KINGSWAY Corp (KWY) SEC Filings & Earnings Calls

Debt covenant default risk

“Beginning March 31, 2024 through June 30, 2026 , SNS was in default under the SNS Loan due to debt covenant violations related to the leverage and fixed charge ratios (measured quarterly).” · word for word

Intangible asset impairment risk

“Future impairments may be recorded if discount rates increase further, or if actual revenue falls short of current projections.” · word for word

Going concern risk

“As of the report date, there is some uncertainty as to whether the Company will be in compliance with the covenants in future periods, and if not, when the Company will be able to cure any potential violations.” · word for word

Extended Warranty segment revenue decline of 3.1% year-over-year, though pro forma growth after divestiture.

“Extended Warranty revenue decreased 3.1% to $17.1 million from $17.6 million.” · word for word

Net debt remains significant at $59.9 million, though decreased from year-end.

“Total net debt of $59.9 million as of June 30, 2026.” · word for word

Extended Warranty adjusted EBITDA declined 55.6% YoY to $0.4M, indicating margin pressure in that segment.

“Extended Warranty adjusted EBITDA was $0.4 million, compared to $0.9 million.” · word for word

Net debt increased to $63.9M from $62.4M, with ongoing acquisition activity potentially increasing leverage.

“Total net debt of $63.9 million as of March 31, 2026, compared with $62.4 million as of December 31, 2025.” · word for word

Debt covenant default risk

“Beginning March 31, 2024 through March 31, 2026 , SNS was in default under the SNS Loan due to debt covenant violations related to the leverage and fixed charge ratios (measured quarterly).” · word for word

Intangible asset impairment risk

“Future impairments may be recorded if discount rates increase further, or if actual revenue falls short of current projections.” · word for word

Going concern risk

“As of the report date, there is some uncertainty as to whether the Company will be in compliance with the covenants in future periods, and if not, when the Company will be able to cure any potential violations.” · word for word

Equity dilution from increased share reserve

“the potential dilution will increase by 200 basis points and fully-diluted total potential dilution would approximate 3.5%.” · word for word

Extended Warranty adjusted EBITDA decline from $2.4M to $0.8M indicates margin pressure.

“Extended Warranty adjusted EBITDA was $0.8 million, compared to $2.4 million.” · word for word

Net debt increased from $52.0M to $62.4M year-over-year.

“Total net debt of $62.4 million as of December 31, 2025, compared with $52.0 million as of December 31, 2024.” · word for word

Debt covenant defaults at subsidiaries

“At each quarter end beginning March 31, 2024 through December 31, 2025, the SNS was in default under its loan due to debt covenant violations... DDI was in default under its loan due to a debt covenant violation” · word for word

Extended Warranty margin pressure from claims inflation

“During the year ended December 31, 2025, there was a 4.4% increase in claims paid at our auto Extended Warranty companies, primarily due to inflationary pressures on the cost of parts and labor” · word for word

Customer concentration in KSX segments

“A limited number of customers or markets may represent a significant portion of our revenue. The loss of one or more key customers... could materially and adversely impact our financial condition and results of operations.” · word for word

Valuation allowance on deferred tax assets

“As of December 31, 2025, the Company maintains a valuation allowance of $129.4 million.” · word for word

Debt covenant default risk

“At each quarter end beginning March 31, 2024 through September 30, 2025, SNS was in default under the SNS Loan due to debt covenant violations related to the leverage and fixed charge ratios. ... As of September 30, 2025, DDI was in default under the DDI Loan due to a debt covenant violation related to the fixed charge ratio.” · word for word

Trade name impairment risk

“Future impairments may be recorded if discount rates increase further, or if actual revenue falls short of current projections.” · word for word

Credit loss risk on receivables

“Service fee receivable is reported net of an estimated allowance for credit losses at September 30, 2025 and December 31, 2024 of $1.2 million and $0.6 million, respectively.” · word for word

Tax valuation allowance uncertainty

“The Company maintains a valuation allowance for its gross deferred tax assets at September 30, 2025 and December 31, 2024. ... it is uncertain whether the Company will generate the taxable income necessary to utilize these losses.” · word for word

Extended Warranty adjusted EBITDA declined 62% YoY due to GAAP timing and upfront commissions; cash sales growth positive.

“Extended Warranty adjusted EBITDA was $0.8 million in the third quarter of 2025 compared to $2.1 million in the year-ago quarter” · word for word

Net debt increased to $61.4M from $52.0M due to acquisition financing; interest expense risk.

“total net debt of $61.4 million as of September 30, 2025, compared with $52.0 million as of December 31, 2024” · word for word