Kingsway Financial Services (NYSE:KWY – Get Free Report) announced its quarterly earnings data on Thursday. The company reported ($0.10) earnings per share for the quarter, FiscalAI reports. The business had revenue of $38.85 million for the quarter. Kingsway Financial Services had a negative net margin of 6.69% and a negative return on equity of 61.62%.
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
NYSE KWY traded down $0.38 during trading hours on Thursday, hitting $9.63. The company had a trading volume of 36,299 shares, compared to its average volume of 68,479. Kingsway Financial Services has a fifty-two week low of $8.41 and a fifty-two week high of $14.94. The company has a quick ratio of 1.36, a current ratio of 1.36 and a debt-to-equity ratio of 4.39. The business has a fifty day simple moving average of $9.69 and a 200-day simple moving average of $10.60. The firm has a market cap of $278.60 million, a P/E ratio of -32.10 and a beta of 0.25.
Insiders Place Their Bets
In other news, Director Joseph Stilwell sold 100,000 shares of the company’s stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $10.00, for a total transaction of $1,000,000.00. Following the completion of 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 ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Joshua Horowitz purchased 2,717 shares of the stock in a transaction dated Monday, September 28th. The shares were purchased at an average price of $9.28 per share, with a total value of $25,213.76. Following the transaction, the director directly owned 383,820 shares of the company’s stock, valued at approximately $3,561,849.60. The trade was a 0.71% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders acquired 14,311 shares of company stock worth $138,604 over the last quarter. 41.41% of the stock is currently owned by company insiders.
Institutional Inflows and Outflows
Several institutional investors and hedge funds have recently bought and sold shares of KWY. Renaissance Technologies LLC raised its holdings in shares of Kingsway Financial Services by 22.3% during the first quarter. Renaissance Technologies LLC now owns 319,670 shares of the company’s stock valued at $3,334,000 after buying an additional 58,290 shares during the last quarter. State Street Corp acquired a new position in shares of Kingsway Financial Services during the second quarter worth approximately $3,105,000. Waverly Advisors LLC bought a new position in Kingsway Financial Services in the 1st quarter worth approximately $1,304,000. Citadel Advisors LLC bought a new position in Kingsway Financial Services in the 2nd quarter worth approximately $1,197,000. Finally, Squarepoint Ops LLC acquired a new stake in Kingsway Financial Services in the 2nd quarter valued at approximately $791,000. Institutional investors own 72.38% of the company’s stock.
Analysts Set New Price Targets
Separately, Weiss Ratings raised shares of Kingsway Financial Services from a “sell (e+)” rating to a “sell (d-)” rating in a report on Friday, October 30th. One research analyst has rated the stock with a Sell rating. According to MarketBeat, the company has a consensus rating of “Sell”.
Get Our Latest Stock Report on Kingsway Financial Services
About Kingsway Financial Services
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.
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