Cannae Holdings Inc. (CNNE) reported its fourth‑quarter and full‑year 2025 financial results, posting a diluted earnings per share of $-1.93 versus consensus estimates of roughly $-0.30 to $-0.38. The miss of more than $1.60 per share reflects a sharp deterioration in profitability, driven largely by one‑time charges and a decline in restaurant revenue.
Total revenue for the quarter was $103.3 million, down 6.0% year‑over‑year and slightly below the consensus estimate of $104.8 million. The decline was largely attributable to a 12% drop in restaurant‑group sales, offset only partially by modest gains in the company’s sports‑and‑entertainment portfolio.
Operating loss widened to $24.1 million, a 101.7% increase from the $12.0 million loss reported in Q4 2024. The loss was amplified by $24 million in non‑recurring management charges, $14 million in non‑cash impairment of the restaurant group, and $8 million in mark‑to‑market losses from the exit of Paysafe. These one‑time items pushed gross profit margin to a negative 2.9% and operating margin to –27.3%.
Management highlighted a strategic pivot toward sports and entertainment assets, noting the sale of Dun & Bradstreet for $630 million and the acquisition of a 50% stake in Black Knight Football Club for $50 million. CEO Ryan Caswell emphasized that the company is “accelerating the transformation of its portfolio to concentrate primarily on sports and entertainment related assets where Cannae has demonstrated a differentiated competitive advantage.” The company also completed a $323 million share‑repurchase program, representing 28% of shares outstanding, and increased its quarterly dividend by 25% to $0.15.
The earnings miss and widening losses have prompted a negative market reaction, with the stock falling 4.0% to $13.20. Analysts cited the sharp EPS miss and margin compression as key concerns, while noting that the company’s capital‑return initiatives and portfolio shift may provide a long‑term upside if the new strategy delivers sustainable cash flow.
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