Kingsway Financial Services (NYSE:KWY) Posts Earnings Results

Kingsway Financial Services (NYSE:KWY) posted its quarterly earnings data on Thursday. The company reported ($0.10) earnings per share for the quarter, FiscalAI reports. Kingsway Financial Services had a negative return on equity of 61.62% and a negative net margin of 6.69%. The business had revenue of $38.85 million during the quarter.

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

• Portfolio EBITDA topped $6 million, up 29% year over year, while reported organic segment revenue and adjusted EBITDA grew about 8% and 54%, respectively. Management cautioned that the profit growth was unusually strong and expects results to normalize over time toward its long-term double-digit growth target.
• KSX adjusted EBITDA rose 24.5% to $3.3 million, and Extended Warranty adjusted EBITDA increased to $1.4 million; excluding the sold Trinity business, Extended Warranty revenue grew 5.9%. Cash from operations was $4.1 million, and net debt declined to $60.3 million from $62.4 million at year-end 2025.
• Consolidated net loss widened to $3.2 million from $2.4 million, while consolidated adjusted EBITDA was $2.0 million versus $2.1 million a year earlier. Results included a $900,000 Argo investment-value decrease and about $600,000 in non-cash revenue re-deferrals; management said segment profitability would have been broadly in line with Q2 absent the re-deferrals.
• Performance varied across the portfolio: Penn PWI, Kingsway Skilled Trades, and SNS were highlighted for improvement, while DDI remained a detractor as it invests ahead of anticipated business implementations. Management expects DDI’s investments to support better results in 2027.
• Image Solutions completed its acquisition of Romeo Computer Company using financing at the subsidiary level, which management described as progress toward self-funding acquisition platforms. Kingsway’s deal pipeline remains active, though the company now expects to complete two deals this year rather than three and aims to return to three to five deals in 2027.

Kingsway Financial Services Stock Performance

Kingsway Financial Services stock traded down $1.16 during trading hours on Friday, hitting $8.40. 105,966 shares of the stock traded hands, compared to its average volume of 68,525. The company has a debt-to-equity ratio of 4.39, a current ratio of 1.36 and a quick ratio of 1.36. The firm’s 50 day moving average price is $9.69 and its 200-day moving average price is $10.60. The stock has a market capitalization of $243.02 million, a price-to-earnings ratio of -28.00 and a beta of 0.25. Kingsway Financial Services has a 1 year low of $8.40 and a 1 year high of $14.35.

Analysts Set New Price Targets

Separately, Weiss Ratings upgraded Kingsway Financial Services from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Friday, October 30th. One research analyst has rated the stock with a Sell rating. According to data from MarketBeat.com, the stock presently has a consensus rating of “Sell”.

Insider Activity

In related news, Director Joseph Stilwell sold 100,000 shares of the stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $10.00, for a total value of $1,000,000.00. Following the transaction, the director owned 267,018 shares in the company, valued at approximately $2,670,180. This represents a 27.25% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Joshua Horowitz purchased 7,034 shares of Kingsway Financial Services stock in a transaction on Wednesday, August 19th. The shares were acquired at an average cost of $9.84 per share, with a total value of $69,214.56. Following the completion of the transaction, the director directly owned 380,334 shares in the company, valued at $3,742,486.56. The trade was a 1.88% increase in their position. The SEC filing for this purchase provides additional information. Over the last 90 days, insiders bought 14,311 shares of company stock valued at $138,604. Company insiders own 41.41% of the company’s stock.

Institutional Investors Weigh In On Kingsway Financial Services

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Russell Investments Group Ltd. raised its position in Kingsway Financial Services by 27.2% during the third quarter. Russell Investments Group Ltd. now owns 10,465 shares of the company’s stock valued at $99,000 after acquiring an additional 2,240 shares in the last quarter. Bank of America Corp DE raised its position in shares of Kingsway Financial Services by 6.7% in the first quarter. Bank of America Corp DE now owns 46,605 shares of the company’s stock worth $486,000 after acquiring an additional 2,923 shares during the period. Squarepoint Ops LLC acquired a new stake in shares of Kingsway Financial Services during the 2nd quarter valued at about $791,000. Citadel Advisors LLC acquired a new position in Kingsway Financial Services in the 2nd quarter worth about $1,197,000. Finally, Waverly Advisors LLC acquired a new stake in Kingsway Financial Services in the first quarter valued at approximately $1,304,000. 72.38% of the stock is owned by institutional investors and hedge funds.

Kingsway Financial Services Company Profile

Kingsway Financial Services Inc (NYSE:KWY) is a Canadian-based holding company that owns and operates businesses in the specialty insurance and insurance-services sectors. Its portfolio includes companies providing specialty insurance products, extended warranty programs, and related administrative and claims services.

Historically, Kingsway operated primarily as a specialty insurance provider, including nonstandard automobile insurance businesses in the United States and Canada. The company has since focused on managing and developing a diversified group of insurance and non-insurance subsidiaries, with operations serving customers principally in North America.

Kingsway was founded in 1989 and is headquartered in Toronto, Ontario.