Despite Mainstream Media Reports, 133-Year-Old Kodak Plans to Remain a ‘Going Concern’

One of America’s most iconic brands has been making headlines worldwide this week following a recent 10-Q financial filing that warns it currently lacks the cash as a “going concern” to pay its more than $470 million in term loan and outstanding preferred stock obligations that will come due in 12 months. Calling the 10-Q warning assessment an accounting requirement that doesn’t paint an accurate picture of the company’s financial outlook, Rochester, New York-based Kodak contends its planned actions will ultimately create a stronger balance sheet.

The “going concern” language in Kodak’s 10-Q was essentially a required disclosure because Kodak’s debt comes due within 12 months of the filing. Kodak is confident it will be able to pay off a significant portion of its term loan well before it becomes due, and amend, extend, or refinance its remaining debt and/or preferred stock obligations, a Kodak spokesperson told Printing Impressions.

“To fund the repayment, we plan to draw on the approximately $300 million in cash we expect to receive from the reversion and settlement of our U.S. pension fund (the Kodak Retirement Income Plan, or “KRIP”) in December,” the spokesperson explained. “However, the KRIP reversion is not solely within Kodak’s control and therefore is not deemed ‘probable’ under U.S. GAAP accounting rules, which is what triggered the ‘going concern.’ Once the KRIP reversion is completed Kodak will be virtually net debt free and will have a stronger balance sheet than we have had in years.”

To fund the repayment, Kodak plans to draw on the approximately $300 million in cash it expects to receive from the reversion of its U.S. pension fund in December, after all obligations to plan participants have been met. However, the KRIP reversion is not solely within Kodak’s control and therefore is not deemed “probable” under U.S. GAAP accounting rules. That is the technicality which triggered the going concern.

Last year Kodak indicated it would end its retirement income plan to pay down debt. Kodak Chief Financial Officer David Bullwinkle said in a statement on Monday that the company expects to know by Friday, Aug. 16, how it will satisfy its obligations to pay all pension plan participants and foresees completing the reversion by December.

Kodak filed for bankruptcy protection in 2012 amid the continued decline of consumer cameras and film and re-emerged the following year as a smaller company more focused on the commercial and package printing markets.

Kodak Reports Q2 Sales Decline

For the quarter ended June 30, 2025, Kodak’s revenues were $263 million, a decrease of $4 million or 1 percent compared to the same period in 2024. Adjusting for the favorable impact of foreign exchange of $5 million, revenues decreased by $9 million, or 3 percent when compared to the prior year.

Additional second quarter 2025 highlights include:

• Gross profit of $51 million, compared with $58 million for Q2 2024, a decrease of $7 million or 12 percent;
• Gross profit percentage of 19 percent, compared with 22 percent for Q2 2024, a decrease of 3 percentage points;
• GAAP net loss of $26 million, compared with net income of $26 million for Q2 2024, a decrease of $52 million or 200 percent;
• Operational EBITDA of $9 million, compared with $12 million for Q2 2024, a decrease of $3 million or 25 percent; and
• A quarter-end cash balance of $155 million, compared with $201 million on December 31, 2024, a decrease of $46 million; cash flow from operations decreased by $40 million from the prior-year period.

"In the second quarter, Kodak continued to make progress against our long-term plan despite the challenges of an uncertain business environment," Jim Continenza, Kodak’s executive chairman and CEO, pointed out in a statement discussing the company’s Q2 financial performance. "While tariffs did not have a material impact on our business in Q2, we are assessing the potential impact of new tariffs going forward. It’s important to note that Kodak is committed to U.S. manufacturing — in fact, we manufacture a wide range of products in the U.S., including lithographic printing plates, photographic and industrial films, inkjet presses and inks, and pharmaceutical key starting ingredients.

“We continue to accelerate the growth of our Advanced Materials & Chemicals (AM&C) business. I’m pleased to report that our AM&C group’s cGMP pharmaceutical manufacturing facility is now registered with the FDA and certified to manufacture and sell regulated pharmaceutical products, expanding our current business in unregulated pharmaceutical products,” Continenza said.

He noted that the facility will begin operation manufacturing phosphate buffered saline (PBS) for laboratory use and create a bridge to manufacturing more sophisticated specialty products, such as injectable IV saline, in the future.

Commentary: Nevertheless, the negative headlines surrounding Kodak’s 10-Q filing — coupled with the recent bankruptcy filing by Landa Digital Printing in Israel — reflect the consolidation pressures, tight margins coupled with high equipment manufacturing costs, and ongoing economic uncertainty that continue to plague the commercial printing industry as it continues its migration from offset to digital printing processes. While production inkjet printing technology arguably represents the future, one has to wonder if there are too many digital press and ink manufacturers competing for a market share necessary to remain viable enterprises for the long term.