Kingsway Financial Services (NYSE:KWY) Announces Quarterly Earnings Results

Kingsway Financial Services (NYSE:KWY) announced its quarterly earnings results on Thursday. The company reported ($0.03) EPS for the quarter, FiscalAI reports. Kingsway Financial Services had a negative net margin of 8.83% and a negative return on equity of 72.50%. The business had revenue of $39.44 million during the quarter.

Here are the key takeaways from Kingsway Financial Services’ conference call:

• Record operating performance: Q2 revenue rose 27.6% year over year to $39.4 million, consolidated adjusted EBITDA increased to $5.2 million from $1.7 million, and Portfolio EBITDA reached a record $7.2 million.
• KSX delivered strong growth: Kingsway Search Xcelerator adjusted EBITDA reached a quarterly record $4.3 million, more than tripling over the past eight quarters, supported by broad portfolio performance, customer wins, and retention.
• Acquisition activity and outlook remain favorable: Image Solutions acquired Romeo Computer Company for $2.4 million, adding approximately $2.5 million of revenue and $0.5 million of adjusted EBITDA, while Kingsway reaffirmed its targets of three to five acquisitions and double-digit organic growth in 2026.
• Several businesses remain in transition: DDI is absorbing sales investments ahead of expected customer wins, Southside recorded a low six-figure write-down, and three subsidiaries representing less than 10% of Portfolio EBITDA breached loan covenants; waivers have been obtained or are being pursued.
• Portfolio performance was mixed: Roundhouse and Kingsway Skilled Trades posted flat sequential EBITDA largely due to timing and legacy project issues, while SNS may be stabilizing under new leadership after a prolonged nurse-staffing downturn.

Kingsway Financial Services Stock Down 1.6%

Kingsway Financial Services stock traded down $0.15 during mid-day trading on Thursday, reaching $9.01. 42,443 shares of the company’s stock were exchanged, compared to its average volume of 67,956. Kingsway Financial Services has a twelve month low of $8.41 and a twelve month high of $16.51. The company has a debt-to-equity ratio of 3.56, a current ratio of 1.62 and a quick ratio of 1.62. The company has a fifty day moving average of $9.88 and a 200-day moving average of $11.39.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings raised Kingsway Financial Services from a “sell (e+)” rating to a “sell (d-)” rating in a report on Friday, May 29th. One equities research analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, the company currently has a consensus rating of “Sell”.

Insider Transactions at Kingsway Financial Services

In other news, Director Joshua Horowitz purchased 3,800 shares of the stock in a transaction that occurred on Friday, May 29th. The shares were acquired at an average price of $9.91 per share, for a total transaction of $37,658.00. Following the acquisition, the director directly owned 372,000 shares in the company, valued at approximately $3,686,520. The trade was a 1.03% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO John Taylor Maloney Fitzgerald sold 5,000 shares of Kingsway Financial Services stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $10.13, for a total transaction of $50,650.00. Following the transaction, the chief executive officer owned 29,100 shares of the company’s stock, valued at approximately $294,783. The trade was a 14.66% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders bought 5,507 shares of company stock worth $54,628. Company insiders own 41.41% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of KWY. Capricorn Fund Managers Ltd acquired a new position in Kingsway Financial Services during the 1st quarter worth approximately $18,616,000. Greenhaven Road Investment Management L.P. increased its position in shares of Kingsway Financial Services by 43.8% during the fourth quarter. Greenhaven Road Investment Management L.P. now owns 1,884,529 shares of the company’s stock valued at $25,347,000 after acquiring an additional 573,993 shares in the last quarter. Waverly Advisors LLC purchased a new position in Kingsway Financial Services in the 1st quarter worth approximately $1,304,000. Vanguard Group Inc. lifted its position in Kingsway Financial Services by 12.5% in the 3rd quarter. Vanguard Group Inc. now owns 948,838 shares of the company’s stock valued at $13,872,000 after acquiring an additional 105,080 shares in the last quarter. Finally, Geode Capital Management LLC boosted its stake in Kingsway Financial Services by 20.2% during the 2nd quarter. Geode Capital Management LLC now owns 426,836 shares of the company’s stock valued at $5,780,000 after purchasing an additional 71,720 shares during the last quarter. 72.38% of the stock is currently owned by hedge funds and other institutional investors.

Kingsway Financial Services Company Profile

Kingsway Financial Services Inc is a holding company that operates through a group of subsidiaries focused on extended warranty and specialty insurance-related services. The company’s businesses primarily provide administration, underwriting, and related support services for protection products offered through automotive, consumer, and other markets.

Kingsway has historically operated in the insurance and service contract space, with activities centered on helping businesses and consumers manage risk and protection coverage needs.