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Kingsway Corporation
(NYSE:KWY)
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Rating:47Neutral
Price Target:
$10.00
▲(0.00% Upside)
Action:Reiterated
Date:08/18/26
The score is held down primarily by weak financial performance (net losses, elevated leverage, and inconsistent/limited free cash flow). Offsetting this, the latest earnings call was notably positive with improving results and reaffirmed growth and acquisition plans, while technicals are only modestly supportive and valuation is difficult to assess due to negative earnings and no dividend yield.
Positive Factors
Improving Revenue and Operating Profitability
Strong year-over-year growth and a return to quarterly profitability indicate improving operating execution. If sustained, expanding EBITDA across the portfolio could help Kingsway absorb overhead, reduce earnings volatility, and support future reinvestment.
Negative Factors
Persistent Net Losses and Earnings Volatility
Despite recent quarterly improvement, the trailing business remains unprofitable and historically inconsistent. Continued losses would limit internal funding for acquisitions, weaken confidence in earnings quality, and make a durable recovery dependent on sustained execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Revenue and Operating Profitability
Strong year-over-year growth and a return to quarterly profitability indicate improving operating execution. If sustained, expanding EBITDA across the portfolio could help Kingsway absorb overhead, reduce earnings volatility, and support future reinvestment.
Read all positive factors
Kingsway Corporation (KWY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$298.57M
Dividend Yield4.74%
Average Volume (3M)55.86K
Price to Earnings (P/E)―
Beta (1Y)1.09
Revenue Growth32.66%
EPS Growth28.79%
CountryUS
Employees588
SectorFinancial
Sector Strength70
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)-0.30
Shares Outstanding28,931,000
10 Day Avg. Volume33,477
30 Day Avg. Volume55,864
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)10.30
Price to Sales (P/S)2.37
P/FCF Ratio-199.55
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Kingsway Corporation Business Overview & Revenue Model
Company Description
Kingsway Financial Services, Inc. functions as a holding company, primarily delivering financial services. The firm organizes its activities into two principal segments: Extended Warranty and Kingsway Search Xcelerator. The Extended Warranty divis...
How the Company Makes Money
Kingsway makes money through operating income generated by its subsidiaries. A key revenue stream comes from its extended vehicle service contract business, where revenue is earned from selling vehicle service contracts (often through automotive d...
Kingsway Corporation Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call communicated a decidedly positive operational and financial trajectory: strong revenue growth (+27.6% consolidated), a record quarter for KSX revenue and adjusted EBITDA (KSX revenue +68.3%, KSX adjusted EBITDA $4.3M), consolidated adjusted EBITDA and net income materially improved versus the prior year, and record quarterly portfolio EBITDA of $7.2M. Management also highlighted successful strategic transactions (Trinity sale, RCC tuck-in), recurring distributions from search investments, and continued acquisition targets. The lowlights are primarily localized operational issues (timing-related revenue deferral at Roundhouse, a low six-figure write-down at Southside, a transition-year drag at DDI, SNS underperformance and leadership change), some one-time/noncash charges, and covenant waivers for a small subset of subsidiaries. Overall, the highlights materially outweigh the lowlights, with management expressing confidence in the back half of the year and reaffirming acquisition and organic growth targets.Positive Updates
Strong Consolidated Revenue Growth
Consolidated revenue increased 27.6% year-over-year to $39.4 million in Q2 2026 (from $30.9 million in Q2 2025).
Negative Updates
Extended Warranty Reported Revenue Decline (Pre-Pro Forma)
Reported Extended Warranty revenue decreased 3.1% YoY to $17.1 million (although pro forma results excluding Trinity show a 6.5% increase).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Consolidated Revenue Growth
Consolidated revenue increased 27.6% year-over-year to $39.4 million in Q2 2026 (from $30.9 million in Q2 2025).
Read all positive updates
Company Guidance
Kingsway reaffirmed targets of 3–5 acquisitions in 2026 and double‑digit organic growth at both KSX and Extended Warranty, and said it expects portfolio LTM EBITDA (stable at $22–23M as of June 30) to trend upward in H2 given easier year‑over‑year comps in Q3/Q4 and several near‑term tailwinds (a Roundhouse shipment timing push that will shift revenue into Q3 and the expected wrap‑up of a Southside project); management pointed to a record quarterly portfolio EBITDA of $7.2M (KSX quarterly record adjusted EBITDA $4.3M, Extended Warranty adjusted EBITDA $1.1M and lender‑defined modified cash adjusted EBITDA $2.9M), a consolidated net debt position of $59.9M, and specific M&A impacts (Trinity sale for $8M at ~9.2x 2025 adjusted EBITDA and the RCC tuck‑in with ~$2.5M pro‑forma revenue and ~$0.5M pro‑forma adjusted EBITDA), said DDI’s sales pipeline should drive acceleration over the next several quarters, expects additional ARGO distributions, anticipates stock‑based award expense to normalize after a $1.4M non‑cash charge in Q2, and is in the process of obtaining waivers for three operating‑company covenants (representing under 10% of LTM portfolio EBITDA).Kingsway Corporation Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
34
Negative
Cash Flow
29
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 155.01M | 136.72M | 112.53M | 107.66M | 114.69M | 81.41M |
| Gross Profit | 69.13M | 60.55M | 112.53M | 107.66M | 114.69M | 81.41M |
| EBITDA | 7.44M | 670.00K | 3.53M | 36.12M | 49.50M | 4.60M |
| Net Income | -7.29M | -10.73M | -9.27M | 23.56M | 24.72M | -342.00K |
Balance Sheet | ||||||
| Total Assets | 227.83M | 231.50M | 186.62M | 197.72M | 285.65M | 475.63M |
| Cash, Cash Equivalents and Short-Term Investments | 46.10M | 15.63M | 13.63M | 15.18M | 64.33M | 12.80M |
| Total Debt | 68.39M | 78.02M | 60.22M | 45.61M | 103.31M | 96.58M |
| Total Liabilities | 195.49M | 197.09M | 168.31M | 173.11M | 263.53M | 460.88M |
| Stockholders Equity | 29.08M | 31.42M | 16.66M | 27.71M | 21.68M | 773.00K |
Cash Flow | ||||||
| Free Cash Flow | -505.32K | -1.62M | 358.00K | -26.39M | 11.89M | -6.74M |
| Operating Cash Flow | 2.68M | -3.00K | 1.07M | -26.19M | -14.57M | -5.91M |
| Investing Cash Flow | -12.43M | -29.61M | -16.85M | 6.46M | 100.94M | -8.60M |
| Financing Cash Flow | 5.11M | 32.75M | 11.44M | -39.96M | -37.93M | -540.00K |
Kingsway Corporation Technical Analysis
Positive
10.00
Price Trends
9.80
Positive
10.27
Positive
11.27
Negative
Market Momentum
0.14
Positive
56.96
Neutral
24.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KWY, the sentiment is Positive. The current price of 10 is below the 20-day moving average (MA) of 10.09, above the 50-day MA of 9.80, and below the 200-day MA of 11.27, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 56.96 is Neutral, neither overbought nor oversold. The STOCH value of 24.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KWY.
Kingsway Corporation Risk Analysis
Kingsway Corporation disclosed 41 risk factors in its most recent earnings report. Kingsway Corporation reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Kingsway Corporation Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $627.94M | 20.07 | 7.40% | ― | 1.08% | -6.71% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
49 Neutral | $56.69M | -0.97 | -51.30% | ― | 100.60% | 69.18% | |
47 Neutral | $298.57M | -34.14 | -23.73% | 4.74% | 32.66% | 28.79% | |
47 Neutral | $227.82M | -36.00 | -5.06% | ― | -1.27% | 92.69% | |
45 Neutral | $255.18M | -5.19 | 56.97% | ― | 94.12% | -12.61% | |
44 Neutral | $20.79M | -0.15 | -26.30% | ― | -7.89% | -857.64% |
* Financial Sector Average
KWY
Kingsway Corporation
10.32
-4.02
-28.03%
CRMT
America's Car-Mart
2.40
-35.25
-93.63%
CARS
Cars
11.73
-1.66
-12.40%
RDNW
RideNow Group
5.84
1.96
50.52%
UXIN
Uxin
1.16
-2.20
-65.48%
VRM
Vroom, Inc.
10.83
-14.42
-57.11%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.