Kodak faces financial difficulties once more, yet maintains optimism about the upcoming periods.
In a recent financial report, photography giant Eastman Kodak has revealed that it is experiencing financial difficulties, including a significant net loss and declining gross profit. However, the company has emphasised that it has no immediate plans to cease operations or file for bankruptcy.
Kodak, the 133-year-old photography brand, declared bankruptcy in 2012 and created a spin-off company, Kodak Alaris. Eastman Kodak now focuses on commercial printing, motion picture films, and chemicals, while Kodak Alaris owns the rights to the brand's still photography films and markets and distributes the film.
The company's second quarter results showed a gross profit of $51 million, which is a 12% decrease compared to the same quarter the previous year. This decline in profits, coupled with a net loss of $26 million in Q2 2025, has raised concerns about Kodak's financial stability.
Despite these challenges, Kodak is taking steps to address its financial situation. The company plans to terminate its U.S. pension plan, which is expected to free up approximately $300 million in cash in December 2025. This cash will be used to repay a significant portion of its term debt, which totals about $477 million. Kodak also aims to amend, extend, or refinance its remaining debt and preferred stock obligations to avoid default.
Kodak Executive Chairman and CEO Jim Continenza stated that the company is committed to U.S. manufacturing. In fact, the company's New York film production facility paused operations late last year to upgrade equipment.
The 'going concern' language in Kodak's 10-Q is required disclosure due to its debt coming due within 12 months. Kodak's debt comes due within 12 months, and there is no committed financing or available liquidity to meet these debt obligations. However, the company is confident in its ability to meet these financial obligations through the measures it is taking.
It's important to note that Kodak has faced a loss of 23% of its operating funds since December. Despite this, the company has managed to stay operational, and its stocks have not been negatively affected by tariffs so far.
In summary, while Eastman Kodak is facing financial strain, it is not currently at imminent risk of shutting down due to planned debt restructuring and pension fund liquidation to bolster its cash position. The company remains operational and focused on stabilising its financial footing by the end of 2025.
Hillary K. Grigonis, with over a decade of experience writing about cameras and technology, leads the US coverage for Digital Camera World. Grigonis provides insightful information about the best film cameras and 35mm film in her articles.
[1] Eastman Kodak Company, Form 10-Q, U.S. Securities and Exchange Commission, 2025. [2] Eastman Kodak Company, Second Quarter 2025 Earnings Release, PR Newswire, 2025. [3] Eastman Kodak Company, Second Quarter 2025 Earnings Conference Call, PR Newswire, 2025. [4] Eastman Kodak Company, 2025 Corporate Presentation, Eastman Kodak Company, 2025. [5] Eastman Kodak Company, 8-K, U.S. Securities and Exchange Commission, 2025.
- Despite facing financial difficulties, Kodak has no immediate plans to cease operations or file for bankruptcy.
- Kodak's net loss in Q2 2025 was $26 million, highlighting one of the challenges the company is facing.
- In an effort to address its financial situation, Kodak plans to terminate its U.S. pension plan, which could free up approximately $300 million in cash.
- Kodak aims to amend, extend, or refinance its remaining debt and preferred stock obligations to avoid default.
- Jim Continenza, Kodak's Executive Chairman and CEO, emphasized the company's commitment to U.S. manufacturing.
- Hillary K. Grigonis, a technology journalist with extensive camera expertise, covers the US market for Digital Camera World, providing insights on the best film cameras and 35mm film.
- The financial situation of Kodak is a topic of interest in the news, finance, and technology sectors, with various reports and earnings releases available for review.
