Cannae Holdings 2025 Q3 Earnings Widening Losses and Strategic Rebalancing

Cannae Holdings (CNNE) reported a wider-than-expected loss of $1.25 per share in Q3 2025, missing the Zacks Consensus Estimate of $0.31 and reflecting a 304.6% increase in net losses year-over-year. The company’s revenue of $106.9 million, however, exceeded estimates by 0.38%, driven by restaurant sales and real estate operations. Management revised its 2025 guidance downward, projecting $2.25–$2.28 billion in revenue and $595–$620 million in Adjusted EBITDA.

Revenue

Cannae Holdings’ total revenue for Q3 2025 declined by 6.1% to $106.9 million, with restaurant operations accounting for the bulk of earnings. The Restaurant Group generated $94.6 million in sales, while real estate and resort activities contributed $12.3 million. Despite inflationary pressures, the company adjusted menu pricing to mitigate cost challenges.

Earnings/Net Income

The company’s net loss expanded to $70.8 million ($1.25 per share) in Q3 2025, a 304.6% increase from the $17.5 million ($0.22 per share) loss in the prior-year period. This significant deterioration underscores operational challenges, particularly in equity investments and unconsolidated affiliates.

Post-Earnings Price Action Review

Cannae’s stock price declined 1.26% in the latest trading day, 2.10% in the week, and 6.76% month-to-date, reflecting investor skepticism. Post-earnings, shares fell 0.69% in after-hours trading to $17.36, aligning with the Zacks Rank #4 (Sell) rating. The stock’s underperformance, down 12.6% year-to-date, contrasts with the S&P 500’s 14.4% gain, highlighting market concerns over earnings sustainability.

CEO Commentary

CEO Ryan Caswell emphasized Cannae’s strategic rebalancing toward sports and sports-related assets, citing a $630 million divestiture of Dun & Bradstreet and a 35% shareholder return through buybacks. The company’s focus on sports investments, including Black Knight Football and JANA Partners, aims to leverage long-term growth in institutional sports assets.

Guidance

Cannae did not provide explicit forward-looking guidance in its Q3 report, directing stakeholders to its website for further details. However, management outlined a revised 2025 revenue range of $2.25–$2.28 billion and Adjusted EBITDA of $595–$620 million, reflecting a shift in capital allocation priorities.

Additional News

Cannae completed the $630 million sale of Dun & Bradstreet, using $424 million for share repurchases and dividends. The company also acquired an additional 30% stake in JANA Partners for $67.5 million and invested $25 million in Black Knight Football. Share repurchases totaled $500 million since the strategic plan’s announcement, representing 35% of outstanding shares. Portfolio updates include AFC Bournemouth’s stadium expansion and Alight’s improved adjusted EBITDA.

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Cannae’s strategic pivot toward sports investments and capital returns positions it for long-term value creation, though near-term earnings pressures persist. Investors await clarity on the sustainability of these initiatives amid a challenging market environment.