The headline earnings beat is entirely driven by non-operating gains and portfolio sales, not underlying business improvement. Monitor the Restaurant Group's same-store sales trajectory and the pace of portfolio monetization; the Q3 2026 call will be key for guidance on capital return and further asset sales.
Price Chart
Executive Summary
Cannae Holdings reported Q2 2026 GAAP net earnings of $37.5M ($0.86 per share), a sharp swing from a $238.8M loss in Q2 2025, driven by $82.8M in recognized gains (including the Watkins sale) and improved equity income from Black Knight Football. The company continued its portfolio transformation by selling Brasada Ranch and its 49% Watkins stake for $90M, acquiring Exeter Rugby Group for ~$26M, and repurchasing 3.4M shares YTD for $44M. However, core operating segments remain under pressure: Restaurant Group revenue declined 7.2% YoY to $92M with a net loss of $40M, and Alight's Adjusted EBITDA margin compressed from 24.1% to 18.0%.
Key Financial Metrics
Key Facts
- GAAP net earnings attributable to common shareholders of $37.5M ($0.86 per diluted share) vs a loss of $238.8M ($3.93 loss per share) in Q2 2025.
- Total operating revenues declined 7.3% YoY to $102.2M from $110.2M, driven by a 9.7% decline in restaurant revenue.
- Recognized gains of $82.8M (vs $76.2M loss in Q2 2025) driven by the sale of Watkins for $90M in July 2026.
- Restaurant Group posted a net loss of $40.0M (vs $1.9M loss), including $44.5M in non-cash impairment expense; same-store sales declined 4% at Ninety Nine and 13.1% at O'Charley's.
- Black Knight Football (42.4% owned) generated $301.3M in trailing 12-month revenue and $207.4M EBITDA, with AFC Bournemouth finishing 6th in the Premier League and qualifying for the Europa League.
- Cannae acquired Exeter Rugby Group for ~$26M (enterprise value ~$43M) on June 29, 2026, and sold its 49% Watkins stake for $90M.
- Year-to-date share repurchases of 3.4M shares for $44M; no buybacks in Q2 due to transaction activity.
- Cash and cash equivalents fell to $70.4M from $182.0M at year-end 2025, reflecting deal activity and share repurchases.
Financial Impact
GAAP net income swung to +$37.5M from -$238.8M YoY, but core restaurant revenue fell 7.3% and the Restaurant Group posted a $40M net loss with $44.5M in impairments.
Risk Factors
- Restaurant Group continues to deteriorate with double-digit same-store sales declines at O'Charley's and $44.5M in impairments.
- Cash burn from operations and deal activity reduced cash from $182M to $70.4M in six months.
- Alight's recurring revenue declined 4.2% YoY and Adjusted EBITDA margin compressed 610 bps, signaling competitive pressure.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001704720-26-000151 |
| Exhibit: exhibit991-pressreleaseann.htm | 0001704720-26-000151 |
| Document: cnne-20260810.htm | 0001704720-26-000151 |
| Document: 0001704720-26-000151-index-headers.html | 0001704720-26-000151 |
| Document: 0001704720-26-000151-index.html | 0001704720-26-000151 |
| Document: 0001704720-26-000151.txt | 0001704720-26-000151 |
| 8-K Data (Synthetic) | 0001704720-26-000151 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 5, 2026 20d ago | SC 13D/A | $15.50 | awaiting T+60 | — | $16.32 (+5.29%) |
Aug 10, 2026 11w ago | 8-K | $14.84 | awaiting T+60 | — | $16.32 (+9.97%) |
Jul 31, 2026 12w ago | 8-K | $14.55 | awaiting T+60 | — | $16.32 (+12.16%) |
Jul 16, 2026 14w ago | 8-K | $14.95 $15.70 | ▲ +5.02% | ▲ +0.33% | $16.32 (+9.16%) |
Apr 30, 2026 25w ago | 10-K/A | $13.67 $15.13 | ▲ +10.68% | ▲ +7.61% | $16.32 (+19.39%) |
US Market Status
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