Kingsway Financial Services (NYSE:KWY) Issues Earnings Results

Kingsway Financial Services (NYSE:KWY) posted its quarterly earnings results on Thursday. The company reported ($0.03) EPS for the quarter, FiscalAI reports. Kingsway Financial Services had a negative return on equity of 59.97% and a negative net margin of 6.69%.The firm had revenue of $39.44 million for 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 Up 11.5%

KWY traded up $1.04 on Friday, reaching $10.12. The company’s stock had a trading volume of 114,004 shares, compared to its average volume of 66,436. The company has a market capitalization of $292.97 million, a price-to-earnings ratio of -33.73 and a beta of 0.24. Kingsway Financial Services has a fifty-two week low of $8.41 and a fifty-two week high of $16.51. The company has a quick ratio of 1.62, a current ratio of 1.62 and a debt-to-equity ratio of 3.56. The stock has a 50 day moving average of $9.88 and a two-hundred day moving average of $11.38.

Analyst Ratings Changes

Separately, Weiss Ratings upgraded shares of Kingsway Financial Services from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Friday, May 29th. One analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, the company presently has an average rating of “Sell”.

Insider Buying and Selling

In related news, Director Joshua Horowitz purchased 3,800 shares of the business’s stock in a transaction that occurred on Friday, May 29th. The shares were purchased at an average cost of $9.91 per share, for a total transaction of $37,658.00. Following the purchase, the director directly owned 372,000 shares of the company’s stock, valued at $3,686,520. The trade was a 1.03% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO John Taylor Maloney Fitzgerald sold 5,000 shares of Kingsway Financial Services stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $10.13, for a total transaction of $50,650.00. Following the sale, the chief executive officer owned 29,100 shares in the company, valued at $294,783. This represents a 14.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have acquired 5,507 shares of company stock worth $54,628. 41.41% of the stock is owned by corporate insiders.

Institutional Trading of Kingsway Financial Services

A number of hedge funds and other institutional investors have recently made changes to their positions in KWY. Legal & General Group Plc lifted its holdings in shares of Kingsway Financial Services by 66.2% in the 2nd quarter. Legal & General Group Plc now owns 2,009 shares of the company’s stock valued at $27,000 after purchasing an additional 800 shares during the last quarter. Tower Research Capital LLC TRC grew its stake in Kingsway Financial Services by 220.9% during the 2nd quarter. Tower Research Capital LLC TRC now owns 3,809 shares of the company’s stock worth $52,000 after buying an additional 2,622 shares during the last quarter. BNP Paribas Financial Markets grew its stake in Kingsway Financial Services by 143.7% during the 3rd quarter. BNP Paribas Financial Markets now owns 4,141 shares of the company’s stock worth $61,000 after buying an additional 2,442 shares during the last quarter. Osaic Holdings Inc. increased its position in Kingsway Financial Services by 17.2% during the second quarter. Osaic Holdings Inc. now owns 6,925 shares of the company’s stock worth $94,000 after buying an additional 1,015 shares during the period. Finally, Russell Investments Group Ltd. increased its position in Kingsway Financial Services by 170.2% during the third quarter. Russell Investments Group Ltd. now owns 9,093 shares of the company’s stock worth $133,000 after buying an additional 5,728 shares during the period. Institutional investors and hedge funds own 72.38% of the company’s stock.

About Kingsway Financial Services

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.