CNNE earnings analysis
What we found in CNNE's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Cannae's Q2 2026 results were mixed: revenue fell 7.3% year over year to $102.2 million and the operating margin remained deeply negative at approximately -55.6%, while net income attributable to common shareholders swung to $37.5 million from a $238.8 million loss. Investment gains, including an $83.4 million SpaceX fair-value adjustment, and sharply lower corporate costs drove the earnings improvement, while Restaurant Group traffic, sales and impairment trends deteriorated materially. Liquidity was supported by $70.4 million of cash and a subsequent $90.0 million Watkins-sale receipt, but negative operating cash flow and the unresolved material weakness remain significant concerns.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Declined; Operating Loss Persisted
- Total operating revenue was $102.2 million, down 7.3% from $110.2 million in Q2 2025. The operating loss improved to $56.8 million from $60.9 million, but the operating margin was approximately -55.6% versus -55.3%.
- Net Income Rebounded on Investment Gains
- Net income attributable to Cannae common shareholders was $37.5 million, compared with a $238.8 million loss in Q2 2025. The improvement was driven largely by $82.8 million of recognized gains, including an $83.4 million SpaceX fair-value adjustment.
- Black Knight Football Delivered Growth
- Black Knight Football revenue increased 44.9% to $88.7 million from $61.2 million, while Cannae's equity earnings improved to $10.5 million from a $12.3 million loss. Management attributed the revenue increase partly to $14.7 million of additional Premier League revenue.
- Corporate Costs Were Materially Reduced
- Corporate holding company expenses fell 85% to $8.9 million from $58.8 million. The decrease reflected lower personnel and management fees after the prior-year executive transition and MSA termination costs.
- Watkins Sale Added Liquidity
- Cash and cash equivalents totaled $70.4 million at June 30, 2026, including $46.0 million held at the corporate holding company. The company subsequently received $90.0 million from the sale of its Watkins investment.
- Dividend and Share Repurchases Continued
- The board declared a quarterly dividend of $0.15 per share payable September 30, 2026. Cannae repurchased 2,242,500 shares for $29.1 million during the quarter at an average price of $12.99 per share.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Restaurant Traffic and Sales Deteriorated
- Restaurant Group revenue declined 9.7% to $92.0 million, and comparable-store sales fell 13.1% at O'Charley's and 4.0% at 99 Restaurants. Guest counts decreased 23.8% and 6.4%, respectively, and management stated the same-store-sales decline is reasonably likely to materially hurt future sales and continuing-operations income.
- Restaurant Impairments and Losses Increased
- The Restaurant Group recorded a $32.1 million goodwill impairment for 99 Restaurants and $11.7 million of additional property-and-equipment and lease-asset impairments. Restaurant operating loss widened to $48.4 million from $1.8 million.
- Material Weakness Remains Open
- The material weakness over impairment controls at the Restaurant Group remained unremediated as of June 30, 2026. Management expects remediation during 2026, but stated there is no assurance it will succeed; the quarter also included $32.1 million of goodwill impairment.
- Alight Valuation Impairment Risk
- Alight's fair value was $22.7 million versus a $71.1 million book value as of June 30, 2026. Management warned that further declines, deterioration in Alight's results, or adverse macroeconomic conditions could require a future impairment charge.
- Recurring Negative Operating Cash Flow
- Operating cash flow was negative $26.4 million for the six months ended June 30, 2026, versus negative $12.5 million in the prior-year period. Management stated it does not expect to generate positive operating cash flow on a regular basis because significant inflows are classified as investing activities.
- Macro and Portfolio Uncertainty
- Management cited uncertainty from consumer spending, inflation, commodity prices, tariffs, supply-chain disruptions and capital-market volatility, and said it is unable to predict how long the current environment will last or its financial impact. The company is also continuing to explore strategic alternatives for the Restaurant Group.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.86
- Operating margin
- -55.6%
- Segment
- Restaurant Group: revenue $92.0 million, down 9.7% year over year from $101.9 million; operating loss $48.4 million versus $1.8 million. Comparable-store sales declined 13.1% at O'Charley's and 4.0% at 99 Restaurants.
- Segment
- Corporate and Other: other operating revenue $10.2 million, up from $8.3 million; operating loss $8.4 million versus $59.1 million, primarily reflecting lower executive-transition and management-related costs.
- Segment
- Alight: unconsolidated affiliate revenue $511.0 million, down from $528.0 million; Cannae's equity loss improved to $0.8 million from $81.7 million.
- Segment
- Black Knight Football: unconsolidated affiliate revenue $88.7 million, up 44.9% from $61.2 million; Cannae's equity earnings were $10.5 million versus an equity loss of $12.3 million.
What they said about what is next.
No numeric revenue or EPS guidance was provided. Management anticipates continued macroeconomic uncertainty during fiscal 2026 and stated it is unable to predict the duration or significance of the resulting financial and operational impacts.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 11, 2026
- Cannae Holdings, Inc. reported Q1 2026 results showing a substantial loss with EPS of -$0.70, missing estimates by $0.27, and total revenue of $96.2 million, below expectations of $99.1 million. The continued financial…
- 10-K · April 30, 2026
- Cannae Holdings, Inc.'s 10-K report reveals a transformative phase focused on sports and entertainment investments, reducing expenses significantly after the termination of its Management Services Agreement. Despite…
- 10-K · March 2, 2026
- Cannae’s 10-K emphasizes its holding-company strategy: meaningful, active stakes in operating businesses (e.g., Alight 7.7%, BKFC 44.7%, JANA 50.0%) and a focus on long‑term operational support and acquisitions (BKFC…
- 10-Q · November 7, 2023
- Cannae reported Q3 operating revenues of $143.6 million (down from $164.5M a year earlier), an operating loss of $51.9 million (versus an operating loss of $21.3M in Q3 2022) and a GAAP net loss attributable to Cannae…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing CNNE makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever