Cannae (NYSE:CNNE) outlined plans to continue repurchasing shares, monetize non-core assets and expand its sports and entertainment portfolio during its second-quarter 2026 earnings call, as the company reported lower operating revenue and significant impairment charges related to its restaurant group.
Chief Executive Officer Ryan Caswell said the company returned $7 million to shareholders through its quarterly dividend during the second quarter. Through July, Cannae had allocated $58 million to shareholders, including $44 million in share repurchases and $14 million in dividends. The company did not repurchase stock during the second quarter because of recently announced transactions.
Liquidity strengthened by asset sales
On July 30, Cannae sold its 49% stake in The Watkins Company for $90 million. Caswell said the transaction, including sale proceeds, preferred dividends and fees received during Cannae’s ownership, generated an approximately 1.2-times multiple on invested capital in less than two years and an internal rate of return of nearly 10%.
Earlier in July, Cannae closed the sale of its 87% ownership interest in Brasada Ranch to a company owned by Vice Chairman Bill Foley. In exchange, Foley’s put right was terminated. Caswell said the transaction monetized a non-core asset, eliminated the put-right liability, freed approximately $47 million of capital and removed potential future capital-expenditure requirements at Brasada.
In response to an analyst question, Caswell said Brasada’s $40 million enterprise value included approximately $17 million of debt, resulting in roughly $23 million of equity value. Cannae’s 87% interest was worth about $20 million, approximately equal to the put-right liability recorded on the company’s March 31 balance sheet.
Caswell said the transaction was unanimously approved by Cannae’s related-person transaction committee and board, with Foley not participating in the deliberations or vote. The company also recently adopted a new related-person transaction committee policy, according to Caswell.
The company’s strategic review of its restaurant group is continuing, though Caswell said it is taking longer than anticipated. He cited delays in securing financing for one potential transaction but said Cannae sees a path forward and is hopeful of reaching completion during the next quarter. The company is pursuing alternatives that could provide sale proceeds while eliminating negative cash flow associated with funding the restaurant operations.
Second-quarter results include restaurant impairments
Interim Chief Financial Officer Brett Correia said total operating revenue, including restaurants and Brasada, was $102 million in the second quarter, down from $110 million a year earlier. The decline primarily reflected reduced traffic and store closures at O’Charley’s within the restaurant group.
Total operating expenses were $159 million, compared with $171 million in the prior-year quarter. Expenses included $45 million of non-cash impairment charges at the restaurant group, compared with $1 million in impairment charges in 2025. Caswell told analysts that a $32 million goodwill impairment disclosed in the company’s quarterly filing did not change the timetable for the restaurant strategic review.
Corporate holding-company operating expenses were just under $9 million during the quarter, down 85% from $59 million a year earlier, Correia said. Year-to-date holding-company expenses were $18 million, a 76% decrease from $75 million in 2025. The reduction reflected cost-management efforts and the elimination of management transition costs and management fees incurred in the prior year.
Caswell said corporate costs should remain materially lower for the rest of 2026, though he noted seasonality in payment timing and certain one-time expenses could affect quarterly comparisons.
Cannae ended the quarter with $46 million in cash and $47.5 million of debt maturing in 2030. After the Watkins sale and Brasada transaction, Correia said the company had $124 million of corporate cash and still expects to receive a $45 million federal tax refund in 2026.
Sports investments remain central to strategy
Caswell said Cannae allocated approximately $45 million to investments during the second quarter and $54 million through July. The investments included additional funding for BKFC and a new investment in Exeter Rugby. Cannae evaluates each investment’s long-term return potential against the potential return from repurchasing its own shares, he said.
The company acquired Exeter Rugby, which Caswell described as a club with a strong brand, established fan base and history of success. Exeter is located about 80 miles from AFC Bournemouth, which Cannae believes could create commercial and operational synergies. The company plans to apply commercial-revenue initiatives developed at Bournemouth to Exeter over time.
At Black Knight Football, AFC Bournemouth finished sixth in the Premier League with 57 points, its highest finish in the club’s 127-year history, according to Caswell. The result qualified Bournemouth for the UEFA Europa League for the first time. Caswell said European qualification should increase broadcast revenue, commercial opportunities and brand relevance.
Bournemouth also plans to open the first phase of its stadium redevelopment later in the month. The work is expected to add 1,000 seats and double hospitality capacity, while setting the stage for a 17,600-seat capacity beginning next season.
Black Knight Football’s financial results, which are reported on a quarter lag and are not consolidated into Cannae’s financial statements, showed revenue of $89 million for the quarter ended March 31, up 45% from $61 million a year earlier. Correia attributed the increase to growth in Bournemouth television-rights and sponsorship revenue, as well as revenue from FC Lorient and Moreirense following their majority acquisitions.
Black Knight Football reported EBITDA of $80 million, compared with $8 million a year earlier. Adjusted EBITDA excluding profit on player trading was $34 million, up from $8 million.
Separately, Correia said Cannae began marking its SpaceX investment to market following SpaceX’s June IPO, recording an $83.4 million gain in the second quarter based on the June 30 trading price. He said future earnings could be variable as the investment is marked to market. Caswell said the board reviews each balance-sheet asset quarterly to determine the optimal timing and approach for liquidity.
About Cannae (NYSE:CNNE)
Cannae Holdings, Inc (NYSE: CNNE) is a publicly traded diversified holding company that focuses on partnering with and investing in businesses across a range of industry sectors. The company seeks to identify attractive opportunities in both private and public markets, leveraging its capital resources and management expertise to support operational growth and value creation. Cannae’s investment strategy emphasizes companies in data and analytics, marketing services, healthcare technology, and payment processing.
Through its portfolio, Cannae holds controlling or significant minority stakes in companies that provide critical software, data and services to corporate clients.
