Kingsway Reports Fourth Quarter And Full Year 2025 Financial Results
Rhea-AI Summary
Kingsway Financial Services (NYSE:KFS) reported strong top-line growth in 2025 with consolidated revenue of $135.0M (+23.4% YoY) and Q4 revenue of $38.6M (+30.1% YoY). KSX led gains: Q4 revenue $20.3M (+63.6%) and FY revenue $64.2M (+58.5%).
KSX adjusted EBITDA rose materially while Extended Warranty margins compressed. Portfolio LTM EBITDA is reported at $22.0M–$23.0M. Company targets 3–5 KSX acquisitions in 2026 and budgets double‑digit organic growth across segments.
Positive
- Consolidated revenue +23.4% FY to $135.0M
- Q4 consolidated revenue +30.1% to $38.6M
- KSX revenue +58.5% FY to $64.2M (Q4 +63.6% to $20.3M)
- KSX adjusted EBITDA +40.8% FY to $9.5M
- Portfolio LTM EBITDA of $22.0M–$23.0M
- Acquisition of Ledgers expected to add $0.4M pro-forma annual adjusted EBITDA
Negative
- Consolidated net loss widened to $10.3M for FY 2025
- Consolidated adjusted EBITDA declined to $7.8M for FY 2025
- Extended Warranty adjusted EBITDA fell to $3.1M for FY 2025
- Total net debt increased to $62.4M as of Dec 31, 2025 (vs $52.0M)
Key Figures
Market Reality Check
Peers on Argus
KFS was down 2.31% pre-earnings while key peers showed mixed moves: UXIN +2.21%, CRMT +1.71%, ACVA -3.00%, with others near flat. Momentum scans only flagged VRM at -4.17%, suggesting a stock-specific backdrop rather than a broad sector rotation.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 06 | Q3 2025 earnings | Negative | -10.8% | Strong revenue growth but ongoing net loss and higher debt weighed on shares. |
| Aug 07 | Q2 2025 earnings | Negative | -2.7% | Revenue growth and KSX strength offset by net loss and equity financing. |
| May 08 | Q1 2025 earnings | Negative | +1.2% | Higher revenue but wider net loss and lower adjusted EBITDA versus prior year. |
| Mar 17 | FY 2024 results | Negative | -0.3% | Full-year revenue growth accompanied by swing to net loss and rising debt. |
| Nov 06 | Q3 2024 earnings | Negative | -2.3% | Moderate revenue growth but larger consolidated net loss year over year. |
Earnings releases have frequently paired solid revenue growth with continued net losses, and the stock has often traded lower afterwards, with 4 of the last 5 earnings headlines seeing negative next-day moves.
Over the past few earnings cycles, Kingsway has consistently delivered revenue growth led by its KSX segment, while extended warranty has grown more modestly. However, each period still reported a consolidated net loss, and leverage has increased from $52.0M net debt at Dec 31, 2024. Strategic acquisitions and private placements have expanded the portfolio and funding base. Today’s full-year 2025 results, with higher revenue and net loss alongside $62.4M net debt, continue this pattern of growth balanced against profitability and leverage considerations.
Historical Comparison
Earnings headlines over the past year produced an average next-day move of -2.97%, as investors weighed strong KSX-driven growth against persistent net losses and increasing leverage.
From FY 2024 through Q1–Q3 2025, Kingsway showed accelerating KSX revenue, modest extended warranty growth, and recurring net losses. The current FY 2025 release extends this trajectory with higher consolidated revenue and KSX EBITDA alongside a larger annual net loss and higher net debt.
Market Pulse Summary
This announcement underscores Kingsway’s growth-through-acquisition strategy, with Q4 2025 revenue of $38.6M and FY 2025 revenue of $135.0M, driven by strong KSX gains and steadier extended warranty trends. However, the FY 2025 net loss widened to $10.3M and net debt increased to $62.4M. Investors may focus on how management balances continued double‑digit growth ambitions with improving adjusted EBITDA and managing leverage across future earnings cycles.
Key Terms
adjusted EBITDA financial
net debt financial
non-U.S. GAAP financial measures financial
AI-generated analysis. Not financial advice.
-- Q4 2025 Revenue Growth of
-- Q4 2025 KSX Revenue Growth of
-- Q4 2025 Extended Warranty Revenue Growth of
-- Reiterate Target of 3 to 5 Acquisitions in 2026 --
-- Double-Digit Organic Growth Budgeted for both KSX and Extended Warranty in 2026 --
Management to Host Conference Call Today, March 12, 2026, at 5 p.m. ET
CHICAGO, IL / ACCESS Newswire / March 12, 2026 / Kingsway Financial Services Inc. (NYSE:KFS) ("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 and twelve months ended December 31, 2025.
Fourth Quarter 2025 Financial Highlights Compared To Fourth Quarter 2024
Consolidated revenue increased
30.1% to$38.6 million , compared to$29.6 million .Kingsway Search Xcelerator ("KSX") revenue increased
63.6% to$20.3 million , compared to$12.4 million .Extended Warranty revenue increased
6.1% to$18.3 million , compared to$17.2 million ; Extended Warranty cash sales increased11.3% .
Consolidated net loss was
$1.6 million , compared to a net loss of$1.5 million .Consolidated adjusted EBITDA was
$2.7 million , compared to$3.4 million .KSX adjusted EBITDA increased by
28.6% to$2.5 million , compared to$1.9 million .Extended Warranty adjusted EBITDA was
$0.8 million , compared to$2.4 million .
The Company had total net debt of
$62.4 million as of December 31, 2025, compared with$61.4 million as of September 30, 2025.
Full Year 2025 Financial Highlights Compared To Full Year 2024
Consolidated revenue increased
23.4% to$135.0 million , compared to$109.4 million .KSX revenue increased
58.5% to$64.2 million , compared to$40.5 million .Extended Warranty revenue increased
2.8% to$70.8 million , compared to$68.9 million ; Extended Warranty cash sales increased9.2% .
Consolidated net loss was
$10.3 million , compared to a net loss of$8.3 million .Consolidated adjusted EBITDA was
$7.8 million , compared to$11.0 million .KSX adjusted EBITDA increased by
40.8% to$9.5 million , compared to$6.7 million .Extended Warranty adjusted EBITDA was
$3.1 million , compared to$7.5 million .
The Company had total net debt of
$62.4 million as of December 31, 2025, compared with$52.0 million as of December 31, 2024.
Business Highlights
Portfolio LTM EBITDA for the operating companies was
$22.0 million to$23.0 million as of December 31, 2025; see "Non-U.S. GAAP Financial Measures" below for further explanation of this metric.On January 5, 2026, the Company's wholly-owned subsidiary, Ravix Group, Inc. ("Ravix"), acquired the assets of Ledgers, Inc. ("Ledgers"), a provider of outsourced accounting services based in the state of Illinois. The business is expected to add unaudited pro-forma annual adjusted EBITDA of
$0.4 million to Kingsway.
Management Commentary
"2025 was a year of meaningful progress for Kingsway," said JT Fitzgerald, Kingsway's President and CEO. "We launched our Skilled Trades platform, completed six acquisitions in the KSX segment, and - for the first time - KSX represented a majority of revenue and adjusted EBITDA in both the third and fourth quarters.
"Our KSX segment delivered strong results in 2025, with revenue growing
"As we look forward to the coming year, there is real momentum across our businesses. For 2026, we are budgeting double-digit organic growth in revenue and adjusted EBITDA in the KSX segment, and double-digit organic growth in revenue and Modified Cash adjusted EBITDA in the Extended Warranty segment.
"We anticipate completing three to five acquisitions in 2026 through our KSX platform, consistent with the targets outlined last year. Combined with continued healthy organic growth, these acquisitions positions Kingsway for a year of meaningful expansion."
"Finally, I am pleased to highlight Kingsway's Portfolio LTM EBITDA of
"Our focus at Kingsway remains unchanged: to support our Operator CEOs, to grow the businesses we own, to acquire additional high-quality businesses through our Search Fund platform, and to create meaningful long-term value for shareholders."
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: James@HaydenIR.com.
Conference Call Information
Date: Thursday, March 12, 2026
Time: 5 p.m. Eastern Time
Toll Free: 877-545-0320; Code: 478693
International: +1 973-528-0002; Code: 478693
Live Webcast Link: https://www.webcaster5.com/Webcast/Page/2928/53724
Conference Call Replay Information
Toll Free: 877-481-4010
International: +1-919-882-2331
Replay Passcode: 53724
Replay Webcast Link: https://www.webcaster5.com/Webcast/Page/2928/53724
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
james@haydenir.com
For Company Inquiries:
Kingsway Financial Services Inc.
Kent Hansen, CFO
(312) 766-2163
khansen@kingsway-financial.com
Kingsway Financial Services Inc.
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted Consolidated EBITDA
(in thousands)
(UNAUDITED)
Twelve Months Ended | For the Three Months Ended | |||||||||||||||||||
12/31/2025 | 12/31/2025 | 9/30/2025 | 6/30/2025 | 3/31/2025 | ||||||||||||||||
GAAP Net Income (Loss) | $ | (10,252 | ) | $ | (1,584 | ) | $ | (2,411 | ) | $ | (3,165 | ) | $ | (3,092 | ) | |||||
Non-GAAP Adjustments: | ||||||||||||||||||||
Changes in fair value; realized gains/losses (1) | 2 | 12 | 48 | (36 | ) | (22 | ) | |||||||||||||
Employee related expenses (2) | 2,335 | 383 | 726 | 731 | 495 | |||||||||||||||
Other items (3) | 4,105 | 711 | 1,317 | 982 | 1,095 | |||||||||||||||
Depreciation, amortization, tax and interest expense | 11,605 | 3,209 | 2,379 | 3,141 | 2,876 | |||||||||||||||
Total Non-GAAP Adjustments | 18,047 | 4,315 | 4,470 | 4,818 | 4,444 | |||||||||||||||
Non-GAAP Adjusted Consolidated EBITDA | $ | 7,795 | $ | 2,731 | $ | 2,059 | $ | 1,653 | $ | 1,352 | ||||||||||
Twelve Months Ended | For the Three Months Ended | |||||||||||||||||||
12/31/2024 | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | ||||||||||||||||
GAAP Net Income (Loss) | $ | (8,295 | ) | $ | (1,470 | ) | $ | (2,311 | ) | $ | (2,186 | ) | $ | (2,328 | ) | |||||
Non-GAAP Adjustments: | ||||||||||||||||||||
Discontinued operations | 182 | 1 | 135 | (167 | ) | 213 | ||||||||||||||
Changes in fair value; realized gains/losses (1) | 605 | 133 | (81 | ) | 145 | 408 | ||||||||||||||
Employee related expenses (2) | 2,259 | 390 | 990 | 412 | 467 | |||||||||||||||
Other items (3) | 1,832 | 225 | 956 | 590 | 61 | |||||||||||||||
Depreciation, amortization, tax and interest expense | 14,399 | 4,117 | 3,343 | 3,659 | 3,280 | |||||||||||||||
Total Non-GAAP Adjustments | 19,277 | 4,866 | 5,343 | 4,639 | 4,429 | |||||||||||||||
Non-GAAP Adjusted Consolidated EBITDA | $ | 10,982 | $ | 3,396 | $ | 3,032 | $ | 2,453 | $ | 2,101 | ||||||||||
(1) Includes realized and unrealized gains and losses on non-core investments; change in the fair value of subordinated debt (net of the portion of the change attributable to instrument-specific credit risk); unrealized gains and losses; and change in the fair value of the Ravix earn-out (changes in fair value recorded as other income or expense).
(2) Employee related expenses includes non-cash expense arising from the grant and modification of stock-based awards to employees; and costs associated with employees assisting during a transition period and are not expected to be replaced once transition period has ended (approximately one year from acquisition date).
(3) Other items include: legal expenses associated with the Company's defense against significant litigation matters; acquisition and disposition-related expenses; and other non-recurring items.
Kingsway Financial Services Inc.
Reconciliation of KSX Segment Operating Income to Non-GAAP Adjusted EBITDA
(in thousands)
(UNAUDITED)
Twelve Months Ended | For the Three Months Ended | |||||||||||||||||||
12/31/2025 | 12/31/2025 | 9/30/2025 | 6/30/2025 | 3/31/2025 | ||||||||||||||||
GAAP Operating Income for KSX segment | $ | 7,787 | $ | 1,810 | $ | 2,185 | $ | 2,049 | $ | 1,743 | ||||||||||
Non-GAAP Adjustments: | ||||||||||||||||||||
Acquisition and employee costs (1) | 713 | 279 | 178 | 204 | 52 | |||||||||||||||
Investment income (2) | 113 | 29 | 30 | 29 | 25 | |||||||||||||||
Depreciation | 844 | 367 | 267 | 113 | 97 | |||||||||||||||
Total Non-GAAP Adjustments | 1,670 | 675 | 475 | 346 | 174 | |||||||||||||||
Non-GAAP adjusted EBITDA for KSX segment | $ | 9,457 | $ | 2,485 | $ | 2,660 | $ | 2,395 | $ | 1,917 | ||||||||||
Twelve Months Ended | For the Three Months Ended | |||||||||||||||||||
12/31/2024 | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | ||||||||||||||||
GAAP Operating Income for KSX segment | $ | 5,662 | $ | 1,734 | $ | 1,144 | $ | 1,441 | $ | 1,343 | ||||||||||
Non-GAAP Adjustments: | ||||||||||||||||||||
Acquisition and employee costs (1) | 462 | 65 | 120 | 139 | 138 | |||||||||||||||
Investment income (2) | 138 | 33 | 27 | 68 | 10 | |||||||||||||||
Depreciation (3) | 455 | 101 | 110 | 180 | 64 | |||||||||||||||
Total Non-GAAP Adjustments | 1,055 | 199 | 257 | 387 | 212 | |||||||||||||||
Non-GAAP adjusted EBITDA for KSX segment | $ | 6,717 | $ | 1,933 | $ | 1,401 | $ | 1,828 | $ | 1,555 | ||||||||||
(1) Costs associated with acquisitions and employees assisting during a transition period and are not expected to be replaced once transition period has ended (approximately one year from acquisition date).
(2) Investment income from interest on client deposits (Ravix, CSuite), as well as imputed interest on long-term software contracts (SPI)
(3) The June 30, 2024 quarter includes a one-time catch-up for depreciation associated with the finalization of the DDI purchase accounting
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)
Twelve Months Ended | For the Three Months Ended | |||||||||||||||||||
12/31/2025 | 12/31/2025 | 9/30/2025 | 6/30/2025 | 3/31/2025 | ||||||||||||||||
GAAP Operating Income for Extended Warranty segment | $ | 1,154 | $ | 301 | $ | 401 | $ | (63 | ) | $ | 515 | |||||||||
Non-GAAP Adjustments: | ||||||||||||||||||||
Investment income (1) | 1,254 | 342 | 324 | 341 | 247 | |||||||||||||||
Employee costs | 352 | - | - | 302 | 50 | |||||||||||||||
Other costs | 158 | 158 | ||||||||||||||||||
Depreciation | 161 | 47 | 37 | 39 | 38 | |||||||||||||||
Total Non-GAAP Adjustments | 1,925 | 547 | 361 | 682 | 335 | |||||||||||||||
Non-GAAP adjusted EBITDA for Extended Warranty segment | $ | 3,079 | $ | 848 | $ | 762 | $ | 619 | $ | 850 | ||||||||||
Twelve Months Ended | For the Three Months Ended | |||||||||||||||||||
12/31/2024 | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | ||||||||||||||||
GAAP Operating Income for Extended Warranty segment | $ | 5,942 | $ | 1,918 | $ | 1,704 | $ | 1,244 | $ | 1,076 | ||||||||||
Non-GAAP Adjustments: | ||||||||||||||||||||
Investment income (1) | 1,362 | 394 | 327 | 321 | 320 | |||||||||||||||
Depreciation | 188 | 39 | 41 | 56 | 52 | |||||||||||||||
Total Non-GAAP Adjustments | 1,550 | 433 | 368 | 377 | 372 | |||||||||||||||
Non-GAAP adjusted EBITDA for Extended Warranty segment | $ | 7,492 | $ | 2,351 | $ | 2,072 | $ | 1,621 | $ | 1,448 | ||||||||||
(1) Investment income arising as part of Extended Warranty segment's minimum holding requirements, as well as realized gains and losses resulting from investments either held in trust as part of Extended Warranty segment's minimum holding requirements or from the deployment of excess cash.
(2) Other costs include one-time items not expected to be incurred going forward.
SOURCE: Kingsway Financial Services, Inc.
View the original press release on ACCESS Newswire
FAQ
What were Kingsway (KFS) Q4 2025 revenue and growth rates?
How did KSX segment performance affect Kingsway (KFS) 2025 results?
What happened to Extended Warranty margins for Kingsway (KFS) in 2025?
How much debt does Kingsway (KFS) carry after 2025 and is leverage rising?
What acquisition plans did Kingsway (KFS) announce for 2026?
Does Kingsway (KFS) provide forward guidance for 2026 growth?
