Kodak Says its Survival is in Jeopardy Amid Debt Obligations
The future of Eastman Kodak is in doubt today after the historic company said it is struggling to pay a $500 million debt obligation.
CNN reports that the warning came during an earnings report yesterday (Monday), which states there is “substantial doubt about the company’s ability to continue as a going concern.”
Kodak says it is attempting to raise the cash by stopping payments to its retirement pension plan. It notes that President Trump’s tariffs aren’t a factor since it manufactures the majority of its products in the United States.
“In the second quarter, Kodak continued to make progress against our long-term plan despite the challenges of an uncertain business environment,” says Kodak CEO Jim Continenza in the earnings release.
The news has sent Kodak’s share price tumbling by more than 7% during premarket trading today. The company reported a net loss of $26 million for the second quarter of 2025, a marked contrast to the net profit of $26 million from the same quarter one year ago.
Kodak is putting the blame on weak sales and higher costs. The company ended the quarter with a cash balance of $155 million, a decrease of $46 million from December 31, 2024.
“The decrease was primarily driven by capital expenditures to fund growth initiatives, changes in working capital, impact of higher costs and lower profitability from operations,” reads the report.
A Kodak spokesperson reached out to PetaPixel after publication of this article with the following statement.
“The ‘going concern’ language in Kodak’s 10-Q is essentially 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 our remaining debt and/or preferred stock obligations,” the spokesperson says.
“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. 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.”
A Storied Company
The financial report comes as something of a shock since Kodak battled back from bankruptcy over a decade ago, at which time it had debts of $6.75 billion. The analog revival has helped Kodak, and it began manufacturing more film at its base in Rochester, New York.
Kodak is well over 130 years old, having been incorporated in 1892. The company is credited with bringing photography to the masses after it released the Kodak No.1 in the 19th century, which was capable of shooting over 100 small circular photos. It led to the famous slogan: “You press the button, we do the rest.”
The Kodak Brownie, the company’s most successful camera, was released circa 1900 and was much cheaper than the Kodak No.1. Photographers had to load their own film canister and each cartridge held six exposures. By 1905, the Brownie had sold 1.2 million units.
It continued to produce cameras and film throughout the 20th century. In the 1970s, it was responsible for 90% of film and 85% of camera sales in the United States, according to The Economist.
But despite Kodak inventing the first digital camera in 1975, it failed to capitalize on the digital revolution and was left in the dust by its competitors, leading to it filing for bankruptcy in 2012.
Just last month, PetaPixel reported on how the company has 123 brick-and-mortar stores in South Korea that are dedicated to selling apparel and other Kodak-branded items.
Update 12/8: Updated with the statement from Kodak.
Image credits: Header photo licensed via Depositphotos.
