EASTMAN KODAK CO Earnings Per Share Disclosure
NOTE 22: EARNINGS PER SHARE
Basic earnings per share are calculated using the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share calculations include any dilutive effect of potential common shares. In periods with a net loss available to common shareholders, diluted earnings per share are calculated using weighted-average basic shares for that period, as utilizing diluted shares would be anti-dilutive to loss per share.
A reconciliation of the amounts used to calculate basic and diluted (loss) earnings per share for the years ended December 31, 2025, 2024 and 2023 follows:
|
|
Year Ended December 31, |
|
|||||||||
(in millions) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Net (loss) earnings attributable to Eastman Kodak Company |
|
$ |
(128 |
) |
|
$ |
102 |
|
|
$ |
75 |
|
Less: Series B Preferred stock cash and accrued dividends |
|
|
(4 |
) |
|
|
(4 |
) |
|
|
(4 |
) |
Less: Series C Preferred stock in-kind dividends |
|
|
(3 |
) |
|
|
(6 |
) |
|
|
(5 |
) |
Less: Preferred stock deemed dividends |
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(2 |
) |
Less: Series C Preferred Stock exchange to common stock deemed dividend |
|
|
(19 |
) |
|
|
— |
|
|
|
— |
|
Less: Earnings attributable to Series C Preferred shareholders |
|
|
— |
|
|
|
(12 |
) |
|
|
(8 |
) |
Net (loss) earnings available to common shareholders - basic |
|
$ |
(155 |
) |
|
$ |
78 |
|
|
$ |
56 |
|
|
|
|
|
|
|
|
|
|
|
|||
Effect of dilutive securities: |
|
|
|
|
|
|
|
|
|
|||
Add back: Series B preferred stock cash, accrued and deemed dividends |
|
$ |
— |
|
|
$ |
5 |
|
|
$ |
5 |
|
Net (loss) earnings available to common shareholders - diluted |
|
$ |
(155 |
) |
|
$ |
83 |
|
|
$ |
61 |
|
|
|
Year Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Weighted-average common shares outstanding - basic |
|
|
87.0 |
|
|
|
80.1 |
|
|
|
79.4 |
|
Effect of dilutive securities: |
|
|
|
|
|
|
|
|
|
|||
Unvested restricted stock units and awards |
|
|
— |
|
|
|
1.6 |
|
|
|
0.9 |
|
Employee stock options |
|
|
— |
|
|
|
1.1 |
|
|
|
0.7 |
|
Series B Preferred Stock |
|
|
— |
|
|
|
9.5 |
|
|
|
9.5 |
|
Weighted-average common shares outstanding - diluted |
|
|
87.0 |
|
|
|
92.3 |
|
|
|
90.5 |
|
As a result of the net loss available to common shareholders for the year ended December 31, 2025, Kodak calculated diluted earnings per share using weighed-average basic shares outstanding. If Kodak had reported earnings available to common shareholders for the year ended December 31, 2025, the calculation of diluted earnings per share would have included the assumed vesting of 1.6 million unvested restricted stock units and the assumed exercise of 1.4 million stock options.
The computation of diluted earnings per share for the year ended December 31, 2025 excluded the impact of (1) the assumed conversion of 1.0 million shares of Series B Preferred Stock, (2) the assumed exercise of 1.7 million outstanding employee stock options and (3) the assumed vesting of 0.2 million unvested restricted stock units because the effects would have been anti-dilutive.
The computation of diluted earnings per share for the year ended December 31, 2024 excluded the impact of (1) the assumed conversion of 1.2 million shares of Series C Preferred Stock, (2) the assumed exercise of 2.6 million outstanding employee stock options and (3) the assumed vesting of 0.2 million unvested restricted stock units because the effects would have been anti-dilutive.
The computation of diluted earnings per share for the year ended December 31, 2023 excluded the impact of (1) the assumed conversion of 1.1 million shares of Series C Preferred Stock and (2) the assumed exercise of 3.9 million outstanding employee stock options because they would have been anti-dilutive.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 12, 2026 | Showing above |
| 2024 | Mar 17, 2025 | |
| 2023 | Mar 14, 2024 | |
| 2022 | Mar 16, 2023 | |
| 2020 | Mar 16, 2021 | |
| 2019 | Mar 17, 2020 | |
| 2018 | Apr 1, 2019 | |
| 2017 | Mar 15, 2018 | |
| 2016 | Mar 7, 2017 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.