Kingsway Corporation

Q2 2026 consolidated revenue was $39.4 million, up 27.6% from $30.9 million in Q2 2025. Consolidated net income was $200,000 versus a net loss of $3.2 million a year ago, and consolidated adjusted EBITDA was $5.2 million versus $1.7 million. KSX revenue increased 68.3% to $22.3 million and KSX adjusted EBITDA rose 77.9% to a record $4.3 million; Extended Warranty revenue was $17.1 million versus $17.6 million last year, with segment adjusted EBITDA of $1.1 million versus $600,000. Portfolio EBITDA was a quarterly record $7.2 million, and LTM portfolio EBITDA was $22 million to $23 million as of June 30, 2026. Balance sheet net debt was $59.9 million, down from $62.4 million at December 31, 2025. JT said Kingsway is reaffirming 2026 targets of 3 to 5 acquisitions and double-digit organic growth at KSX and Extended Warranty. Management also noted RCC generated about $2.5 million of pro forma revenue and about $0.5 million of pro forma adjusted EBITDA over the 12 months ended April 30, 2026, and was bought for $2.4 million.

JT Fitzgerald framed Kingsway as a long-duration compounder built around the Search Fund model, asset-light recurring revenue businesses, and reinvestment of cash flow into acquisitions. He said the quarter was the strongest of his tenure, highlighted by record KSX EBITDA, record portfolio EBITDA, and broad momentum across the portfolio, while also stressing that the company is still early in its journey. He sounded optimistic but measured, pointing to progress at RCC, DDI, SNS, and Kingsway Skilled Trades, while acknowledging some businesses still have operational work to do.

Kent Hansen said the quarter featured strong top-line and profitability improvement, with consolidated revenue up 27.6% and adjusted EBITDA up to $5.2 million. He highlighted the sale of Trinity, which created a one-time $1.3 million gain, and noted about $1.1 million of cash distributions from ARGO-related search investments. He also said three operating subsidiaries, representing under 10% of LTM portfolio EBITDA, were out of covenant compliance during the quarter but are nonrecourse and are being waived or are in process of obtaining waivers; net debt was $59.9 million at quarter-end, down from $62.4 million at year-end.

Management said RCC was found through a broker and made sense because it has more than 80% recurring revenue, strong margins, and a history of organic growth, while fitting Image Solutions’ planned inorganic strategy. On ARGO, JT said several active search investments remain, including roughly three of significance, and he expects additional distributions in the future. In response to leverage and competition questions, Kent said consolidated leverage is around $2.7 million and JT said deal multiples have not shown meaningful creep despite more search competition; he added that Kingsway’s platform, sourcing engine, and active pipeline help improve the odds of closing acquisitions.