Cannae Q2 Earnings Call Highlights

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. Caswell said Cannae expects to pursue buybacks in the second half of the year, supported by proceeds from the sale of The Watkins Company and capital freed by the elimination of a put right associated with Brasada Ranch. 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 r...