In This Story
Kingsway Financial Services Inc. (DE) (KFS+3.70%) has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The filing details the company's operations, financial performance, and strategic developments over the past year. Kingsway operates primarily in the extended warranty and business services sectors through its subsidiaries in the United States.
For the year ended December 31, 2024, Kingsway reported a segment operating income of $11.6 million, down from $12.2 million in the previous year. The decrease is attributed to higher claims expenses in the Extended Warranty segment.
The company recorded a net loss of $8.3 million for the year, compared to a net income of $24.0 million in 2023. This change is largely due to a $31.6 million gain on extinguishment of debt recognized in 2023 that did not recur in 2024.
Kingsway's Extended Warranty segment saw service fee and commission revenue increase slightly to $68.9 million, with mixed performance across its subsidiaries. IWS and Geminus recorded increases, while PWI saw a decrease in revenue.
The Kingsway Search Xcelerator segment reported revenue growth to $40.5 million, driven by contributions from recent acquisitions including Image Solutions, LLC, which was acquired in September 2024.
Net investment income decreased to $1.4 million from $1.8 million in 2023, primarily due to lower income from cash equivalents and equity investments.
Interest expense fell to $4.8 million from $6.4 million, reflecting the impact of debt repurchases completed in early 2023.
Kingsway recorded impairment charges of $2.8 million related to goodwill and intangible assets, reflecting adjustments in the valuation of certain trade names and the Argo Management reporting unit.
The company ended the year with $54.5 million in cash, cash equivalents, and investments, with a significant portion held in restricted accounts to cover future claims under its service contracts.
Kingsway's liquidity management strategy involves using funds generated from operations, capital raising, and investment activities to meet its financial commitments and obligations.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Kingsway Financial Services Inc. (DE) annual 10-K report dated March 17, 2025. To report an error, please email earnings@qz.com.