Cannae Holdings 2025 Q3 Earnings Widened Losses Amid Revenue Decline

Cannae Holdings (CNNE) reported its fiscal 2025 Q3 earnings on Nov 10, 2025, with a net loss of $70.80 million (or $1.25 per share), a 304.6% increase from the prior year. While revenue of $106.90 million slightly beat consensus estimates, the EPS miss of $0.96 and deteriorating profitability triggered a 0.69% post-earnings stock dip. The company lowered its 2025 guidance, projecting $2.25–2.28 billion in revenue and $595–620 million in adjusted EBITDA.

Revenue

Cannae’s total revenue declined 6.1% year-over-year to $106.90 million, driven by weaker performance in its Restaurant Group, which includes O’Charley’s and 99 Restaurants. Inflationary pressures on commodity and labor costs, despite menu pricing adjustments, contributed to the segment’s revenue contraction. Conversely, the Alight segment, a technology-enabled services company in which Cannae holds a 7.7% stake, reported equity losses due to a decline in the investment’s fair market value. Meanwhile, the Black Knight Football Club (BKFC) segment, with a 44.7% ownership stake, showed improved performance, posting positive equity earnings for the quarter.

Earnings/Net Income

Cannae’s net loss widened to $70.80 million, or $1.25 per share, compared to $17.50 million, or $0.22 per share, in 2024 Q3. The company’s EPS shortfall of 331.03% against forecasts and a 304.6% year-over-year net loss expansion underscored operational challenges.

Price Action

The stock price of Cannae Holdings has edged down 1.26% during the latest trading day, has edged down 2.10% during the most recent full trading week, and has dropped 6.76% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Cannae Holdings (CNNE) shares after its revenue raise on the financial report released date and holding for 30 days showed poor performance over the past three years. The annualized return was -13.95%, with a total loss of $1.64 billion. This indicates that this strategy was not profitable, and the stock's price declined significantly compared to the S&P 500's gain of 14.4% over the same period.

CEO Commentary

Cannae’s CEO emphasized a long-term strategy focused on acquiring and actively managing operating companies to maximize shareholder value. Recent moves, including a $630 million divestiture of Dun & Bradstreet and a 50% stake in JANA Partners, reflect a shift toward sports and sports-related assets. The CEO reiterated a commitment to “rebalancing the portfolio away from public company investments,” with capital redeployed into proprietary opportunities.

Guidance

Cannae did not provide explicit forward-looking guidance for 2026, though management highlighted ongoing efforts to enhance shareholder returns through buybacks and dividends. The company returned $500 million to shareholders in 2025, representing 35% of outstanding shares.

Additional News

Cannae executed a $630 million divestiture of Dun & Bradstreet, using $424 million for share repurchases and debt repayment. The company also acquired an additional 30% stake in JANA Partners, increasing its ownership to 50%, and invested $25 million in Black Knight Football. CEO Ryan Caswell reiterated a focus on sports assets, citing a “proven competitive advantage.” Cannae repurchased $163 million of stock at a 31% discount to NAV, further signaling confidence in its strategic rebalancing.

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