Kingsway Financial Services (NYSE:KFS) Posts Earnings Results

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

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 Trading Down 3.6%

Shares of NYSE:KFS traded down $0.40 during midday trading on Friday, hitting $10.56. 42,552 shares of the stock traded hands, compared to its average volume of 79,793. The company has a quick ratio of 0.39, a current ratio of 0.39 and a debt-to-equity ratio of 0.74. The stock has a market capitalization of $305.82 million, a PE ratio of -29.33 and a beta of 0.22. Kingsway Financial Services has a one year low of $7.06 and a one year high of $16.80. The business’s 50 day moving average is $12.61 and its two-hundred day moving average is $13.42.

Analyst Ratings Changes

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

Insider Buying and Selling

In related news, CEO John Taylor Maloney Fitzgerald sold 30,000 shares of Kingsway Financial Services stock in a transaction on Tuesday, December 23rd. The shares were sold at an average price of $13.32, for a total value of $399,600.00. Following the sale, the chief executive officer owned 1,459,534 shares in the company, valued at $19,440,992.88. The trade was a 2.01% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Joseph Stilwell sold 19,229 shares of Kingsway Financial Services stock in a transaction that occurred on Monday, December 22nd. The shares were sold at an average price of $12.80, for a total value of $246,131.20. Following the sale, the director directly owned 300,000 shares in the company, valued at approximately $3,840,000. The trade was a 6.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders bought 765 shares of company stock worth $10,003 and sold 93,927 shares worth $1,217,866. 53.83% of the stock is currently owned by company insiders.

Institutional Trading of Kingsway Financial Services

A number of institutional investors and hedge funds have recently modified their holdings of the business. Legal & General Group Plc lifted its holdings in shares of Kingsway Financial Services by 66.2% during the second quarter. Legal & General Group Plc now owns 2,009 shares of the insurance provider’s stock valued at $27,000 after purchasing an additional 800 shares in the last quarter. Tower Research Capital LLC TRC raised its position in Kingsway Financial Services by 220.9% in the 2nd quarter. Tower Research Capital LLC TRC now owns 3,809 shares of the insurance provider’s stock worth $52,000 after buying an additional 2,622 shares during the last quarter. BNP Paribas Financial Markets raised its position in Kingsway Financial Services by 143.7% in the 3rd quarter. BNP Paribas Financial Markets now owns 4,141 shares of the insurance provider’s stock worth $61,000 after buying an additional 2,442 shares during the last quarter. Osaic Holdings Inc. lifted its stake in Kingsway Financial Services by 17.2% during the 2nd quarter. Osaic Holdings Inc. now owns 6,925 shares of the insurance provider’s stock valued at $94,000 after acquiring an additional 1,015 shares during the period. Finally, Bank of America Corp DE lifted its stake in Kingsway Financial Services by 36.5% during the 4th quarter. Bank of America Corp DE now owns 12,334 shares of the insurance provider’s stock valued at $103,000 after acquiring an additional 3,300 shares during the period. Institutional investors own 72.38% of the company’s stock.

About Kingsway Financial Services

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).