Kingsway Earnings Call Transcripts
Fiscal Year 2026
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A public search fund platform leverages a selective operator model and disciplined acquisition strategy to build a diversified portfolio of high-margin, recurring revenue businesses. Recent results exceeded targets, with six acquisitions and strong EBITDA growth, while maintaining a focus on long-term value compounding and a unique tax-advantaged structure.
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Q2 2026 saw record operating and financial results, with revenue up 27.6% and Portfolio EBITDA reaching $7.2 million. Strategic acquisitions and divestitures, strong segment performance, and disciplined leverage position the company for continued growth in the second half of the year.
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Search funds offer high returns by bridging the small business succession gap, with a long runway driven by demographic trends. The platform provides public, liquid access to this asset class, leveraging elite operators, disciplined acquisitions, and tax advantages to drive growth and value creation.
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Kingsway has completed a strategic pivot to an operator-led public search fund platform, delivering strong financial results with six acquisitions and over 20% EBITDA growth. The Kingsway Business System drives operational excellence, while a rebrand and enhanced reporting improve market visibility. Operator case studies show robust post-acquisition growth and talent retention.
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Q1 2026 saw 37% revenue growth, record KSX EBITDA, and narrowing net loss, with broad-based momentum across segments. The acquisition pipeline is robust, and double-digit organic growth is expected for the year.
Fiscal Year 2025
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Revenue grew 23% to $135M in 2025, driven by six acquisitions and strong organic growth. KSX and Extended Warranty segments both delivered double-digit gains, with portfolio LTM adjusted EBITDA reaching $22–$23M. Double-digit growth and 3–5 acquisitions are targeted for 2026.
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Q3 2025 saw 37% revenue growth, with KSX segment leading and four acquisitions completed. Strong organic and inorganic growth, robust cash flow in extended warranty, and a healthy acquisition pipeline position the company for continued expansion.
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Q2 2025 revenue rose 16.9% to $30.9M, with KSX segment revenue up 42.1% and five acquisitions year-to-date. Adjusted EBITDA fell to $1.7M, but run rate EBITDA reached $22–$23M, supported by a $15.7M PIPE and strong acquisition momentum.
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The company is scaling a unique search fund model, targeting small, high-quality service businesses with disciplined investment criteria and a decentralized, talent-driven approach. Recent acquisitions and operational improvements have driven strong financial growth, while the Kingsway Business System and advisory board support repeatable value creation and leadership development.
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Q1 2025 revenue rose 8.4% to $28.3M, led by 23% growth in the KSX segment, while adjusted EBITDA declined due to lower extended warranty profitability and higher M&A costs. Recent acquisitions and a robust deal pipeline position the company for continued growth.
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The presentation highlighted the search fund model's strong historical returns and Kingsway's unique public platform, which offers liquidity, diversification, and tax advantages. The company leverages a decentralized structure, disciplined acquisitions, and top talent to drive growth and compound value.
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Bud's Plumbing was acquired for $5 million to anchor a skilled trades platform targeting service businesses with strong recurring revenue and growth potential. The deal leverages best-in-class IT, consolidates select back-office functions, and aims for both organic and M&A-driven expansion.
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A diversified holding company leverages a proven Search Accelerator model to drive organic and acquisition-led growth, focusing on B2B services and extended warranty businesses. The decentralized structure, strong acquisition pipeline, and disciplined capital management support consistent EBITDA growth and value creation.
Fiscal Year 2024
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Revenue grew 6% to $109.4M and adjusted EBITDA rose 17% in 2024, driven by acquisitions and operational improvements. Claims inflation moderated in the extended warranty segment, while KSX saw strong growth from new businesses. Net debt increased due to acquisitions.
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Q3 2024 saw nearly 10% revenue growth and a 28% rise in Adjusted EBITDA, driven by strong performance in both extended warranty and KSX segments, plus the acquisition of Image Solutions. Claims expense growth moderated, and the company remains active in acquisitions and deleveraging.
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A $19.5M acquisition of a leading IT managed services provider brings strong recurring revenue, high margins, and growth potential in a sector with double-digit CAGR. Integration will focus on process improvements, service expansion, and geographic growth, with resilience demonstrated during recent disruptions.
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A lean holding company with two segments—extended warranty and KSX—emphasizes recurring, high-margin businesses and disciplined M&A. Extended warranty faces moderating claims inflation, while KSX grows through selective acquisitions and decentralized management. Management incentives align with EBITDA and capital returns.
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Q2 2024 saw modest revenue growth and improved Adjusted EBITDA, with strong performance in extended warranty and KSX segments. Acquisition activity remains robust, and outlook for the second half is positive, especially in nurse staffing and software.