Total revenue rose to $38.6 million in Q4 (+30.1% YoY) and $135.0 million for FY2025 (+23.4%), while Kingsway reported a consolidated net loss of $1.6 million in Q4 and $10.3 million for the year with consolidated adjusted EBITDA of $2.7 million in Q4 and $7.8 million for 2025.
The KSX segment drove strong growth—Q4 revenue of $20.3 million (+63.6%) and FY revenue of $64.2 million (+58.5%)—becoming the majority of revenue and adjusted EBITDA late in the year, and management is forecasting double-digit organic growth in 2026 while targeting three to five acquisitions (including platform and tuck-in deals).
Kingsway ended 2025 with $8.3 million in cash and $70.7 million of total debt (net debt $62.4 million), and management renamed its key earnings metric to “portfolio LTM adjusted EBITDA”, reporting it at $22–23 million as of Dec. 31, 2025 (combining KSX adjusted EBITDA and modified-cash EBITDA for Extended Warranty).
Kingsway Financial Services (NYSE:KFS) reported higher revenue in the fourth quarter and full year 2025, driven by acquisitions and organic growth across its operating businesses, while management outlined expectations for double-digit organic growth in 2026 and reiterated a goal of three to five acquisitions during the year.
On the company’s fourth quarter and full-year earnings call, CEO JT Fitzgerald said Kingsway continued to execute its strategy of acquiring and operating “asset light, profitable, growing” services businesses with recurring revenue, using what he described as a search fund model deployed within a public company structure. Fitzgerald said the company’s decentralized approach and “operator CEO” model are designed to support long-term compounding of shareholder value on a per-share basis, with “significant tax assets” also enhancing returns.
Fitzgerald characterized 2025 as a year of “meaningful financial and strategic progress,” citing six acquisitions completed within the KSX segment and the launch of a new platform, Kingsway Skilled Trades. He added that KSX became the majority of both revenue and adjusted EBITDA in the third and fourth quarters for the first time.
CFO Kent Hansen reported total revenue of $38.6 million for the fourth quarter, up 30.1% year over year. For the full year, revenue rose 23.4% to $135 million.
Kingsway posted a consolidated net loss of $1.6 million for the fourth quarter and a consolidated net loss of $10.3 million for the full year. Consolidated adjusted EBITDA was $2.7 million in the quarter and $7.8 million for 2025.
In the KSX segment, fourth-quarter revenue increased 63.6% to $20.3 million, and full-year revenue rose 58.5% to $64.2 million. KSX adjusted EBITDA increased 28.6% to $2.5 million in the fourth quarter and climbed 40.8% to $9.5 million for the year.
Hansen noted that KSX adjusted EBITDA dipped slightly from the third quarter to the fourth quarter, which he attributed to seasonality affecting the company’s plumbing businesses and Roundhouse. He said those businesses “typically have their lowest seasonal profitability during the winter” and tend to perform best in the second and third quarters.
In the Extended Warranty segment, fourth-quarter revenue increased 6.1% to $18.3 million, and full-year revenue rose 2.8% to $70.8 million. The company reported cash sales up 11% in the quarter and up 9% for the year. Hansen said IWS, which sells warranty products exclusively through credit unions, continued to perform well with cash sales up 10% year over year.
Hansen also said total extended warranty claims “moderated” in 2025, increasing 4.4% for the year compared with a 6.3% increase in the prior year. He attributed the rise primarily to inflation in parts and labor, noting the number of claims was “slightly lower” in 2025 than 2024. Management said the segment’s cash sales were robust and that the business was positioned for improved performance ahead.
Fitzgerald reiterated that Kingsway is budgeting for double-digit organic growth across both KSX and Extended Warranty in 2026. He said the company’s budgeting process evaluates each business and aims for realistic performance targets, and he pointed to multiple operating drivers across the portfolio.
Among the businesses discussed, Fitzgerald highlighted Roundhouse as the company’s “most profitable” KSX operating business, serving electric motors for natural gas compression and transmission infrastructure in the Permian Basin. He said Roundhouse was a high-growth business prior to Kingsway’s acquisition and is “already tracking ahead” of underwriting expectations.
Fitzgerald also described 2025 as an “investment year” for Image Solutions and Kingsway Skilled Trades. Image Solutions expanded its business development team in the first half of the year, which temporarily depressed profitability as the sales group ramped; Fitzgerald said that rebuilding is now complete and early results are encouraging. In Skilled Trades, he said Bud’s Plumbing went through an initial investment period and is now performing ahead of expectations, while AAA and Southside—acquired in the back half of 2025—have received “significant investment” and are positioned to follow a similar trajectory.
In Extended Warranty, Fitzgerald said the businesses achieved double-digit cash sales growth in the back half of 2025 while claims costs were moderating, and he said the company anticipates “a much improved 2026” for the segment.
On M&A, Fitzgerald reiterated a target of three to five acquisitions in 2026 and said Kingsway began the year by completing a January transaction: Ravix acquired Ledgers, Inc., described as a provider of outsourced bookkeeping and accounting services serving nonprofits and small and mid-sized businesses primarily in the Midwest. Fitzgerald said the deal diversifies Ravix’s revenue base, expands its geographic reach, and adds recurring revenue, with opportunities for cross-selling and continued organic growth.
Management described a “dual-track” acquisition approach, combining sourcing by operators-in-residence (OIRs) and tuck-in acquisitions pursued by leaders within existing platforms. Fitzgerald cited Ravix, ViewPoint at SPI, and the Skilled Trades businesses as examples of operator-led tuck-in activity that runs in parallel with the OIR pipeline.
In response to an emailed question, Fitzgerald said that with three OIRs, Kingsway “ought to conservatively target at least one to two new platform investments” in 2026, with the remainder likely coming from tuck-ins, though he emphasized those are targets rather than commitments.
Hansen said Kingsway ended 2025 with $8.3 million in cash and cash equivalents, up from $5.5 million at year-end 2024. Total debt was $70.7 million at December 31, 2025, compared with $57.5 million a year earlier. He said year-end debt was comprised of $55 million in bank loans, $2 million in notes payable, and $13.7 million in subordinated debt.
Hansen initially stated that net debt at the end of 2024 was $61.4 million, then corrected the figure during Q&A, saying net debt at year-end 2024 was $52 million and that $61.4 million reflected the end of the third quarter. For year-end 2025, he reported net debt of $62.4 million, saying the increase was primarily related to additional borrowing tied to the acquisitions of Roundhouse and Southside Plumbing, partially offset by continued debt amortization.
Management also provided additional detail on an updated portfolio earnings metric: “portfolio LTM adjusted EBITDA,” which Fitzgerald said was $22 million to $23 million as of December 31. Hansen said the company changed the name from “run-rate adjusted EBITDA” after investor feedback that the prior label was confusing because it reflected trailing twelve-month performance rather than a forward run rate. He also said the change aligns external reporting with how management evaluates the Extended Warranty segment internally, using “modified cash adjusted EBITDA,” which is also used by lenders.
Hansen explained that portfolio LTM adjusted EBITDA combines KSX adjusted EBITDA with modified cash adjusted EBITDA for Extended Warranty. Modified cash reflects timing differences between GAAP recognition and cash receipts and commission payments associated with warranty contracts, along with an adjustment to investment income for the difference between actual book yield and current market yield. He said no other adjustments are made, and clarified that 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 commission expense.
During the Q&A portion of the call, Fitzgerald also addressed Digital Diagnostics (DDI), saying it grew “high single digits” for the year and that management’s early focus has been on building a foundation for patient safety and operational redundancy. He said the emphasis is shifting toward organic growth and new customer acquisition as that foundation is established.
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).
