Kingsway Financial Services Inc. Q1 FY2026 earnings call

• Operating performance: Both KSX and extended warranty segments ahead of internal expectations in Q1. KSX segment had record adjusted EBITDA, broad-based performance across portfolio. Roundhouse had strong quarter with March revenue over $2 million for first time under Kingsway's ownership. IS Technologies had great quarter with top-line and bottom-line gains. Bud's Plumbing had excellent quarter. SPI had significant year-over-year increase. DDI ahead of budget. Ravix came in well ahead of budget. • Capital markets: Board proposed name change to Kingsway Corporation and stock ticker change to KWY, subject to shareholder approval. Updated FACE financial statements to better reflect service business model. • Corporate governance: Adam Patinkin elected chairman, Terry Cavanaugh continues as vice chairman.

KSX segment: Achieved record quarterly adjusted EBITDA of $3.5 million in Q1. KSX revenue increased 80.7% to $21.1 million compared with $11.7 million in the prior year quarter. Extended warranty segment: Revenue increased 7.2% to $17.9 million compared with $16.7 million a year ago. Extended warranty cash sales were up 11.8% year-over-year. VSC contracts sold were up low single digits, and revenue per contract increased high single digits year over year. KSX segment had broad-based performance with segments like Roundhouse having a strong quarter, IS Technologies having substantial top-line and bottom-line gains, Bud's Plumbing having healthy growth, SPI having significant year-over-year increase in annual recurring revenue and strong retention metrics, DDI coming in ahead of budget, and Ravix coming in well ahead of budget in Q1.

• Reiterate expectation for double-digit organic growth in revenue and profit at both KSX and extended warranty. • Anticipate completing three to five acquisitions in 2026. • Expect to relaunch brand, corporate identity, and website in months ahead. • Annual Investor Day on May 18th at New York Stock Exchange.

Q: You mentioned working with financial data providers and index providers following name change, can you provide more details?

A: Reach out to data aggregators to provide unified business description and get classified under correct GICS code away from property casualty.

Q: Roundhouse had strong quarter, can you share more about what's driving the momentum?

A: Secular tailwinds like increased natural gas activity in permian basin and shift away from legacy gas powered motors, and strong momentum in field service line.

Q: Cash sales grew nicely, G&A growth outpacing revenue reflects investments in organic growth, can you touch on G&A investments driving expense growth and when might spread close?

A: G&A investments are predominantly sales and marketing expense and ERP conversion at PWI, complete by end of Q2 or early Q3.

Q: DDI setting up well for stronger second half, can you share customer acquisition traction?

A: DDI built sales process and has nice pipeline, though longer selling cycle, but encouraged by pipeline.

Q: Skilled trades platform vision, what are you most excited about as building it out?

A: Objective is to operate businesses with excellence, grow organically, and grow platform via measured acquisition campaign, want to do two or three acquisitions a year.

Q: Kingsway being uniquely positioned to run search fund model at scale, what are you learning about what makes the model work?

A: Compounding learning, compounding talent, decentralized model allowing operating leverage, and flywheels within flywheel where businesses do tuck-in acquisitions without additional incremental capital from Kingsway.