Kingsway Financial Services Reports Q2 2025 Financial Results

Positive Revenue Growth Amid Increased Losses

Kingsway Financial Services Inc. has announced its financial results for the second quarter ended June 30, 2025, showcasing a consolidated revenue growth of 16.9% to $30.9 million, compared to $26.4 million in the same period last year. However, the company also reported a widened net loss of $3.2 million for the quarter, up from a net loss of $2.2 million during the previous year.

Segment Performance Highlights

In the second quarter, revenue from the Kingsway Search Xcelerator (KSX) segment surged by 42.1%, hitting $13.3 million, significantly higher than the $9.3 million recorded for Q2 2024. Meanwhile, extended warranty segment revenue grew modestly by 3.1% to $17.6 million, compared to $17.1 million in the prior year.

Adjusted EBITDA Trends

Adjusted consolidated EBITDA experienced a decline, falling by $0.8 million to $1.7 million from $2.5 million in the same quarter of the prior year. Despite this decrease, the KSX segment showed a year-over-year improvement in adjusted EBITDA, rising to $2.4 million, up from $1.8 million.

Acquisition Strategy and Financial Moves

Kingsway executed a successful $15.7 million private placement in June 2025, allowing for accelerated growth and expansion of its acquisition strategy. The company has increased its target for KSX acquisitions from an expected 2-3 per year to 3-5 annually, reflecting its commitment to growing its portfolio of businesses.

In line with this strategy, Kingsway has made several acquisitions, including Roundhouse Electric & Equipment Co., Inc. for $22.4 million, expected to add $16 million in annual revenue and $4.2 million in adjusted EBITDA. Another notable acquisition was AAA Flexible Pipe Cleaning Corp, acquired for $3.5 million, with potential additional costs bringing the total maximum to $5 million.

Management Insights

JT Fitzgerald, Kingsway’s President and CEO, expressed optimism about the second quarter results, highlighting the significance of the recent funding and acquisitions in supporting long-term growth. Fitzgerald noted that the operations are positioned for further success and emphasized ongoing efforts to enhance shareholder value.

Key Takeaways

Consolidated revenue increased by 16.9% to $30.9 million for Q2 2025.

A net loss of $3.2 million was reported, higher than the $2.2 million loss from the previous year.

KSX revenue rose 42.1% to $13.3 million, showcasing strong segment performance.

Adjusted consolidated EBITDA decreased to $1.7 million, a decline from $2.5 million in Q2 2024.

The company closed a $15.7 million PIPE transaction to bolster future growth and acquisition prospects.