Arizona Tribune - Kingsway Reports First Quarter 2026 Financial Results

CHICAGO, IL / ACCESS Newswire / May 7, 2026 / Kingsway Financial Services Inc. ("Kingsway" or the "Company"), the only publicly-traded US company employing the Search Fund model to acquire and build great businesses, today announced its operating results for the three months ended March 31, 2026.

First Quarter 2026 Financial Highlights Compared To First Quarter 2025

• Consolidated revenue increased 37.4% to $39.0 million, compared to $28.3 million.

  • Kingsway Search Xcelerator ("KSX") revenue increased 80.7% to $21.1 million, compared to $11.7 million.

  • Extended Warranty revenue increased 7.2% to $17.9 million, compared to $16.7 million; Extended Warranty cash sales increased 11.8%.

• Consolidated net loss was $2.2 million, compared to a net loss of $3.1 million.

• Consolidated adjusted EBITDA was $2.4 million, compared to $1.4 million.

  • KSX adjusted EBITDA increased by 82% to $3.5 million, compared to $1.9 million.

  • Extended Warranty adjusted EBITDA was $0.4 million, compared to $0.9 million.

• The Company had total net debt of $63.9 million as of March 31, 2026, compared with $62.4 million as of December 31, 2025.

Business Highlights

• Portfolio LTM EBITDA for the operating companies was $22.0 million to $23.0 million as of March 31, 2026; see "Non-U.S. GAAP Financial Measures" below for further explanation of this metric.

• On March 16, 2026, the Company announced that its Board of Directors (the "Board") had elected Adam J. Patinkin as Chairman of the Board and Terence M. Kavanagh as Vice-Chairman of the Board.

• On March 31, 2026, the Company announced the Board had approved a proposed corporate name change to Kingsway Corporation and a proposed stock ticker change to KWY, which are intended to better reflect the Company's business evolution and long-term strategy. The proposed name change is subject to shareholder approval at the Company's upcoming Annual general Meeting of shareholders scheduled for May 18, 2026.

Management Commentary

"Kingsway delivered a strong first quarter of 2026, with profits at both KSX and Extended Warranty coming in ahead of budget," said JT Fitzgerald, Kingsway's President and CEO. "March stood out as a particularly good month, and we see clear business momentum across our portfolio entering the seasonally stronger summer months.

"For the full year, we continue to expect double-digit organic growth in revenue and profit at both KSX and Extended Warranty. Our acquisition pipeline is robust, and we anticipate completing three to five acquisitions in 2026, in line with our target.

"The combination of healthy organic growth and continued acquisition activity position Kingsway for a year of meaningful financial and strategic progress."

Conference Call and Webcast

Management will host a conference call at 5 p.m. Eastern Time today to discuss the results and host a live Q&A session. Additionally, investors may also submit questions via email to: [email protected].

Conference Call Information

Date: Thursday, May 7, 2026
Time: 5 p.m. Eastern Time
Toll Free: 877-545-0523
International: +1 973-528-0016
Participant Code: 456847
Live Webcast Link: https://www.webcaster5.com/Webcast/Page/2928/53983

Conference Call Replay Information

Toll Free: 877-481-4010
International: +1 919-882-2331
Replay Passcode: 53983
Replay Webcast Link: https://www.webcaster5.com/Webcast/Page/2928/53983

About the Company

Kingsway Financial Services Inc. ("Kingsway") (NYSE:KFS) is the only publicly-traded US company employing the Search Fund model to acquire and build great businesses.

Kingsway owns and operates a collection of high-quality B2B and B2C services companies that are asset-light, growing, profitable, and that have recurring revenues. Kingsway seeks to compound long-term shareholder value on a per share basis via its decentralized management model, its talented team of operators, and its tax-advantaged corporate structure.

Non-U.S. GAAP Financial Measures

Management believes that non-GAAP adjusted EBITDA and Portfolio LTM EBITDA, when presented in conjunction with comparable GAAP measures, provide useful information about the Company's operating results and enhance the overall ability to assess the Company's financial performance.

Management uses non-GAAP adjusted EBITDA, together with other measures of performance under GAAP, to compare the relative performance of operations in planning, budgeting, and reviewing the performance of its business. Non-GAAP adjusted EBITDA allows investors to make a more meaningful comparison between the Company's core business operating results over different periods of time. Management believes that non-GAAP adjusted EBITDA, when viewed with the Company's results under GAAP and the accompanying reconciliations, provides useful information about the Company's business without regard to potential distortions. By eliminating potential differences in results of operations between periods caused by the factors listed in the attached schedules, Management believes that non-GAAP adjusted EBITDA can provide useful additional basis for comparing the current performance of the underlying operations being evaluated.

Portfolio LTM EBITDA represents management's estimate of the trailing twelve-month adjusted EBITDA generated by the Company's portfolio of operating businesses, including the KSX segment and the Extended Warranty segment. For the KSX segment, Portfolio LTM EBITDA includes the trailing twelve months of adjusted EBITDA for the operating businesses within the segment, including businesses acquired during the period and businesses acquired after the end of the reporting period but prior to the date of this release, as if they had been owned for the full twelve-month period. For the Extended Warranty segment, Portfolio LTM EBITDA is based on Modified Cash adjusted EBITDA, which reflects timing differences between GAAP revenue recognition and GAAP commission expense to the timing of cash receipts and cash commission expense associated with warranty contracts, as well as an adjustment to investment income for the difference between actual book yield and current market yield; no other adjustments are made. For clarity, Modified Cash adjusted EBITDA defers only the portion of contract premium needed to pay claims over the life of the underlying contract and does not defer any commission expense. Modified Cash adjusted EBITDA is used by management to evaluate the operating performance of the Extended Warranty segment and is also the basis for financial covenant calculations under the Company's credit agreements.

Investors should consider these non-GAAP measures in addition to, not as a substitute for or as superior to, financial reporting measures prepared in accordance with GAAP. Investors are encouraged to review the Company's financial results prepared in accordance with GAAP to understand the Company's performance, taking into account all relevant factors.

Forward-Looking Statements

This press release may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical facts and involve risks and uncertainties that could cause actual results to differ materially from those expected and projected. Words such as "expects," "believes," "anticipates," "intends," "estimates," "seeks," and variations and similar words and expressions are intended to identify such forward-looking statements; however, the absence of any such words does not mean that a statement is a not a forward-looking statement. Such forward-looking statements relate to future events or future performance, but reflect Kingsway management's current beliefs, based on information currently available. A number of factors could cause actual events, performance, or results to differ materially from the events, performance, and results discussed in the forward-looking statements. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the section entitled "Risk Factors" in the Company's 2025 Annual Report on Form 10-K and subsequent Form 10-Qs and Form 8-Ks filed with the Securities and Exchange Commission. Except as expressly required by applicable securities law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.

Additional Information

Additional information about Kingsway, including a copy of its Annual Reports can be accessed on the EDGAR section of the U.S. Securities and Exchange Commission's website at www.sec.gov, on the Canadian Securities Administrators' website at www.sedar.com, or through the Company's website at www.kingsway-financial.com.

For Investor Inquiries:
Hayden IR
James Carbonara
(646) 755-7412
[email protected]

For Company Inquiries:
Kingsway Financial Services Inc.
Kent Hansen, CFO
(312) 766-2163
[email protected]

Kingsway Financial Services Inc.
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted Consolidated EBITDA
(in thousands)
(UNAUDITED)

Kingsway Financial Services Inc.
Reconciliation of KSX Segment Operating Income to Non-GAAP Adjusted EBITDA
(in thousands)
(UNAUDITED)

Kingsway Financial Services Inc.
Reconciliation of Extended Warranty Segment Operating Income to
Non-GAAP Adjusted EBITDA and Pro Forma Non-GAAP Adjusted EBITDA
(in thousands)
(UNAUDITED)

SOURCE: Kingsway Financial Services, Inc.

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