Amid Financial Stability Doubts, Kodak's Going Concern Warning Reframes Its Survival Narrative

Zinger Key Points

Shares of Eastman Kodak Co KODK are trading lower Tuesday morning after the company disclosed a going concern warning in its second-quarter regulatory filing. Here’s what investors need to know.

What To Know: The report stated there is “substantial doubt about Kodak’s ability to continue as a going concern”. The assessment stems from significant debt maturing in 2026. The maturity for Kodak's Term Loans, with a carrying value of approximately $477 million, has been accelerated to May 22, 2026.

Additionally, the company’s Series B Preferred Stock, valued at $99 million, must be redeemed by May 28, 2026. Kodak acknowledged that as of the filing date, it does not have the committed financing or available liquidity to meet these obligations if they become due.

Management’s plan to fund these debts depends on the reversion of cash from the settlement of the Kodak Retirement Income Plan. However, the company noted these plans are not solely within its control and therefore are not deemed “probable” under U.S. GAAP.

For the quarter ended June 30, the company reported total revenues of $263 million and a net loss of $26 million. This compares to revenues of $267 million and net earnings of $26 million in the same period of 2024.

Subsequent to the quarter’s end, Kodak announced on August 8, that it had exchanged all outstanding shares of its Series C Preferred Stock for 15,103,163 shares of common stock, discharging that specific obligation.

Price Action: According to data from Benzinga Pro, KODK shares are trading lower by 25.66% to $5.04 Tuesday morning. The stock has a 52-week high of $8.24 and a 52-week low of $4.26.

Read Also: Archer Stock Is Sliding Tuesday: What’s Driving The Action?

How To Buy KODK Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Eastman Kodak’s case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

Image: Shutterstock

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KODKEastman Kodak Co
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