Kingsway Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated revenue increased 4.5% year-over-year to $38.9 million, compared to $37.2 million in the prior-year quarter.
• Consolidated net loss was $3.2 million, compared to a net loss of $2.4 million in the prior-year quarter.
• Consolidated adjusted EBITDA was $2.0 million, compared to $2.1 million in the prior-year quarter.
• Cash from operations reached $4.1 million in the third quarter.
• Total net debt was $60.3 million as of September 30, 2026, down from $62.4 million as of December 31, 2025.
• Revenue re-deferrals at operating subsidiaries were approximately $0.6 million during the quarter.

Guidance and Future Outlook:

• Management expressed confidence in the positive trajectory of LTM Portfolio EBITDA for the fourth quarter and into 2027.
• The company stated it will provide organic growth numbers for its operating companies on a quarterly basis going forward.
• Management highlighted a "highly active deal pipeline" positioned to drive both inorganic and organic growth in future quarters.

Business Segments and Product Lines:

• Kingsway Search Xcelerator (KSX) revenue increased 18.2% year-over-year to $22.4 million, compared to $19.0 million.
• KSX adjusted EBITDA increased 24.5% year-over-year to $3.3 million, compared to $2.7 million.
• Extended Warranty revenue decreased 9.8% year-over-year to $16.4 million, compared to $18.2 million.
• Excluding the sale of Trinity Warranty Solutions LLC, Extended Warranty revenue increased 5.9% year-over-year to $16.4 million from $15.5 million; cash sales excluding Trinity increased 6.3%.
• Extended Warranty adjusted EBITDA increased 88.3% year-over-year to $1.4 million, compared to $0.8 million.
• Extended Warranty adjusted EBITDA excluding Trinity was $1.4 million, compared to $0.4 million in the prior year.
• Portfolio LTM EBITDA for operating companies was in the range of $23 million to $24 million for the twelve months ended September 30, 2026.

Market and Competitive Landscape:

• The company disclosed organic segment revenue growth of 7.6% and organic segment adjusted EBITDA growth of 54.1% for the first time.
• Management noted robust commercial momentum and value creation across the company's operating businesses.

Risks and Challenges:

• The press release includes a standard disclaimer regarding forward-looking statements, noting that actual results could differ materially due to risks and uncertainties.
• Specific risk factors are referenced in the Company's 2025 Annual Report on Form 10-K and subsequent filings.

Management Commentary and Tone:

• President and CEO JT Fitzgerald described the results as "exceptional," citing strong profitability, organic growth, and cash flow.
• Management highlighted that lender-defined Modified Cash Adjusted EBITDA, used for financial covenant calculations, was $2.7 million.
• The tone was confident, with management stating the company is "delivering on its strategy" and that profitability was strong.

Other Key Points:

• This is the first quarter in which Kingsway has published organic growth metrics for its operating companies.
• The company sold Trinity Warranty Solutions LLC during the reporting period, impacting reported Extended Warranty revenue and EBITDA comparisons.
• Kingsway operates as the only publicly-traded US company employing the Search Fund model to acquire and build businesses.
• The company utilizes an asset-light services business model to translate growing EBITDA into strong cash flow.
• A conference call and live webcast were hosted on November 5, 2026, to discuss results and host a Q&A session.