KFS

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.

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.

Acquisition Announcement: Generational Capital Markets has facilitated the sale of Roundhouse Electric & Equipment Co., Inc. to Kingsway Financial Services, with the acquisition closing on July 1, 2025. Roundhouse specializes in mission-critical services for natural gas pipeline operators and utilities in the Permian Basin.

Company Profiles: Kingsway Financial Services operates using a Search Fund model and focuses on acquiring profitable, asset-light businesses with recurring revenues. The new CEO of Roundhouse, Miles Mamon, expressed enthusiasm about expanding the company's impact in the industry.