2 Small Caps: Do You Bet on the Horse or the Jockey?
Investment Debate: The ongoing discussion in the investment community revolves around whether to prioritize a company's business model (the "horse") or its management team (the "jockey"), with recent examples like Starbucks and Kingsway Financial Services highlighting this dynamic.
Company Performances: Kingsway Financial Services is focusing on leadership quality while TSS Inc. is capitalizing on the growing demand for AI-driven data center solutions, both showcasing different strategies in navigating their respective industries.
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Kingsway Financial Shares Decline After Q3 Earnings Report Despite Increase in Revenue
Stock Performance: Kingsway Financial Services Inc. shares dropped 12.9% following their Q3 2025 results, significantly underperforming the S&P 500, which gained 0.8% during the same period.
Revenue Growth: The company reported a 36.9% increase in revenues to $37.2 million, driven by a substantial rise in Kingsway Search Xcelerator revenues, although it still posted a net loss of $2.4 million.
Adjusted EBITDA Trends: Adjusted consolidated EBITDA fell 32.1% to $2.1 million, with mixed performance across segments; KSX saw an increase while Extended Warranty faced declines due to accounting timing issues.
Acquisition Strategy: Kingsway Financial executed four acquisitions in the quarter, emphasizing confidence in organic growth and acquisition-led expansion as key strategic focuses moving forward.

Kingsway Financial seeks approval for offering up to 1,419,001 shares of common stock
Stock Offering Announcement: Kingsway Financial Services (NYSE: KFS) has filed a registration statement for an offering of up to 1,419,001 common stocks.
Preliminary Prospectus Note: The preliminary prospectus associated with the stock offering is not considered an offer to sell the securities.
Recent Acquisitions: Kingsway has recently acquired Southside Plumbing and is signaling plans for accelerated mergers and acquisitions.
Future Acquisition Goals: The company aims to target 3–5 acquisitions per year, leveraging new capital and current momentum.






