Kodak Swings to Q2 Profit on 18% Revenue Growth, Pays Down Debt

summarizeSummary

Kodak reported Q2 2026 net earnings of $17M on revenue of $311M, up 18% YoY, with strong margin improvement and a $50M debt paydown.

check_boxKey Events · Earnings and Guidance · KODK

• Q2 Revenue Up 18% to $311M

  Revenue increased $48M year-over-year, driven by higher pricing and volume in Print and Advanced Materials and Chemicals.

• Net Earnings of $17M vs. Loss of $26M

  Gross profit rose to $82M from $51M, and operating income swung to $15M from a $5M loss, reflecting improved pricing and cost controls.

• $50M Term Loan Repaid

  Kodak used cash from KRIP asset redemptions to pay down $50M of its 12.5% term loan, reducing long-term debt to $108M and cutting interest expense.

• Preferred Stock Derivative Liability at $40M

  The fair value of the embedded conversion option on the 6% Series B preferred stock increased to $40M, a non-cash charge driven by the higher share price.

auto_awesomeAnalysis · KODK · Industrial Applications And Services

A sharp operational turnaround defined Kodak's Q2 2026, with net earnings reaching $17 million versus a $26 million loss a year ago. Revenue climbed 18% to $311 million, fueled by robust pricing and volume gains across both Print and Advanced Materials and Chemicals. Gross margin expanded significantly, and the company channeled cash from KRIP asset redemptions into a $50 million paydown of high-cost term debt, which in turn reduced interest expense. The improved profitability and lighter debt load strengthen the balance sheet, though the embedded derivative liability on preferred stock grew to $40 million—a non-cash mark-to-market adjustment reflecting the higher share price. The filing also discloses an 8-million-share increase in the equity incentive plan, a modest potential dilution. Overall, the results show Kodak's core operations gaining momentum, but the preferred stock overhang and cash burn remain key risks.