Kingsway (KWY) investor relations material

Strategic transformation and business model

• Transitioned from a legacy insurance holding company to an operator-led public search fund platform, with KSX now contributing the majority of revenue and EBITDA, validating the strategic pivot and underpinning the rationale for rebranding and retiring the 'Financial Services' name.

• Focused on acquiring and operating asset-light B2B and B2C services businesses with recurring revenue and strong profitability.

• Emphasizes a decentralized management model, talented operator bench, and a tax-advantaged structure.

• Rebranded as Kingsway Corporation with a new ticker (KWY) and updated website to reflect the new strategy and majority revenue from KSX.

• Enhanced investor reporting, simplified financial statements, and standardized data aggregator submissions to improve transparency and discoverability.

Financial performance and guidance

• Achieved six acquisitions in 2025, exceeding the target of three to five, with all meeting or exceeding a 30%+ IRR hurdle rate and delivering over 20% portfolio EBITDA growth, reaching $22–23 million as of March 31, 2026.

• Q1 2026 saw record revenue and adjusted EBITDA at KSX, with profits ahead of internal expectations and budget for both KSX and Extended Warranty segments.

• Reiterated 2026 targets: double-digit organic revenue and EBITDA growth, and three to five disciplined, high-quality acquisitions per year.

• Maintains a 30% IRR hurdle for acquisitions, focusing on capital-light businesses with strong demand tailwinds and mid-single-digit EBITDA multiples.

• Centralized accounting enables consolidated and segment-level reporting as the portfolio grows.

Growth strategy and operating model

• Pursuing parallel M&A programs: de novo platforms and operator-led tuck-in acquisitions, maintaining strong underwriting discipline.

• Organic growth driven by recurring revenues, capital-light models, and investments made in 2025 accelerating 2026 growth.

• Kingsway Business System (KBS) is a structured, multi-stage operating playbook inspired by the Danaher Business System, focusing on talent, planning, enterprise excellence, and growth.

• Operator CEOs receive leadership training, access to a knowledge hub, and peer/advisory support, enabling both autonomy and structured guidance.

• The KBS framework is sequenced in four stages: crawl (diagnosis), walk (system installation), run (strategy deployment), and mastery, with a rigid sequence but flexible timeline.