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Item 2 — Management's Discussion and Analysis
Eastman Kodak Company · 10-Q · Q2 FY2026 · Period ended Jun 30, 2026
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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:
•Kodak’s ability to improve and sustain its operating structure, cash flow, profitability and other financial results;
•Kodak’s ability to achieve strategic objectives, cash forecasts, financial projections, and projected growth;
•Kodak’s ability to achieve the financial and operational results contained in its business plans;
•Changes in commodity prices, tariff rates, foreign currency exchange rates and interest rates;
•The impact of the global economic environment, including geopolitical issues, inflationary pressures, changes in trade policies, including tariffs or other trade restrictions or the threat of such actions, medical epidemics and Kodak’s ability to effectively mitigate or recoup any associated increased costs of aluminum, silver and other raw materials, energy, labor, shipping, delays in shipment and production time and manage any associated fluctuations in demand;
•Kodak’s ability to obtain additional or alternate financing if and as needed, Kodak’s continued ability to manage world-wide cash through intercompany loans, distributions and other mechanisms, and Kodak’s ability to provide or facilitate financing for its customers;
•Kodak’s ability to fund continued investments, capital needs and collateral requirements and service its debt and Series B Preferred Stock;
•Kodak’s ability to effectively compete with large, well-financed industry participants or with competitors whose cost structure is lower than Kodak’s;
•The performance by third parties of their obligations to supply products, components or services to Kodak and Kodak’s ability to address supply chain disruptions and continue to obtain raw materials and components available from single or limited sources of supply, which may be adversely affected by geopolitical issues, changes in trade policies, including tariffs or other trade restrictions or the threat of such actions, intellectual property rights and commodity supply constraints;
•Kodak’s ability to effectively anticipate technology and industry trends, including related to AI, and develop and market new products, solutions and technologies, including products based on its technology and expertise that relate to industries in which it does not currently conduct material business;
•Kodak’s ability to effect strategic transactions, such as investments, acquisitions, strategic alliances, divestitures and similar transactions, or to achieve the benefits sought to be achieved from such strategic transactions;
•Kodak’s ability to comply with the covenants in its various credit facilities;
•Kodak’s continued ability to manage, defend and resolve a variety of current and legacy claims without incurring material losses or disruptions to its business and to bear the costs associated with such claims;
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•Kodak’s ability to discontinue, sell or spin-off certain non-core businesses or operations, or otherwise monetize assets; and
•The potential impact of force majeure events, cyber‐attacks or other data security incidents or IT outages that could disrupt or otherwise harm Kodak’s operations.
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.
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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:
•Be a global leader in targeted Print segments by leveraging Kodak’s key strengths in plates and high-speed inkjet, including proprietary technologies that enable customers to improve productivity, cost efficiency and sustainability;
•Continue investing in Advanced Materials and Chemicals to drive innovation in Kodak’s highest-growth segment by applying the Company’s deep expertise in chemicals, layering and coating, and materials science to existing and new opportunities;
•Continue to expand the Company’s Brand Licensing business;
•Scale and streamline operations through automation, systems and process improvements to enable Kodak to monetize opportunities quickly and efficiently;
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•Consider targeted opportunities to expand Kodak’s existing portfolio, support and accelerate R&D efforts, increase utilization of Kodak’s asset base, and drive long-term growth; and
•Continue working to unlock stranded value within the Company by utilizing existing infrastructure, intellectual property and technical capabilities in industrial manufacturing growth markets.
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:
•Print remains a core area of focus in which Kodak seeks to be a global leader in targeted segments by leveraging its key strengths in both traditional and digital print.
oIn traditional print, Kodak’s plate products include KODAK SONORA Process Free Plates and traditional wet plates. SONORA Process Free Plates allow Kodak customers to skip the traditional plate processing step which streamlines the workflow and saves time and costs for customers. SONORA Process Free Plates also reduce the environmental impact of the printing process because they eliminate the use of chemicals (including solvents), water and power that is otherwise required to process a traditional plate. Kodak continues to innovate in the process-free segment, introducing KODAK SONORA UltraXR Plates in May 2026 in the European market only. The Company’s plates business is experiencing challenges from higher prices and availability of raw materials, digital substitution and competitive pricing pressures. Kodak seeks to mitigate the impact of increases in manufacturing costs through a combination of pricing actions, improved production efficiency, cost reduction initiatives and government tariffs that establish a level playing field.
oIn the digital printing business, Kodak is investing in high-speed inkjet solutions that leverage the company’s proprietary continuous inkjet technology. The PROSPER Inkjet Systems product offerings are expected to grow and continue to build profitability. Kodak launched the industry’s fastest inkjet press, the PROSPER 7000 Turbo Press, in June 2022. The PROSPER 7000 Turbo Press enables commercial, publishing and newspaper printers to compete more effectively with offset and to shift more long-run jobs from conventional printing processes to inkjet. The KODAK PROSPER ULTRA 520 Digital Press, which utilizes Kodak's next-generation ULTRASTREAM inkjet technology, offers offset print quality in a smaller footprint. In addition, Kodak inkjet imprinting system components can be integrated with analog offset, flexographic, and gravure printing and finishing equipment as hybrid digital/analog solutions that offer high quality, high-speed variable capabilities.
•Advanced Materials and Chemicals is an area of growth for the Company. Kodak is using its deep expertise in chemistry and strengths in layering and coating processes created by decades of experience in film manufacturing to pursue existing and new initiatives including:
oFilm – Kodak has grown the film segment by investing in product innovation and significantly increasing manufacturing capacity. In the fourth quarter of 2025, Kodak launched its own direct-to-distributors line of still films which aim to provide distributors, retailers and consumers with more stable pricing and a broader, more reliable supply. In addition, Kodak announced the availability of KODAK VERITA 200D Color Negative Motion Picture Film (5206/7206), a new specialty film stock that expands the Company's motion picture portfolio and reinforces Kodak’s long-standing leadership in film. The Company is committed to providing film to customers to help meet market demand.
oEV/Energy Storage Battery Material Manufacturing – Coating of substrates is a critical aspect of manufacturing materials for batteries and Kodak plans to capitalize on its expertise in coating technology to develop opportunities in this area. Kodak utilizes its pilot coating facility to conduct development of coated electrodes for a variety of battery, fuel cell, and solar film companies as well as low volume manufacturing of electrodes. Kodak has utilized an existing production coating facility to manufacture coated substrates for EV cell assembly. Investment in this production facility began in 2025 and will continue into 2026 to expand capabilities and capacity to enable greater volume.
oPharmaceuticals Manufacturing – Kodak completed construction of its Current Good Manufacturing Practice (“cGMP”) lab and manufacturing facility at Eastman Business Park (”EBP”) in 2025 and is now certified to manufacture unregulated and regulated reagents for certain healthcare applications. Kodak plans to expand the product offering over time and is in the process of obtaining ISO 13458 and FDA Class II certification for its manufacturing facility.
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oAdditional nascent growth initiatives – Kodak plans to leverage its proprietary copper micro-wire technologies and high-resolution printing expertise to contract-manufacture custom transparent antennas for automotive, commercial construction, and other applications requiring excellent radio frequency (“RF”) and optical performance. Kodak is also evaluating this unique technology and expertise for transparent heaters in automotive and telecom applications, as well as for the manufacture of electronic films for the medical device market. In addition, the Company is leveraging a proprietary technology initially developed for electrophotographic toners to develop a product designed to offer superior light management, from complete blackout to selective light filtering that is compatible with an unmatched range of fabrics and also to manage ultraviolet and/or infrared light in addition to visible light.
RESULTS OF OPERATIONS
2026 COMPARED TO 2025
SECOND QUARTER RESULTS OF OPERATIONS
Three Months Ended June 30, Six Months Ended June 30,
% of % of % of % of
(dollars in millions) 2026 Sales 2025 Sales $ Change 2026 Sales 2025 Sales $ Change
Revenues $ 311 $ 263 $ 48 $ 576 $ 510 $ 66
Cost of revenues 229 212 17 437 413 24
Gross profit 82 26 % 51 19 % 31 139 24 % 97 19 % 42
Selling, general and administrative expenses 53 17 % 41 16 % 12 101 18 % 86 17 % 15
Research and development costs 9 3 % 9 3 % — 17 3 % 18 4 % (1 )
Restructuring costs and other 1 0 % 6 2 % (5 ) 1 0 % 11 2 % (10 )
Other operating expense, net 4 1 % — 0 % 4 6 1 % — 0 % 6
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 % (5 ) (2 )% 20 14 2 % (18 ) (4 )% 32
Interest expense 6 2 % 15 6 % (9 ) 12 2 % 29 6 % (17 )
Pension income excluding service cost component (5 ) (2 )% (16 ) (6 )% 11 (9 ) (2 )% (38 ) (7 )% 29
Loss on early extinguishment of debt 1 0 % — 0 % 1 2 0 % — 0 % 2
Other (income) charges, net (8 ) (3 )% 20 8 % (28 ) 1 0 % 20 4 % (19 )
Earnings (loss) from operations before income taxes 21 7 % (24 ) (9 )% 45 8 1 % (29 ) (6 )% 37
Provision for income taxes 4 1 % 2 1 % 2 7 1 % 4 1 % 3
NET EARNINGS (LOSS) $ 17 5 % $ (26 ) (10 )% $ 43 $ 1 0 % $ (33 ) (6 )% $ 34
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.
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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
Current Quarter
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.
Year-to-Date
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
Current Quarter
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.
Year-to-Date
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.
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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 EBP and do not meet the criteria of a reportable segment, are reported in All Other revenues and All Other.
Segment Revenues
Three Months Ended Six Months Ended
June 30, June 30,
(in millions) 2026 2025 2026 2025
Print $ 195 $ 178 $ 375 $ 343
Advanced Materials and Chemicals 105 75 181 149
Brand 7 6 13 10
Total of reportable segments 307 259 569 502
All Other revenues 4 4 7 8
Consolidated total $ 311 $ 263 $ 576 $ 510
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
Three Months Ended Six Months Ended
June 30, June 30,
(in millions) 2026 2025 2026 2025
Print $ 8 $ (4 ) $ 11 $ (13 )
Advanced Materials and Chemicals 22 8 29 15
Brand 6 5 11 9
All other 1 — (1 ) —
Depreciation and amortization (6 ) (7 ) (13 ) (14 )
Restructuring costs and other (1 ) (6 ) (1 ) (11 )
Stock based compensation (9 ) (1 ) (14 ) (3 )
Consulting and other costs (1) — 1 1 1
Idle costs (2) (2 ) (1 ) (3 ) (2 )
Other operating expense, net (3) (4 ) — (6 ) —
Interest expense (3) (6 ) (15 ) (12 ) (29 )
Pension income excluding service cost component (3) 5 16 9 38
Loss on early extinguishment of debt (3) (1 ) — (2 ) —
Other income (charges), net (3) 8 (20 ) (1 ) (20 )
Consolidated earnings (loss) from operations before income taxes $ 21 $ (24 ) $ 8 $ (29 )
(1)Consulting and other costs are professional services and internal costs associated with corporate strategic initiatives and litigation. Consulting and other costs included $1 million of income in the six months ended June 30, 2026 and the three
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and six months ended June 30, 2025, representing insurance reimbursement of legal costs previously paid by the Company associated with investigations and litigation matters.
(2)Consists of third-party costs such as security, maintenance and utilities required to maintain land and buildings in certain locations not used in any Kodak operations and the costs, net of any rental income received, of underutilized portions of certain properties.
(3)As reported in the Consolidated Statement of Operations.
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.
PRINT SEGMENT
Three Months Ended June 30, Six Months Ended June 30,
(dollars in millions) 2026 2025 $ Change 2026 2025 $ Change
Revenues $ 195 $ 178 $ 17 $ 375 $ 343 $ 32
Operational EBITDA $ 8 $ (4 ) $ 12 $ 11 $ (13 ) $ 24
Operational EBITDA as a % of revenues 4 % (2 )% 3 % (4 )%
Revenues
Current Quarter
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).
Year-to-Date
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).
Operational EBITDA
Current Quarter
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).
Year-to-Date
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).
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ADVANCED MATERIALS AND CHEMICALS SEGMENT
Three Months Ended June 30, Six Months Ended June 30,
(dollars in millions) 2026 2025 $ Change 2026 2025 $ Change
Revenues $ 105 $ 75 $ 30 $ 181 $ 149 $ 32
Operational EBITDA $ 22 $ 8 $ 14 $ 29 $ 15 $ 14
Operational EBITDA as a % of revenues 21 % 11 % 16 % 10 %
Revenues
Current Quarter
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).
Year-to-Date
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).
Operational EBITDA
Current Quarter
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).
Year-to-Date
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
Three Months Ended June 30, Six Months Ended June 30,
(dollars in millions) 2026 2025 $ Change 2026 2025 $ Change
Revenues $ 7 $ 6 $ 1 $ 13 $ 10 $ 3
Operational EBITDA $ 6 $ 5 $ 1 $ 11 $ 9 $ 2
Operational EBITDA as a % of revenues 86 % 83 % 85 % 90 %
Revenues
Brand revenues for the three and six months ended June 30, 2026 increased $1 million and $3 million, respectively, due to higher volumes.
Operational EBITDA
Brand Operational EBITDA for the three and six months ended June 30, 2026 increased $1 million and $2 million, respectively, due to higher volumes.
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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
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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.
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Cash Flow
Cash, cash equivalents and restricted cash balances were as follows:
June 30, December 31,
(in millions) 2026 2025
Cash, cash equivalents and restricted cash $ 388 $ 442
Cash Flow Activity
Six Months Ended
June 30,
(in millions) 2026 2025 Year-Over-Year Change
Cash flows from operating activities:
Net cash used in operating activities $ (25 ) $ (30 ) $ 5
Cash flows from investing activities:
Net cash provided by (used in) investing activities 78 (19 ) 97
Cash flows from financing activities:
Net cash used in financing activities (106 ) (4 ) (102 )
Effect of exchange rate changes on cash, cash equivalents and restricted cash (1 ) 5 (6 )
Net decrease in cash, cash equivalents and restricted cash $ (54 ) $ (48 ) $ (6 )
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.
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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.
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