Revenue growth remains robust at 37.4% year-over-year, yet the company continues to report negative operating margins of -1.9% as of 2026Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 147.55M | 136.72M | 112.53M | 107.66M | 114.69M | 81.41M | 68.6M | 68.25M | 43.61M | 193.18M | 176.62M | 158.75M | 187.83M | 172.16M | 159.66M | 228.55M | 248.08M | 452.7M | 1.48B | 2.04B | 1.92B | 1.92B | 2.03B | 1.94B | 1.16B | 588.87M | 396.74M | 333.69M | 229.37M | 137.17M | 86.6M |
| Revenue Growth % | 30.39% | 21.5% | 4.53% | -6.13% | 40.88% | 18.68% | 0.51% | 56.5% | -77.43% | 9.38% | 11.25% | -15.48% | 9.1% | 7.83% | -30.14% | -7.87% | -45.2% | -69.32% | -27.51% | 6.23% | -0.36% | -5.14% | 4.52% | 67.89% | 96.2% | 48.43% | 18.89% | 45.48% | 67.21% | 58.4% | 131.59% |
| Cost of Goods Sold | 26.27M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7.37M | 7.69M | 5.43M | 5.29M | 5.5M | 4.03M | 959K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| COGS % of Revenue | - | - | - | - | - | - | - | - | 16.9% | 3.98% | 3.08% | 3.33% | 2.93% | 2.34% | 0.6% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 121.28M | 136.72M | 112.53M | 107.66M | 114.69M | 81.41M | 68.6M | 68.25M | 36.24M | 185.49M | 171.18M | 153.46M | 182.33M | 168.13M | 158.7M | 228.55M | 248.08M | 452.7M | 1.48B | 2.04B | 1.92B | 1.92B | 2.03B | 1.94B | 1.16B | 588.87M | 396.74M | 333.69M | 229.37M | 137.17M | 86.6M |
| Gross Margin % | 82.2% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 83.1% | 96.02% | 96.92% | 96.67% | 97.07% | 97.66% | 99.4% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| Gross Profit Growth % | - | 21.5% | 4.53% | -6.13% | 40.88% | 18.68% | 0.51% | 88.33% | -80.46% | 8.36% | 11.54% | -15.83% | 8.45% | 5.94% | -30.56% | -7.87% | -45.2% | -69.32% | -27.51% | 6.23% | -0.36% | -5.14% | 4.52% | 67.89% | 96.2% | 48.43% | 18.89% | 45.48% | 67.21% | 58.4% | 131.59% |
| Operating Expenses | 129.07M | 150.72M | 120.79M | 84M | 79.73M | 88.04M | 73.82M | 69.66M | -70.19M | 203.56M | 178.04M | 156.21M | 67.23M | 79.81M | 73.93M | 77.94M | -277.61M | -749.48M | -1.77B | -2.02B | -1.75B | -1.74B | -1.88B | -1.86B | -1.1B | -547.15M | -367.22M | -318.33M | -195.91M | -117.33M | -75.07M |
| OpEx % of Revenue | - | 110.24% | 107.34% | 78.03% | 69.52% | 108.14% | 107.61% | 102.06% | -160.95% | 105.37% | 100.81% | 98.4% | 35.79% | 46.36% | 46.31% | 34.1% | -111.91% | -165.56% | -120.16% | -99.14% | -91.12% | -90.63% | -92.87% | -96.08% | -95.44% | -92.92% | -92.56% | -95.4% | -85.41% | -85.53% | -86.69% |
| Selling, General & Admin | 47.92M | 61.22M | 44.92M | 41.8M | 43.52M | 45.24M | 37.7M | 35.76M | 29.37M | 46.27M | 41.63M | 41.76M | 67.23M | 79.81M | 73.93M | 102.24M | 111.37M | 184.2M | 523.08M | 243.08M | 182.26M | 155.77M | 160.25M | 109.97M | 77.98M | 51.47M | 44.63M | 42.44M | 29.36M | 13.42M | 8.46M |
| SG&A % of Revenue | - | 44.78% | 39.92% | 38.83% | 37.95% | 55.58% | 54.96% | 52.4% | 67.34% | 23.95% | 23.57% | 26.31% | 35.79% | 46.36% | 46.31% | 44.74% | 44.89% | 40.69% | 35.45% | 11.94% | 9.51% | 8.1% | 7.9% | 5.67% | 6.75% | 8.74% | 11.25% | 12.72% | 12.8% | 9.78% | 9.77% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | 0% | 0% | 0% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 89.5M | 75.86M | 42.2M | 36.21M | 42.8M | 36.12M | 33.9M | -99.92M | 157.29M | 136.41M | 114.45M | 0 | 0 | 0 | 0 | -388.98M | -933.68M | -2.3B | -2.26B | -1.93B | -1.9B | -2.04B | -1.97B | -1.18B | -598.62M | -411.85M | -360.77M | -225.27M | -130.75M | -83.54M |
| Operating Income | -7.79M | -14M | -8.26M | 23.65M | 34.96M | -6.63M | -5.22M | -1.41M | -16.21M | -11.65M | -6.85M | -1.53M | -11.22M | -43.31M | -53.28M | -26.08M | -29.54M | -296.79M | -297.47M | 17.46M | 170.1M | 180.27M | 144.49M | 76.05M | 52.73M | 41.72M | 29.52M | 15.37M | 33.46M | 19.85M | 11.53M |
| Operating Margin % | -5.28% | -10.24% | -7.34% | 21.97% | 30.48% | -8.14% | -7.61% | -2.06% | -37.17% | -6.03% | -3.88% | -0.96% | -5.98% | -25.16% | -33.37% | -11.41% | -11.91% | -65.56% | -20.16% | 0.86% | 8.88% | 9.37% | 7.13% | 3.92% | 4.56% | 7.08% | 7.44% | 4.6% | 14.59% | 14.47% | 13.31% |
| Operating Income Growth % | - | -69.54% | -134.92% | -32.34% | 627.25% | -26.99% | -270.55% | 91.31% | -39.06% | -70.22% | -348.1% | 86.39% | 74.09% | 18.71% | -104.3% | 11.71% | 90.05% | 0.23% | -1804.11% | -89.74% | -5.64% | 24.76% | 89.98% | 44.24% | 26.39% | 41.32% | 92.12% | -54.09% | 68.62% | 72.16% | 134.65% |
| EBITDA | 2.06M | -4.78M | -1.26M | 29.87M | 41.41M | -1.56M | -5.22M | -1.41M | 58.68M | 52.12M | 46.59M | -284K | -9.44M | -39.47M | -50.32M | -23.81M | -22.91M | -286.13M | -229.71M | 33M | 175.06M | 198.77M | 145.06M | 76.71M | 53.18M | 45.91M | 34.42M | 21.02M | 36.33M | 19.57M | 11.09M |
| EBITDA Margin % | 1.4% | -3.5% | -1.12% | 27.75% | 36.1% | -1.92% | -7.61% | -2.06% | 134.56% | 26.98% | 26.38% | -0.18% | -5.02% | -22.93% | -31.52% | -10.42% | -9.24% | -63.21% | -15.57% | 1.62% | 9.14% | 10.34% | 7.16% | 3.95% | 4.6% | 7.8% | 8.68% | 6.3% | 15.84% | 14.26% | 12.81% |
| EBITDA Growth % | 352.01% | -278.38% | -104.23% | -27.86% | 2749.14% | 70.06% | -270.55% | -102.4% | 12.58% | 11.88% | 16504.93% | 96.99% | 76.09% | 21.56% | -111.38% | -3.89% | 91.99% | -24.57% | -796.12% | -81.15% | -11.93% | 37.03% | 89.1% | 44.24% | 15.84% | 33.38% | 63.79% | -42.15% | 85.67% | 76.44% | 215.09% |
| D&A (Non-Cash Add-back) | 9.86M | 9.22M | 7M | 6.22M | 6.45M | 5.07M | 0 | 0 | 74.89M | 63.78M | 53.44M | 1.24M | 1.79M | 3.84M | 2.96M | 2.27M | 6.62M | 10.65M | 67.76M | 15.54M | 4.96M | 18.5M | 573.98K | 658.56K | 454.8K | 4.19M | 4.9M | 5.65M | 2.86M | -279.52K | -437.75K |
| EBIT | -3.23M | -8.55M | -3.47M | 29.9M | 43.05M | -469K | 0 | 0 | -19.5M | -15.45M | -3.06M | -7.57M | -10.24M | -3.84M | -2.96M | -18.77M | -149.98M | -76.13M | -79.14M | 17.46M | 170.1M | 180.27M | 133.54M | 69.85M | 52.73M | 45.4M | 7.61M | 7.3M | -2.86M | 279.52K | 437.75K |
| Net Interest Income | -4.83M | -4.01M | -4.79M | -6.25M | -8.09M | -6.16M | -13.67M | -15.06M | -13.58M | -12.61M | -7.39M | -5.28M | -5.64M | 1.87M | 3.25M | -7.48M | -14.82M | -23.91M | -35.02M | -38.87M | -30.25M | -25.92M | -21.17M | -15.11M | -7.8M | -7.16M | -7.61M | -7.3M | 0 | 0 | 0 |
| Interest Income | 804K | 1.44M | 0 | 0 | 0 | 0 | 0 | 0 | 595K | 0 | 0 | 0 | 0 | 1.87M | 3.25M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1 | 0 | -1 | 0 | 0 | 0 |
| Interest Expense | 5.63M | 5.45M | 4.79M | 6.25M | 8.09M | 6.16M | 13.67M | 15.06M | 12.26M | 11.24M | 7.39M | 5.28M | 5.64M | 0 | 0 | 7.48M | 14.82M | 23.91M | 35.02M | 38.87M | 30.25M | 25.92M | 22.87M | 16.18M | 7.8M | 7.16M | 7.61M | 7.3M | 0 | 0 | 0 |
| Other Income/Expense | -1.07M | 0 | 0 | 0 | 0 | 0 | 914K | -1.72M | -19.66M | -2.97M | -3.61M | -9.79M | -4.66M | -43.38M | -19.43M | -586K | -93M | 9.5M | -58.41M | -1.28B | 139.85M | 310.92M | 112.37M | 54.75M | 44.93M | 38.24M | 0 | 1 | 57.94M | 35.08M | 19.55M |
| Pretax Income | -8.86M | -14M | -8.26M | 23.65M | 34.96M | -6.63M | -4.31M | -3.13M | -20.36M | -29.42M | -10.45M | -11.32M | -11.28M | -43.38M | -50.26M | -26.25M | -67.24M | -136.75M | -355.88M | -21.41M | 139.85M | 154.35M | 121.62M | 59.87M | 44.93M | 38.24M | 66.21M | 42.03M | 57.94M | 35.08M | 19.55M |
| Pretax Margin % | -6.01% | -10.24% | -7.34% | 21.97% | 30.48% | -8.14% | -6.28% | -4.59% | -46.69% | -15.23% | -5.92% | -7.13% | -6.01% | -25.2% | -31.48% | -11.48% | -27.11% | -30.21% | -24.12% | -1.05% | 7.3% | 8.03% | 6% | 3.09% | 3.89% | 6.49% | 16.69% | 12.6% | 25.26% | 25.57% | 22.58% |
| Income Tax | 565K | -3.75M | -147K | -1.9M | 4.83M | -3.92M | 1.11M | -363K | 358K | -17.76M | -9.72M | 93K | -57K | -67K | 3.02M | 169K | -6.12M | -30.41M | 73.37M | -2.88M | 16.55M | 19.34M | 12.64M | -5.89M | -5.59M | 6.33M | 3.6M | -1.31M | 13.28M | 4.33M | 3.36M |
| Effective Tax Rate % | -6.37% | 26.79% | 1.78% | -8.03% | 13.8% | 59.06% | -25.89% | 11.59% | -1.76% | 60.38% | 92.99% | -0.82% | 0.51% | 0.15% | -6% | -0.64% | 9.1% | 22.24% | -20.62% | 13.47% | 11.83% | 12.53% | 10.39% | -9.84% | -12.43% | 16.56% | 5.43% | -3.11% | 22.92% | 12.35% | 17.16% |
| Net Income | -9.99M | -10.73M | -9.27M | 23.56M | 24.72M | -342K | -6.72M | -5.89M | -26.59M | -15.47M | 803K | 1.11M | -12.82M | -36.86M | -52.08M | -20.14M | -38.24M | -290.29M | -405.87M | -18.53M | 123.31M | 135.01M | 108.98M | 65.77M | 50.52M | 28.22M | 18.32M | 9.37M | 20.18M | 15.51M | 8.17M |
| Net Margin % | -6.77% | -7.85% | -8.24% | 21.88% | 21.56% | -0.42% | -9.8% | -8.62% | -60.96% | -8.01% | 0.45% | 0.7% | -6.83% | -21.41% | -32.62% | -8.81% | -15.42% | -64.12% | -27.51% | -0.91% | 6.43% | 7.02% | 5.38% | 3.39% | 4.37% | 4.79% | 4.62% | 2.81% | 8.8% | 11.31% | 9.44% |
| Net Income Growth % | 0.18% | -15.74% | -139.36% | -4.7% | 7328.66% | 94.91% | -14.25% | 77.86% | -71.87% | -2026.4% | -27.46% | 108.63% | 65.22% | 29.23% | -158.63% | 47.34% | 86.83% | 28.48% | -2090.79% | -115.02% | -8.67% | 23.89% | 65.7% | 30.18% | 79% | 54.08% | 95.47% | -53.57% | 30.1% | 89.85% | 193.27% |
| Net Income (Continuing) | -9.43M | -10.25M | -8.11M | 25.55M | 30.13M | -2.71M | -5.42M | -2.77M | -19.77M | 4.17M | -733K | -11.41M | -14.67M | -43.31M | -52.26M | -26.5M | -61.13M | -69.64M | -142.77M | -18.53M | 123.31M | 135.01M | 101.01M | 60.88M | 50.64M | 29.02M | 18.5M | 9.37M | 20.18M | 15.51M | 8.17M |
| Discontinued Operations | 0 | 0 | -182K | -1.54M | -15.07M | 4.57M | 6K | -1.54M | -7.14M | -1.72M | -2.98M | 12.68M | 0 | 7.23M | 0 | 1.71M | -92.93M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 3.2M | 2.99M | 1.64M | -3.1M | 437K | 13.98M | 14.16M | 13.08M | 5.63M | 5.17M | 829K | 1.75M | 4.4M | 1.45M | 343K | -7.03M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.35 | -0.43 | -0.34 | 0.89 | 1.05 | -0.04 | -0.35 | -0.13 | -1.22 | -0.72 | 0.02 | 0.04 | -0.74 | -2.61 | -3.96 | -1.54 | -2.94 | -21.53 | -29.38 | -1.31 | 8.68 | 9.48 | 7.16 | 4.60 | 4.08 | 3.08 | 2.16 | 1.04 | 2.28 | 1.82 | 0.96 |
| EPS Growth % | -4.58% | -26.47% | -138.2% | -15.24% | 2930.19% | 89.4% | -169.23% | 89.34% | -69.44% | -3700% | -50% | 105.41% | 71.65% | 34.09% | -157.14% | 47.62% | 86.34% | 26.72% | -2142.75% | -115.09% | -8.44% | 32.4% | 55.65% | 12.75% | 32.47% | 42.59% | 107.69% | -54.39% | 25.27% | 89.58% | 190.91% |
| EPS (Basic) | - | -0.43 | -0.34 | 0.91 | 1.72 | -0.04 | -0.35 | -0.13 | -1.22 | -0.75 | 0.02 | 0.04 | -0.74 | -2.61 | -3.96 | -1.54 | -2.94 | -21.54 | -29.41 | -1.31 | 8.76 | 9.56 | 7.20 | 4.64 | 4.16 | 3.12 | 2.16 | 1.04 | 2.32 | 1.82 | 0.96 |
| Diluted Shares Outstanding | 28.63M | 27.86M | 27.19M | 26.45M | 25.3M | 22.54M | 22.18M | 21.86M | 21.73M | 21.55M | 20M | 19.71M | 17.4M | 14.11M | 13.15M | 13.09M | 13.02M | 13.48M | 13.81M | 14.16M | 14.21M | 14.24M | 14.11M | 13.23M | 12.41M | 9.42M | 8.56M | 8.8M | 9.17M | 8.5M | 8.5M |
| Basic Shares Outstanding | 28.63M | 27.86M | 27.19M | 25.71M | 22.96M | 22.54M | 22.18M | 21.86M | 21.73M | 20.55M | 20M | 19.62M | 17.4M | 14.11M | 13.15M | 13.09M | 13.02M | 13.48M | 13.8M | 14.16M | 14.08M | 14.12M | 14.03M | 13.12M | 12.17M | 9.3M | 8.56M | 8.8M | 9.01M | 8.5M | 8.5M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | 29.72% | - | - | - | - | - | - | - | - | 10.53% | 6.98% | - | - | - | - | - | - | - | - | - |
Persistent Operating Margin Deficit
According to the most recent quarterly data, Kingsway Financial Services achieved a 37.4% year-over-year revenue growth rate, signaling that the Search Xcelerator acquisition engine is successfully scaling the top line through the integration of new, niche service-oriented subsidiaries into the broader corporate holding structure.
The acceleration in revenue growth from 7.6% in 2025Q1 to 37.4% in 2026Q1 suggests that the company's strategy of aggregating fragmented micro-cap businesses is gaining traction. Investors should monitor whether this top-line momentum can be sustained without further dilutive capital raises or if organic growth within the existing warranty portfolio begins to contribute more meaningfully to the consolidated results.
As reported in financial statements, the company consistently records a 100% gross margin in most periods, which likely reflects a net reporting methodology for warranty administration that obscures the underlying costs of claims and policy commissions inherent in the consumer service agreement business model.
The reliance on net revenue reporting makes it difficult to assess the true unit economics of the warranty segment, as the gross margin figure provides no visibility into the actual cost of service delivery. Analysts should be wary of this accounting treatment, as it may mask volatility in claim ratios that could otherwise signal deteriorating profitability within the subsidiary units.
Based on the reported figures, Kingsway continues to struggle with negative operating margins, which reached -1.9% in 2026Q1, indicating that the company has yet to achieve the necessary scale to cover the high fixed costs associated with its public holding company and centralized back-office infrastructure.
The persistent gap between revenue growth and operating profitability suggests that SG&A expenses are scaling in tandem with, or faster than, the acquired revenue base. This lack of operating leverage warrants further investigation into whether the current corporate overhead is structurally too heavy for the size of the underlying subsidiaries.
Data from recent filings reveals that Kingsway utilizes stock-based compensation, with $330,000 to $862,000 in quarterly charges, which serves to further depress net income and complicates the assessment of true cash-based operational performance for the holding company and its various search-fund-led subsidiaries.
The consistent use of equity-based incentives suggests that management is attempting to align subsidiary leadership with long-term outcomes, though this practice creates a persistent drag on reported EPS. Investors should evaluate whether these non-cash charges are appropriately balanced by the value creation occurring at the subsidiary level, as the current net losses appear to be exacerbated by these compensation structures.
A critical challenge to the current narrative is the company's inability to reach a consistent operating break-even point, suggesting that the Search Xcelerator model may be fundamentally limited by the high overhead costs required to maintain a public, institutional-grade holding company for micro-cap assets.
Short-term observers may argue that the company is essentially a collection of small, disparate businesses that lack the synergies required to justify a consolidated public structure. If the company cannot demonstrate a clear path to positive operating cash flow, the market may continue to discount the equity, potentially forcing management to reconsider the viability of the current acquisition-led growth strategy.
Quick answers to the most common questions about buying KFS stock.
For fiscal year 2025, Kingsway Financial Services Inc. (KFS) reported total revenue of $136.7M. This represents a 57.9% increase compared to $86.6M in 1996.
Kingsway Financial Services Inc. (KFS) reported a net loss of $10.7M for the fiscal year ending 2025.
Kingsway Financial Services Inc. (KFS) reported an operating income of $-14.0M, resulting in an operating profit margin of -10.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Kingsway Financial Services Inc. (KFS) generated $136.7M in gross profit for the year, representing a gross profit margin of 100.0%. This demonstrates the company's core pricing power and production efficiency.