Kodak Delivers Strong Q3: Gross Profit and Operational EBITDA Surge While Going Concern Resolved
Key Operational EBITDA and Gross Profit Metrics Show Dramatic Improvement
In its third-quarter 2025 report, Kodak showcased marked progress on several financial fronts. The company's gross profit leapt 51% to $68 million, up from $45 million a year prior, with its gross margin expanding to 25%, an 8-point increase over Q3 2024. Even more notable was Operational EBITDA, which soared to $29 million from just $1 million a year earlier—an increase of $28 million, underscoring robust operational improvements across business segments.
Advanced Materials & Chemicals Drives Segment-Level Growth
Kodak’s Advanced Materials & Chemicals (AM&C) segment was the engine behind much of the company’s growth this quarter. AM&C revenues jumped 15% to $82 million, while its Operational EBITDA climbed $10 million to $16 million. The company’s cGMP pharmaceutical manufacturing facility certification now allows for the sale of regulated products, supporting long-term growth ambitions. Meanwhile, the launch of new still films for direct distributor sales has also provided pricing and supply chain stability, opening fresh opportunities in consumer markets.
| Segment | Q3 2025 Revenue ($M) | Q3 2024 Revenue ($M) | Q3 2025 Op. EBITDA ($M) | Q3 2024 Op. EBITDA ($M) |
|---|---|---|---|---|
| 177 | 182 | 8 | -9 | |
| Advanced Materials & Chemicals | 82 | 71 | 16 | 6 |
| Brand | 6 | 5 | 5 | 4 |
| Total | 265 | 258 | 29 | 1 |
Pension Reversion Boosts Cash Position and Lowers Debt
Kodak's successful management of its U.S. pension obligations—along with favorable annuity pricing and investment returns—increased the expected proceeds from its pension reversion plan from $500 million to $600 million. The company’s quarter-end cash balance climbed to $168 million, up $13 million from June 30, 2025, fueled by stronger operating results. Surplus pension assets will be used to reduce term debt to $200 million, significantly lowering future interest expense and solidifying Kodak's healthiest balance sheet in years.
Balance Sheet and Cash Flow Strengthen Despite Lower Net Income
While net income for the quarter decreased to $13 million (down $5 million year-over-year), the sharp rise in Operational EBITDA and improved gross profit point to underlying operational strength. Year-to-date cash flow from operations improved by $2 million, reflecting ongoing efforts to optimize working capital and support growth initiatives. Cash used for capital expenditures and strategic projects accounted for a $33 million decline in cash from year-end, signaling continued investment in the business.
Going Concern Status Resolved—Kodak Emerges on Firmer Footing
A key highlight of this quarter is Kodak’s resolution of prior going concern issues. The company no longer requires cautionary disclosures about its ability to continue as a going concern under U.S. GAAP, reflecting enhanced financial flexibility and management confidence in the company's path forward.
What This Means for Investors and the Road Ahead
Kodak’s operational turnaround, highlighted by rapid EBITDA growth and a pension-driven cash influx, puts the company in a far stronger position than in recent years. Management’s disciplined approach to cash and debt reduction signals a clear focus on sustainable growth and shareholder value creation. While print revenue softness persists, continued AM&C expansion and new product initiatives could provide meaningful upside.
For investors, Kodak’s third-quarter performance offers more than just improved financials—it signals a business regaining stability and agility. As always, the company faces execution and industry risks, but recent results suggest it is much better equipped to navigate future challenges.
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