KINGSWAY FINANCIAL SERVICES (KFS) Company Report

Kingsway Financial Services Inc. reported a 37% year-over-year increase in revenue for Q3 2025, reaching $37.2 million, primarily driven by 104% growth in its Kingsway Search Xcelerator (KSX) division.
Despite the revenue surge, the company experienced a net loss of $2.4 million in Q3 2025, slightly worse than the prior year's loss, indicating ongoing profitability challenges.
The company completed four acquisitions during the quarter, including Roundhouse Electric and AAA Flexible Pipe Cleaning, which contributed to a rise in net debt to $61.4 million from $52 million at the end of 2024.
Adjusted consolidated EBITDA declined to $2.1 million from $3 million in the previous quarter, with the extended warranty segment's adjusted EBITDA falling significantly.
Analysts maintain a neutral stance on KFS stock, with a Hold rating and a $13.50 price target, acknowledging growth potential alongside financial stability concerns.

Nov 7, 2025, 12:17 PM

Morningstar

Kingsway Reports Strong Q3 2025 Revenue Growth Driven by KSX Segment

KFS

Earnings

M&A

Revenue Acceleration/Inflection

Kingsway reported consolidated revenue of $37.2 million for Q3 2025, marking a 37% increase compared to the prior year, with the high-growth KSX segment representing the majority of the company's revenue for the first time.
The KSX segment demonstrated significant growth, with revenue increasing by 104% to $19 million and adjusted EBITDA growing 90% to $2.7 million year-over-year.
The Extended Warranty segment's revenue increased 2% to $18.2 million, but its adjusted EBITDA decreased to $800,000 from $2.1 million a year ago, primarily due to GAAP accounting timing differences, though its modified cash EBITDA remained resilient.
Kingsway completed four acquisitions during Q3 2025, including Southside Plumbing for $5.625 million, bringing the total number of acquisitions year-to-date to six.
As of September 30, 2025, the company held $9.3 million in cash and cash equivalents and reported net debt of $61.4 million, an increase from $52 million at year-end 2024, largely due to acquisition-related borrowings.

Nov 6, 2025, 10:00 PM

Transcript

Kingsway Financial Services Inc. Reports Q3 2025 Financial Results

KFS

Earnings

Revenue Acceleration/Inflection

M&A

Kingsway Financial Services Inc. reported a 37.0% increase in consolidated revenue to $37.2 million for the third quarter of 2025, primarily driven by its Kingsway Search Xcelerator (KSX) segment, which saw revenue grow 104.2% to $19.0 million and constituted a majority of total revenue for the first time.
The company posted a consolidated net loss of $2.4 million for Q3 2025, a slight increase from a $2.3 million net loss in the prior year quarter, and adjusted consolidated EBITDA decreased by $0.9 million to $2.1 million.
Segment-wise, KSX adjusted EBITDA increased to $2.7 million in Q3 2025 from $1.4 million in the year-ago quarter, while Extended Warranty adjusted EBITDA decreased to $0.8 million from $2.1 million in the prior year quarter.
Kingsway completed several acquisitions during Q3 2025, including Roundhouse Electric & Equipment Co., Inc. for $22.4 million on July 1, 2025, and AAA Flexible Pipe Cleaning Corp for up to $5.0 million on August 1, 2025, which are expected to add to annual revenue and adjusted EBITDA.
The company's total net debt increased to $61.4 million as of September 30, 2025, from $52.0 million as of December 31, 2024.

Nov 6, 2025, 9:15 PM

8-K

Kingsway Financial Services Inc. Reports Q2 2025 Financial Results and Announces Recent Acquisitions

KFS

Earnings

M&A

New Projects/Investments

Kingsway Financial Services Inc. reported consolidated revenue of $30.9 million for the second quarter of 2025, a 16.9% increase from the prior year, alongside a consolidated net loss of $3.2 million and a decrease in adjusted consolidated EBITDA to $1.7 million.
The Kingsway Search Xcelerator (KSX) segment's revenue grew 42.1% to $13.3 million and its adjusted EBITDA increased to $2.4 million in Q2 2025, while the Extended Warranty segment's revenue increased 3.1% to $17.6 million.
The company completed a $15.7 million private placement on June 24, 2025, and subsequently acquired Roundhouse Electric & Equipment Co., Inc. for $22.4 million on July 1, 2025, and AAA Flexible Pipe Cleaning Corp for $3.5 million on August 1, 2025.
Following the private placement, Kingsway increased its target for KSX acquisitions from 2-3 to 3-5 per year.

Aug 7, 2025, 12:00 AM

8-K

Kingsway Financial Services Inc. Completes Acquisition of Roundhouse Electric & Equipment Co., Inc.

KFS

M&A

Debt Issuance

New Projects/Investments

Kingsway Financial Services Inc., through its subsidiary Longhorns Acquisition LLC, completed the acquisition of Roundhouse Electric & Equipment Co., Inc. on July 1, 2025.
The acquisition was based on an enterprise valuation of $22.35 million, with consideration including rollover phantom equity rights valued at approximately $3.5 million and cash.
The cash consideration was financed using a combination of cash on hand and new debt facilities from Main Street Bank, which include an $11 million term loan, a revolving credit facility of up to $500,000, and an equipment guidance line of credit of up to $750,000.

Jul 7, 2025, 12:00 AM

8-K

Kingsway Financial Services Announces Private Placement and Increased Acquisition Guidance

KFS

New Projects/Investments

Guidance Update

Revenue Acceleration/Inflection

Kingsway Financial Services Inc. (KFS) announced the closing of a private placement (PIPE) on June 24, 2025, raising $15.7 million through the sale of 1,336,264 shares of its common stock at a price of $11.75 per share.
The funds from the PIPE, combined with operating cash flow and other non-dilutive sources, will provide Kingsway with financial resources to deliver on its multi-year growth ambitions.
Concurrent with this announcement, Kingsway is raising its target range for the number of acquisitions it expects to complete each year via the Kingsway Search Xcelerator (KSX) from 2-3 per year to 3-5 per year.
The purchasers in the PIPE included a limited number of high-quality, supportive, and long-term institutional investors, such as affiliates of Greenhaven Road Investment Management, LP, Blue Riband Group Limited, Align Ventures, HighSide Capital Management, LP, and Baleen Capital Fund LP.

Jun 25, 2025, 12:00 AM

8-K

Kingsway Financial: Investor Day Conference & Presentation 2025 Update

KFS

M&A

New Projects/Investments

Revenue Acceleration/Inflection

CEO John Fitzgerald outlined the company's unique Search Fund model strategy to acquire and grow businesses with a decentralized management approach, also highlighting $622M in net operating loss carryforwards.
CFO Kent Hansen updated on key M&A activities, including acquisitions like Image Solutions, Buds Plumbing, and SPI’s atWork International, driving revenue and adjusted EBITDA improvements.
Introduced the Kingsway Business System (KBS) to support new operators in talent management, process improvement, and strategic growth.
Set clear financial targets with a 12-month run-rate adjusted EBITDA of $18–19 million and a disciplined strategy of 2–3 acquisitions per year.
Reaffirmed the high return potential of the Search Fund approach, targeting around 35% IRR and aligning with evolving market dynamics.
Released a comprehensive investor presentation on May 18, 2025, providing critical insights for stakeholders.
Scheduled the Investor Day event at the New York Stock Exchange on May 19, 2025 at 9:30 AM ET, with a live stream available for remote participants.

May 19, 2025, 1:31 PM

Transcript Presentation 8-K

Kingsway Financial Services Announces Class D Preferred Issuance

KFS

Convertible Preferred Issuance

Dividends

Issued 80,000 shares of Class D Preferred Stock with a par value of $0.01 per share, carrying a liquidation preference of $25 per share and fixed cumulative dividends at an annual rate of 8% (increasing to 18% if dividends are unpaid for over two quarters).
The Class D Preferred Stock features conversion rights into common stock at a rate of approximately 2.6316 common shares per preferred share and includes detailed provisions regarding adjustments for stock events.

May 19, 2025, 12:00 AM

8-K

Kingsway Financial Services Inc Q1 2025 Earnings & Strategic Update

KFS

Earnings

M&A

Board Change

Revenue Acceleration/Inflection

Consolidated revenue reached $28.3 million, up 8.4% from Q1 2024 .
The company reported a net loss of $3.1 million (up from $2.3 million) with an adjusted consolidated EBITDA decline of $0.7 million .
The KSX segment saw revenue rise to $11.7 million with adjusted EBITDA reflecting a 23.3% YoY increase (reaching $1.9 million) .
Completed the acquisition of Bud’s Plumbing for $5 million plus a $1.25 million seller note, adding $6.0 million in annual revenue and $0.8 million in adjusted EBITDA .
Acquired the cloud-native software provider ViewPoint to enhance the KSX platform and boost recurring revenue .
Announced board and financing updates with two new independent directors and a $6 million convertible preferred stock issuance to strengthen governance and liquidity .
Extended Warranty revenue remained flat at $16.7 million .

May 8, 2025, 9:01 PM

Transcript 8-K

Kingsway Financial Services Inc. Appoints New Board Members

KFS

Board Change

Adam J. Patinkin and Joshua S. Horowitz have been appointed as non-employee directors, effective March 31, 2025.
They will be nominated for election at the upcoming 2025 Annual Meeting of Shareholders, reinforcing the company’s strategy and growth trajectory.
The announcement also noted significant share acquisitions by affiliates, with 9.2% and 1.5% ownership stakes respectively.

Apr 2, 2025, 12:00 AM

8-K