Shares of Eastman Kodak Company (KODK Quick QuoteKODK - Free Report) have declined 28.8% since reporting results for the first quarter of 2026, sharply underperforming the S&P 500 index’s 0.2% return. Over the past month, Kodak shares have fallen 19.3%, while the broader index has advanced 6%, reflecting continued investor caution despite the company’s reported operational improvements and revenue growth trends.

Kodak reported first-quarter 2026 revenues of $265 million, up 7% from $247 million in the year-ago quarter, driven by gains in both its Print, and Advanced Materials & Chemicals (AM&C) businesses. Gross profit rose 24% year over year to $57 million from $46 million, while the gross margin improved to 22% from 19%.

Operational EBITDA increased to $15 million from $2 million a year earlier. However, the GAAP net loss widened to $16 million, or 21 cents per share, from a loss of $7 million, or 12 cents per share, in the prior-year quarter. Management attributed the larger loss partly to non-cash charges related to preferred stock derivative accounting and lower pension income.

Eastman Kodak Company Price, Consensus and EPS Surprise

 

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Segment Performance Improves

Kodak’s Print segment generated revenues of $180 million, up 9% from the prior-year period. Operational EBITDA improved to $3 million from a loss of $9 million a year earlier. The company said commercial print operations benefited from pricing actions and continued customer demand despite inflationary pressure and supply-chain challenges tied to aluminum costs and logistics disruptions.

The AM&C segment posted revenues of $76 million, up 3% year over year, with operational EBITDA holding steady at $7 million. According to management, growth was driven primarily by a $3-million increase in film and chemicals revenues, partially offset by weaker inks and consumables sales. Kodak also highlighted ongoing momentum in motion picture and still film demand.

Brand segment revenues increased to $6 million from $4 million in the prior-year quarter, while operational EBITDA rose to $5 million from $4 million.

Management Highlights Operational Execution

Executive chairman and CEO Jim Continenza said Kodak has now delivered three consecutive quarters of year-over-year growth in revenues, gross profit and operational EBITDA. He attributed the performance to several years of investments in innovation, infrastructure and operational efficiency.

Management emphasized continued investment in film production, noting strong industry demand for Kodak motion picture products. The company cited films such as “One Battle After Another,” “Sinners” and Christopher Nolan’s upcoming “The Odyssey” as projects shot on Kodak film. Kodak also announced the launch of VERITA 200D film and a new electrophysiology laboratory partnership with SUNY Geneseo aimed at strengthening research and development capabilities.

In commercial print, Kodak introduced the SONORA UltraXR plate in Europe, expanding its process-free plate portfolio. Management has said that the company continues to focus on manufacturing efficiency, customer service and infrastructure investments to support long-term growth initiatives.

Commodity Costs & Non-Cash Charges Weigh on Earnings

Despite revenue growth, Kodak’s profitability continued to face pressure from higher raw material costs, particularly silver and aluminum. The company said that operational EBITDA gains were partially offset by increased manufacturing expenses and commodity inflation.

CFO David Bullwinkle informed that the quarter’s GAAP net loss included a $12-million non-cash charge tied to the fair value adjustment of an embedded derivative associated with Series B preferred stock. Kodak also recorded $5 million in stock-based compensation expenses. In addition, pension income declined year over year following the termination of the KRIP pension plan in late 2025.

Cash and cash equivalents totaled $299 million as of March 31, 2026, down from $337 million at the end of 2025. The decline reflected higher inventory levels, a $50-million principal repayment on term loans and increased commodity-related working capital needs. However, the operating cash flow improved by $8 million from the prior-year quarter.

Balance Sheet & Liquidity

Management highlighted continued balance-sheet improvement during the quarter. Kodak said it remained in a net debt positive position for the second consecutive quarter after repaying $50 million of higher-interest debt. The company ended the quarter with unrestricted cash of $299 million and said that lower future interest expenses should support liquidity, going forward.

Other Developments

During the quarter, Kodak continued restructuring its financial position through debt reduction and pension-related transactions. The company redeemed $46 million of KRIP reversion investments and used a significant portion of those proceeds to repay term loan debt. Kodak did not announce any acquisitions or divestitures during the quarter.