KG: revenue $6.7M, net income -$8.1M. KG swings to non-GAAP operating loss in Q2 2026 as debt-to-capital rises to 69.7%

Filed August 7, 2026 · Period ending June 30, 2026 · Compared to 10-Q Aug 15, 2025 · ~2 min read

Key Changes

• high

  Non-GAAP operating results deteriorated from $5.4M earnings in Q2 2025 to a $6.7M loss in Q2 2026, driven by higher recurring operating expenses, increased adverse prior-period development in Legacy Reinsurance, and higher interest/amortization expense on Senior Notes.

  Notes: Non-GAAP Operating Earnings verify on EDGAR →
• high

  Debt-to-total-capital ratio climbed to 69.7% at June 30, 2026 as shareholders' equity declined to $113.9M while the $262.4M senior notes principal remained constant.

  Notes: Capital Structure verify on EDGAR →
• high

  Material weakness in internal controls over financial reporting has been remediated; disclosure controls now deemed effective as of June 30, 2026, resolving deficiencies in revenue recognition, segregation of duties, and IT general controls.

  Controls and Procedures verify on EDGAR →