Kingsway Financial Services (KFS)
NYSE:KFS
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Kingsway Financial Services
(NYSE:KFS)
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Rating:46Neutral
Price Target:
$9.50
▼(-27.87% Downside)
Action:ReiteratedDate:03/17/26
The score is primarily held back by weakened financial performance (recent losses and inconsistent/negative free cash flow) and bearish technicals (below key moving averages with negative MACD). The earnings call provides a partial offset via constructive 2026 growth guidance and strong segment momentum, but leverage and execution risks remain, and valuation is unattractive on current earnings due to a negative P/E.
Positive Factors
Revenue growth and KSX segment momentum
Sustained double-digit consolidated revenue growth and outsized KSX expansion indicate durable underlying demand and a shifting revenue mix toward a higher-growth segment. KSX becoming a majority contributor to revenue and EBITDA provides a stronger, more recurring earnings base over the medium term.
Negative Factors
Consecutive net losses and negative free cash flow
Sustained GAAP losses and negative free cash flow undermine internal funding capacity and heighten reliance on external financing for growth. Over a multi-quarter horizon, continued weak cash generation pressures investment flexibility, margin recovery, and the ability to self-fund tuck-ins.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth and KSX segment momentum
Sustained double-digit consolidated revenue growth and outsized KSX expansion indicate durable underlying demand and a shifting revenue mix toward a higher-growth segment. KSX becoming a majority contributor to revenue and EBITDA provides a stronger, more recurring earnings base over the medium term.
Read all positive factors
Kingsway Financial Services (KFS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$333.76M
Dividend YieldN/A
Average Volume (3M)75.96K
Price to Earnings (P/E)―
Beta (1Y)0.82
Revenue Growth14.24%
EPS Growth-67.80%
CountryUS
Employees433
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)-0.07
Shares Outstanding28,946,665
10 Day Avg. Volume75,042
30 Day Avg. Volume75,957
Financial Highlights & Ratios
PEG Ratio-1.32
Price to Book (P/B)11.93
Price to Sales (P/S)2.74
P/FCF Ratio-231.18
Enterprise Value/Market Cap1.16
Enterprise Value/Revenue2.83
Enterprise Value/Gross Profit3.51
Enterprise Value/Ebitda81.37
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 Financial Services Business Overview & Revenue Model
Company Description
Kingsway Financial Services Inc., through its subsidiaries, engages in the extended warranty business services, asset management, and real estate businesses. The company operates through three segments: Extended Warranty, Leased Real Estate, and K...
How the Company Makes Money
KFS makes money primarily through the operating income and cash flows generated by its subsidiaries rather than by selling a single product at the parent-company level. Key revenue streams typically include: (1) Service and administrative fees ear...
Kingsway Financial Services Earnings Call Summary
Earnings Call Date:Mar 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call presented strong top-line growth, outsized KSX segment performance, meaningful acquisition activity (6 deals in 2025), and a portfolio LTM EBITDA of $22M–$23M—supporting management's optimism and a double-digit organic growth budget for 2026. Offsetting these positives are a full-year net loss ($10.3M), increased leverage (total debt $70.7M; net debt up ~20% YoY), seasonality and investment-related margin pressure in select businesses, and slower-than-expected growth in some initiatives (e.g., Digital Diagnostics). On balance, the company demonstrated clear growth momentum and constructive strategic progress, but faces execution and leverage risks in the near term.Positive Updates
Strong Consolidated Revenue Growth
Full year 2025 consolidated revenue of $135.0M, up 23.4% year-over-year; Q4 revenue $38.6M, up 30.1% year-over-year.
Negative Updates
Full Year Net Loss and Modest Consolidated EBITDA
Consolidated net loss of $10.3M for full year 2025 and net loss of $1.6M in Q4. Consolidated adjusted EBITDA was $7.8M for the year, which is substantially lower than the portfolio LTM adjusted EBITDA figure due to non-pro forma GAAP reporting and corporate/holding costs.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Consolidated Revenue Growth
Full year 2025 consolidated revenue of $135.0M, up 23.4% year-over-year; Q4 revenue $38.6M, up 30.1% year-over-year.
Read all positive updates
Company Guidance
Management guided to double-digit organic revenue and EBITDA growth in 2026 across both KSX and Extended Warranty and reiterated a target of 3–5 acquisitions (management expects about 1–2 new platform investments and 2–3 tuck‑ins), supported by momentum from 2025 results: consolidated revenue of $135.0M (up 23.4% YoY), consolidated adjusted EBITDA $7.8M, portfolio LTM adjusted EBITDA of $22–23M, KSX revenue $64.2M (up 58.5% YoY) and KSX adjusted EBITDA $9.5M (up 40.8% YoY), Q4 revenue $38.6M (up 30.1% YoY) with Q4 KSX revenue $20.3M (up 63.6% YoY) and KSX Q4 adjusted EBITDA $2.5M (up 28.6% YoY), Extended Warranty revenue $70.8M for the year (up 2.8% YoY) with cash sales +9% for the year (+11% in Q4), claims growth moderating to +4.4% (vs. +6.3% prior year), and a year‑end balance sheet of $8.3M cash, $70.7M total debt ($55M bank loans, $13.7M subordinated debt, $2M notes) and net debt of $62.4M.Kingsway Financial Services Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
58
Neutral
Cash Flow
32
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 136.72M | 112.53M | 107.66M | 114.69M | 81.41M |
| Gross Profit | 136.72M | 112.53M | 107.66M | 114.69M | 81.41M |
| EBITDA | 670.00K | 3.53M | 36.12M | 49.50M | 4.60M |
| Net Income | -10.73M | -9.27M | 23.56M | 24.72M | -342.00K |
Balance Sheet | |||||
| Total Assets | 231.50M | 186.62M | 197.72M | 285.65M | 475.63M |
| Cash, Cash Equivalents and Short-Term Investments | 16.45M | 13.63M | 15.18M | 64.33M | 12.80M |
| Total Debt | 78.02M | 60.22M | 45.61M | 103.31M | 96.58M |
| Total Liabilities | 197.09M | 168.31M | 173.11M | 263.53M | 460.88M |
| Stockholders Equity | 31.42M | 16.66M | 27.71M | 21.68M | 773.00K |
Cash Flow | |||||
| Free Cash Flow | -1.62M | 358.00K | -26.39M | 11.89M | -6.74M |
| Operating Cash Flow | -3.00K | 1.07M | -26.19M | -14.57M | -5.91M |
| Investing Cash Flow | -29.61M | -16.85M | 6.46M | 100.94M | -8.60M |
| Financing Cash Flow | 32.75M | 11.44M | -39.96M | -37.93M | -540.00K |
Kingsway Financial Services Technical Analysis
Neutral
13.17
Price Trends
11.70
Negative
12.31
Negative
13.34
Negative
Market Momentum
-0.12
Negative
58.45
Neutral
87.55
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KFS, the sentiment is Neutral. The current price of 13.17 is above the 20-day moving average (MA) of 10.56, above the 50-day MA of 11.70, and below the 200-day MA of 13.34, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 58.45 is Neutral, neither overbought nor oversold. The STOCH value of 87.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KFS.
Kingsway Financial Services Risk Analysis
Kingsway Financial Services disclosed 33 risk factors in its most recent earnings report. Kingsway Financial Services 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 Financial Services Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $533.01M | 36.66 | 4.17% | ― | 0.20% | -20.57% | |
52 Neutral | $258.51M | -3.84 | -268.06% | ― | -12.43% | 66.92% | |
50 Neutral | $620.57M | -20.84 | 46.72% | ― | ― | ― | |
48 Neutral | $102.04M | -0.70 | -2.60% | ― | 2.07% | -117.51% | |
47 Neutral | $88.24M | -12.98 | -38.32% | ― | -81.31% | 87.13% | |
46 Neutral | $333.76M | -34.92 | -36.46% | ― | 14.24% | -67.80% |
* Consumer Cyclical Sector Average
KFS
Kingsway Financial Services
11.53
3.64
46.13%
CRMT
America's Car-Mart
11.09
-34.53
-75.69%
CARS
Cars
9.09
-2.20
-19.49%
RDNW
RideNow Group
6.73
4.01
147.43%
UXIN
Uxin
3.01
-0.58
-16.16%
VRM
Vroom, Inc.
16.95
-15.35
-47.52%
Kingsway Financial Services Corporate Events
Business Operations and StrategyExecutive/Board Changes
Kingsway Financial Names Adam Patinkin Board Chairman
Positive
Mar 16, 2026
On March 16, 2026, Kingsway Financial Services Inc. announced that its board of directors has elected Adam J. Patinkin as chairman of the board, succeeding long-time chairman Terence M. Kavanagh, who will remain on the board as vice-chairman. The ...
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.