Cannae(US:CNNE)2026-02-23 22:01Financial Performance - Cannae's revenue for the twelve months ended September 30, 2025, was $267.1 million, up from $211.1 million in the previous year, reflecting a 26.6% increase [23]. - The net loss for the same period decreased to $16.5 million from $122.6 million, indicating improved financial performance [23]. - Cannae's share of net loss from Black Knight Football Club (BKFC) was $11.4 million, down from $49.9 million year-over-year [23]. - Cannae's revenue for the twelve months ended September 30, 2025, was $36.4 million, a significant increase from $21.5 million in the prior year, representing a growth of 69.8% [33]. - Net income for the same period was $20.5 million, up from $13.1 million, reflecting a year-over-year increase of 56.5% [33]. - The company reported a net loss attributable to common shareholders of $513.2 million for 2025, compared to a net loss of $304.6 million in 2024, representing a 68.3% increase in losses [66]. - Cannae reported a net loss of $933.0 million for the three months ended December 31, 2025, compared to a net income of $29.0 million for the same period in 2024 [90]. - The company incurred a net loss of $27.3 million for the three months ended September 30, 2025, compared to a net loss of $22.3 million for the same period in 2024 [80]. Operational Highlights - BKFC's total revenue for the three months ended September 30, 2025, was $39.0 million, compared to $31.2 million in the same period last year, marking a 25.0% increase [12]. - BKFC's EBITDA for the same period was $10.7 million, up from $4.6 million, showing significant operational improvement [12]. - The Watkins Company reported net revenue of $16.2 million for the three months ended September 30, 2025, with an Adjusted EBITDA of $3.6 million [35]. - Despite a challenging macro environment, Watkins experienced a 4% decline in net sales and a 9% decline in EBITDA for the first nine months of 2025, but maintained strong Adjusted EBITDA margins at 19% [38]. - Alight's total revenue for the fourth quarter of 2025 was $653 million, a 4% decline from $680 million in the prior year quarter, with recurring revenue comprising approximately 93% of total revenue [50]. - The Restaurant Group, which includes Ninety Nine and O'Charley's, reported total revenues of $94.9 million for the three months ended December 31, 2025, down from $103.4 million in the prior year [57]. Investments and Ownership - Cannae sold Dun & Bradstreet to Clearlake Capital for total proceeds of $630 million, significantly transforming its portfolio [5]. - The company repurchased $323 million of stock, representing 28% of shares outstanding, and increased its dividend [5]. - Cannae's investment in JANA Partners increased to a 50% ownership interest, with total investments amounting to $118 million [31]. - JANA Partners' Assets Under Management (AUM) grew from $1.8 billion to $2.2 billion, reflecting a stable institutional capital base [30]. - Cannae's investment in Watkins totaled $80 million, including $20 million structured as a convertible preferred investment with an 8% annual dividend, holding a 49.1% ownership interest [39]. - Cannae's investment in JANA Partners increased to $118 million, with ownership rising to 50% as of September 30, 2025, compared to 20% the previous year [33]. Cash and Assets - Cannae's cash position improved to $67.2 million as of September 30, 2025, compared to $18.9 million a year earlier [23]. - Cash and cash equivalents increased to $182.0 million as of December 31, 2025, from $131.5 million in 2024 [67]. - Total assets decreased to $1,320.7 million in 2025 from $2,228.9 million in 2024 [67]. Losses and Impairments - Alight reported a net loss of $933 million in Q4 2025, primarily due to an $803 million non-cash goodwill impairment [50]. - The company recognized a goodwill impairment of $805.0 million for the three months ended December 31, 2025 [90]. - Adjusted EBITDA excluding profit on player trading for the three months ended September 30, 2025, was $(29.6) million, compared to $(24.7) million in 2024 [80]. Other Financial Metrics - Total operating revenue for the year ended December 31, 2025, was $423.6 million, a decrease of 6.4% from $452.5 million in 2024 [66]. - Restaurant revenue for the full year 2025 was $390.5 million, down 6.9% from $419.6 million in 2024 [66]. - Adjusted EBITDA for the full year 2025 was $(2.2) million, a decline from $6.9 million in 2024 [64]. - The operating loss for the year ended December 31, 2025, was $119.6 million, compared to an operating loss of $103.7 million in 2024 [66]. - The company reported a net loss per share attributable to common shareholders of $(9.08) for the year ended December 31, 2025, compared to $(4.73) in 2024 [66]. - Free cash flow from continuing operations for the three months ended December 31, 2025, was $99.0 million, compared to $92.0 million in 2024 [92]. - Cannae's capital expenditures for the twelve months ended December 31, 2025, were $110.0 million, compared to $121.0 million in 2024 [92].