Kingsway Financial Services (NYSE:KFS) Issues Earnings Results

Kingsway Financial Services (NYSE:KFS) (TSE:KFS) released its quarterly earnings data on Thursday. The insurance provider reported ($0.07) earnings per share (EPS) for the quarter, Zacks reports. Kingsway Financial Services had a negative return on equity of 76.94% and a negative net margin of 8.55%.The firm had revenue of $38.53 million during the quarter.

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

• Reported FY2025 consolidated revenue of $135 million (up 23.4% YoY) and consolidated adjusted EBITDA of $7.8 million, with a portfolio LTM adjusted EBITDA of $22–23 million; KSX represented a majority of revenue and adjusted EBITDA in Q3 and Q4.
• Management reiterated a budget for double-digit organic revenue and EBITDA growth in 2026 and a target of three to five acquisitions this year, after completing six acquisitions in 2025 and acquiring Ledgers in January 2026.
• KSX portfolio momentum highlighted by Roundhouse tracking ahead of underwriting and Image Solutions and Skilled Trades completing investment ramps that management says position them for stronger top-line and margin performance in 2026; Digital Diagnostics grew high single digits while building safety and infrastructure.
• Balance sheet shows $8.3 million in cash and $70.7 million total debt (net debt ~$62.4 million), with net leverage rising modestly due primarily to acquisition financing.
• Kingsway updated its disclosure to a “Portfolio LTM adjusted EBITDA” metric that combines KSX adjusted EBITDA and Extended Warranty modified cash adjusted EBITDA to better reflect pro forma trailing‑12‑month performance and align with internal/lender reporting.

Kingsway Financial Services Stock Down 4.4%

NYSE KFS traded down $0.48 during trading on Friday, reaching $10.48. 36,117 shares of the company’s stock traded hands, compared to its average volume of 79,655. Kingsway Financial Services has a 12-month low of $7.06 and a 12-month high of $16.80. The company has a debt-to-equity ratio of 0.74, a current ratio of 0.39 and a quick ratio of 0.39. The firm has a market cap of $303.38 million, a price-to-earnings ratio of -29.15 and a beta of 0.22. The company’s 50 day simple moving average is $12.61 and its two-hundred day simple moving average is $13.42.

Insider Buying and Selling at Kingsway Financial Services

In other Kingsway Financial Services news, CEO John Taylor Maloney Fitzgerald sold 30,000 shares of the business’s stock in a transaction dated Tuesday, December 23rd. The shares were sold at an average price of $13.32, for a total value of $399,600.00. Following the completion of the transaction, the chief executive officer directly owned 1,459,534 shares in the company, valued at approximately $19,440,992.88. The trade was a 2.01% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Joseph Stilwell sold 34,269 shares of the firm’s stock in a transaction that occurred on Monday, December 15th. The shares were sold at an average price of $12.80, for a total transaction of $438,643.20. Following the completion of the sale, the director owned 545,135 shares of the company’s stock, valued at approximately $6,977,728. This trade represents a 5.91% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders bought 765 shares of company stock valued at $10,003 and sold 93,927 shares valued at $1,217,866. Insiders own 53.83% of the company’s stock.

Institutional Investors Weigh In On Kingsway Financial Services

A number of large investors have recently modified their holdings of KFS. Vanguard Group Inc. raised its position in shares of Kingsway Financial Services by 12.5% in the 3rd quarter. Vanguard Group Inc. now owns 948,838 shares of the insurance provider’s stock valued at $13,872,000 after purchasing an additional 105,080 shares during the last quarter. Geode Capital Management LLC raised its holdings in shares of Kingsway Financial Services by 2.2% in the fourth quarter. Geode Capital Management LLC now owns 470,407 shares of the insurance provider’s stock worth $6,329,000 after buying an additional 10,143 shares during the last quarter. State Street Corp lifted its stake in shares of Kingsway Financial Services by 4.4% during the fourth quarter. State Street Corp now owns 286,318 shares of the insurance provider’s stock worth $3,851,000 after buying an additional 12,021 shares during the period. Goldman Sachs Group Inc. grew its holdings in shares of Kingsway Financial Services by 11.2% during the first quarter. Goldman Sachs Group Inc. now owns 102,386 shares of the insurance provider’s stock valued at $811,000 after buying an additional 10,350 shares during the last quarter. Finally, Stifel Financial Corp increased its position in shares of Kingsway Financial Services by 174.6% in the 4th quarter. Stifel Financial Corp now owns 78,250 shares of the insurance provider’s stock valued at $1,052,000 after acquiring an additional 49,750 shares during the period. Hedge funds and other institutional investors own 72.38% of the company’s stock.

Analyst Ratings Changes

Separately, Weiss Ratings restated a “sell (d-)” rating on shares of Kingsway Financial Services in a research report on Thursday, January 22nd. One investment analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, the stock has an average rating of “Sell”.

Kingsway Financial Services Company Profile

Kingsway Financial Services, Inc (NYSE: KFS) is a specialty finance company focused on the acquisition, origination and servicing of residential mortgage loans and related assets in the United States. Through strategic portfolio purchases and direct origination channels, Kingsway builds a diversified mix of mortgage assets, including prime, non-QM and other specialty loan products.

The company’s principal activities include investing in and managing mortgage servicing rights (MSRs), holding mortgage loans for investment, and acquiring residential mortgage-backed securities (RMBS).