Cannae Holdings, Inc. ((CNNE)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Cannae Holdings, Inc. recently held its earnings call, revealing a mixed sentiment. The company has made notable strides in reducing the stock price discount to NAV and has seen success in asset sales and capital returns. However, challenges persist, particularly with Alight’s revenue decline and the underperformance of its restaurant group.
Narrowing Stock Price Discount to NAV
Cannae Holdings has successfully narrowed its stock price discount to NAV, with shares closing at $19.88, reflecting a 26.6% discount. This marks the narrowest discount in over three years, a significant improvement from a nearly 40% discount previously.
Successful Sale of Dun & Bradstreet
The company expects to receive approximately $630 million in cash from the sale of Dun & Bradstreet. Cannae plans to use these proceeds to repurchase $300 million of common shares and repay $141 million in debt, demonstrating a strategic approach to capital allocation.
Significant Capital Returns to Shareholders
Since February 2024, Cannae has returned about $414 million to shareholders through share buybacks and dividends, underscoring its commitment to enhancing shareholder value.
AFC Bournemouth’s Record Performance
AFC Bournemouth achieved a club record by finishing ninth in the Premier League with 56 points. The club also generated nearly $200 million in combined transfer fees, highlighting its strong performance.
Alight’s Adjusted EBITDA Growth
Alight reported a 21% increase in adjusted EBITDA for Q2 2025, reaching $127 million. The adjusted EBITDA margin also saw a significant increase of 460 basis points, indicating operational improvements.
Alight’s Revenue Decline and Net Loss
Despite the EBITDA growth, Alight faced a 2% revenue decline compared to Q2 2024 and reported a net loss of $1 billion, largely due to a $983 million noncash impairment of goodwill.
Challenges in Restaurant Group
Cannae’s restaurant group faced challenges, with Ninety Nine Restaurant & Pub experiencing a slight decrease in same-store sales and O’Charley’s seeing a decline in guest counts and a double-digit drop in same-store sales.
Increased Operating Expenses
The company’s operating expenses rose to $171 million in Q2 2025, $30 million higher than the previous year, primarily due to management transition expenses.
Forward-Looking Guidance
Cannae Holdings provided forward-looking guidance, emphasizing its strategic plan to rebalance its portfolio and enhance shareholder value. The anticipated closure of the Dun & Bradstreet sale in Q3 is expected to yield $630 million in cash, with plans for significant share repurchases and debt repayment. The company has also announced a 25% increase in its quarterly dividend.
In conclusion, Cannae Holdings, Inc.’s earnings call presented a blend of achievements and challenges. While the company has made progress in narrowing its stock price discount and returning capital to shareholders, it faces hurdles with Alight’s revenue decline and the restaurant group’s underperformance. The forward-looking guidance suggests a continued focus on strategic portfolio management and shareholder value enhancement.