Company might cease operations as it struggles with financial obligations; to use proceeds under the Kodak Retirement Income Plan to reduce debt; Q2 sees $4 million revenue dip
Global tech giant Eastman Kodak Company has warned investors that it might cease operations as the company struggles with financial obligations, following its second quarter disclosure regarding its going concern assessment. The Rochester, New York-headquartered company, cites the payoff of around $500 million in looming debt as the main cause.
Kodak’s plans to adequately fund its preferred stock and debt obligations when due are to use the proceeds upon settlement of obligations under the Kodak Retirement Income Plan, to reduce the amount of term debt and to amend, extend, or refinance its remaining debt and preferred stock obligations.
As these plans are not solely with Kodak’s control and are not deemed “probable” under US GAAP accounting rules, the conditions have raised substantial doubt about the company’s ability to continue as a going concern. As Kodak races to renegotiate its debts by next May, efforts to save the iconic company remains in the balance.
For the quarter ended 30 June 2025, revenues saw a $4 million dip to $263 million, compared to the same period in 2024. GAAP net loss was $26 million for the quarter, compared to net income of $26 million in 2024, a decrease of $52 million or 200%.
Operational EBITDA for the quarter ended 30 June 2025 was $9 million, compared to $12 million in 2024, a decrease of $3 million or 25%. The decrease in operational EBITDA was primarily driven by lower volumes and higher aluminium and manufacturing costs, partially offset by price increases and lower spend on investments in information technology systems, organisational structure, and costs associated with trade shows.
Kodak disclosed that its cash balance of $155 million saw a decrease of $46 million from 31 December 2024, primarily driven by capital expenditures to fund growth initiatives, changes in working capital, impact of higher costs, and lower profitability from operations.
Despite the odds, Executive Chairman and CEO Jim Continenza says, “In the second quarter, Kodak continued to make progress against our long-term plan despite the challenges of an uncertain business environment. While tariffs did not have a material impact on our business in Q2, we are assessing the potential impact of new tariffs going forward.
“The company manufactures a wide range of products including lithographic printing plates, photographic and industrial films, inkjet presses and inks, and pharmaceutical key starting ingredients, and tariffs instituted by the US government are designed to protect American businesses.”
“During the second quarter, Kodak continued its focus on improving the efficiency of our operations and investing in growth initiatives in our AM&C group,” says David Bullwinkle, Kodak’s Chief Financial Officer and Senior Vice President. “Revenue for the quarter was roughly flat year over year, which was in line with expectations, and we continued to see revenue growth in our AM&C business.
“The termination of our Kodak Retirement Income Plan and subsequent reversion of excess funds to pay down debt is progressing as planned. We expect to have a clear understanding by 15 August of how we will satisfy our obligations to all plan participants, and we anticipate completing the reversion by December of 2025. For the second half of the year, we will continue to focus on reducing costs today and converting our investments into long-term growth.”
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