Kingsway Financial Services (NYSE:KFS) Releases Quarterly Earnings Results

Kingsway Financial Services (NYSE:KFS) (TSE:KFS) released its quarterly earnings results on Thursday. The insurance provider reported ($0.07) EPS for the quarter, Zacks reports. Kingsway Financial Services had a negative return on equity of 90.21% and a negative net margin of 10.07%.The business had revenue of $38.53 million for 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 Trading Down 5.1%

Shares of NYSE KFS opened at $10.41 on Friday. Kingsway Financial Services has a 1-year low of $7.06 and a 1-year high of $16.80. The company has a 50-day moving average of $12.58 and a two-hundred day moving average of $13.40. The company has a market cap of $301.29 million, a PE ratio of -24.20 and a beta of 0.22. The company has a current ratio of 0.39, a quick ratio of 0.39 and a debt-to-equity ratio of 0.74.

Wall Street Analyst Weigh In

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

Insider Activity at Kingsway Financial Services

In other Kingsway Financial Services news, Director Joseph Stilwell sold 19,229 shares of the company’s stock in a transaction on Monday, December 22nd. The stock was sold at an average price of $12.80, for a total transaction of $246,131.20. Following the transaction, the director owned 300,000 shares of the company’s stock, valued at approximately $3,840,000. This represents a 6.02% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO John Taylor Maloney Fitzgerald sold 30,000 shares of the 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 completion of the transaction, 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. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have bought 765 shares of company stock worth $10,003 and have sold 93,927 shares worth $1,217,866. 53.83% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Kingsway Financial Services

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