{"success":true,"data":{"pressRelease":{"id":"111991","rtpr_id":"nACSjrWJBa","ticker":"KWY","exchange":"NYSE","all_tickers":["KWY"],"title":"Kingsway Reports Strong Second Quarter 2026 Financial Results","author":"ACCESSWIRE","published_at":"2026-08-06T20:05:00.983Z","article_body":"-- Q2 2026 Significantly Ahead of Budget for both KSX and Extended Warranty --\n\n-- Revenue Growth of 28% to $39.4 Million --\n\n-- KSX Revenue Growth of 68% to $22.3 Million --\n\n-- Extended Warranty Revenue of $17.1 Million --\n\n-- Reaffirms Target of Three to Five Acquisitions in 2026 --\n\n-- Reaffirms Double-Digit Organic Growth for both KSX and Extended Warranty in\n2026 --\n\nManagement to Host Conference Call Today, August 6, 2026, at 5 p.m. ET\n\nCHICAGO, IL / ACCESS Newswire (https://www.accessnewswire.com/) / August 6,\n2026 / (NYSE:KWY) Kingsway Corporation (\"Kingsway\" or the \"Company\"), the only\npublicly-traded US company employing the Search Fund model to acquire and\nbuild great businesses, today announced its operating results for the three\nand six months ended June 30, 2026.\n\nSecond Quarter 2026 Financial Highlights Compared To Second Quarter 2025\n*\nConsolidated revenue increased 27.6% to $39.4 million, compared to $30.9\nmillion.\n*\nKingsway Search Xcelerator (\"KSX\") revenue increased 68.3% to $22.3 million,\ncompared to $13.3 million.\n*\nExtended Warranty revenue decreased 3.1% to $17.1 million from $17.6 million\nin the prior-year quarter. Pro forma for the sale of Trinity Warranty\nSolutions LLC (\"Trinity\"), Extended Warranty revenue increased 6.5% to $16.1\nmillion from $15.1 million; Pro forma Extended Warranty cash sales increased\n6.9%.\n*\nConsolidated net income was $0.2 million, inclusive of a $1.3 million gain on\nthe disposal of a subsidiary (Trinity), compared to a net loss of $3.2\nmillion.\n*\nConsolidated adjusted EBITDA was $5.2 million, compared to $1.7 million.\n*\nKSX adjusted EBITDA increased by 77.9% to $4.3 million, compared to $2.4\nmillion.\n*\nExtended Warranty adjusted EBITDA was $1.1 million, compared to $0.6 million.\nPro forma for the sale of Trinity, Extended Warranty adjusted EBITDA was $1.0\nmillion, compared to $0.3 million.\n*\nThe Company had total net debt of $59.9 million as of June 30, 2026, compared\nwith $62.4 million as of December 31, 2025.\n\nBusiness Highlights\n*\nPortfolio LTM EBITDA for the operating companies was $22.0 million to $23.0\nmillion for the twelve months ended June 30, 2026. This figure is presented on\na pro forma basis and includes a positive contribution of $0.5 million related\nto the acquisition of Romeo Computer Company, Inc. (\"RCC\") offset by a\nnegative contribution of $0.9 million related to the sale of Trinity. See\n\"Non-U.S. GAAP Financial Measures\" below.\n*\nOn May 11, 2026, the Company announced the sale of Trinity for gross proceeds\nof $8.0 million, consisting of $5.0 million cash at closing plus an additional\n$3.0 million in seller notes that may be paid off early for a discount if\ncertain conditions are met.\n*\nOn May 15, 2026, the Company announced Colter Hanson as President of Kingsway\nSkilled Trades.\n*\nOn May 18, 2026, the Company held its annual Investor Day at the New York\nStock Exchange.\n*\nOn May 19, 2026, the Company changed its name to Kingsway Corporation and its\nstock ticker to KWY.\n*\nOn August 1, 2026, the Company's wholly-owned subsidiary Image Solutions\nacquired RCC, a leading managed IT and cybersecurity provider based in the\nstate of Michigan, for $2.4 million. The business adds $2.5 million in\nunaudited pro forma annual revenue and $0.5 million in unaudited pro forma\nannual adjusted EBITDA to Kingsway.\n*\nOn August 3, 2026, the Company welcomed Fletcher Vynne as the Company's newest\nOperator-in-Residence (\"OIR\").\n\nManagement Commentary\n\n\"Kingsway's second quarter came in significantly ahead of internal\nexpectations,\" said JT Fitzgerald, Kingsway's President and CEO. \"This result\nreflects the strong commercial momentum we see across the business, and that\nwe discussed at our Investor Day in May.\n\n\"KSX delivered a segment quarterly record of $4.3 million in adjusted EBITDA.\nPerformance was broad-based across the KSX portfolio, with Ravix and SPI\nproducing particularly good results that were buoyed by customer wins and\nexcellent client retention. KSX adjusted EBITDA has more than tripled over the\npast eight quarters, illustrating the operating leverage and scalability of\nour public Search Fund strategy.\n\n\"Extended Warranty also had an exceptional quarter, with strong performance at\nboth IWS and Penn/PWI. Adjusted EBITDA was $1.1 million, and lender-defined\nModified Cash adjusted EBITDA, which is used as the basis for financial\ncovenant calculations under the Company's credit agreements, was $2.9 million.\n\n\"Importantly, Portfolio LTM EBITDA remained stable relative to last quarter,\neven after subtracting a net $0.4 million as a result of M&A activity related\nto RCC and Trinity. With easier year-over-year comparisons in the third and\nfourth quarters of 2026, I am confident in the positive trajectory of this\nmetric in the back half of the year.\n\n\"I am also pleased to reaffirm our target of between three and five\nacquisitions in 2026 and our expectation for double-digit organic growth at\nboth KSX and Extended Warranty in 2026. As today's results show, we are well\non our way.\n\n\"Overall, the second quarter represented the strongest operating performance\nof my tenure at Kingsway,\" concluded Mr. Fitzgerald. \"Our public Search Fund\nstrategy is delivering as promised. With a growing collection of high-quality,\nasset-light, recurring revenue services businesses led by our exceptional\nOperator CEO's, Kingsway has clear momentum as we enter the second half of the\nyear.\"\n\nConference Call and Webcast\n\nManagement will host a conference call at 5 p.m. Eastern Time today to discuss\nthe results and host a live Q&A session. Additionally, investors may also\nsubmit questions via email to: James@HaydenIR.com.\n\nConference Call Information\n\nDate: Thursday, August 6, 2026\nTime: 5 p.m. Eastern Time\nToll Free: 888-506-0062\nInternational: +1 973-528-0011\nParticipant Code: 141177\nLive Webcast Link: https://www.webcaster5.com/Webcast/Page/2928/54372\n\nConference Call Replay Information\n\nToll Free: 877-481-4010\nInternational: +1-919-882-2331\nReplay Passcode: 54372\nReplay Webcast Link: https://www.webcaster5.com/Webcast/Page/2928/54372\n\nAbout the Company\n\nKingsway Corporation is the only publicly-traded US company employing the\nSearch Fund model to acquire and build great businesses.\n\nKingsway owns and operates a collection of high-quality B2B and B2C services\ncompanies that are asset-light, growing, profitable, and that have recurring\nrevenues. Kingsway seeks to compound long-term shareholder value on a per\nshare basis via its decentralized management model, its talented team of\noperators, and its tax-advantaged corporate structure.\n\nNon-U.S. GAAP Financial Measures\n\nManagement believes that non-GAAP adjusted EBITDA and Portfolio LTM EBITDA,\nwhen presented in conjunction with comparable GAAP measures, provide useful\ninformation about the Company's operating results and enhance the overall\nability to assess the Company's financial performance.\n\nManagement uses non-GAAP adjusted EBITDA, together with other measures of\nperformance under GAAP, to compare the relative performance of operations in\nplanning, budgeting, and reviewing the performance of its business. Non-GAAP\nadjusted EBITDA allows investors to make a more meaningful comparison between\nthe Company's core business operating results over different periods of time.\nManagement believes that non-GAAP adjusted EBITDA, when viewed with the\nCompany's results under GAAP and the accompanying reconciliations, provides\nuseful information about the Company's business without regard to potential\ndistortions. By eliminating potential differences in results of operations\nbetween periods caused by the factors listed in the attached schedules,\nManagement believes that non-GAAP adjusted EBITDA can provide useful\nadditional basis for comparing the current performance of the underlying\noperations being evaluated.\n\nPortfolio LTM EBITDA represents management's estimate of the trailing\ntwelve-month adjusted EBITDA generated by the Company's portfolio of operating\nbusinesses, including the KSX segment and the Extended Warranty segment. For\nthe KSX segment, Portfolio LTM EBITDA includes the trailing twelve months of\nadjusted EBITDA for the operating businesses within the segment, including\nbusinesses acquired during the period and businesses acquired after the end of\nthe reporting period but prior to the date of this release, as if they had\nbeen owned for the full twelve-month period. For the Extended Warranty\nsegment, Portfolio LTM EBITDA is based on Modified Cash adjusted EBITDA, which\nreflects timing differences between GAAP revenue recognition and GAAP\ncommission expense to the timing of cash receipts and cash commission expense\nassociated with warranty contracts, as well as an adjustment to investment\nincome for the difference between actual book yield and current market yield;\nno other adjustments are made. For clarity, Modified Cash adjusted EBITDA\ndefers only the portion of contract premium needed to pay claims over the life\nof the underlying contract and does not defer any commission expense. Modified\nCash adjusted EBITDA is used by management to evaluate the operating\nperformance of the Extended Warranty segment and is also the basis for\nfinancial covenant calculations under the Company's credit agreements.\n\nInvestors should consider these non-GAAP measures in addition to, not as a\nsubstitute for or as superior to, financial reporting measures prepared in\naccordance with GAAP. Investors are encouraged to review the Company's\nfinancial results prepared in accordance with GAAP to understand the Company's\nperformance, taking into account all relevant factors.\n\nForward-Looking Statements\n\nThis press release may include \"forward-looking statements\" within the meaning\nof Section 27A of the Securities Act of 1933 and Section 21E of the Securities\nExchange Act of 1934 that are not historical facts and involve risks and\nuncertainties that could cause actual results to differ materially from those\nexpected and projected. Words such as \"expects,\" \"believes,\" \"anticipates,\"\n\"intends,\" \"estimates,\" \"seeks,\" and variations and similar words and\nexpressions are intended to identify such forward-looking statements; however,\nthe absence of any such words does not mean that a statement is a not a\nforward-looking statement. Such forward-looking statements relate to future\nevents or future performance, but reflect Kingsway management's current\nbeliefs, based on information currently available. A number of factors could\ncause actual events, performance, or results to differ materially from the\nevents, performance, and results discussed in the forward-looking statements.\nFor information identifying important factors that could cause actual results\nto differ materially from those anticipated in the forward-looking statements,\nplease refer to the section entitled \"Risk Factors\" in the Company's 2025\nAnnual Report on Form 10-K and subsequent Form 10-Qs and Form 8-Ks filed with\nthe Securities and Exchange Commission. Except as expressly required by\napplicable securities law, the Company disclaims any intention or obligation\nto update or revise any forward-looking statements whether as a result of new\ninformation, future events, or otherwise.\n\nAdditional Information\n\nAdditional information about Kingsway, including a copy of its Annual Reports\ncan be accessed on the EDGAR section of the U.S. Securities and Exchange\nCommission's website at www.sec.gov, on the Canadian Securities\nAdministrators' website at www.sedar.com, or through the Company's website at\nwww.kingsway-financial.com.\n\nFor Investor Inquiries:\nHayden IR\nJames Carbonara\n(646) 755-7412\njames@haydenir.com\n\nFor Company Inquiries:\nKingsway Corporation\nKent Hansen, CFO\n(312) 766-2163\nkhansen@kingsway-financial.com\n\nKingsway Corporation\nReconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted Consolidated\nEBITDA\n(in thousands)\n(UNAUDITED)\n\n Twelve Months Ended For the Three Months Ended \n 6/30/2026 6/30/2026 3/31/2026 12/31/2025 9/30/2025 \n GAAP Net Income (Loss) $ (6,106 ) $ 157 $ (2,268 ) $ (1,584 ) $ (2,411 ) \n \n Non-GAAP Adjustments: \n Changes in fair value; realized gains/losses (1) (392 ) (538 ) 86 12 48 \n Employee related expenses (2) 3,130 1,570 451 383 726 \n Other items (3) 3,142 949 165 711 1,317 \n Gain on sale of Trinity (1,347 ) (1,347 ) - - - \n Depreciation, amortization, tax and interest expense 13,943 4,387 3,968 3,209 2,379 \n Total Non-GAAP Adjustments 18,476 5,021 4,670 4,315 4,470 \n \n Non-GAAP Adjusted Consolidated EBITDA $ 12,370 $ 5,178 $ 2,402 $ 2,731 $ 2,059 \n \n\n Twelve Months Ended For the Three Months Ended \n 6/30/2025 6/30/2025 3/31/2025 12/31/2024 9/30/2024 \n GAAP Net Income (Loss) $ (10,038 ) $ (3,165 ) $ (3,092 ) $ (1,470 ) $ (2,311 ) \n \n Non-GAAP Adjustments: \n Discontinued operations 136 - - 1 135 \n Changes in fair value; realized gains/losses (1) (6 ) (36 ) (22 ) 133 (81 ) \n Employee related expenses (2) 2,606 731 495 390 990 \n Other items (3) 3,258 982 1,095 225 956 \n Depreciation, amortization, tax and interest expense 13,477 3,141 2,876 4,117 3,343 \n Total Non-GAAP Adjustments 19,471 4,818 4,444 4,866 5,343 \n \n Non-GAAP Adjusted Consolidated EBITDA $ 9,433 $ 1,653 $ 1,352 $ 3,396 $ 3,032 \n \n\n (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). \n (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). \n \n (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. \n \n\nKingsway Corporation\nReconciliation of KSX Segment Operating Income to Non-GAAP Adjusted EBITDA\n(in thousands)\n(UNAUDITED)\n\n Twelve Months Ended For the Three Months Ended \n 6/30/2026 6/30/2026 3/31/2026 12/31/2025 9/30/2025 \n GAAP Operating Income for KSX segment $ 10,446 $ 3,491 $ 2,960 $ 1,810 $ 2,185 \n \n Non-GAAP Adjustments: \n Acquisition and employee costs (1) 1,101 400 244 279 178 \n Investment income (2) 117 30 28 29 30 \n Depreciation 1,238 339 265 367 267 \n Total Non-GAAP Adjustments 2,456 769 537 675 475 \n \n Non-GAAP adjusted EBITDA for KSX segment $ 12,902 $ 4,260 $ 3,497 $ 2,485 $ 2,660 \n\n Twelve Months Ended For the Three Months Ended \n 6/30/2025 6/30/2025 3/31/2025 12/31/2024 9/30/2024 \n GAAP Operating Income for KSX segment $ 6,670 $ 2,049 $ 1,743 $ 1,734 $ 1,144 \n \n Non-GAAP Adjustments: \n Acquisition and employee costs (1) 441 204 52 65 120 \n Investment income (2) 114 29 25 33 27 \n Depreciation 421 113 97 101 110 \n Total Non-GAAP Adjustments 976 346 174 199 257 \n \n Non-GAAP adjusted EBITDA for KSX segment $ 7,646 $ 2,395 $ 1,917 $ 1,933 $ 1,401 \n\n (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). \n (2) Investment income from interest on client deposits (Ravix, CSuite), as well as imputed interest on long-term software contracts (SPI) \n \n\nKingsway Corporation\nReconciliation of Extended Warranty Segment Operating Income to\nNon-GAAP Adjusted EBITDA and Pro Forma Non-GAAP Adjusted EBITDA\n(in thousands)\n(UNAUDITED)\n\n Twelve Months Ended For the Three Months Ended \n 6/30/2026 6/30/2026 3/31/2026 12/31/2025 9/30/2025 \n GAAP Operating Income for Extended Warranty segment $ 1,638 $ 675 $ 261 $ 301 $ 401 \n \n Non-GAAP Adjustments: \n Investment income (1) 1,354 348 340 342 324 \n Employee costs 23 23 - - - \n Other costs (2) 158 - - 158 - \n Depreciation 177 46 47 47 37 \n Total Non-GAAP Adjustments 1,712 417 387 547 361 \n \n Non-GAAP adjusted EBITDA for Extended Warranty segment $ 3,350 $ 1,092 $ 648 $ 848 $ 762 \n \n\n Twelve Months Ended For the Three Months Ended \n 6/30/2025 6/30/2025 3/31/2025 12/31/2024 9/30/2024 \n GAAP Operating Income for Extended Warranty segment $ 4,074 $ (63 ) $ 515 $ 1,918 $ 1,704 \n \n Non-GAAP Adjustments: \n Investment income (1) 1,309 341 247 394 327 \n Employee costs 352 302 50 - - \n Depreciation 157 39 38 39 41 \n Total Non-GAAP Adjustments 1,818 682 335 433 368 \n \n Non-GAAP adjusted EBITDA for Extended Warranty segment $ 5,892 $ 619 $ 850 $ 2,351 $ 2,072 \n\n (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. \n (2) Other costs include one-time items not expected to be incurred going forward. \n \n\nSOURCE: Kingsway Corporation\nView the original press release\n(https://www.accessnewswire.com/newsroom/en/banking-and-financial-services/kingsway-reports-strong-second-quarter-2026-financial-results-1203606)\non ACCESS Newswire\n\n\nCopyright 2026 ACCESS Newswire. All Rights Reserved.","article_body_html":"","raw_payload":{"data":{"id":"nACSjrWJBa","title":"Kingsway Reports Strong Second Quarter 2026 Financial Results","author":"ACCESSWIRE","ticker":"KWY","created":"2026-08-06T20:05:00.983Z","tickers":["KWY"],"exchange":"NYSE","article_body":"-- Q2 2026 Significantly Ahead of Budget for both KSX and Extended Warranty --\n\n-- Revenue Growth of 28% to $39.4 Million --\n\n-- KSX Revenue Growth of 68% to $22.3 Million --\n\n-- Extended Warranty Revenue of $17.1 Million --\n\n-- Reaffirms Target of Three to Five Acquisitions in 2026 --\n\n-- Reaffirms Double-Digit Organic Growth for both KSX and Extended Warranty in\n2026 --\n\nManagement to Host Conference Call Today, August 6, 2026, at 5 p.m. ET\n\nCHICAGO, IL / ACCESS Newswire (https://www.accessnewswire.com/) / August 6,\n2026 / (NYSE:KWY) Kingsway Corporation (\"Kingsway\" or the \"Company\"), the only\npublicly-traded US company employing the Search Fund model to acquire and\nbuild great businesses, today announced its operating results for the three\nand six months ended June 30, 2026.\n\nSecond Quarter 2026 Financial Highlights Compared To Second Quarter 2025\n*\nConsolidated revenue increased 27.6% to $39.4 million, compared to $30.9\nmillion.\n*\nKingsway Search Xcelerator (\"KSX\") revenue increased 68.3% to $22.3 million,\ncompared to $13.3 million.\n*\nExtended Warranty revenue decreased 3.1% to $17.1 million from $17.6 million\nin the prior-year quarter. Pro forma for the sale of Trinity Warranty\nSolutions LLC (\"Trinity\"), Extended Warranty revenue increased 6.5% to $16.1\nmillion from $15.1 million; Pro forma Extended Warranty cash sales increased\n6.9%.\n*\nConsolidated net income was $0.2 million, inclusive of a $1.3 million gain on\nthe disposal of a subsidiary (Trinity), compared to a net loss of $3.2\nmillion.\n*\nConsolidated adjusted EBITDA was $5.2 million, compared to $1.7 million.\n*\nKSX adjusted EBITDA increased by 77.9% to $4.3 million, compared to $2.4\nmillion.\n*\nExtended Warranty adjusted EBITDA was $1.1 million, compared to $0.6 million.\nPro forma for the sale of Trinity, Extended Warranty adjusted EBITDA was $1.0\nmillion, compared to $0.3 million.\n*\nThe Company had total net debt of $59.9 million as of June 30, 2026, compared\nwith $62.4 million as of December 31, 2025.\n\nBusiness Highlights\n*\nPortfolio LTM EBITDA for the operating companies was $22.0 million to $23.0\nmillion for the twelve months ended June 30, 2026. This figure is presented on\na pro forma basis and includes a positive contribution of $0.5 million related\nto the acquisition of Romeo Computer Company, Inc. (\"RCC\") offset by a\nnegative contribution of $0.9 million related to the sale of Trinity. See\n\"Non-U.S. GAAP Financial Measures\" below.\n*\nOn May 11, 2026, the Company announced the sale of Trinity for gross proceeds\nof $8.0 million, consisting of $5.0 million cash at closing plus an additional\n$3.0 million in seller notes that may be paid off early for a discount if\ncertain conditions are met.\n*\nOn May 15, 2026, the Company announced Colter Hanson as President of Kingsway\nSkilled Trades.\n*\nOn May 18, 2026, the Company held its annual Investor Day at the New York\nStock Exchange.\n*\nOn May 19, 2026, the Company changed its name to Kingsway Corporation and its\nstock ticker to KWY.\n*\nOn August 1, 2026, the Company's wholly-owned subsidiary Image Solutions\nacquired RCC, a leading managed IT and cybersecurity provider based in the\nstate of Michigan, for $2.4 million. The business adds $2.5 million in\nunaudited pro forma annual revenue and $0.5 million in unaudited pro forma\nannual adjusted EBITDA to Kingsway.\n*\nOn August 3, 2026, the Company welcomed Fletcher Vynne as the Company's newest\nOperator-in-Residence (\"OIR\").\n\nManagement Commentary\n\n\"Kingsway's second quarter came in significantly ahead of internal\nexpectations,\" said JT Fitzgerald, Kingsway's President and CEO. \"This result\nreflects the strong commercial momentum we see across the business, and that\nwe discussed at our Investor Day in May.\n\n\"KSX delivered a segment quarterly record of $4.3 million in adjusted EBITDA.\nPerformance was broad-based across the KSX portfolio, with Ravix and SPI\nproducing particularly good results that were buoyed by customer wins and\nexcellent client retention. KSX adjusted EBITDA has more than tripled over the\npast eight quarters, illustrating the operating leverage and scalability of\nour public Search Fund strategy.\n\n\"Extended Warranty also had an exceptional quarter, with strong performance at\nboth IWS and Penn/PWI. Adjusted EBITDA was $1.1 million, and lender-defined\nModified Cash adjusted EBITDA, which is used as the basis for financial\ncovenant calculations under the Company's credit agreements, was $2.9 million.\n\n\"Importantly, Portfolio LTM EBITDA remained stable relative to last quarter,\neven after subtracting a net $0.4 million as a result of M&A activity related\nto RCC and Trinity. With easier year-over-year comparisons in the third and\nfourth quarters of 2026, I am confident in the positive trajectory of this\nmetric in the back half of the year.\n\n\"I am also pleased to reaffirm our target of between three and five\nacquisitions in 2026 and our expectation for double-digit organic growth at\nboth KSX and Extended Warranty in 2026. As today's results show, we are well\non our way.\n\n\"Overall, the second quarter represented the strongest operating performance\nof my tenure at Kingsway,\" concluded Mr. Fitzgerald. \"Our public Search Fund\nstrategy is delivering as promised. With a growing collection of high-quality,\nasset-light, recurring revenue services businesses led by our exceptional\nOperator CEO's, Kingsway has clear momentum as we enter the second half of the\nyear.\"\n\nConference Call and Webcast\n\nManagement will host a conference call at 5 p.m. Eastern Time today to discuss\nthe results and host a live Q&A session. Additionally, investors may also\nsubmit questions via email to: James@HaydenIR.com.\n\nConference Call Information\n\nDate: Thursday, August 6, 2026\nTime: 5 p.m. Eastern Time\nToll Free: 888-506-0062\nInternational: +1 973-528-0011\nParticipant Code: 141177\nLive Webcast Link: https://www.webcaster5.com/Webcast/Page/2928/54372\n\nConference Call Replay Information\n\nToll Free: 877-481-4010\nInternational: +1-919-882-2331\nReplay Passcode: 54372\nReplay Webcast Link: https://www.webcaster5.com/Webcast/Page/2928/54372\n\nAbout the Company\n\nKingsway Corporation is the only publicly-traded US company employing the\nSearch Fund model to acquire and build great businesses.\n\nKingsway owns and operates a collection of high-quality B2B and B2C services\ncompanies that are asset-light, growing, profitable, and that have recurring\nrevenues. Kingsway seeks to compound long-term shareholder value on a per\nshare basis via its decentralized management model, its talented team of\noperators, and its tax-advantaged corporate structure.\n\nNon-U.S. GAAP Financial Measures\n\nManagement believes that non-GAAP adjusted EBITDA and Portfolio LTM EBITDA,\nwhen presented in conjunction with comparable GAAP measures, provide useful\ninformation about the Company's operating results and enhance the overall\nability to assess the Company's financial performance.\n\nManagement uses non-GAAP adjusted EBITDA, together with other measures of\nperformance under GAAP, to compare the relative performance of operations in\nplanning, budgeting, and reviewing the performance of its business. Non-GAAP\nadjusted EBITDA allows investors to make a more meaningful comparison between\nthe Company's core business operating results over different periods of time.\nManagement believes that non-GAAP adjusted EBITDA, when viewed with the\nCompany's results under GAAP and the accompanying reconciliations, provides\nuseful information about the Company's business without regard to potential\ndistortions. By eliminating potential differences in results of operations\nbetween periods caused by the factors listed in the attached schedules,\nManagement believes that non-GAAP adjusted EBITDA can provide useful\nadditional basis for comparing the current performance of the underlying\noperations being evaluated.\n\nPortfolio LTM EBITDA represents management's estimate of the trailing\ntwelve-month adjusted EBITDA generated by the Company's portfolio of operating\nbusinesses, including the KSX segment and the Extended Warranty segment. For\nthe KSX segment, Portfolio LTM EBITDA includes the trailing twelve months of\nadjusted EBITDA for the operating businesses within the segment, including\nbusinesses acquired during the period and businesses acquired after the end of\nthe reporting period but prior to the date of this release, as if they had\nbeen owned for the full twelve-month period. For the Extended Warranty\nsegment, Portfolio LTM EBITDA is based on Modified Cash adjusted EBITDA, which\nreflects timing differences between GAAP revenue recognition and GAAP\ncommission expense to the timing of cash receipts and cash commission expense\nassociated with warranty contracts, as well as an adjustment to investment\nincome for the difference between actual book yield and current market yield;\nno other adjustments are made. For clarity, Modified Cash adjusted EBITDA\ndefers only the portion of contract premium needed to pay claims over the life\nof the underlying contract and does not defer any commission expense. Modified\nCash adjusted EBITDA is used by management to evaluate the operating\nperformance of the Extended Warranty segment and is also the basis for\nfinancial covenant calculations under the Company's credit agreements.\n\nInvestors should consider these non-GAAP measures in addition to, not as a\nsubstitute for or as superior to, financial reporting measures prepared in\naccordance with GAAP. Investors are encouraged to review the Company's\nfinancial results prepared in accordance with GAAP to understand the Company's\nperformance, taking into account all relevant factors.\n\nForward-Looking Statements\n\nThis press release may include \"forward-looking statements\" within the meaning\nof Section 27A of the Securities Act of 1933 and Section 21E of the Securities\nExchange Act of 1934 that are not historical facts and involve risks and\nuncertainties that could cause actual results to differ materially from those\nexpected and projected. Words such as \"expects,\" \"believes,\" \"anticipates,\"\n\"intends,\" \"estimates,\" \"seeks,\" and variations and similar words and\nexpressions are intended to identify such forward-looking statements; however,\nthe absence of any such words does not mean that a statement is a not a\nforward-looking statement. Such forward-looking statements relate to future\nevents or future performance, but reflect Kingsway management's current\nbeliefs, based on information currently available. A number of factors could\ncause actual events, performance, or results to differ materially from the\nevents, performance, and results discussed in the forward-looking statements.\nFor information identifying important factors that could cause actual results\nto differ materially from those anticipated in the forward-looking statements,\nplease refer to the section entitled \"Risk Factors\" in the Company's 2025\nAnnual Report on Form 10-K and subsequent Form 10-Qs and Form 8-Ks filed with\nthe Securities and Exchange Commission. Except as expressly required by\napplicable securities law, the Company disclaims any intention or obligation\nto update or revise any forward-looking statements whether as a result of new\ninformation, future events, or otherwise.\n\nAdditional Information\n\nAdditional information about Kingsway, including a copy of its Annual Reports\ncan be accessed on the EDGAR section of the U.S. Securities and Exchange\nCommission's website at www.sec.gov, on the Canadian Securities\nAdministrators' website at www.sedar.com, or through the Company's website at\nwww.kingsway-financial.com.\n\nFor Investor Inquiries:\nHayden IR\nJames Carbonara\n(646) 755-7412\njames@haydenir.com\n\nFor Company Inquiries:\nKingsway Corporation\nKent Hansen, CFO\n(312) 766-2163\nkhansen@kingsway-financial.com\n\nKingsway Corporation\nReconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted Consolidated\nEBITDA\n(in thousands)\n(UNAUDITED)\n\n Twelve Months Ended For the Three Months Ended \n 6/30/2026 6/30/2026 3/31/2026 12/31/2025 9/30/2025 \n GAAP Net Income (Loss) $ (6,106 ) $ 157 $ (2,268 ) $ (1,584 ) $ (2,411 ) \n \n Non-GAAP Adjustments: \n Changes in fair value; realized gains/losses (1) (392 ) (538 ) 86 12 48 \n Employee related expenses (2) 3,130 1,570 451 383 726 \n Other items (3) 3,142 949 165 711 1,317 \n Gain on sale of Trinity (1,347 ) (1,347 ) - - - \n Depreciation, amortization, tax and interest expense 13,943 4,387 3,968 3,209 2,379 \n Total Non-GAAP Adjustments 18,476 5,021 4,670 4,315 4,470 \n \n Non-GAAP Adjusted Consolidated EBITDA $ 12,370 $ 5,178 $ 2,402 $ 2,731 $ 2,059 \n \n\n Twelve Months Ended For the Three Months Ended \n 6/30/2025 6/30/2025 3/31/2025 12/31/2024 9/30/2024 \n GAAP Net Income (Loss) $ (10,038 ) $ (3,165 ) $ (3,092 ) $ (1,470 ) $ (2,311 ) \n \n Non-GAAP Adjustments: \n Discontinued operations 136 - - 1 135 \n Changes in fair value; realized gains/losses (1) (6 ) (36 ) (22 ) 133 (81 ) \n Employee related expenses (2) 2,606 731 495 390 990 \n Other items (3) 3,258 982 1,095 225 956 \n Depreciation, amortization, tax and interest expense 13,477 3,141 2,876 4,117 3,343 \n Total Non-GAAP Adjustments 19,471 4,818 4,444 4,866 5,343 \n \n Non-GAAP Adjusted Consolidated EBITDA $ 9,433 $ 1,653 $ 1,352 $ 3,396 $ 3,032 \n \n\n (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). \n (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). \n \n (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. \n \n\nKingsway Corporation\nReconciliation of KSX Segment Operating Income to Non-GAAP Adjusted EBITDA\n(in thousands)\n(UNAUDITED)\n\n Twelve Months Ended For the Three Months Ended \n 6/30/2026 6/30/2026 3/31/2026 12/31/2025 9/30/2025 \n GAAP Operating Income for KSX segment $ 10,446 $ 3,491 $ 2,960 $ 1,810 $ 2,185 \n \n Non-GAAP Adjustments: \n Acquisition and employee costs (1) 1,101 400 244 279 178 \n Investment income (2) 117 30 28 29 30 \n Depreciation 1,238 339 265 367 267 \n Total Non-GAAP Adjustments 2,456 769 537 675 475 \n \n Non-GAAP adjusted EBITDA for KSX segment $ 12,902 $ 4,260 $ 3,497 $ 2,485 $ 2,660 \n\n Twelve Months Ended For the Three Months Ended \n 6/30/2025 6/30/2025 3/31/2025 12/31/2024 9/30/2024 \n GAAP Operating Income for KSX segment $ 6,670 $ 2,049 $ 1,743 $ 1,734 $ 1,144 \n \n Non-GAAP Adjustments: \n Acquisition and employee costs (1) 441 204 52 65 120 \n Investment income (2) 114 29 25 33 27 \n Depreciation 421 113 97 101 110 \n Total Non-GAAP Adjustments 976 346 174 199 257 \n \n Non-GAAP adjusted EBITDA for KSX segment $ 7,646 $ 2,395 $ 1,917 $ 1,933 $ 1,401 \n\n (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). \n (2) Investment income from interest on client deposits (Ravix, CSuite), as well as imputed interest on long-term software contracts (SPI) \n \n\nKingsway Corporation\nReconciliation of Extended Warranty Segment Operating Income to\nNon-GAAP Adjusted EBITDA and Pro Forma Non-GAAP Adjusted EBITDA\n(in thousands)\n(UNAUDITED)\n\n Twelve Months Ended For the Three Months Ended \n 6/30/2026 6/30/2026 3/31/2026 12/31/2025 9/30/2025 \n GAAP Operating Income for Extended Warranty segment $ 1,638 $ 675 $ 261 $ 301 $ 401 \n \n Non-GAAP Adjustments: \n Investment income (1) 1,354 348 340 342 324 \n Employee costs 23 23 - - - \n Other costs (2) 158 - - 158 - \n Depreciation 177 46 47 47 37 \n Total Non-GAAP Adjustments 1,712 417 387 547 361 \n \n Non-GAAP adjusted EBITDA for Extended Warranty segment $ 3,350 $ 1,092 $ 648 $ 848 $ 762 \n \n\n Twelve Months Ended For the Three Months Ended \n 6/30/2025 6/30/2025 3/31/2025 12/31/2024 9/30/2024 \n GAAP Operating Income for Extended Warranty segment $ 4,074 $ (63 ) $ 515 $ 1,918 $ 1,704 \n \n Non-GAAP Adjustments: \n Investment income (1) 1,309 341 247 394 327 \n Employee costs 352 302 50 - - \n Depreciation 157 39 38 39 41 \n Total Non-GAAP Adjustments 1,818 682 335 433 368 \n \n Non-GAAP adjusted EBITDA for Extended Warranty segment $ 5,892 $ 619 $ 850 $ 2,351 $ 2,072 \n\n (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. \n (2) Other costs include one-time items not expected to be incurred going forward. \n \n\nSOURCE: Kingsway Corporation\nView the original press release\n(https://www.accessnewswire.com/newsroom/en/banking-and-financial-services/kingsway-reports-strong-second-quarter-2026-financial-results-1203606)\non ACCESS Newswire\n\n\nCopyright 2026 ACCESS Newswire. All Rights Reserved."},"type":"article","timestamp":"2026-08-06T20:05:02.958642723Z","server_sent_at_ms":1786046702958},"received_at":"2026-08-06T20:05:03.025Z","source_url":"https://www.accessnewswire.com/newsroom/en/banking-and-financial-services/kingsway-reports-strong-second-quarter-2026-financial-results-1203606"},"analysis":{"id":"101004","press_release_id":"111991","analysis_json":{"industry":{"label":"Diversified Financial Services","sector":"Financials"},"redFlags":[],"eventType":"earnings","narrative":"Kingsway reported Q2 2026 revenue of $39.4 million, up 27.6% year-over-year, swinging to a net profit of $0.2 million compared to a net loss of $3.2 million in the prior year.\n\nAdjusted EBITDA surged to $5.2 million, driven by a 68.3% revenue increase in the KSX segment to $22.3 million and solid performance in the Extended Warranty segment.\n\nThe company closed the sale of Trinity Warranty Solutions for $8.0 million and acquired Romeo Computer Company for $2.4 million, while reaffirming its target of three to five acquisitions in 2026.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Strong earnings beat with triple-digit EBITDA growth in the KSX segment and a return to net profitability."},"keyFigures":{"revenue":39400000,"guidance":"Target of three to five acquisitions in 2026; double-digit organic growth expected for both KSX and Extended Warranty in 2026","revenueYoy":"27.6%","customDimensions":{"net_debt":59900000,"ksx_revenue":22300000,"adjusted_ebitda":5200000,"ksx_revenue_yoy":"68.3%","ksx_adjusted_ebitda":4300000,"rcc_acquisition_cost":2400000,"extended_warranty_revenue":17100000,"trinity_disposal_proceeds":8000000,"extended_warranty_adjusted_ebitda":1100000}},"quotedText":"Kingsway's second quarter came in significantly ahead of internal expectations","namedEntities":{"people":[{"name":"JT Fitzgerald","role":"President and CEO"},{"name":"Colter Hanson","role":"President of Kingsway Skilled Trades"},{"name":"Fletcher Vynne","role":"Operator-in-Residence"},{"name":"Kent Hansen","role":"CFO"}],"products":["Kingsway Search Xcelerator (KSX)","Extended Warranty"],"companies":[{"name":"Trinity Warranty Solutions LLC","relationship":"subsidiary (sold)"},{"name":"Romeo Computer Company, Inc.","relationship":"subsidiary (acquired)"},{"name":"Image Solutions","relationship":"subsidiary"},{"name":"Hayden IR","relationship":"investor relations firm"}],"dollarAmounts":[{"amount":"$39.4 million","context":"Q2 2026 consolidated revenue"},{"amount":"$22.3 million","context":"Q2 2026 KSX revenue"},{"amount":"$17.1 million","context":"Q2 2026 Extended Warranty revenue"},{"amount":"$5.2 million","context":"Q2 2026 consolidated adjusted EBITDA"},{"amount":"$8.0 million","context":"gross proceeds from sale of Trinity"},{"amount":"$2.4 million","context":"acquisition cost of Romeo Computer Company"},{"amount":"$59.9 million","context":"total net debt as of June 30, 2026"}]},"materialImpact":{"score":4,"reasoning":"Strong operational performance with consolidated revenue up 28% YoY and a swing to net income profitability from a prior loss. Adjusted EBITDA tripled year-over-year to $5.2 million, and management reaffirmed M&A and growth guidance."},"tickerRelevance":{"others":[],"primary":"KWY"},"globalImportance":25,"audienceRelevance":20,"eventTypeSecondary":["operations_update"],"importanceComponents":{"tickerTier":"small-cap","eventGravity":"strong-earnings-beat","sectorWeight":"financials"}},"event_type":"earnings","event_type_secondary":["operations_update"],"sentiment":"bullish","material_impact_score":4,"narrative":"Kingsway reported Q2 2026 revenue of $39.4 million, up 27.6% year-over-year, swinging to a net profit of $0.2 million compared to a net loss of $3.2 million in the prior year.\n\nAdjusted EBITDA surged to $5.2 million, driven by a 68.3% revenue increase in the KSX segment to $22.3 million and solid performance in the Extended Warranty segment.\n\nThe company closed the sale of Trinity Warranty Solutions for $8.0 million and acquired Romeo Computer Company for $2.4 million, while reaffirming its target of three to five acquisitions in 2026.","key_figures":{"revenue":39400000,"guidance":"Target of three to five acquisitions in 2026; double-digit organic growth expected for both KSX and Extended Warranty in 2026","revenueYoy":"27.6%","customDimensions":{"net_debt":59900000,"ksx_revenue":22300000,"adjusted_ebitda":5200000,"ksx_revenue_yoy":"68.3%","ksx_adjusted_ebitda":4300000,"rcc_acquisition_cost":2400000,"extended_warranty_revenue":17100000,"trinity_disposal_proceeds":8000000,"extended_warranty_adjusted_ebitda":1100000}},"named_entities":{"people":[{"name":"JT Fitzgerald","role":"President and CEO"},{"name":"Colter Hanson","role":"President of Kingsway Skilled Trades"},{"name":"Fletcher Vynne","role":"Operator-in-Residence"},{"name":"Kent Hansen","role":"CFO"}],"products":["Kingsway Search Xcelerator (KSX)","Extended Warranty"],"companies":[{"name":"Trinity Warranty Solutions LLC","relationship":"subsidiary (sold)"},{"name":"Romeo Computer Company, Inc.","relationship":"subsidiary (acquired)"},{"name":"Image Solutions","relationship":"subsidiary"},{"name":"Hayden IR","relationship":"investor relations firm"}],"dollarAmounts":[{"amount":"$39.4 million","context":"Q2 2026 consolidated revenue"},{"amount":"$22.3 million","context":"Q2 2026 KSX revenue"},{"amount":"$17.1 million","context":"Q2 2026 Extended Warranty revenue"},{"amount":"$5.2 million","context":"Q2 2026 consolidated adjusted EBITDA"},{"amount":"$8.0 million","context":"gross proceeds from sale of Trinity"},{"amount":"$2.4 million","context":"acquisition cost of Romeo Computer Company"},{"amount":"$59.9 million","context":"total net debt as of June 30, 2026"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-08-07T04:22:37.297Z","global_importance":25,"audience_relevance":20,"importance_components":{"tickerTier":"small-cap","eventGravity":"strong-earnings-beat","sectorWeight":"financials"}},"durationMs":null,"modelName":"glm-4.7"}}