Aug 6, 2026, 4:08 PM ETConsumer Cyclical

Kingsway Corporation — Second Quarter 2026 Earnings Summary

KWYKINGSWAY CORP

Financial Performance

Consolidated revenue increased 27.6% to $39.4 million, compared to $30.9 million in the prior-year quarter.
Kingsway Search Xcelerator (KSX) revenue increased 68.3% to $22.3 million, compared to $13.3 million.
Extended Warranty revenue decreased 3.1% to $17.1 million; pro forma for the sale of Trinity, Extended Warranty revenue increased 6.5% to $16.1 million, with pro forma cash sales increasing 6.9%.
Consolidated net income was $0.2 million, inclusive of a $1.3 million gain on the disposal of Trinity, compared to a net loss of $3.2 million.
Consolidated adjusted EBITDA was $5.2 million, compared to $1.7 million.
KSX adjusted EBITDA increased 77.9% to $4.3 million, compared to $2.4 million.
Extended Warranty adjusted EBITDA was $1.1 million, compared to $0.6 million; pro forma for the sale of Trinity, Extended Warranty adjusted EBITDA was $1.0 million, compared to $0.3 million.
Portfolio LTM EBITDA for operating companies was $22.0 million to $23.0 million for the twelve months ended June 30, 2026.
Total net debt was $59.9 million as of June 30, 2026, compared with $62.4 million as of December 31, 2025.

Reaffirmed target of three to five acquisitions in 2026.
Reaffirmed expectation for double-digit organic growth for both KSX and Extended Warranty in 2026.
Management expressed confidence in the positive trajectory of Portfolio LTM EBITDA in the back half of 2026, citing easier year-over-year comparisons in the third and fourth quarters.

KSX segment performance was broad-based, with Ravix and SPI producing particularly strong results driven by customer wins and client retention.
Extended Warranty segment saw strong performance at both IWS and Penn/PWI.
Extended Warranty lender-defined Modified Cash adjusted EBITDA was $2.9 million, used as the basis for financial covenant calculations.
On August 1, 2026, subsidiary Image Solutions acquired Romeo Computer Company, Inc. (RCC), a managed IT and cybersecurity provider, adding $2.5 million in unaudited pro forma annual revenue and $0.5 million in unaudited pro forma annual adjusted EBITDA.
RCC acquisition contributed $0.5 million to Portfolio LTM EBITDA, offset by a $0.9 million negative contribution from the sale of Trinity.

The Company operates as the only publicly-traded US company employing the Search Fund model to acquire and build businesses.
The portfolio consists of high-quality, asset-light, recurring revenue services businesses.
Management noted strong commercial momentum across the business following the Investor Day in May.

Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from expectations, as detailed in the Company's 2025 Annual Report on Form 10-K and subsequent filings.
Portfolio LTM EBITDA was impacted by net $0.4 million from M&A activity related to RCC and Trinity.

JT Fitzgerald, President and CEO, stated the second quarter came in "significantly ahead of internal expectations" and represented the "strongest operating performance of my tenure."
Management highlighted that KSX adjusted EBITDA has more than tripled over the past eight quarters, illustrating operating leverage and scalability.
The tone was confident regarding the public Search Fund strategy delivering as promised and clear momentum entering the second half of the year.

On May 11, 2026, the Company announced the sale of Trinity Warranty Solutions LLC for gross proceeds of $8.0 million ($5.0 million cash at closing plus $3.0 million in seller notes).
On May 15, 2026, Colter Hanson was appointed President of Kingsway Skilled Trades.
On May 18, 2026, the Company held its annual Investor Day at the New York Stock Exchange.
On May 19, 2026, the Company changed its name to Kingsway Corporation and its stock ticker to KWY.
On August 3, 2026, Fletcher Vynne was welcomed as the Company's newest Operator-in-Residence (OIR).
Management will host a conference call on August 6, 2026, at 5 p.m. ET to discuss results.