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

Kingsway Financial Services (NYSE:KFS) (TSE:KFS) announced its quarterly earnings data on Thursday. The insurance provider reported ($0.07) earnings per share for the quarter, Zacks reports. Kingsway Financial Services had a negative net margin of 8.55% and a negative return on equity of 76.94%. The firm had revenue of $38.53 million during 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 Stock Performance

Shares of KFS stock traded down $0.48 on Friday, hitting $10.48. The company had a trading volume of 36,117 shares, compared to its average volume of 79,655. Kingsway Financial Services has a twelve month low of $7.06 and a twelve month high of $16.80. The company has a quick ratio of 0.39, a current ratio of 0.39 and a debt-to-equity ratio of 0.74. The firm has a market cap of $303.38 million, a P/E ratio of -29.15 and a beta of 0.22. The company has a 50-day moving average price of $12.61 and a 200-day moving average price of $13.42.

Analysts Set New Price Targets

Separately, Weiss Ratings restated a “sell (d-)” rating on shares of Kingsway Financial Services in a research note on Thursday, January 22nd. One research analyst has rated the stock with a Sell rating, Based on data from MarketBeat, the company currently has a consensus rating of “Sell”.

Insider Activity

In other news, Director Joseph Stilwell sold 19,229 shares of the firm’s stock in a transaction that occurred on Monday, December 22nd. The shares were sold at an average price of $12.80, for a total transaction of $246,131.20. Following the sale, the director owned 300,000 shares of the company’s stock, valued at $3,840,000. This trade represents a 6.02% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO John Taylor Maloney Fitzgerald sold 30,000 shares of Kingsway Financial Services stock in a transaction that occurred on Tuesday, December 23rd. The shares were sold at an average price of $13.32, for a total transaction of $399,600.00. Following the transaction, the chief executive officer directly owned 1,459,534 shares of the company’s stock, valued at approximately $19,440,992.88. This trade represents 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 ninety days, insiders have purchased 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 company insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of KFS. Vanguard Group Inc. raised its position in shares of Kingsway Financial Services by 12.5% in the third quarter. Vanguard Group Inc. now owns 948,838 shares of the insurance provider’s stock worth $13,872,000 after acquiring an additional 105,080 shares during the period. Geode Capital Management LLC grew its holdings in Kingsway Financial Services by 20.2% in the second 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. Stifel Financial Corp increased its position in shares of Kingsway Financial Services by 174.6% in the fourth quarter. Stifel Financial Corp now owns 78,250 shares of the insurance provider’s stock valued at $1,052,000 after buying an additional 49,750 shares in the last quarter. Steward Partners Investment Advisory LLC raised its stake in shares of Kingsway Financial Services by 2,045.7% during the 4th quarter. Steward Partners Investment Advisory LLC now owns 48,449 shares of the insurance provider’s stock worth $652,000 after buying an additional 46,191 shares during the period. Finally, Squarepoint Ops LLC purchased a new position in shares of Kingsway Financial Services during the 4th quarter valued at approximately $607,000. Institutional investors and hedge funds 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).