Kingsway Reports Second Quarter 2025 Financial Results
Kingsway Financial Services (NYSE:KFS), a public company utilizing the Search Fund model, reported Q2 2025 financial results with consolidated revenue growth of 16.9% to $30.9 million. The company's KSX segment showed strong performance with 42.1% revenue growth to $13.3 million, while Extended Warranty revenue increased 3.1% to $17.6 million.
The company reported a net loss of $3.2 million and reduced total net debt to $46.2 million. In June 2025, KFS completed a $15.7 million private placement at $11.75 per share. The company also announced three strategic acquisitions: Roundhouse Electric ($22.4M), Advanced Plumbing and Drain (up to $5.0M), and The HR Team, collectively adding approximately $23 million in annual revenue and $5.1 million in adjusted EBITDA.
Kingsway Financial Services (NYSE:KFS), una societ脿 pubblica che utilizza il modello Search Fund, ha riportato i risultati finanziari del secondo trimestre 2025 con una crescita consolidata dei ricavi del 16,9% a 30,9 milioni di dollari. Il segmento KSX dell'azienda ha mostrato una forte performance con una crescita dei ricavi del 42,1% a 13,3 milioni di dollari, mentre i ricavi da Extended Warranty sono aumentati del 3,1% raggiungendo 17,6 milioni di dollari.
La societ脿 ha registrato una perdita netta di 3,2 milioni di dollari e ha ridotto il debito netto totale a 46,2 milioni di dollari. Nel giugno 2025, KFS ha completato un private placement da 15,7 milioni di dollari a 11,75 dollari per azione. L'azienda ha inoltre annunciato tre acquisizioni strategiche: Roundhouse Electric (22,4 milioni di dollari), Advanced Plumbing and Drain (fino a 5,0 milioni di dollari) e The HR Team, che insieme aggiungono circa 23 milioni di dollari di ricavi annui e 5,1 milioni di dollari di EBITDA rettificato.
Kingsway Financial Services (NYSE:KFS), una empresa p煤blica que utiliza el modelo Search Fund, report贸 los resultados financieros del segundo trimestre de 2025 con un crecimiento consolidado de ingresos del 16,9% hasta 30,9 millones de d贸lares. El segmento KSX de la compa帽铆a mostr贸 un s贸lido desempe帽o con un crecimiento de ingresos del 42,1% hasta 13,3 millones de d贸lares, mientras que los ingresos por Extended Warranty aumentaron un 3,1% hasta 17,6 millones de d贸lares.
La empresa report贸 una p茅rdida neta de 3,2 millones de d贸lares y redujo la deuda neta total a 46,2 millones de d贸lares. En junio de 2025, KFS complet贸 una colocaci贸n privada de 15,7 millones de d贸lares a 11,75 d贸lares por acci贸n. Adem谩s, anunci贸 tres adquisiciones estrat茅gicas: Roundhouse Electric (22,4 millones), Advanced Plumbing and Drain (hasta 5,0 millones) y The HR Team, que en conjunto suman aproximadamente 23 millones de d贸lares en ingresos anuales y 5,1 millones de d贸lares en EBITDA ajustado.
Kingsway Financial Services (NYSE:KFS)電� 靹滌箻 韼�霌� 氇嵏鞚� 頇滌毄頃橂姅 靸侅灔 須岇偓搿滌劀 2025雲� 2攵勱赴 鞛 鞁れ爜鞚� 氚滍憸頃橂┌ 韱淀暕 毵れ稖鞚� 16.9% 歃濌皜頃橃棳 3,090毵� 雼煬毳� 旮半頄堨姷雼堧嫟. 須岇偓鞚� KSX 攵�氍胳潃 42.1% 毵れ稖 靹膘灔鞙茧 1,330毵� 雼煬毳� 雼劚頄堦碃, 鞐办灔 氤挫(Extended Warranty) 毵れ稖鞚� 3.1% 歃濌皜頃橃棳 1,760毵� 雼煬鞐� 鞚措ゴ霠�鞀惦媹雼�.
须岇偓电�
Kingsway Financial Services (NYSE:KFS), une soci茅t茅 cot茅e utilisant le mod猫le Search Fund, a annonc茅 ses r茅sultats financiers du deuxi猫me trimestre 2025 avec une croissance consolid茅e du chiffre d'affaires de 16,9 % 脿 30,9 millions de dollars. Le segment KSX de la soci茅t茅 a affich茅 une forte performance avec une croissance du chiffre d'affaires de 42,1 % 脿 13,3 millions de dollars, tandis que les revenus des garanties 茅tendues ont augment茅 de 3,1 % pour atteindre 17,6 millions de dollars.
La soci茅t茅 a enregistr茅 une perte nette de 3,2 millions de dollars et a r茅duit sa dette nette totale 脿 46,2 millions de dollars. En juin 2025, KFS a r茅alis茅 un placement priv茅 de 15,7 millions de dollars au prix de 11,75 dollars par action. La soci茅t茅 a 茅galement annonc茅 trois acquisitions strat茅giques : Roundhouse Electric (22,4 M$), Advanced Plumbing and Drain (jusqu'脿 5,0 M$) et The HR Team, ajoutant collectivement environ 23 millions de dollars de revenus annuels et 5,1 millions de dollars d'EBITDA ajust茅.
Kingsway Financial Services (NYSE:KFS), ein b枚rsennotiertes Unternehmen, das das Search Fund-Modell nutzt, meldete die Finanzergebnisse f眉r das 2. Quartal 2025 mit einem konsolidierten Umsatzwachstum von 16,9 % auf 30,9 Millionen US-Dollar. Das KSX-Segment des Unternehmens zeigte eine starke Leistung mit einem Umsatzwachstum von 42,1 % auf 13,3 Millionen US-Dollar, w盲hrend die Einnahmen aus Extended Warranty um 3,1 % auf 17,6 Millionen US-Dollar stiegen.
Das Unternehmen meldete einen Nettoverlust von 3,2 Millionen US-Dollar und reduzierte die gesamte Nettoverschuldung auf 46,2 Millionen US-Dollar. Im Juni 2025 schloss KFS eine Private Placement in H枚he von 15,7 Millionen US-Dollar zu einem Preis von 11,75 US-Dollar je Aktie ab. Zudem k眉ndigte das Unternehmen drei strategische 脺bernahmen an: Roundhouse Electric (22,4 Mio. US-Dollar), Advanced Plumbing and Drain (bis zu 5,0 Mio. US-Dollar) und The HR Team, die zusammen etwa 23 Millionen US-Dollar Jahresumsatz und 5,1 Millionen US-Dollar bereinigtes EBITDA 丑颈苍锄耻蹿眉驳别苍.
- Revenue growth of 16.9% to $30.9 million in Q2 2025
- KSX segment showed strong 42.1% revenue growth to $13.3 million
- Successful completion of $15.7 million private placement
- Three strategic acquisitions adding $23 million in annual revenue
- Reduction in total net debt from $52.0M to $46.2M
- Extended Warranty segment shows six consecutive quarters of increased cash sales
- Net loss increased to $3.2 million from $2.2 million year-over-year
- Adjusted consolidated EBITDA decreased by $0.8M to $1.7M
- Extended Warranty adjusted EBITDA declined to $0.6M from $1.6M
- Potential shareholder dilution from private placement of 1,336,264 shares
Insights
Kingsway shows strong 16.9% revenue growth but widening losses, with KSX segment thriving while Extended Warranty underperforms.
Kingsway's Q2 2025 results reveal a 16.9% revenue increase to
The divergence between segments is striking. KSX's adjusted EBITDA improved by
Strategically, Kingsway has accelerated its acquisition strategy after completing a
The company's deleveraging progress is noteworthy, reducing total net debt to
The contrast between KSX's strong performance and Extended Warranty's weakening results raises questions about the long-term balance of these business segments. However, management notes Extended Warranty has shown six consecutive quarters of increased cash sales, which they consider a leading indicator of future performance, suggesting potential improvement ahead for this underperforming segment.
Management to Host Conference Call Today, August 7, 2025, at 5 p.m. ET
CHICAGO, ILLINOIS / / 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
Consolidated revenue increased
16.9% to$30.9 million for the three months ended June 30, 2025, compared to$26.4 million in the prior year period.Kingsway Search Xcelerator ("KSX") revenue increased
42.1% to$13.3 million in the second quarter of 2025, compared to$9.3 million in the second quarter of 2024.Extended Warranty revenue increased
3.1% to$17.6 million in the second quarter of 2025, compared to$17.1 million in the second quarter of 2024.
Consolidated net loss was
$3.2 million for the three months ended June 30, 2025, compared to a net loss of$2.2 million in the prior year period.Twelve month trailing run-rate adjusted EBITDA for the operating companies of
$22.0 million to$23.0 million ; this metric is intended to capture the 12-month trailing adjusted EBITDA of businesses the Company currently owns or has recently acquired, and is not intended to be forward-looking guidance.Adjusted consolidated EBITDA decreased
$0.8 million to$1.7 million for the three months ended June 30, 2025, compared to$2.5 million in the prior year period.KSX adjusted EBITDA was
$2.4 million in the second quarter of 2025 compared to$1.8 million in the year ago period.Extended Warranty adjusted EBITDA was
$0.6 million in the second quarter of 2025 compared to$1.6 million in the year ago period.
The Company had total net debt of
$46.2 million as of June 30, 2025, compared with$52.0 million as of December 31, 2024.
Recent Business Highlights
鈼� | On June 24, 2025, the Company closed a |
鈼� | On July 1, 2025, the Company acquired Roundhouse Electric & Equipment Co., Inc. ("Roundhouse"), a leading provider of industrial-scale electric motor maintenance, repair, testing, and sales solutions based in Odessa, Texas, for |
鈼� | On August 1, 2025, the Company acquired AAA Flexible Pipe Cleaning Corp ("Advanced Plumbing and Drain"), a leading provider of commercial and residential plumbing services based in Cleveland, Ohio, for |
鈼� | On August 1, 2025, the Company's wholly-owned subsidiary Ravix Group, Inc. completed the strategic acquisition of The HR Team, Inc., a specialized firm of human resources professionals based in the state of Maryland. The business is expected to add unaudited pro-forma annual adjusted EBITDA of |
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
"Our momentum also continued operationally. KSX revenue grew
"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:
Conference Call Replay Information
Toll Free: 877-481-4010
International: 919-882-2331
Replay Passcode: 52798
Replay Webcast Link:
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 .
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)
Twelve Months Ended | For the Three Months Ended | ||||||||||||||
6/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | |||||||||||
GAAP Net Income (Loss) | $ | (10,038 | ) | $ | (3,165 | ) | $ | (3,092 | ) | $ | (1,470 | ) | $ | (2,311 | ) |
Non-GAAP Adjustments: | |||||||||||||||
Discontinued operations | 136 | - | - | 1 | 135 | ||||||||||
Changes in fair value; realized gains/losses (1) | (6 | ) | (36 | ) | (22 | ) | 133 | (81 | ) | ||||||
Employee related expenses (2) | 2,606 | 731 | 495 | 390 | 990 | ||||||||||
Other items (3) | 3,258 | 982 | 1,095 | 225 | 956 | ||||||||||
Depreciation, amortization, tax and interest expense | 13,477 | 3,141 | 2,876 | 4,117 | 3,343 | ||||||||||
Total Non-GAAP Adjustments | 19,471 | 4,818 | 4,444 | 4,866 | 5,343 | ||||||||||
Non-GAAP Adjusted Consolidated EBITDA | $ | 9,433 | $ | 1,653 | $ | 1,352 | $ | 3,396 | $ | 3,032 | |||||
Twelve Months Ended | For the Three Months Ended | ||||||||||||||
6/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | |||||||||||
GAAP Net Income (Loss) | $ | (6,674 | ) | $ | (2,186 | ) | $ | (2,328 | ) | $ | (1,485 | ) | $ | (675 | ) |
Non-GAAP Adjustments: | |||||||||||||||
Discontinued operations | 1,801 | (167 | ) | 213 | 1,877 | (122 | ) | ||||||||
Changes in fair value; realized gains/losses (1) | 1,081 | 145 | 408 | 240 | 288 | ||||||||||
Employee related expenses (2) | 2,113 | 412 | 467 | 755 | 479 | ||||||||||
Other items (3) | 2,066 | 590 | 61 | 1,081 | 334 | ||||||||||
Gain on sale of PWSC (4) | (342 | ) | - | - | - | (342 | ) | ||||||||
Depreciation, amortization, tax and interest expense | 9,566 | 3,659 | 3,280 | 177 | 2,450 | ||||||||||
Total Non-GAAP Adjustments | 16,285 | 4,639 | 4,429 | 4,130 | 3,087 | ||||||||||
Non-GAAP Adjusted Consolidated EBITDA | $ | 9,611 | $ | 2,453 | $ | 2,101 | $ | 2,645 | $ | 2,412 | |||||
(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 gain on the change in fair value of the trust preferred security options; 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. | |
(4) | Gain on sale of PWSC, net of transaction expenses that are included in consolidated operating expenses, as well as income taxes associated with the sale. |
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 | ||||||||||||||
6/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | |||||||||||
GAAP Operating Income for Extended Warranty segment | $ | 4,074 | $ | (63 | ) | $ | 515 | $ | 1,918 | $ | 1,704 | ||||
Non-GAAP Adjustments: | |||||||||||||||
Investment income (1) | 1,309 | 341 | 247 | 394 | 327 | ||||||||||
Employee costs | 352 | 302 | 50 | - | - | ||||||||||
Depreciation | 157 | 39 | 38 | 39 | 41 | ||||||||||
Total Non-GAAP Adjustments | 1,818 | 682 | 335 | 433 | 368 | ||||||||||
Non-GAAP adjusted EBITDA for Extended Warranty segment | $ | 5,892 | $ | 619 | $ | 850 | $ | 2,351 | $ | 2,072 | |||||
Twelve Months Ended | For the Three Months Ended | ||||||||||||||
6/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | |||||||||||
GAAP Operating Income for Extended Warranty segment | $ | 6,479 | $ | 1,244 | $ | 1,076 | $ | 2,381 | $ | 1,778 | |||||
Non-GAAP Adjustments: | |||||||||||||||
Investment income (1) | 1,242 | 321 | 320 | 314 | 287 | ||||||||||
Depreciation | 227 | 56 | 52 | 62 | 57 | ||||||||||
Total Non-GAAP Adjustments | 1,469 | 377 | 372 | 376 | 344 | ||||||||||
Non-GAAP adjusted EBITDA for Extended Warranty segment | $ | 7,948 | $ | 1,621 | $ | 1,448 | $ | 2,757 | $ | 2,122 | |||||
(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. |
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 | ||||||||||||||
6/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | |||||||||||
GAAP Operating Income for KSX segment | $ | 6,670 | $ | 2,049 | $ | 1,743 | $ | 1,734 | $ | 1,144 | |||||
Non-GAAP Adjustments: | |||||||||||||||
Acquisition and employee costs (1) | 441 | 204 | 52 | 65 | 120 | ||||||||||
Investment income (2) | 114 | 29 | 25 | 33 | 27 | ||||||||||
Depreciation | 421 | 113 | 97 | 101 | 110 | ||||||||||
Total Non-GAAP Adjustments | 976 | 346 | 174 | 199 | 257 | ||||||||||
Non-GAAP adjusted EBITDA for KSX segment | $ | 7,646 | $ | 2,395 | $ | 1,917 | $ | 1,933 | $ | 1,401 | |||||
Twelve Months Ended | For the Three Months Ended | ||||||||||||||
6/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | |||||||||||
GAAP Operating Income for KSX segment | $ | 4,843 | $ | 1,441 | $ | 1,343 | $ | 1,056 | $ | 1,003 | |||||
Non-GAAP Adjustments: | |||||||||||||||
Acquisition and employee costs (1) | 492 | 139 | 138 | 128 | 87 | ||||||||||
Investment income (2) | 105 | 68 | 10 | 12 | 15 | ||||||||||
Depreciation (3) | 268 | 180 | 64 | 24 | - | ||||||||||
Total Non-GAAP Adjustments | 865 | 387 | 212 | 164 | 102 | ||||||||||
Non-GAAP adjusted EBITDA for KSX segment | $ | 5,708 | $ | 1,828 | $ | 1,555 | $ | 1,220 | $ | 1,105 | |||||
(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. |
SOURCE: Kingsway Financial Services, Inc.
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FAQ
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