Kodak's Print Business Is Shrinking Again — Can Chemicals and Film Carry the Turnaround?

Shares of Eastman Kodak plunged 8.8% to $7.90 after the company's Q3 earnings revealed a revenue miss that punctured months of turnaround optimism. Consolidated revenues came in at $276 million, up 3% year over year but well below the $294 million Wall Street consensus . The result snapped a streak of accelerating growth — Q2 had delivered $311 million in revenue, an 18% jump, with Operational EBITDA of $36 million — and forces investors to reconsider whether Kodak's recovery has real staying power.

Print, Kodak's Biggest Business, Is Shrinking Faster Than Expected

Print revenues fell 7% to $165 million, down $12 million from a year ago , a sharp reversal from Q2's 10% print growth to $195 million . The company's largest segment faces a long-term decline as digital media erodes demand for printing plates and related products . Print still accounts for roughly 60% of total revenue, meaning its trajectory disproportionately determines whether Kodak hits or misses top-line targets. Print Operational EBITDA collapsed to just $1 million from $8 million a year earlier , signaling the weakness is hitting profits, not just sales.

Chemicals and Film Are Growing Fast — but Not Fast Enough to Offset Print

Advanced Materials & Chemicals (AM&C) revenue surged 21% to $99 million, with segment EBITDA rising to $21 million from $16 million . This unit — which makes industrial chemicals, film, and battery-electrode coatings — is now what CEO Jim Continenza calls Kodak's "fastest growing, most profitable unit." Yet the $17 million AM&C revenue gain only partially offset the $12 million print decline, leaving a $18 million gap to the consensus estimate.

The Bottom Line Improved, but the Market Doesn't Care

GAAP net income rose to $21 million from $13 million, and gross margin expanded one point to 26% . The company also generated $27 million in cash during the quarter . But investors priced the stock off revenue trajectory, not profit. With a market cap now around $857 million on roughly $1.16 billion in trailing revenue, Kodak trades at less than 0.75x sales — cheap, but only if print stabilizes.

What Comes Next Determines Whether This Dip Is a Buy or a Warning

Analysts project Q4 revenue of $312 million , demanding a meaningful sequential rebound. Short interest recently rose 8% to 6.5 million shares, or 10.4% of the float , suggesting skeptics were already betting against the turnaround narrative. If print keeps contracting at this pace, no amount of chemicals revenue can paper over the gap.