Kingsway Financial Services ( (KFS) ) has released its Q3 earnings. Here is a breakdown of the information Kingsway Financial Services presented to its investors.
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Kingsway Financial Services Inc. is a publicly-traded company in the United States that employs the Search Fund model to acquire and develop businesses, primarily operating in the asset-light services sector with a focus on recurring revenue streams.
In its latest earnings report for the third quarter of 2025, Kingsway Financial Services announced a significant revenue growth of 37% year-over-year, reaching $37.2 million. The company highlighted the substantial growth of its Kingsway Search Xcelerator (KSX) segment, which saw a 104% increase in revenue, marking the first time it represented the majority of the company’s revenue.
Key financial metrics from the report include a consolidated net loss of $2.4 million, slightly higher than the previous year’s loss. The KSX segment showed impressive performance with a 90% growth in adjusted EBITDA, while the Extended Warranty segment experienced a decline in adjusted EBITDA despite a 14% increase in cash sales. The company’s recent acquisitions, including Roundhouse Electric & Equipment Co. and AAA Flexible Pipe Cleaning Corp, are expected to contribute positively to future revenue and EBITDA.
Looking ahead, Kingsway’s management remains optimistic about the company’s growth prospects, citing strong business momentum and a robust acquisition pipeline. The company’s unique public Search Fund strategy is positioned to deliver sustainable growth and long-term value for shareholders.