Kingsway Posts First Organic Growth Metrics After Earnings Drop

The Tip Desk · November 5, 2026 · 2 min read

Consolidated adjusted EBITDA was $2.0 million in the third quarter, down from $5.2 million in the second quarter, as Kingsway disclosed organic segment growth for the first time.

Kingsway Corporation (KWY), the only publicly traded U.S. company employing the Search Fund model, reported third-quarter 2026 revenue of $38.9 million, a 4.5% increase from a year earlier, after second-quarter growth of 27.6% to $39.4 million.

Consolidated adjusted EBITDA was $2.0 million, compared with $5.2 million in the second quarter. The company recorded a net loss of $3.2 million, versus net income of $0.2 million in the prior quarter, which included a $1.3 million gain on the sale of Trinity Warranty Solutions LLC.

Kingsway Search Xcelerator revenue rose 18.2% to $22.4 million from $19.0 million a year earlier, after 68.3% growth to $22.3 million in the second quarter. KSX adjusted EBITDA was $3.3 million, down from a segment quarterly record of $4.3 million.

Extended Warranty revenue declined 9.8% to $16.4 million from $18.2 million in the year-ago quarter. Excluding Trinity, Extended Warranty revenue increased 5.9% to $16.4 million from $15.5 million, and Extended Warranty cash sales excluding Trinity increased 6.3%. Extended Warranty adjusted EBITDA was $1.4 million, compared with $0.8 million a year earlier; excluding Trinity it was $1.4 million versus $0.4 million.

For the first time, Kingsway published organic growth metrics for its operating companies. Organic segment revenue growth was 7.6%, and organic segment adjusted EBITDA growth was 54.1%. The company said it will provide organic growth numbers for its operating companies each quarter going forward.

President and CEO JT Fitzgerald said the company had approximately $0.6 million of revenue re-deferrals at its operating subsidiaries in the quarter and that, normalizing for those non-cash accounting items, segment profitability would have been broadly consistent with the second-quarter result. Lender-defined Modified Cash Adjusted EBITDA, used for covenant calculations under the credit agreement, was $2.7 million.

Cash from operations reached $4.1 million in the third quarter. Fitzgerald said the asset-light nature of the services businesses allows Kingsway to translate growing EBITDA into cash flow as the company scales.

Portfolio LTM EBITDA for the operating companies was $23 million to $24 million for the twelve months ended September 30, 2026, up from $22.0 million to $23.0 million for the twelve months ended June 30. Fitzgerald said he remains confident in the positive trajectory of that metric in the fourth quarter and into 2027.

Total net debt was $60.3 million as of September 30, 2026, compared with $59.9 million as of June 30.

Fitzgerald said Kingsway is positioned to continue driving both inorganic and organic growth in the quarters ahead, citing a highly active deal pipeline.