Kingsway Reports Second Quarter 2025 Financial Results

About this update from Kingsway Corporation

Management to Host Conference Call Today, August 7, 2025, at 5 p.m. ET CHICAGO, ILLINOIS / ACCESS Newswire / August 7, 2025 / (NYSE:KFS) 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 and six months ended June 30, 2025. Second Quarter 2025 Consolidated Financial Highlights Recent Business Highlights Management Commentary "The second quarter of 2025 marked a major inflection point for Kingsway," said JT Fitzgerald, Kingsway's President and CEO. "The Company raised $15.7 million via a PIPE transaction that provided the Company with the financial resources to accelerate growth and to deliver our multi-year business plan. We subsequently completed three attractive acquisitions via our KSX platform, bringing the year-to-date total to five KSX transactions - at the top end of our recently-increased target range. Importantly, our KSX acquisition pipeline remains robust. Kingsway has established itself as an attractive home for high-quality B2B and B2C services companies, and I believe we have a compelling opportunity to build a much larger and far more profitable business by following our public Search Fund strategy. "Our momentum also continued operationally. KSX revenue grew 42% and KSX adjusted EBITDA grew 31% year-over-year. Extended Warranty delivered improved results and is clearly back on the path to growth, with revenue increasing 3% and cash sales increasing 9% against the prior year. Notably, this marks the sixth consecutive quarter of increased cash sales within Extended Warranty, a key leading indicator of future financial performance. "After years of investment in our KSX platform, we're now executing our strategy with precision," concluded Mr. Fitzgerald. "Each of our recent acquisitions aligns with our vision to build an exceptional portfolio of growing, profitable, and recurring revenue services businesses led by our talented Operator CEO's. Kingsway is committed to driving significant long-term value for the Company's shareholders, and I am confident these transactions demonstrate our public Search Fund strategy is delivering as promised."   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, August 7, 2025 Time: 5 p.m. Eastern Time Toll Free: 877-545-0320 International: 973-528-0002 Access Code: 594735 Live Webcast Link: https://www.webcaster4.com/Webcast/Page/2928/52798 Conference Call Replay Information Toll Free: 877-481-4010 International: 919-882-2331 Replay Passcode: 52798 Replay Webcast Link: https://www.webcaster4.com/Webcast/Page/2928/52798 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 Measure Management believes that non-GAAP adjusted EBITDA, when presented in conjunction with comparable GAAP measures, provides useful information about the Company's operating results and enhances 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. Investors should consider this non-GAAP measure 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 2024 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 Extended Warranty Segment Operating Income to Non-GAAP Adjusted EBITDA and Pro Forma Non-GAAP Adjusted EBITDA (in thousands) (UNAUDITED)   Kingsway Financial Services Inc. Reconciliation of KSX Segment Operating Income to Non-GAAP Adjusted EBITDA (in thousands) (UNAUDITED) SOURCE: Kingsway Financial Services, Inc. View the original press release on ACCESS Newswire

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