Kingsway (KWY) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 operating performance, with consolidated revenue of $39.4 million, up 27.6% year-over-year, and net income of $0.2 million, reversing a $3.2 million loss in Q2 2025, driven by acquisitions, divestitures, and strong KSX segment growth.

• Portfolio EBITDA reached a quarterly high of $7.2 million, with KSX revenue up 68.3% to $22.3 million and Extended Warranty revenue at $17.1 million, down 3.1% but up 6.5% pro forma for the Trinity sale.

• Strategic focus on asset-light, recurring revenue businesses and the search fund acquisition model continues to drive growth and scalability.

• Recent acquisitions (RCC, Roundhouse, Advanced Plumbing, Southside Plumbing) and divestitures (Trinity Warranty) support ongoing portfolio optimization and expansion.

• Name change to Kingsway Corporation and ticker change to KWY completed in May 2026.

Financial highlights

• Consolidated revenue rose 27.6% year-over-year to $39.4 million in Q2 2026, with gross profit of $17.1 million and adjusted EBITDA up to $5.2 million from $1.7 million year-over-year.

• KSX adjusted EBITDA increased 77.9% to $4.3 million; Extended Warranty adjusted EBITDA was $1.1 million.

• Net income was $0.2 million, including a $1.3 million gain from the Trinity divestiture.

• Portfolio LTM EBITDA for operating companies was $22.0–$23.0 million as of June 30, 2026.

• Net debt reduced to $59.9 million from $62.4 million at year-end 2025.

Outlook and guidance

• Management reaffirmed targets for three to five acquisitions in 2026 and double-digit organic growth in both KSX and Extended Warranty segments.

• Confident in positive EBITDA trajectory for the second half of 2026, citing easier year-over-year comparisons and strong commercial momentum.

• Extended Warranty segment expects future revenue and operating income growth as higher cash sales in 2026 flow through deferred revenue recognition.