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Kingsway Corporation (KWY) AI Stock Analysis
Kingsway Corporation
(NYSE:KWY)
Weak financial performance from volatile profits and cash flows is the primary drag, compounded by poor valuation; positive earnings call sentiment and mixed technical indicators provide some offset.
Kingsway Corporation (KWY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $284.39M
- Dividend Yield
- ―
- Average Volume (3M)
- 48.58K
- Price to Earnings (P/E)
- -32.5
- Beta (1Y)
- 1.09
- Revenue Growth
- 32.66%
- EPS Growth
- 28.79%
- Country
- US
- Employees
- 588
- Sector
- Financial
- Sector Strength
- 68
- Industry
- Insurance - Diversified
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 division...
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 deal...
Kingsway Corporation Earnings Call Summary
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.
Q2-2026 Updates
Positive Updates
Negative 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
Revenue shows solid growth, but volatile profitability, high leverage, and inconsistent cash flows indicate operational challenges and financial risks in the insurance sector.
Income Statement
45NeutralBalance Sheet
50NeutralCash Flow
35Negative| 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 | 6.96M | 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 | -3,000 | 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
Price Trends
Market Momentum
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 9.83 is above the 20-day moving average (MA) of 9.63, above the 50-day MA of 9.72, and below the 200-day MA of 10.63, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 55.25 is Neutral, neither overbought nor oversold. The STOCH value of 39.07 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.
Latest Risks Added
0 New RisksKingsway Corporation Peers Comparison
Overall Rating
CARS63Neutral
RDNW59Neutral- KWY52Neutral
VRM48Neutral
CRMT45Neutral
UXIN42Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| Sector * | 68Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
| CARS | 63Neutral | $601.71M | 19.23 | 7.40% | ― | 1.08% | -6.71% |
| RDNW | 59Neutral | $198.96M | -36.00 | -5.06% | ― | -1.27% | 92.69% |
| KWY | 52Neutral | $284.39M | -32.52 | -23.73% | ― | 32.66% | 28.79% |
| VRM | 48Neutral | $39.05M | -0.67 | -51.30% | ― | 100.60% | 69.18% |
| CRMT | 45Neutral | $8.67M | -0.04 | -42.60% | ― | -21.59% | -1589.52% |
| UXIN | 42Neutral | $195.78M | -3.03 | 73.63% | ― | 97.00% | -42.04% |
* Financial Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| KWY | Kingsway Corporation | 9.83 | -4.31 | -30.48% | |
| CRMT | America's Car-Mart, Inc. | 1.04 | -20.90 | -95.26% | |
| CARS | Cars.com, Inc. | 11.24 | 0.40 | 3.69% | |
| RDNW | Ridenow Group, Inc. | 5.10 | 1.82 | 55.49% | |
| UXIN | Uxin Limited | 0.89 | -1.87 | -67.75% | |
| VRM | Vroom, Inc. | 7.46 | -16.04 | -68.26% |
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.
Date of analysis: Aug 17, 2026