Education
About Us
Working with TipRanks
Follow Us
Cannae Holdings (CNNE)
NYSE:CNNE
Top Page
Cannae Holdings
(NYSE:CNNE)
Select Model
Select Model
Rating:39Underperform
Price Target:
$16.50
▲(35.91% Upside)
Action:DowngradedDate:11/11/25
Cannae Holdings faces significant financial and technical challenges, with declining revenues, negative profit margins, and bearish market momentum. While the company has made strategic moves to rebalance its portfolio and return capital to shareholders, these efforts have not yet translated into improved financial performance. The negative P/E ratio and oversold technical indicators highlight the need for substantial improvements to enhance profitability and investor confidence.
Positive Factors
Portfolio Rebalancing
The strategic shift towards proprietary private investments can enhance long-term growth potential and reduce market volatility impact.
Shareholder Returns
Significant capital returns demonstrate strong commitment to shareholder value, potentially boosting investor confidence and stock performance.
AFC Bournemouth Growth
The expansion and revenue growth at AFC Bournemouth indicate potential for increased future cash flows and business diversification.
Negative Factors
Declining Revenue
A decline in operating revenue suggests challenges in maintaining business growth and could impact long-term profitability.
Equity Losses
Significant equity losses highlight potential risks in investment strategy and may strain financial resources and future earnings.
Negative Cash Flow
Negative cash flows indicate operational inefficiencies and could limit the company's ability to invest in growth opportunities.
Cannae Holdings (CNNE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$598.32M
Dividend Yield3.45%
Average Volume (3M)689.37K
Price to Earnings (P/E)―
Beta (1Y)0.88
Revenue Growth-6.86%
EPS Growth-56.65%
CountryUS
Employees7,317
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)-1.93
Shares Outstanding49,285,404
10 Day Avg. Volume599,835
30 Day Avg. Volume689,369
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)0.87
Price to Sales (P/S)2.10
P/FCF Ratio0.00
Enterprise Value/Market Cap1.31
Enterprise Value/Revenue1.85
Enterprise Value/Gross Profit3.93K
Enterprise Value/Ebitda-4.31
Forecast
1Y Price Target
$16.00Price Target Upside31.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-1.86
Revenue Forecast (FY)$404.00M
Cannae Holdings Business Overview & Revenue Model
Company DescriptionCannae Holdings, Inc. is a principal investment firm. The firm primarily invests in restaurants, technology enabled healthcare services, financial services and more. It takes both minority and majority stakes. Cannae Holdings, Inc. is based in Las Vegas, Nevada.
How the Company Makes MoneyCannae Holdings generates revenue primarily through its investment activities and the performance of its portfolio companies. The company capitalizes on its investments by acquiring stakes in companies that exhibit growth potential, providing operational support, and strategic direction to enhance their performance. Key revenue streams include realized gains from the sale of investments, dividends from portfolio companies, and management fees from subsidiaries. Additionally, Cannae engages in partnerships and collaborations that can provide further financial benefits, such as joint ventures or strategic alliances with other firms. The company’s diversified portfolio enables it to mitigate risks and capitalize on various market opportunities, contributing to its overall financial performance.
Cannae Holdings Earnings Call Summary
Earnings Call Date:Feb 23, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call presented a mix of meaningful strategic successes and near-term operational challenges. Positives include a major liquidity-generating sale (Dun & Bradstreet for $630 million), substantial capital returned to shareholders ($323 million buybacks and a 25% dividend increase), targeted investments to concentrate the portfolio in sports and entertainment, improved reporting and governance, and encouraging operating performance at Black Knight Football Club (on-field results, transfer proceeds, stadium expansion, and full ownership of FC Lorient). Lowlights center on declining revenues (Q4 down ~6%, full year down ~6.4%), a larger operating loss (up ~$15 million year-over-year), noncash impairments and nonrecurring charges (including proxy-contest fees), and below-the-line goodwill/mark-to-market losses (e.g., Alight). Overall, management is taking active strategic steps to address underperformance and redeploy capital; the strength of recent monetizations, capital returns and portfolio refocus were emphasized as outweighing near-term operating setbacks.Q4-2025 Updates
Positive Updates
Large Portfolio Monetization — Dun & Bradstreet Sale
Sold Dun & Bradstreet to Clearlake Capital for total proceeds of $630 million to Cannae, providing significant liquidity to redeploy into higher-conviction opportunities.
Capital Returns to Shareholders
Repurchased $323 million of stock (17.4 million shares), representing roughly 28% of shares outstanding, and increased the quarterly dividend by 25% to $0.15 (total dividends paid of $30 million in 2025).
Tax Refund from Realized Losses
Realized losses on sales of Paysafe, System1 and Sightline created a $55 million tax refund expected to be received in summer 2026, improving near-term corporate liquidity.
Strategic Investments and Increased Stakes
Made new strategic investments including an additional $50 million into Black Knight Football Club and $67.5 million into JANA Partners (increasing Cannae's ownership from 20% to 50%), shifting the portfolio toward proprietary private opportunities.
Black Knight Football Club Performance and Growth Plans
Multiple signs of strong operating performance: AFC Bournemouth sits 8th in the Premier League with 38 points through 27 matches; over $400 million in transfer proceeds across the last two windows (reported as second highest net profit in European football); acquisition of remaining 60% of FC Lorient for ~EUR 60 million making BKFC 100% owner; Moreirense sits 7th in the Primeira Liga with 33 points. Stadium expansion underway: Phase 1 adds ~1,500 seats and ~600 hospitality seats (~100% hospitality increase) for 2026/27; Phase 2 will increase capacity to over 20,000 seats (~80% capacity increase) by 2027/28.
Improved Reporting, Governance and Strategic Focus
Board refreshed with four new independent directors in 2025, committed to governance enhancements; management broadened reporting to provide greater asset-level transparency (including a Black Knight Football overview deck) and set a clear strategic priority to concentrate on sports and entertainment assets.
Balance Sheet and Liquidity Position
Reported over $1.3 billion in total assets and $330 million of liabilities at year-end; corporate cash of over $147 million and only $48 million of fixed-rate, interest-only corporate debt (maturing in over four years). Expectation to receive $55 million tax refund further supports liquidity.
Operating Expense Improvements (Excluding One-Time/Noncash Items)
Fourth quarter operating expenses were $127 million versus $132 million prior year, and excluding a $12 million noncash impairment they decreased by approximately $17 million (~13%). For the full year, management stated operating expenses would have declined by approximately 27% excluding nonrecurring fees and impairments.
Negative Updates
Decline in Operating Revenues
Total operating revenues were $103 million in Q4 2025, down 6% from $110 million in Q4 2024. Full year operating revenue declined to $424 million in 2025 from $453 million in 2024, a decrease of approximately 6.4% year-over-year.
Worsening Operating Loss
Operating loss increased to $119 million in 2025 from $104 million in 2024, a deterioration of $15 million (approximately a 14.4% increase in the operating loss), driven by a mix of lower revenues and nonrecurring charges.
Restaurant Business Weakness and Asset Impairments
Restaurant segment saw lower guest traffic and the closure of 9 O'Charley's locations, contributing to revenue declines. Noncash impairment charges related to the restaurant group totaled $12 million in Q4 and $14 million for the year; management also announced strategic alternatives for the Restaurant Group, signaling underperformance.
Nonrecurring and Professional Fees Related to Proxy Contest
The company incurred $24 million of nonrecurring management charges and approximately $5 million of increased professional fees tied to the recent proxy contest, which negatively impacted operating results; these are cited as temporary but material items.
Below-the-Line Mark-to-Market and Goodwill-Related Losses
Equity losses from unconsolidated holdings were $69 million in Q4 (largely reflecting Cannae's share of Alight results and a significant goodwill write-off). The company also recognized mark-to-market losses related to exits such as Paysafe (though these produced a tax refund).
Realized Investment Losses
Sales of certain public securities (Paysafe, System1 and Sightline) were executed realizing losses (offset in part by a resulting $55 million tax refund), indicating some portfolio write-downs in public holdings during 2025.
Management Concern Over Stock Price
The Board and management stated they are not satisfied with the company's stock price, signaling shareholder value realization is lagging intrinsic asset value and that further strategic actions may be necessary.
Company Guidance
Cannae’s guidance centers on a strategic pivot to sports and entertainment alongside enhanced transparency and disciplined capital returns: management highlighted portfolio actions (sale of Dun & Bradstreet for $630M; realized $55M tax refund expected summer 2026), continued capital returns ($323M of buybacks in 2025 equal to 17.4M shares or ~28% of shares outstanding; dividend increased 25% to $0.15/quarter and $30M paid in 2025) and new investments ($50M into Black Knight Football Club; $67.5M into JANA to raise ownership from 20% to 50%; acquisition of the remaining 60% of FC Lorient for ~€60M). Operational disclosures will broaden starting this quarter (including a Black Knight overview deck), and the Board will pursue monetizations of non-core assets (strategic alternatives announced for the Restaurant Group) while prioritizing capital flexibility—maintaining a consistent quarterly dividend subject to availability and opportunistic repurchases. Financials cited as context: Q4 revenue $103M (down 6% y/y from $110M) and expenses $127M (including $12M noncash impairments; operating expenses ex-impairment down ≈$17M or 13%), Q4 equity losses of unconsolidated holdings $69M, full-year revenue $424M vs $453M in 2024, operating loss $119M (includes $24M nonrecurring management charges, $14M restaurant impairments and $5M proxy-related fees; operating expenses ex-these fell ≈27%). Year-end balance sheet showed >$1.3B total assets, $330M liabilities, corporate cash >$147M, and only $48M of fixed-rate, interest-only corporate debt maturing in over four years.Cannae Holdings Financial Statement Overview
Summary
Cannae Holdings is facing significant financial challenges, with declining revenues, negative profit margins, and cash flow difficulties. While the company maintains a conservative leverage position, its inability to generate positive returns and cash flows poses risks to its financial stability. Strategic improvements are necessary to enhance profitability and cash flow generation.Income Statement
Cannae Holdings has experienced declining revenue over the past years, with a significant drop in the TTM period. The company is facing negative profit margins across the board, including gross profit, net profit, EBIT, and EBITDA margins, indicating operational inefficiencies and challenges in generating profit from its revenue.30
Negative
Balance Sheet
The balance sheet shows a manageable debt-to-equity ratio, suggesting a conservative leverage position. However, the return on equity is negative, reflecting the company's inability to generate returns for shareholders. The equity ratio is relatively stable, indicating a solid asset base compared to liabilities.45
Neutral
Cash Flow
Cannae Holdings has negative operating and free cash flows, with a declining trend in free cash flow growth. The operating cash flow to net income ratio is negative, highlighting cash flow challenges. However, the free cash flow to net income ratio is slightly above 1, indicating that free cash flow is somewhat aligned with net income.35
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 423.60M | 452.50M | 570.00M | 662.10M | 742.20M |
| Gross Profit | 53.70M | 2.90M | 43.00M | 31.20M | 44.70M |
| EBITDA | -384.30M | -224.50M | -150.90M | -278.70M | -374.00M |
| Net Income | -513.20M | -304.60M | -313.40M | -428.10M | -287.00M |
Balance Sheet | |||||
| Total Assets | 1.32B | 2.23B | 2.69B | 3.13B | 3.89B |
| Cash, Cash Equivalents and Short-Term Investments | 182.00M | 137.70M | 121.80M | 282.60M | 85.80M |
| Total Debt | 331.80M | 330.50M | 274.20M | 300.00M | 235.80M |
| Total Liabilities | 329.80M | 413.60M | 377.50M | 410.60M | 548.50M |
| Stockholders Equity | 1.02B | 1.84B | 2.32B | 2.72B | 3.34B |
Cash Flow | |||||
| Free Cash Flow | 0.00 | -97.10M | -97.80M | -219.40M | -189.80M |
| Operating Cash Flow | 0.00 | -90.10M | -87.80M | -205.10M | -176.10M |
| Investing Cash Flow | 0.00 | 298.30M | 53.10M | 521.20M | -272.40M |
| Financing Cash Flow | 0.00 | -182.90M | -106.80M | -154.20M | -190.40M |
Cannae Holdings Technical Analysis
Negative
12.14
Price Trends
14.77
Negative
15.88
Negative
17.54
Negative
Market Momentum
-0.76
Positive
31.21
Neutral
45.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNNE, the sentiment is Negative. The current price of 12.14 is below the 20-day moving average (MA) of 13.39, below the 50-day MA of 14.77, and below the 200-day MA of 17.54, indicating a bearish trend. The MACD of -0.76 indicates Positive momentum. The RSI at 31.21 is Neutral, neither overbought nor oversold. The STOCH value of 45.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CNNE.
Cannae Holdings Risk Analysis
Cannae Holdings disclosed 37 risk factors in its most recent earnings report. Cannae Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cannae Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.86B | 7.56 | 39.04% | 3.27% | 1.21% | 67.88% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $1.42B | 9.00 | 87.63% | 8.15% | -0.21% | 0.16% | |
50 Neutral | $1.07B | 498.96 | 0.35% | ― | 6.87% | -95.91% | |
45 Neutral | $720.97M | 44.00 | 3.89% | 3.54% | -1.61% | -58.09% | |
45 Neutral | $1.05B | 34.93 | ― | 4.72% | -0.64% | -60.71% | |
39 Underperform | $598.32M | -1.39 | -19.76% | 3.45% | -6.86% | -56.65% |
* Consumer Cyclical Sector Average
CNNE
Cannae Holdings
12.14
-6.44
-34.66%
ARCO
Arcos Dorados Holdings
8.83
1.48
20.17%
BH
Biglari Holdings
336.40
107.61
47.03%
CBRL
Cracker Barrel
32.29
-7.99
-19.84%
PZZA
Papa John's International
31.94
-10.63
-24.98%
WEN
Wendy's
7.44
-6.61
-47.04%
Cannae Holdings Corporate Events
Executive/Board ChangesShareholder Meetings
Cannae Holdings Elects New Directors at Annual Meeting
Neutral
Dec 16, 2025
On October 30, 2025, Cannae Holdings held its Annual Meeting where 89.86% of the company’s common stock was represented. During the meeting, Barry B. Moullet, James B. Stallings, Jr., Mona Aboelnaga, and Chérie L. Schaible were elected as directors for a three-year term. The advisory vote on executive compensation was rejected, while the appointment of Grant Thornton LLP as independent accountants was ratified. An amendment to declassify the Board of Directors was approved, but a shareholder proposal to engage an investment banker was rejected.
The most recent analyst rating on (CNNE) stock is a Sell with a $16.50 price target. To see the full list of analyst forecasts on Cannae Holdings stock, see the CNNE Stock Forecast page.
Executive/Board ChangesShareholder Meetings
Cannae Holdings Announces Preliminary Annual Meeting Results
Neutral
Dec 12, 2025
On December 12, 2025, Cannae Holdings, Inc. announced the preliminary results of its 2025 Annual Meeting of Shareholders. The shareholders elected four new members to the Board of Directors and approved proposals to declassify the Board and ratify the appointment of the company’s auditor. However, they did not approve the advisory vote on executive compensation or a proposal to engage an investment banker. The results are preliminary until certified by the independent Inspector of Elections.
The most recent analyst rating on (CNNE) stock is a Sell with a $16.50 price target. To see the full list of analyst forecasts on Cannae Holdings stock, see the CNNE Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.