Kodak Q3 2026 Debt Falls as Operational EBITDA Rises

Kodak (NYSE: KODK) reported a substantially stronger balance sheet and higher trailing-12-month Operational EBITDA in its third-quarter 2026 presentation, although the company recorded a GAAP net loss for the period measured through the quarter.

Cash and cash equivalents reached $317 million, up $149 million from $168 million in the comparable 2025 period, while total debt fell by $397 million to $110 million. That left Kodak with net cash of $207 million, compared with net debt of $339 million a year earlier.

Trailing-12-month Operational EBITDA, a non-GAAP measure, increased to $104 million from $49 million. Kodak attributed the improvement to its continued focus on higher-value and more sustainable businesses. Total debt was equal to about one times trailing-12-month Operational EBITDA, down from 10 times, while net cash was equivalent to two times the measure.

Lower debt also reduced trailing-12-month interest expense to $30 million from $62 million. Normalized free cash flow was break-even, improving from a $50 million outflow in the prior-year period. The measure excludes proceeds from the reversion of the Kodak Retirement Income Plan, debt-related payments and an excise-tax payment.

Kodak reported $489 million of net cash provided by operating activities, compared with $5 million used a year earlier. After accounting for $24 million of capital expenditures, excluding $618 million of pension-plan reversion proceeds and adjusting for a $153 million excise-tax payment, normalized free cash flow was zero.

The stronger non-GAAP operating performance contrasted with a trailing-12-month GAAP net loss of $86 million, versus net income of $6 million in the comparable period. The reconciliation included $154 million of other charges, up from $20 million, as well as a $9 million loss on early debt extinguishment and $23 million of stock-based compensation. Pension income excluding the service-cost component was $98 million, compared with $103 million a year earlier.

Kodak said its liquidity is intended to support operations and investment in growth initiatives. The presentation did not provide detailed revenue, segment-level results or a specific financial forecast.

The company identified several uncertainties that could affect future results, including commodity costs, tariffs, foreign-exchange and interest-rate movements, inflation, geopolitical developments, supply-chain disruptions and changes in demand. Kodak also cited its ability to fund investments, meet debt and preferred-stock obligations, obtain financing, comply with credit covenants and compete with larger or lower-cost industry participants. Other risks include dependence on limited-source suppliers, execution of strategic transactions, technology shifts including artificial intelligence, legacy claims, cybersecurity incidents and IT outages.