Cannae Holdings Q2 2025: Unpacking Contradictions in Capital Strategy and Shareholder Value

Capital deployment and shareholder returns, investment in the Portuguese team, capital investment in Black Knight FC, capital return and share repurchases, and Cannae's strategy for enhancing shareholder value are the key contradictions discussed in Cannae Holdings' latest 2025Q2 earnings call.



Strategic Plan and Portfolio Rebalancing:
- Cannae Holdings reported progress in rebalancing its portfolio, with approximately $1.1 billion in public portfolio stakes sold, including the pending Dun & Bradstreet sale.
- The strategic plan focused on reducing public company investments, aiming to position Cannae as a permanent capital vehicle with proprietary assets.

Capital Returns and Dividends:
- Cannae repurchased 7.6 million shares, returning approximately $150 million to shareholders at an average purchase price of $19.71.
- The quarterly dividend was increased by 25% to $0.15 per share, paying $15 million year-to-date.
- Capital returns are part of the strategy to close the stock price-to-NAV gap and drive shareholder value.

Black Knight Football Performance:
- AFC Bournemouth finished ninth in the Premier League with 56 points, exceeding the previous season's record.
- Player sales generated nearly $200 million in combined transfer fees, with significant contributions from the sales of Dean Huijsen and Milos Kerkez.
- The success is attributed to strategic acquisitions and targeted investments in player development and stadium renovations.

Alight Financial Performance:
- Alight reported a net loss of $1 billion, including a $983 million noncash impairment of goodwill, although adjusted EBITDA increased by $22 million or 21% year-on-year.
- The company generated $102 million in free cash flow in the first half of 2025, showing a strong improvement over the previous year.
- The financial results reflect continued efforts to streamline operations and improve profitability.

JANA Partnership and Investment Opportunities:
- Cannae plans to acquire an additional 30% stake in JANA, bringing its total ownership to 50%, with an additional $30 million investment in JANA funds.
- The partnership is expected to generate proprietary investment opportunities, with preliminary opportunities already introduced in the quarter.
- The strategic partnership aims to leverage JANA's franchise value and proprietary situations for future capital deployment.