Shares of Eastman Kodak Company (KODK Quick QuoteKODK - Free Report) have come under significant pressure following the release of its second-quarter 2025 results. Since the earnings announcement on Aug. 11, the stock has declined 16.9%, sharply underperforming the S&P 500’s 1% gain over the same period. The weakness extends to a one-month view as well, with Kodak down 12% compared to a 2.6% gain for the benchmark index, highlighting sustained investor concerns about the company’s outlook.

Kodak reported second-quarter 2025 revenues of $263 million, down 1% from $267 million in the year-ago period. On a constant-currency basis, revenues fell 3%. The gross profit slipped 12% year over year to $51 million, with the gross margin compressing to 19% from 22%. The company swung from net income of $26 million in the prior-year quarter to a net loss of $26 million this time — a $52 million deterioration.

On a per-share basis, Kodak lost 36 cents compared to earnings of 25 cents per share last year. Operational EBITDA also weakened, dropping 25% to $9 million or 33% on a constant-currency basis. Management attributed the decline primarily to lower volumes and higher aluminum and manufacturing costs, partially offset by price increases.

Eastman Kodak Company Price, Consensus and EPS Surprise

Eastman Kodak Company price-consensus-eps-surprise-chart | Eastman Kodak Company Quote

Other Key Business Metrics of KODK

Segment performance was mixed. The Print division, still Kodak’s largest, posted revenues of $178 million, down $8 million from the prior year, and swung to an operational EBITDA loss of $4 million against breakeven in the second quarter of 2024. In contrast, the Advanced Materials & Chemicals (AM&C) unit delivered growth, with revenues rising 3% to $75 million and operational EBITDA holding steady at $8 million. The Brand segment also improved modestly, with revenues of $6 million and operational EBITDA of $5 million compared to $4 million a year earlier.

The company ended the quarter with a cash balance of $155 million, down from $201 million at the end of 2024, reflecting continued investments in growth initiatives and higher operating costs. Cash used in operating activities for the first half of 2025 amounted to $30 million against $10 million in cash provided during the year-ago period.

Kodak: Management Commentary

Executive Chairman and CEO Jim Continenza emphasized Kodak’s commitment to U.S. manufacturing, noting the company produces lithographic printing plates, motion picture film, inkjet presses, inks and chemicals domestically. He highlighted the AM&C business as a key growth driver, with its pharmaceutical manufacturing facility in Rochester, NY, now FDA-registered and certified to produce regulated products. The facility’s initial output will include phosphate-buffered saline for laboratories, with the long-term goal of producing injectables such as IV saline. Continenza also reiterated support for U.S. tariffs, provided they benefit domestic manufacturers.

CFO David Bullwinkle underlined cost-control measures and pointed out that revenue trends were broadly in line with expectations. He also noted a significant improvement in cash usage in the second quarter compared to the first, reflecting tighter expense management.

Factors Influencing KODK’s Headline Numbers

Kodak’s revenue stability masked underlying challenges. The decline in profitability was driven mainly by lower print volumes and sharply higher aluminum and manufacturing costs. Pension income also dropped by $25 million year over year owing to strategic changes in the company’s pension plan, exacerbating the net loss. On the positive side, price increases across product categories and reduced spending on IT, organizational restructuring and trade shows helped cushion the impact.

Guidance by Kodak

Management outlined strategic priorities for the second half of 2025. These include reducing costs, advancing AM&C growth initiatives and leveraging proceeds from the expected termination of the Kodak Retirement Income Plan (“KRIP”) to pay down debt. However, management cautioned that U.S. GAAP accounting rules required it to disclose “substantial doubt” about Kodak’s ability to continue as a going concern, given that the planned debt reduction and refinancing measures are not fully within the company’s control.

Other Developments at KODK

During the quarter, Kodak made progress on several restructuring and financing fronts. The KRIP termination process is underway, with management estimating that approximately $500 million of excess assets will revert to the company by December 2025, of which $300 million will be in cash. These funds are earmarked primarily for debt reduction.

In addition, on Aug. 8, 2025, the company exchanged its $100 million Series C preferred stock held by Grand Oaks Capital into common shares, eliminating both the redemption obligation and $24 million of accrued dividends. This move strengthens Kodak’s balance sheet ahead of significant 2026 maturities. The company also entered into an at-the-market equity offering program with BofA Securities for up to $100 million, though no shares have been sold to date.

Overall, Kodak’s second-quarter results underscored ongoing structural challenges. While revenue declines were modest, profitability fell sharply due to cost inflation and reduced pension income, and liquidity pressures remain evident. Management continues to push forward with its AM&C growth strategy and debt reduction plans, but investor skepticism has grown, as reflected in the steep stock decline following the results.