Note 14 - Earnings Per Share

9 Months Ended

Sep. 30, 2025

NOTE 14: 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 three and nine months ended September 30, 2025 and 2024 follows:


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in millions)	2025			2024			2025			2024
Net earnings (loss)	$	13		$	18		$	(20	)	$	76
Less: Series B Preferred stock cash and accrued dividends		(1	)		(1	)		(3	)		(3	)
Less: Series C Preferred stock in-kind dividends		—			(2	)		(3	)		(5	)
Less: Series C Preferred stock exchange to common stock deemed dividend		(19	)		—			(19	)		—
Less: Preferred stock deemed dividends		—			—			(1	)		(1	)
Less: Earnings attributable to Series C Preferred shareholders		—			(2	)		—			(9	)
Net (loss) earnings available to common shareholders - basic	$	(7	)	$	13		$	(46	)	$	58

Effect of dilutive securities:
Add back: Series B preferred stock cash, accrued and deemed dividends	$	—		$	1		$	—		$	4
Net (loss) earnings available to common shareholders - diluted	$	(7	)	$	14		$	(46	)	$	62


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions of shares)	2025		2024		2025		2024
Weighted averages shares - basic		89.8		80.3		83.8		80.0
Effect of dilutive securities
Unvested restricted stock units		—		1.7		—		1.6
Employee stock options		—		1.2		—		1.0
Series B Preferred Stock		—		9.5		—		9.5
Weighted average shares — diluted		89.8		92.7		83.8		92.1

As a result of the net loss available to common shareholders for the three and nine months ended September 30, 2025, Kodak calculated diluted earnings per share using weighted-average basic shares outstanding. If Kodak had reported earnings available to common shareholders for the three months ended September 30, 2025, the calculation of diluted earnings per share would have included the assumed vesting of 1.5 million unvested restricted stock units and the assumed exercise of 1.7 million stock options. For the nine months ended September 30, 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 1.7 million stock options.

The computation of diluted earnings per share for the three and nine months ended September 30, 2025 excluded the impact of (1) the assumed conversion of 1.0 million shares of Series B Preferred Stock and (2) the assumed exercise of 1.7 million outstanding employee stock options because the effects would have been anti-dilutive.

The computation of diluted earnings per share for the three and nine months ended September 30, 2024 excluded the impact of (1) the assumed conversion of 1.2 million shares of Series C Preferred Stock and (2) the assumed exercise of 2.6 million outstanding employee stock options because the effects would have been anti-dilutive.