Financial Data and Key Metrics Changes - Consolidated revenue increased by 37% year over year, reaching $37.2 million compared to $27.1 million in the prior year [14][15] - Adjusted consolidated EBITDA was $2.1 million for Q3 2025, down from $3 million in the prior quarter [15] - KSX segment revenue grew by 104% to $19 million, with adjusted EBITDA increasing by 90% to $2.7 million [15] - Extended warranty segment revenue increased by 2% to $18.2 million, but adjusted EBITDA decreased to $800,000 from $2.1 million a year ago [15] Business Line Data and Key Metrics Changes - KSX segment represented the majority of revenue for the first time, achieving 104% revenue growth and 90% adjusted EBITDA growth [4][15] - Extended warranty segment showed stable cash flow with a modest revenue increase of 2% [15][16] - Cash sales in the extended warranty segment accelerated from a 9.2% year-over-year increase in Q2 to a 14.2% increase in Q3 [12] Market Data and Key Metrics Changes - The company is seeing tangible business momentum across its operating subsidiaries, with Roundhouse achieving EBITDA of approximately $500,000 in September [6] - Image Solutions and DDI also showed sequential improvements in EBITDA, indicating potential organic growth [6][7] Company Strategy and Development Direction - The company aims to compound long-term shareholder value through a decentralized management model and a focus on acquiring high-quality, asset-light service businesses [3][4] - Kingsway has completed six acquisitions year-to-date, exceeding its target of three to five per year, indicating a robust pipeline of opportunities [10] - The company is focused on disciplined execution and scaling its KSX portfolio while supporting operator CEOs for sustainable growth [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the healthcare sector, particularly regarding Medicare and Medicaid reimbursements, but expressed confidence in their hospital mix and customer selection [19][20] - The company is optimistic about organic growth potential across its portfolio, targeting high single-digit growth rates for acquired businesses [25][41] - Management emphasized the importance of professionalizing acquired businesses to drive organic growth and improve operational efficiency [24][41] Other Important Information - The company had $9.3 million in cash and cash equivalents as of September 30, 2025, up from $5.5 million at year-end 2024 [16] - Total debt increased to $70.7 million, primarily due to borrowings for recent acquisitions [16][17] - The trailing 12-month adjusted run-rate EBITDA for the businesses owned stands at approximately $20.5 million to $22.5 million [11] Q&A Session Summary Question: How will the current environment affect secure nursing and digital diagnostics? - Management noted that hospitals are under pressure, particularly those reliant on Medicare and Medicaid, but expressed confidence in their hospital mix and customer selection [19][20] Question: Can you discuss the organic growth being seen across businesses? - Management highlighted that organic growth is crucial and varies by industry, with expectations of high single-digit growth across acquired businesses [25][41] Question: How are Roundhouse and the plumbing businesses performing post-acquisition? - Both businesses are performing at or above the original underwriting plan, benefiting from experienced operators who can make an immediate impact [33][41] Question: What is the potential for Image Solutions and DDI as they exit their J-curves? - Image Solutions is expected to pursue tuck-in acquisitions, while DDI has significant organic growth opportunities due to its unique market position [43][44] Question: How does Kingsway view its search strategy moving forward? - The company aims to identify high-quality businesses with strong industry dynamics, with the potential for them to become platforms for further growth [46]