional mix of earnings (including US state), (3) a provision associated with foreign withholding taxes on undistributed earnings and (4) the recognition of an uncertain tax provision related to German fiscal unity.
For the three and six months ended June 30, 2025, the difference between Kodak’s effective tax rate and the U.S. statutory rate of 21.0% was primarily attributable to: (1) the movement of valuation allowances associated with changes in net deferred tax assets from current losses and earnings, (2) the results from operations in jurisdictions outside the U.S. and (3) a provision associated with foreign withholding taxes on undistributed earnings.
In December 2021, the Organisation for Economic Cooperation and Development (“OECD”) introduced Base Erosion and Profit Shifting (“BEPS”) Pillar 2 rules that impose a global minimum tax rate of 15%. Many participating countries enacted changes which took effect in 2024. After considering the applicable tax law changes in the Pillar 2 implementation, Kodak determined there was no material impact to its tax provision for the three and six months ended June 30, 2026 and 2025.
In March 2026, the German Federal Fiscal Court (BFH) ruling (I R 37/22) confirmed that profit and loss transfer agreements ("PLTAs") must be actually and timely implemented to maintain a valid tax group in Germany, including the timely settlement of profit or loss compensation among entities within the group. Kodak evaluated the impact of this ruling on the tax positions of the entities in the Company's German tax group for the 2021–2025 periods and recorded an uncertain tax position of approximately $1 million related to the potential exposures arising from the ruling. The Company will continue to monitor developments and refine its assessment as additional information becomes available.
NOTE 15: RETIREMENT PLANS
Components of the net periodic benefit cost for all major U.S. and non-U.S. defined benefit pension plans are as follows:
U.S.
Non-U.S.
Major defined benefit plans:
Service cost
Interest cost
Expected return on plan assets
(41
(10
(86
Amortization of:
Prior service cost
Actuarial loss (gain)
Net pension (income) expense before special termination benefits
Special termination benefits (1)
Net pension (income) expense from major plans
(31
Other plans
Total net pension (income) expense
(1) The special termination benefits were incurred as a result of Kodak’s restructuring actions and have been included in
Restructuring costs and other in the Consolidated Statement of Operations for that period.
On January 21, 2025, the Board of Directors of Kodak approved the termination of the Kodak Retirement Income Plan (“KRIP”), effective March 31, 2025, and no further benefits were accrued under KRIP following this date. In addition, the Board of Directors approved a defined benefit retirement plan (the “Kodak Cash Balance Plan”) as a replacement for KRIP which became effective on March 1, 2025 for new hires and on April 1, 2025 for then current employees. The benefits under the Kodak Cash Balance Plan are substantially the same as those under the cash balance feature of KRIP. On November 26, 2025, all pension obligations under KRIP were fully settled and the excess pension assets were reverted to the Company.
NOTE 16: EARNINGS PER SHARE
Basic earnings per share are calculated using the weighted-average number of shares of Common Stock outstanding during the period. Diluted earnings per share calculations include any dilutive effect of potential common shares. In periods with a net loss available to common shareholders, diluted earnings per share are calculated using weighted-average basic shares for that period, as utilizing diluted shares would be anti-dilutive to loss per share.
A reconciliation of the amounts used to calculate basic and diluted loss per share for the three and six months ended June 30, 2026 and 2025 follows:
Less: Series B Preferred stock cash dividends
Less: Series C Preferred stock in-kind dividends
Less: Preferred stock deemed dividends
Less: Deemed dividend on preferred stock amendment
Net earnings (loss) available to common shareholders - basic
(39
(in millions of shares)
Weighted average shares — basic
Effect of dilutive securities
Unvested restricted stock units
4.0
Employee stock options
1.0
Weighted average shares — diluted
As a result of the net loss available to common shareholders for the six months ended June 30, 2026, Kodak calculated diluted earnings per share using weighted-average basic shares outstanding. If Kodak had reported earnings available to common shareholders for the six months ended June 30, 2026, the calculation of diluted earnings per share would have included the assumed vesting of 2.9 million unvested restricted stock units, the assumed exercise of 0.9 million stock options and the assumed conversion of 0.1 million shares of 6.0% Series B Preferred Stock as permitted by the Beneficial Ownership Limitation.
As a result of the net loss available to common shareholders for the three and six months ended June 30, 2025, Kodak calculated diluted earnings per share using weighted-average basic shares outstanding. If Kodak had reported earnings available to common shareholders for the three months ended June 30, 2025, the calculation of diluted earnings per share would have included the assumed vesting of 1.6 million unvested restricted stock units, the assumed exercise of 1.3 million stock options and the assumed conversion of 1.0 million shares of 4.0% Series B Preferred Stock. For the six months ended June 30, 2025, the calculation of diluted earnings per share would have included the assumed vesting of 1.7 million unvested restricted stock units, the assumed exercise of 1.5 million stock options and the assumed conversion of 1.0 million shares of 4.0% Series B Preferred Stock.
The computation of diluted earnings per share for the three and six months ended June 30, 2026 excluded the impact of (1) the assumed conversion of 0.1 million shares of 6.0% Series B Preferred Stock as permitted by the Beneficial Ownership Limitation and (2) the assumed exercise of 1.7 million outstanding employee stock options because the effects would have been anti-dilutive.
The computation of diluted earnings per share for the three and six months ended June 30, 2025 excluded the impact of (1) the assumed conversion of 1.0 million shares of 4.0% Series B Preferred Stock, (2) the assumed conversion of 1.2 million shares of Series C Preferred Stock, (3) for the three months ended June 30, 2025, the assumed exercise of 2.5 million outstanding employee stock options and (4) for the six months ended June 30, 2025, the assumed exercise of 1.7 million outstanding employee stock options because the effects would have been anti-dilutive.
22
NOTE 17: SHAREHOLDERS’ EQUITY
The Company has 560 million shares of authorized stock, consisting of: (i) 500 million shares of common stock, par value $0.01 per share and (ii) 60 million shares of preferred stock, no par value, issuable in one or more series.
Common Stock
As of June 30, 2026 and December 31, 2025, there were 97.9 million and 97.4 million shares of common stock outstanding, respectively.
Preferred Stock
Series B Preferred stock issued and outstanding included 1.0 million shares of 6.0% Series B Preferred Stock at June 30, 2026 and 1.0 million shares of 4.0% Series B Preferred Stock at December 31, 2025 .
Treasury Stock
Treasury stock consisted of approximately 3.3 million and 3.0 million shares as of June 30, 2026 and December 31, 2025, respectively.
Supplemental Resale Registration
On July 1, 2026 the Company filed a Registration Statement on Form S-3, which was declared effective on July 8, 2026, to register the resale of up to an additional 4,426,268 shares of the Company's common stock by GO EK Ventures IV, LLC and funds advised by Kennedy Lewis Management LP to perform its obligations under existing registration rights agreements. Of the shares covered by the registration statement, 3,451,113 shares are currently issued and outstanding and 975,155 shares are issuable upon the conversion of a portion of the outstanding shares of 6% Series B Preferred stock. In conjunction with the filing of the registration statement, the Company filed a prospectus supplement associated with a previously existing effective registration statement to, among other updates, remove from the corresponding prospectus 5,031,489 shares of common stock that will not be sold pursuant to such previously existing registration statement.
NOTE 18: OTHER COMPREHENSIVE INCOME (LOSS)
The changes in Other comprehensive income (loss) by component were as follows:
Pension and other postretirement benefit plan changes
Newly established net actuarial loss
(15
Tax provision
Newly established net actuarial loss, net of tax
Reclassification adjustments:
Amortization of prior service cost (1)
Amortization of actuarial gains (1)
Total reclassification adjustments
Reclassification adjustments, net of tax
Pension and other postretirement benefit plan changes, net of tax
Other comprehensive income (loss)
NOTE 19: SEGMENT INFORMATION
Kodak has three reportable segments: Print, Advanced Materials and Chemicals and Brand. Kodak’s reportable segments are based on a combination of factors that the chief operating decision maker (“CODM”) uses to evaluate and manage the business operations, including but not limited to, Kodak’s organizational structure, customer base, markets, products and services and related technologies. Kodak does not aggregate operating segments. A description of Kodak’s reportable segments follows.
Print: The Print segment is comprised of four lines of business: the Prepress Solutions business, the PROSPER business, the Software business and the Electrophotographic Printing Solutions business.
Advanced Materials and Chemicals: The Advanced Materials and Chemicals segment is comprised of five lines of business: the Industrial Film and Chemicals business, the Motion Picture business, the Pharmaceuticals business, the Advanced Materials and Functional Printing business and the IP Licensing and Analytical Services business.
Brand: The Brand segment contains the brand licensing business.
The balance of Kodak’s continuing operations, which primarily represent the operations of Eastman Business Park ("EBP") and do not meet the criteria of a reportable segment, are reported in All Other revenues and All Other Operational EBITDA.
The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 1 included in the 2025 Form 10-K. There are no intersegment sales between the segments.
Kodak’s CODM is the Executive Chairman and Chief Executive Officer. Kodak’s segment measure of profit and loss is an adjusted earnings before interest, taxes, depreciation and amortization (“Operational EBITDA”). Operational EBITDA represents the consolidated earnings (loss) from operations excluding the provision for income taxes; non-service cost components of pension and other postemployment benefits (“OPEB”) income; depreciation and amortization expense; restructuring costs and other; stock-based compensation expense; consulting and other costs; idle costs; interest expense; loss on early extinguishment of debt; other operating expense, net and other income (charges), net.
The CODM uses Operational EBITDA in assessing segment performance and deciding how to allocate resources for each segment predominantly through the annual budget and forecasting process. The CODM evaluates Operational EBITDA budget-to-actual variances and changes in Operational EBITDA from prior periods when comparing the results of each segment with one another.
Segment financial information is shown below. Asset information by reportable segment is not disclosed below as this information is not regularly provided to or used by the CODM in assessing performance and allocating resources.
Segment Revenues, Operational EBITDA and Consolidated Earnings (Loss) from Continuing Operations Before Income Taxes
Print:
Revenues from external customers
153
284
64
Research and development expenses
Operational EBITDA
Advanced Materials and Chemicals:
69
56
125
Brand:
Total Operational EBITDA for Reportable Segments
36
All Other Operational EBITDA
Consulting and other costs (1)
Idle costs (2)
Other operating expense, net (3)
Interest expense (3)
Pension income excluding service cost component (3)
Loss on early extinguishment of debt (3)
Other income (charges), net (3)
(20
Consolidated earnings (loss) from continuing operations before income taxes
litigation. Consulting and other costs included $1 million of income in the six months ended June 30, 2026 and the three and six
months ended June 30, 2025, representing insurance reimbursement of legal costs previously paid by the Company associated
with investigations and litigation matters.
A reconciliation of reportable segment revenues to consolidated revenues follows:
Total Reportable Segment Revenues
307
259
569
502
All Other Revenues
Total Consolidated Revenues
Kodak decreased employee benefit reserves by approximately $1 million in both the three and six months ended June 30, 2026 due to a decrease in workers' compensation reserves driven by changes in discount rates. The decrease in reserves in both the three and six months ended June 30, 2026 impacted gross profit by approximately $1 million.
Kodak increased employee benefit reserves by approximately $1 million in the six months ended June 30, 2025 due to an increase in workers' compensation reserves driven by changes in discount rates. The increase in reserves in the six months ended June 30, 2025 impacted gross profit by approximately $1 million. There was no change to employee benefit reserves in the three months ended June 30, 2025.
Amortization and depreciation expense by segment are not included in the segment measure of profit and loss but are regularly provided to the CODM.
Intangible asset amortization expense from continuing operations:
Depreciation expense from continuing operations:
Advanced Materials and Chemicals
Long-lived assets located in: (1)
The United States
Canada and Latin America
Non-U.S. countries total (2)
(1) Long-lived assets are comprised of property, plant and equipment, net.
(2) Of the total non-U.S. property, plant and equipment as of June 30, 2026, $42 million was located in Brazil. Of the total
non-U.S. property, plant and equipment as of December 31, 2025, $39 million was located in Brazil.
NOTE 20: FINANCIAL INSTRUMENTS
Kodak, as a result of its global operating and financing activities, is exposed to changes in foreign currency exchange rates, commodity pricing and interest rates, which may adversely affect its results of operations and financial position. Kodak manages such exposures, in part, with derivative financial instruments. Foreign currency forward contracts are used to mitigate currency risk related to foreign currency denominated assets and liabilities, as well as forecasted foreign currency denominated intercompany assets.
Kodak’s exposure to changes in interest rates results from its investing and borrowing activities used to meet its liquidity needs. Kodak does not utilize financial instruments for trading or other speculative purposes.
Kodak’s foreign currency forward contracts are not designated as hedges and are marked to market through net earnings (loss) at the same time that the exposed assets and liabilities are re-measured through net earnings (loss) (both in Other (income) charges, net in the Consolidated Statement of Operations). The notional amount of such contracts open at June 30, 2026 and December 31, 2025 was approximately $193 million and $224 million, respectively. The majority of the contracts of this type held by Kodak as of June 30, 2026 were denominated in Chinese renminbi and Japanese yen and as of December 31, 2025 were denominated in Chinese renminbi, Japanese yen and European euros.
The net effect of foreign currency forward contracts in the results of operations is shown in the following table:
Net (gain) loss from derivatives not designated as hedging instruments
Kodak had no derivatives designated as hedging instruments for the three and six months ended June 30, 2026 and 2025.
In the event of a default under any of the Company’s credit agreements, or a default under any derivative contract or similar obligation of Kodak, subject to certain minimum thresholds, the derivative counterparties would have the right, although not the obligation, to require immediate settlement of some or all open derivative contracts at their then-current fair value, but with liability positions netted against asset positions with the same counterparty.
Fair Value
Fair values of Kodak’s foreign currency forward contracts are determined using observable inputs (Level 2 fair value measurements) and are based on the present value of expected future cash flows (an income approach valuation technique) considering the risks involved and using discount rates appropriate for the duration of the contracts. The gross fair value of foreign currency forward contracts in an asset position are reported in Other current assets and the gross fair value of foreign currency forward contracts in a liability position are reported in Other current liabilities in the Consolidated Statement of Financial Position. The gross fair value of forward contracts in an asset position as of June 30, 2026 and December 31, 2025 was zero and less than $1 million, respectively. The gross fair value of foreign currency forward contracts in a liability position as of June 30, 2026 and December 31, 2025 was $1 million and less than $1 million, respectively.
The fair values of long-term debt (Level 2 fair value measurements) are determined by reference to quoted market prices of similar instruments, if available, or by pricing models based on the value of related cash flows discounted at current market interest rates.
The fair values of long-term borrowings were $100 million and $151 million at June 30, 2026 and December 31, 2025, respectively.
The carrying values of cash and cash equivalents, restricted cash and the current portion of long-term debt approximate their fair values at both June 30, 2026 and December 31, 2025.
Transfers between levels of the fair value hierarchy are recognized based on the actual date of the event or change in circumstances that caused the transfer. There were no transfers between levels of the fair value hierarchy during the three and six months ended June 30, 2026.
As disclosed in Note 7, “Redeemable, Convertible Preferred Stock”, the embedded conversion options were bifurcated from the 6.0% Series B Preferred Stock and are accounted for on a combined basis as a single derivative liability. The fair value of these embedded conversion options is determined using significant unobservable inputs (Level 3 fair value measurements). The Company estimates the fair value of each embedded conversion option using a binomial lattice model, and the combined fair value is recorded as a derivative liability.
The following table presents the key inputs used in the determination of fair value for the embedded conversion options:
Valuation Date
March 11,
2026 (inception)
Total value of embedded derivative ($ millions)
Kodak's closing stock price
9.25
6.95
Expected stock price volatility
66.50
65.00
Risk free rate
4.15
3.71
Implied yield on preferred stock
19.19
18.48
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
CAUTIONARY STATEMENT PURSUANT TO SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This report on Form 10-Q includes “forward–looking statements” as that term is defined under the Private Securities Litigation Reform Act of 1995.
Forward–looking statements include statements concerning Kodak’s plans, objectives, goals, strategies, future events, future revenue or performance, capital expenditures, liquidity, investments, financing needs and business trends and other information that is not historical information. When used in this document, the words “estimates,” “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” “predicts,” “forecasts,” “strategy,” “continues,” “goals,” “targets” or future or conditional verbs, such as “will,” “should,” “could,” or “may,” and similar words and expressions, as well as statements that do not relate strictly to historical or current facts, are intended to identify forward–looking statements. All forward–looking statements, including management’s examination of historical operating trends and data, are based upon Kodak’s current expectations and assumptions. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results or outcomes, or timing of actual results or outcomes, to differ materially from historical results or those expressed in or implied by such forward-looking statements. Important factors that could cause actual events, results or outcomes, or their timing, to differ materially from the forward-looking statements include, among others, the risks and uncertainties described in more detail in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2025 (“2025 Form 10-K”) under the headings “Business,” “Risk Factors,” “Legal Proceedings,” and/or “Management’s Discussion and Analysis of Financial Condition and Results of Operations–Liquidity and Capital Resources,” in the corresponding sections of this report on Form 10‑Q and the Company’s quarterly report on Form 10‐Q for the quarter ended March 31, 2026, and in other filings the Company makes with the SEC from time to time, as well as the following:
Future events and other factors may cause Kodak’s actual results or outcomes to differ materially from the forward–looking statements. All forward–looking statements attributable to Kodak or persons acting on its behalf apply only as of the date of this report on Form 10‑Q and are expressly qualified in their entirety by the cautionary statements included or referenced in this document. Kodak undertakes no obligation to update or revise forward–looking statements to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events, except as required by law.
EXECUTIVE OVERVIEW
Kodak is a global manufacturer focused on commercial print and advanced materials and chemicals. With 79,000 patents earned over 130 years of research and development ("R&D"), Kodak believes in the power of technology and science to enhance what the world sees and creates. Kodak’s innovative, award-winning products, combined with its customer-first approach, make Kodak the partner of choice for commercial printers worldwide. Kodak is committed to environmental stewardship, including industry leadership in developing sustainable solutions for print.
Consolidated revenues in the three and six months ended June 30, 2026 were $311 million and $576 million, respectively, increases of $48 million (18%) and $66 million (13%), respectively, compared to the prior year quarter and year-to-date period. Currency fluctuations had no material impact on revenues in the three months ended June 30, 2026 compared to the three months ended June 30, 2025 and a favorable impact on revenues ($7 million) in the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
Print revenues in the three and six months ended June 30, 2026 were $195 million and $375 million, respectively, increases of $17 million (10%) and $32 million (9%), respectively, compared to the prior year quarter and year-to-date period. Print revenues accounted for 63% and 65% of Kodak’s total revenues for the three and six months ended June 30, 2026, respectively. Advanced Materials and Chemicals revenues in the three and six months ended June 30, 2026 were $105 million and $181 million, respectively, increases of $30 million (40%) and $32 million (21%) compared to the prior year quarter and year-to-date period.
Economic Environment and Other Global Events:
Kodak sells and services its products globally, with more than half of sales generated outside the U.S. The macroeconomic environment remains highly volatile due to changes in trade policies, including tariffs or other trade restrictions or the threat of such actions, geopolitical conflicts, fluctuations in commodity prices, elevated inflation and ongoing supply chain constraints, all of which have impacted Kodak’s operations.
These conditions have contributed to increased manufacturing costs, primarily due to the impact of U.S. tariffs on imported goods (including aluminum, steel and certain raw materials and component parts used in Kodak’s manufacturing and supply chain), as well as increases in commodity prices including aluminum and silver, higher labor, material, and distribution costs, and lower production volumes. The Company has implemented various pricing actions, productivity improvements, supply chain and workforce optimization initiatives and other cost savings activities. In addition, the Company has renegotiated supplier contracts and obtained certain tariff exemptions. Collectively, these actions have largely mitigated the impact of higher manufacturing costs and, as a result, did not have a material adverse effect on Kodak’s operations, financial condition or cash flows for the quarter and six month period ended June 30, 2026.
Kodak is in the process of applying for refunds of certain tariffs pursuant to the International Emergency Economic Powers Act ("IEEPA"). Refunds received during the current quarter were immaterial. The timing and amount of any future refunds are uncertain and subject to the outcome of the Company's applications and related governmental determinations.
Kodak continues to actively monitor the developments related to tariffs to assess additional actions that may be taken to mitigate the impact of future tariff changes, including further pricing actions, additional cost reduction measures, securing alternative suppliers and evaluating potential changes to the Company’s manufacturing footprint. However, there is substantial uncertainty about the duration of existing tariffs or pauses in tariffs, tariff levels and whether additional tariffs or other retaliatory actions may be imposed, modified or suspended. Countries subject to such tariffs have imposed or may in the future impose reciprocal or retaliatory tariffs and other trade measures. These actions and the related rising political tensions could negatively impact global macroeconomic conditions and the stability of global financial markets. The ultimate impact of any tariffs is uncertain and will depend on various factors, including whether the tariffs are maintained and/or implemented, the duration of the tariffs, any exceptions or exemptions that are or may become available and the timing of their implementation, and scope, all of which could have a material adverse effect on Kodak’s business, financial condition and results of operations.
As a result of a trade case brought by the Company in the U.S., the following duties are currently being imposed on U.S. imports of aluminum lithographic printing plates: (i) anti-dumping duties of 115.84% on plates manufactured in China by Fujifilm and 317.43% on such plates manufactured in China by other entities, (ii) countervailing duties of 35.66% on practically all plates manufactured in China, and (iii) anti-dumping duties of 91.83% on practically all plates manufactured in Japan. Fujifilm has appealed the basis for the imposition of these duties. These duties are in addition to other tariffs that may be imposed on imports generally, including on aluminum derivative products to the extent applicable. There can be no assurance that the duties imposed on imported plates will provide Kodak effective relief and will not be reduced or impaired by any appeal or other challenge.
Kodak has implemented numerous measures to mitigate the challenges associated with supply chain disruptions and shortages in materials, including increasing safety stock on certain materials, increasing lead-times, providing suppliers with longer forecasts of future demand and certifying additional sources or substitute materials where possible. These measures have enabled Kodak to largely meet current demand.
The Advanced Materials and Chemicals segment has experienced labor shortages in certain manufacturing areas. Increased demand for consumer film products along with manufacturing equipment limitations and labor shortages have contributed to increased backorders. The Advanced Materials and Chemicals segment has increased headcount and made capital investments in equipment upgrades and new equipment that increased capacity and streamlined processes which has reduced backorders and improved operational efficiency. Increased demand for film products may continue to place stress on manufacturing equipment and the labor force without further investment or additional hiring in key areas.
The ongoing changes in global economic conditions and the impact of other global events on Kodak’s operations and financial performance remains uncertain. A further deterioration in economic conditions, sustained supply chain disruptions or constraints in securing raw materials and components, or additional increases in manufacturing and other costs without further pricing actions, productivity improvements, supply chain mitigation actions or other cost saving measures, could unfavorably impact Kodak's operating results.
Kodak’s Strategy and Capital Allocation Framework:
Kodak’s strategy is to leverage its core competencies, intellectual property and manufacturing infrastructure to grow industrial manufacturing businesses in segments with attractive long-term growth potential and high barriers to entry. The Company allocates capital through a framework focusing on ROI potential, the ability to monetize opportunities efficiently, and performance reviews by a core control team. Specific strategies include:
Kodak prioritizes opportunities focusing on strategic fit with the Company’s core competencies, ROI potential, cost and time barriers to entry, as well as the Company’s ability to build, automate and commercialize more efficiently than others. A discussion of opportunities and challenges related to Kodak’s strategy follows:
32
RESULTS OF OPERATIONS
2026 COMPARED TO 2025
SECOND QUARTER RESULTS OF OPERATIONS
Three Months Ended June 30,
Six Months Ended June 30,
% of
$ Change
48
66
0
(17
45
Revenue
Current Quarter
For the three months ended June 30, 2026 revenues increased $48 million compared with the same period in 2025, primarily driven by improved pricing in Advanced Materials and Chemicals ($16 million) and Print ($14 million) and higher volume in Advanced Material and Chemicals ($14 million), Print ($4 million) and Brand ($1 million). See segment discussions for additional details.
33
Year-to-Date
For the six months ended June 30, 2026 revenues increased $66 million compared with the same period in 2025, primarily driven by improved pricing in Print ($24 million) and Advanced Materials and Chemicals ($22 million), higher volume in Advanced Materials and Chemicals ($10 million), Print and Brand ($2 million each) and favorable foreign currency fluctuations ($7 million). See segment discussions for additional details.
Gross Profit
Gross profit for the three months ended June 30, 2026 increased $31 million compared with the same period in 2025, primarily due to improved pricing in Print ($12 million) and Advanced Materials and Chemicals ($11 million), higher volume in Advanced Materials and Chemicals ($11 million), Print ($6 million) and Brand ($1 million) and reduced manufacturing costs in Print ($2 million). These favorable impacts were partially offset by higher aluminum costs ($8 million), higher silver costs ($4 million) and increased manufacturing costs ($1 million) in Advanced Materials and Chemicals. See segment discussions for additional details.
Gross profit for the six months ended June 30, 2026 increased $42 million compared with the same period in 2025, primarily due to improved pricing in Print ($21 million) and Advanced Materials and Chemicals ($16 million), higher volumes in Advanced Materials and Chemicals ($10 million), Print ($7 million) and Brand ($2 million), reduced manufacturing costs in Print ($4 million), favorable foreign currency fluctuations ($1 million) and net change in employee benefit reserves ($1 million). These favorable impacts were partially offset by higher silver and aluminum costs ($9 million each) and increased manufacturing costs ($3 million) in Advanced Materials and Chemicals. See segment discussions for additional details.
Selling, General and Administrative Expenses
Consolidated selling and general administrative expenses ("SG&A") increased $12 million in the three months ended June 30, 2026 compared to the prior year period, primarily due to an increase in equity compensation costs ($8 million) and an increase in selling and administrative costs of $4 million primarily related to the net change in employee benefit reserves and costs associated with corporate infrastructure.
Consolidated SG&A increased $15 million in the six months ended June 30, 2026 compared to the prior year period, primarily due to an increase in equity compensation costs ($11 million) and an increase in selling and administrative costs of $3 million primarily related to the net change in employee benefit reserves and costs associated with corporate infrastructure.
Research and Development Costs
Consolidated research and development ("R&D") expenses in the three and six months ended June 30, 2026 were relatively flat compared to the prior year period.
Pension Income Excluding Service Cost Component
Pension income excluding service cost component decreased $11 million and $29 million, respectively, in the three and six months ended June 30, 2026 due to lower expected return on assets driven by a decrease in the asset base due to the settlement of the Kodak Retirement Income Plan ("KRIP") in the fourth quarter of 2025. Refer to Note 15, "Retirement Plans".
Other Operating Expense, Net
For details, refer to Note 12, "Other Operating Expense, Net".
Other (Income) Charges, Net
For details, refer to Note 13, "Other (Income) Charges, Net".
REPORTABLE SEGMENTS
Kodak has three reportable segments: Print, Advanced Materials and Chemicals and Brand. A description of Kodak’s reportable segments follows.
The balance of Kodak’s continuing operations, which primarily represent the operations of EBP and do not meet the criteria of a reportable segment, are reported in All Other revenues and All Other.
Segment Revenues
Total of reportable segments
All Other revenues
Consolidated total
Kodak’s segment measure of profit and loss is an adjusted earnings before interest, taxes, depreciation and amortization (“Operational EBITDA”). As demonstrated in the table below, Operational EBITDA represents consolidated earnings (loss) from operations excluding the provision for income taxes; non-service cost components of pension and other postemployment benefits (“OPEB”) income; depreciation and amortization expense; restructuring costs and other; stock-based compensation expense; consulting and other costs; idle costs; interest expense; loss on early extinguishment of debt; other operating expense, net and other (income) charges, net.
Segment Operational EBITDA and Consolidated Earnings (Loss) from Operations Before Income Taxes
All other
Consolidated earnings (loss) from operations before income taxes
PRINT SEGMENT
Operational EBITDA as a % of revenues
Print revenues for the three months ended June 30, 2026 increased $17 million primarily due to improved pricing in Prepress Solutions ($14 million) and higher volume in PROSPER ($9 million), partially offset by reduced volume in Prepress Solutions ($3 million) and Electrophotographic Printing Solutions ("EPS") ($2 million).
Print revenues for the six months ended June 30, 2026 increased $32 million primarily due to improved pricing in Prepress Solutions ($24 million), higher volume in PROSPER ($13 million) and Software ($1 million) and favorable foreign currency fluctuations ($7 million), partially offset by reduced volume in Prepress Solutions ($7 million) and EPS ($5 million).
Print Operational EBITDA for the three months ended June 30, 2026 increased $12 million primarily due to improved pricing in Prepress Solutions ($12 million), higher volume in PROSPER ($6 million) and EPS ($1 million) and reduced manufacturing costs ($2 million), partially offset by higher costs for aluminum ($8 million) and SG&A ($2 million).
Print Operational EBITDA for the six months ended June 30, 2026 increased $24 million primarily due to improved pricing in Prepress Solutions ($21 million), higher volume in PROSPER ($6 million), EPS ($2 million) and Software ($1 million), and reduced manufacturing costs ($4 million), partially offset by higher costs for aluminum ($9 million) and lower volume in Prepress Solutions ($1 million).
ADVANCED MATERIALS AND CHEMICALS SEGMENT
Advanced Materials and Chemicals revenues for the three months ended June 30, 2026 increased $30 million primarily due to improved pricing in Industrial Film and Chemicals ($14 million) and Motion Picture ($1 million) and increased volume in Industrial Film and Chemicals ($14 million) and Motion Picture ($1 million).
Advanced Materials and Chemicals revenues for the six months ended June 30, 2026 increased $32 million primarily due to improved pricing in Industrial Film and Chemicals ($20 million) and Motion Picture ($2 million) and increased volume in Industrial Film and Chemicals ($9 million) and Motion Picture ($1 million).
Advanced Materials and Chemicals Operational EBITDA for the three months ended June 30, 2026 increased $14 million due to improved pricing in Industrial Film and Chemicals ($10 million) and Motion Picture ($1 million) and increased volume in Industrial Film and Chemicals ($11 million), partially offset by higher silver costs ($4 million), SG&A ($2 million) and manufacturing costs ($1 million).
Advanced Materials and Chemicals Operational EBITDA for the six months ended June 30, 2026 increased $14 million due to improved pricing in Industrial Film and Chemicals ($14 million) and Motion Picture ($1 million), increased volume in Industrial Film and Chemicals ($11 million), favorable foreign currency fluctuations ($1 million) and net change in employee benefit reserves ($1 million), partially offset by higher silver costs ($9 million), SG&A ($3 million) and manufacturing costs ($3 million).
BRAND SEGMENT
83
85
Brand revenues for the three and six months ended June 30, 2026 increased $1 million and $3 million, respectively, due to higher volumes.
Brand Operational EBITDA for the three and six months ended June 30, 2026 increased $1 million and $2 million, respectively, due to higher volumes.
RESTRUCTURING COSTS AND OTHER
Kodak recorded charges of $1 million for both the three and six months ended June 30, 2026 in Restructuring costs and other in the Consolidated Statement of Operations.
Kodak made cash payments related to restructuring of approximately $1 million and $5 million during the three and six months ended June 30, 2026, respectively.
The restructuring actions implemented in the first six months of 2026 are expected to generate future annual cash savings of approximately $2 million, which are expected to reduce both future annual SG&A expenses and Cost of revenues by $1 million each. The majority of the annual savings are expected to be in effect by the end of the third quarter of 2026 as such actions are completed.
LIQUIDITY AND CAPITAL RESOURCES
Management’s Assessment of Liquidity
Kodak ended the quarter with a cash balance of $290 million, a decrease of $47 million from December 31, 2025.
During the fourth quarter of 2025, the Company completed the settlement of the Kodak Retirement Income Plan ("KRIP") and received $144 million in net cash proceeds from the reversion of KRIP assets, after required debt payments and payment of excise taxes, as well as $158 million of investment assets, of which $9 million was converted to cash in December 2025. The investment assets received by the Company are primarily hedge fund investments which are in redemption.
During the first and second quarters of 2026, the Company received $46 million and $41 million, respectively, of cash from these redemptions. In July 2026, the Company received an additional $5 million of cash and expects to receive $7 million in cash proceeds during the remainder of 2026. The remaining value of the investment assets is expected to be converted to cash primarily in 2027 and 2028.
Available liquidity includes existing cash and cash equivalent balances. The amount of available liquidity is subject to fluctuations and includes cash balances held by various entities worldwide. At June 30, 2026 and December 31, 2025 approximately $165 million and $231 million, respectively, of cash and cash equivalents were held within the U.S. and approximately $125 million and $106 million, respectively, of cash and cash equivalents were held outside the U.S. Cash balances held outside the U.S. are generally required to support local country operations and may have high tax costs or other limitations that delay the ability to repatriate, and therefore may not be readily available for transfer to other jurisdictions. Kodak utilizes cash balances outside the U.S. to fund needs in the U.S. through the use of intercompany loans.
As of June 30, 2026 and December 31, 2025, outstanding intercompany loans to the U.S. were $479 million and $509 million, respectively, which included short-term intercompany loans from Kodak’s international finance center of $210 million and $235 million, respectively. In China, where approximately $40 million and $35 million of cash and cash equivalents was held as of June 30, 2026 and December 31, 2025, respectively, there are limitations related to net asset balances that may impact the ability to make cash available to other jurisdictions in the world.
The Company’s Hong Kong subsidiary has an intercompany loan from one of the Company’s Chinese subsidiaries with a maturity date of November 16, 2026, the proceeds of which were in turn loaned to the Company. The terms of the intercompany loan require the Company to make efforts to repay the outstanding loan balance prior to maturity. The outstanding amount of the intercompany loan as of June 30, 2026 was $63 million. The Company is evaluating repayment alternatives for the current loan agreement which would allow Kodak and its subsidiaries to perform their obligations to each other while minimizing the impact on U.S. liquidity taking into account requirements imposed by Chinese regulators. Any amounts repaid to the Chinese subsidiary may not be able to be loaned, repatriated or otherwise moved back to the U.S., in which case the Company’s U.S. liquidity would be reduced.
On March 11, 2026, the Company filed with the Department of Treasury of the State of New Jersey a Certificate of Amendment to the Series B Certificate of Designations which amended certain terms of the Company’s 4.0% Series B Preferred Stock (the “Series B Preferred Stock Amendment”) and set forth the terms of the Company’s 6.0% Series B Convertible Preferred Stock, no par value (the “6.0% Series B Preferred Stock”). The Series B Preferred Stock Amendment (i) extended the mandatory redemption date from May 28, 2026 to June 11, 2029, (ii) increased the annual cash dividend rate from 4.0% to 6.0% and (iii) reduced the conversion price from $10.50 to $10.00 per share and modified certain other conversion terms. The 6.0% Series B Preferred Stock is convertible into shares
of common stock; however, the timing and likelihood of such conversion are dependent on market conditions and other factors and is subject to certain restrictions whereby the Company would be required to pay cash in lieu of issuing shares in excess of a maximum number. The cash payment is determined based on the market value of the Company’s common stock as of the applicable conversion date.
On March 11, 2026, in connection with the Series B Preferred Stock Amendment, the Company and certain of its subsidiaries entered into the Fourth Amendment to the term loan credit agreement (the “Term Loan Amendment”), which amends the Company’s Amended and Restated Credit Agreement, dated as of June 30, 2023 (as amended, the “Term Loan Credit Agreement”). Under the Term Loan Credit Agreement, the term loan lenders provided the Company with a commitment to provide term loans in an aggregate principal amount of $450 million (the “Term Loans”). The Term Loan Amendment required the Company to prepay an aggregate principal amount of $100 million of Term Loans, consisting of a $50 million prepayment due on or prior to March 18, 2026 and $50 million prepayment due on or prior to June 1, 2026, in each case, plus a prepayment premium equal to one percent. On June 1, 2026, the Company and the term loan lenders entered into a Limited Waiver Agreement to the Term Loan Credit Agreement, which extended the due date for the second $50 million prepayment to be payable on or before July 1, 2026.
On March 13, 2026, the Company paid $50 million of the outstanding principal amount of the Term Loans, $1 million in accrued uncapitalized interest and a prepayment premium equal to one percent of the principal amount paid. The Company recorded a loss on early extinguishment of debt of approximately $1 million during the first quarter of 2026. On June 26, 2026, the Company paid $50 million of the outstanding principal amount of the Term Loans, $1 million in accrued uncapitalized interest and a prepayment premium equal to one percent of the principal amount paid. The Company recorded a loss on early extinguishment of debt of approximately $1 million during the second quarter of 2026. The Company funded these payments through a combination of cash proceeds from the redemption of KRIP investment assets and cash on hand.
Kodak's cash flows continue to be negatively impacted by higher manufacturing, labor, material and distribution costs, along with volume declines, supply chain disruptions and shortages in materials and labor. These impacts have been largely mitigated by price increases, savings relating to rationalization, cost reductions and operational efficiencies and supply chain-related cost improvements. In addition, the cash proceeds from the KRIP reversion, reduced cash interest payments due to the paydown of the Term loans, and additional cash proceeds expected from the redemption or other monetization of investment assets provides additional liquidity to the Company to adequately fund ongoing operations.
The economic uncertainties surrounding the current inflationary environment and other global events represent additional elements of complexity in Kodak’s plans to return to sustainable positive cash flow. The Company cannot predict the duration and scope of such events, including the impact of rising costs of labor, commodity and distribution costs and increased product costs from tariffs, geopolitical conflicts and other factors such as the Company's ability to continue to secure raw materials and components, the ability to increase prices to offset rising product costs or how quickly and to what extent normal economic and operating conditions can resume.
Kodak's plans to return to sustainable positive cash flow include generating profitable revenues through continued pricing actions and customer-focused initiatives, investing in new product innovation to drive growth in Kodak’s businesses of print and advanced materials and chemicals, implementing effective working capital utilization, reducing operating expenses, continuing to simplify the organizational structure, investing in IT systems to drive operational efficiencies, effectively managing world-wide cash through intercompany loans, distributions or other mechanisms, generating cash from selling and leasing underutilized assets or through new licensing opportunities and implementing ways to reduce cash collateral needs.
Kodak believes its liquidity position is adequate to fund operations, meet its obligations and provide the flexibility to respond as necessary to ordinary changes in the business and economic environment within twelve months as of the filing of this Form 10-Q.
Letter of Credit Facility Agreement
Approximately $24 million of letters of credit were issued under the Amended and Restated L/C Facility Agreement as of both June 30, 2026 and December 31, 2025. The letters of credit under the Amended and Restated L/C Facility Agreement are collateralized by cash collateral (the “L/C Cash Collateral”). The L/C Cash Collateral was $25 million at both June 30, 2026 and December 31, 2025, which was classified as Restricted Cash.
Cash Flow
Cash, cash equivalents and restricted cash balances were as follows:
Cash, cash equivalents and restricted cash
Cash Flow Activity
Year-Over-Year Change
Operating Activities
Net cash used in operating activities decreased by $5 million for the six months ended June 30, 2026 as compared with the corresponding period in 2025 primarily due to improved earnings ($34 million) and an increase in trade payables ($12 million). This was partially offset by an increase in inventory ($24 million), an increase in trade receivables ($3 million) and an increase in miscellaneous receivables ($9 million).
Investing Activities
Net cash provided by (used in) investing activities for the six months ended June 30, 2026 increased $97 million compared to the corresponding period in 2025 due to cash proceeds from the redemption of KRIP reversion investments ($87 million), proceeds from the sale of preferred equity investment ($2 million) and a decrease in capital expenditures ($13 million), partially offset by proceeds from the sale of assets in the prior year ($5 million).
Financing Activities
Net cash used in financing activities for the six months ended June 30, 2026 increased $102 million compared to the corresponding period in 2025 primarily driven by the $101 million prepayment of the Term Loans.
Other Collateral Requirements
The NYS WCB requires security deposits related to self-insured workers’ compensation obligations, which security deposits are recalculated annually. Effective May 1, 2023, the Company added New York to its existing workers compensation liability insurance policy and is no longer self-insured for future claims; as a result, the NYS WCB confirmed the Company will no longer be obligated to post any additional collateral. On July 1, 2025, the Company submitted a current actuarial report to the NYS WCB and requested a review of the collateral requirements; the NYS WCB confirmed no change in the collateral was required at that time.
Based on the legacy nature of the Company’s workers’ compensation obligations, the undiscounted actuarial obligation has been declining and the Company expects this trend to continue. While it may not be indicative of the rate of future declines, the undiscounted actuarial liability declined by an average of $5 million per year between 2014 and 2025. Accordingly, subject to the possibility of other changes to the calculation of required security deposits by the NYS WCB, the Company expects the amount of the required security deposits to decline over time and the gradual return of the security deposits that have previously been made or the capital used to support such security deposits.
As of June 30, 2026, the Company had $50 million of surety bonds and $25 million deposited directly with the NYS WCB supporting the associated liability. The surety bonds are collateralized with $32 million of cash and the Company could be required to provide up to $18 million of cash or letters of credit to the issuers of certain surety bonds in the future to fully collateralize the bonds.
Other Uses of Cash Related to Financing Transactions
The holders of the Term Loans are entitled to quarterly cash interest payments at a rate of 12.5% which can be paid fully in cash or paid at a rate of 7.5% per annum in cash and 5.0% per annum payable in kind ("PIK") at the Company’s option (or entirely in PIK through the October 1, 2026 interest payment date). As a result of the Series B Preferred Stock Amendment, the holders are now entitled to cumulative dividends payable quarterly in cash at a rate of 6.0% per annum. All interest and dividends have been paid when due in cash.
Defined Benefit Pension and Postretirement Plans
Kodak made net contributions (funded plans) or paid benefits (unfunded plans) totaling approximately $5 million to its non-U.S. defined benefit pension and postretirement benefit plans for the six months ended June 30, 2026. For the balance of 2026, the forecasted contribution (funded plans) and benefit payment (unfunded plans) requirements for its pension and postretirement plans are approximately $5 million.
Capital Expenditures
Cash flows from investing activities included $11 million of capital expenditures for the six months ended June 30, 2026. Kodak expects approximately $40 million to $45 million of total capital expenditures for 2026.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
Preparation of the Company’s Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. The accounting policies most critical to the preparation of the consolidated financial statements and that require the most difficult, subjective or complex judgments are described in Management's Discussion and Analysis of Financial Condition and Results of Operations included in the 2025 Form 10-K. There have been no material changes in the Company's critical accounting policies or estimates since December 31, 2025.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
As noted in the 2025 Form 10-K, Kodak operates and conducts business in many foreign countries and as a result is exposed to fluctuations between the U.S. dollar and other currencies. Volatility in the global financial markets could increase the volatility of foreign currency exchange rates which would, in turn, impact sales and net income. For a discussion of the Company's exposure to market risk and how market risk is mitigated, refer to Part I, Item 1A "Risk Factors" and Part II, Item 7A, "Quantitative and Qualitative Disclosures About Market Risk", contained in the 2025 Form 10-K.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Kodak maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in Kodak’s reports filed or submitted under the Securities Exchange Act of 1934 (the “Exchange Act”) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including Kodak’s Executive Chairman and Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Kodak’s management, with the participation of Kodak’s Executive Chairman and Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of Kodak’s disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q and Kodak’s Executive Chairman and Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of the period covered by this Quarterly Report on Form 10-Q, Kodak’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) were effective.
Changes in Internal Control Over Financial Reporting
Kodak is in the process of a multi-year project to modernize and enhance the Company’s global information technology systems to improve and standardize business and financial processes and to increase the efficiency and effectiveness of financial planning and reporting. As the phased implementation occurs, it may result in changes to processes and procedures which may result in changes to internal controls over financial reporting. As such changes occur, Kodak evaluates whether they materially affect the Company’s internal controls over financial reporting.
There have been no changes identified in Kodak’s internal control over financial reporting that occurred during the most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, Kodak’s internal control over financial reporting.
Part II. OTHER INFORMATION
Item 1. Legal Proceedings
See Note 9, “Commitments and Contingencies” in the Notes to the Financial Statements included in Part I, Item 1, “Financial Statements” for information regarding certain legal proceedings in which Kodak is involved.
Item 1A. Risk Factors
See the Risk Factors set forth in Part I, Item 1A, "Risk Factors" of the 2025 Form 10-K for a detailed discussion of risk factors that could materially affect Kodak’s business, financial condition and results of operations.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
None.
Total Number
Maximum Number
of Shares
Purchased as
That May Yet
Average
Part of Publicly
Be Purchased
Price Paid
Announced Plans
under the Plans or
Purchased (1)
per Share
or Programs (2)
Programs (2)
April 1 through 30, 2026
6,144
9.46
N/A
May 1 through 31, 2026
108,439
9.70
June 1 through 30, 2026
114,583
9.69
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
(c) Rule 10b5-1 Trading Plans
Item 6. Exhibits
Eastman Kodak Company
Exhibit
Number
(3.1)
Second Amended and Restated Certificate of Incorporation of Eastman Kodak Company (Incorporated by reference to Exhibit 4.1 of the Company’s Registration Statement on Form S-8 as filed on September 3, 2013).
(3.2)
Certificate of Amendment to the Second Amended and Restated Certificate of Incorporation of Eastman Kodak Company. (Incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K as filed on November 16, 2016).
(3.3)
Certificate of Amendment to the Second Amended and Restated Certificate of Incorporation of Eastman Kodak Company (Incorporated by reference to Exhibit (3.1) of the Company’s Current Report on Form 8-K as filed on September 12, 2019).
(3.4)
Certificate of Amendment to the Second Amended and Restated Certificate of Incorporation of Eastman Kodak Company (Incorporated by reference to Exhibit (3.2) of the Company’s Current Report on Form 8-K as filed on September 12, 2019).
(3.5)
Certificate of Amendment to the Second Amended and Restated Certificate of Incorporation of Eastman Kodak Company (Incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K as filed on December 29, 2020).
(3.6)
Certificate of Amendment to the Second Amended and Restated Certificate of Incorporation of Eastman Kodak Company (Incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K as filed on March 1, 2021).
(3.7)
Certificate of Amendment to the Second Amended and Restated Certificate of Incorporation of Eastman Kodak Company (Incorporated by reference to Exhibit 3.2 of the Company’s Current Report on Form 8-K as filed on March 1, 2021).
(3.8)
Certificate of Amendment to the Second Amended and Restated Certificate of Incorporation of Eastman Kodak Company (Incorporated by reference to Exhibit 3.8 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 as filed on March 12, 2026).
(3.9)
Fourth Amended and Restated By-Laws of Eastman Kodak Company (Incorporated by reference to Exhibit (3.5) of the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020 as filed on May 12, 2020).
*(10.1)
Third Amendment to the Eastman Kodak Company 2013 Omnibus Incentive Plan, as amended and restated, filed herewith.
*(10.2)
Form of Enhanced Severance Agreement between the Company and certain of its named executive officers, filed herewith.
(31.1)
Certification signed by James V. Continenza, filed herewith.
(31.2)
Certification signed by David E. Bullwinkle, filed herewith.
(32.1)(1)
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, signed by James V. Continenza, furnished herewith.
(32.2)(1)
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 signed by David E. Bullwinkle, furnished herewith.
(101.INS)
Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the Inline XBRL document
(101.SCH)
Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents
(104)
Cover page formatted as Inline XBRL and contained in Exhibit 101
* Management contract or compensatory plan or arrangement.
(1)Furnished herewith. The certifications that accompany this Quarterly Report on Form 10‑Q are not deemed filed with the SEC and are not to be incorporated by reference into any filing of the Registrant under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of this Quarterly Report on Form 10‑Q), irrespective of any general incorporation language contained in such filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
(Registrant)
Date: August 4, 2026
/s/ Richard T. Michaels
Richard T. Michaels
Chief Accounting Officer and Corporate Controller
(Chief Accounting Officer and Authorized Signatory)