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

Kingsway Financial Services (NYSE:KFS) (TSE:KFS) released its quarterly earnings data on Thursday. The insurance provider reported ($0.10) earnings per share (EPS) for the quarter, FiscalAI reports. Kingsway Financial Services had a negative net margin of 8.83% and a negative return on equity of 69.64%. The firm had revenue of $38.96 million during the quarter.

Here are the key takeaways from Kingsway Financial Services’ conference call:

• Kingsway delivered a strong Q1 with consolidated revenue up 37.4% to $39.0M, KSX revenue up 80.7% to $21.1M, and KSX record adjusted EBITDA of $3.5M, helping consolidated adjusted EBITDA rise to $2.4M.
• The Extended Warranty segment saw cash sales growth of 11.8% and revenue per contract increase, with revenue up 7.2% to $17.9M, but adjusted EBITDA declined to $0.4M due to G&A investments and an ERP conversion.
• Management emphasized a robust M&A pipeline—one tuck‑in closed (Ledgers via Ravix) and a target of 3–5 acquisitions in 2026—and plans to scale the Skilled Trades platform with ~2–3 add‑ons per year.
• The board proposed a corporate name change to Kingsway Corporation and ticker KWY (shareholder vote May 18), and the company updated its face financial statements to a service‑business format to improve investor clarity.
• Balance sheet and near‑term margin risks remain—total net debt rose slightly to $63.9M at March 31, 2026, consolidated net loss was $2.2M, and ongoing investments have pressured adjusted EBITDA in parts of the business.

Kingsway Financial Services Trading Up 9.8%

NYSE:KFS traded up $1.05 on Friday, reaching $11.75. 99,637 shares of the stock traded hands, compared to its average volume of 76,540. The firm has a market capitalization of $340.22 million, a price-to-earnings ratio of -29.38 and a beta of 0.27. The company’s 50 day moving average is $11.17 and its 200-day moving average is $12.46. The company has a current ratio of 2.50, a quick ratio of 2.50 and a debt-to-equity ratio of 4.07. Kingsway Financial Services has a 1-year low of $8.85 and a 1-year high of $16.80.

Institutional Trading of Kingsway Financial Services

A number of institutional investors and hedge funds have recently added to or reduced their stakes in KFS. Bank of America Corp DE increased its position 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 purchasing an additional 3,300 shares during the period. Goldman Sachs Group Inc. increased its position in Kingsway Financial Services by 11.2% during the 1st quarter. Goldman Sachs Group Inc. now owns 102,386 shares of the insurance provider’s stock valued at $811,000 after purchasing an additional 10,350 shares during the period. Jane Street Group LLC acquired a new stake in Kingsway Financial Services during the 1st quarter valued at approximately $149,000. Geode Capital Management LLC increased its position in Kingsway Financial Services by 20.2% during the 2nd quarter. Geode Capital Management LLC now owns 426,836 shares of the insurance provider’s stock valued at $5,780,000 after purchasing an additional 71,720 shares during the period. Finally, Legal & General Group Plc increased its position in Kingsway Financial Services by 66.2% during the 2nd 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 during the period. Institutional investors and hedge funds own 72.38% of the company’s stock.

Wall Street Analyst Weigh In

Separately, Weiss Ratings downgraded Kingsway Financial Services from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Monday. One research analyst has rated the stock with a Sell rating, According to MarketBeat.com, the company currently has a consensus rating of “Sell”.

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).