Eastman Kodak Q1 Earnings Call Highlights

Key Points

• Eastman Kodak posted stronger operating results in Q1 2026, with revenue rising 7% year over year to $265 million and operational EBITDA jumping to $15 million from $2 million. Gross margin also improved to 22% from 19% as pricing gains helped offset higher manufacturing and commodity costs.
• Despite the operating improvement, Kodak reported a GAAP net loss of $16 million, wider than last year, largely due to a $12 million fair-value loss tied to its Series B preferred stock derivative and lower pension income. The company also benefited from an $8 million reduction in interest expense.
• Management said growth came from both Print and Advanced Materials & Chemicals, with commercial print revenue up 9% and AM&C revenue up 3%. Kodak also highlighted continued investment in film, new pharma manufacturing capabilities, and a stronger balance sheet after a $50 million debt payment and improved net debt position.

Eastman Kodak NYSE: KODK reported higher first-quarter revenue and operational EBITDA for 2026, with management pointing to growth in its print and advanced materials businesses and continued progress in strengthening the company’s balance sheet.

On the company’s earnings call, Executive Chairman and Chief Executive Officer Jim Continenza described the quarter as “a story of consistency, stability, and growth,” saying Kodak’s results reflected its transformation over the past seven years, continued investment in the business and a focus on execution.

Kodak reported consolidated revenue of $265 million for the quarter, up 7% from $247 million in the first quarter of 2025. On a constant currency basis, revenue increased 4%, according to Chief Financial Officer and Senior Vice President David Bullwinkle. Gross profit rose to $57 million, up $11 million, or 24%, from the prior-year quarter. Gross margin improved to 22% from 19% a year earlier.

Operational EBITDA was $15 million, compared with $2 million in the first quarter of 2025. Bullwinkle said the increase was primarily driven by improved pricing, partially offset by higher manufacturing costs and higher silver and aluminum prices.

GAAP Loss Widened on Non-Operational Items

Despite the improvement in operating metrics, Kodak reported a GAAP net loss of $16 million for the quarter, compared with a GAAP net loss of $7 million in the prior-year period.

Bullwinkle attributed $12 million of the loss to a change in the fair value of an embedded derivative related to Kodak’s Series B preferred stock. He said the accounting impact resulted from a previously announced amendment to the Series B agreement, with the change in fair value primarily caused by the increase in Kodak’s stock price during the quarter.

The company also recorded $5 million in stock-based compensation expense, which Bullwinkle described as non-cash and not affecting liquidity. Kodak recognized $4 million in non-cash pension income, down $18 million from the prior-year quarter, due to the termination of the KRIP pension plan in the fourth quarter of 2025. Bullwinkle said Kodak expects pension income to be lower year over year in each quarter of 2026.

Partially offsetting those items was an $8 million year-over-year reduction in interest expense, mainly tied to term loan repayments following the pension plan termination and reversion.

Print and Advanced Materials Both Contributed to Growth

Kodak said revenue increased in both of its key businesses, Print and Advanced Materials and Chemicals, or AM&C.

In AM&C, revenue rose by $2 million, or 3%. Continenza said the increase was driven by a $3 million gain in film and chemicals, partially offset by a $1 million decline in inks and consumables.

Continenza highlighted Kodak’s ongoing investment in film, saying the company is beginning to see results. He said Kodak recently launched a professional still film sold directly to distributors, with the goal of stabilizing the market and meeting demand. He also pointed to continued growth in motion picture film, including the launch of KODAK VERITA 200D, which he said was used in “Euphoria” Season 3.

Continenza said several films, including “One Battle After Another” and “Sinners,” were shot on Kodak film, and that Christopher Nolan’s “The Odyssey” is also being shot on Kodak film. “We remain committed to film and maintaining supply for our customers,” he said.

In the company’s pharmaceutical-related operations, Continenza said Kodak’s new cGMP pharmaceutical manufacturing facility is up and running. He also said Kodak recently opened the Kodak Advanced Electrophysiology Lab in partnership with SUNY Geneseo, which he said will enhance research capabilities and support future product development. Kodak continues to work toward obtaining Class II certification to manufacture more complex, higher-margin products in the United States, he said.

Print Revenue Rose Despite Supply and Cost Pressures

Continenza said Kodak’s commercial print revenue increased by 9% during the quarter, despite challenges including aluminum supply issues, delivery and logistics constraints, and higher raw material costs.

“Prices have increased greatly on raw materials such as aluminum, but yet we’re still able to maintain our revenue and supply our customers,” Continenza said.

He also noted that Kodak recently launched the SONORA UltraXR Plate in Europe, expanding its SONORA Ultra portfolio. Continenza said Kodak remains focused on commercial print while continuing to invest in innovation.

Cash Declined, But Debt Position Improved

Kodak ended the quarter with $299 million in unrestricted cash, down $38 million from Dec. 31, 2025. Bullwinkle said Kodak received $46 million in cash proceeds during the quarter from the redemption of hedge fund investments related to the KRIP pension reversion.

Working capital was affected by a $38 million increase in inventory, including $35 million within the AM&C segment. Bullwinkle said the increase was largely driven by the average commodity cost of silver more than doubling from year-end, as well as higher silver volumes carried on the balance sheet due to supply terms. Inventory also increased as Kodak built ahead of a planned second-quarter plant shutdown for maintenance.

Accounts payable increased by $9 million and accounts receivable decreased by $9 million, partially offsetting the inventory increase.

Kodak also made a $50 million principal payment on higher-rate term loans in March, as required under a term loan amendment. Bullwinkle said the payment was funded primarily by KRIP investment asset redemptions and would reduce future interest expense.

As of March 31, 2026, Kodak’s net debt positive position increased to $139 million from $128 million at the end of 2025. Bullwinkle said the company’s balance sheet is “stronger than it’s been in many, many years,” noting that Kodak has remained net debt positive for two consecutive quarters.

Continenza closed the call by saying Kodak will continue to focus on manufacturing, selling and service while investing in AM&C and print. The company did not hold a formal question-and-answer session.

About Eastman Kodak NYSE: KODK

Eastman Kodak Company NYSE: KODK is a global technology firm specializing in imaging, printing and advanced materials. The company offers a wide array of products and services that enable customers to create, manage and share visual content across traditional and digital platforms. Its core offerings include graphic communications solutions, enterprise inkjet systems, packaging technologies, functional printing and micro 3D printing systems.

Kodak's graphic communications segment serves commercial printers, packaging converters and publishing houses with offset plates, digital presses, workflow software and services designed to streamline production.

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