Kingsway Financial Services (KFS) investor relations material

Executive summary

• Q1 2026 consolidated revenue rose 37.5% year-over-year to $39.0 million, driven by acquisitions and organic growth, with both KSX and Extended Warranty segments exceeding expectations.

• KSX revenue surged 80.7% to $21.1 million, while Extended Warranty revenue grew 7.2% to $17.9 million; cash sales in Extended Warranty increased 11.8%.

• Consolidated net loss narrowed to $2.2 million from $3.1 million in Q1 2025, with net loss attributable to common shareholders improving to $2.8 million.

• Acquisition pipeline remains robust, with one tuck-in acquisition completed and three to five more targeted for 2026.

• Announced proposed name and ticker change to Kingsway Corporation (KWY), pending shareholder approval, and leadership transition at the board level.

Financial highlights

• Consolidated revenue: $39.0 million, up 37.5% year-over-year.

• KSX segment revenue: $21.1 million, up 80.7%; Extended Warranty revenue: $17.9 million, up 7.2%.

• Consolidated net loss: $2.2 million, improved from $3.1 million loss in Q1 2025; basic and diluted loss per share improved to $(0.10) from $(0.13).

• Adjusted EBITDA was $2.4 million, up from $1.4 million a year ago.

• Gross profit increased to $17.3 million from $12.2 million year-over-year; gross margin was 44.5%.

Outlook and guidance

• Management expects double-digit organic growth in revenue and profit for both KSX and Extended Warranty segments in 2026.

• Anticipates completing three to five acquisitions during 2026.

• Inflationary pressures on claims costs are being addressed through pricing and vehicle re-categorization.

• Liquidity and capital resources are expected to be sufficient for the next twelve months, barring significant macroeconomic changes.

• DDI and other businesses expected to accelerate in the second half of the year.