Cannae (CNNE) Q2 2026 earnings summary

Executive summary

• Focused on capital allocation, non-core asset sales, and expanding the sports and entertainment portfolio, including the acquisition of Exeter Rugby and sales of Brasada Ranch and Watkins.

• Net income attributable to shareholders was $37.5M for Q2 2026, reversing a loss of $238.8M in Q2 2025; six-month net income was $5.4M versus a loss of $351.8M year-over-year.

• Significant progress in monetizing non-core assets, including the sale of Watkins and Brasada Ranch.

• Continued execution of multi-club sports strategy, highlighted by AFC Bournemouth's historic Premier League finish.

• Corporate cost reduction and governance improvements remain priorities.

Financial highlights

• Q2 2026 total operating revenues were $102.2 million, down from $110 million year-over-year, mainly due to lower restaurant group revenues and store closures.

• Operating expenses were $159 million, down from $171 million, including $45 million in non-cash impairment charges at the restaurant group.

• Operating loss improved to $(56.8)M from $(60.9)M in Q2 2025; six-month operating loss was $(78.9)M versus $(82.3)M.

• SpaceX investment marked to market, resulting in an $83.4 million gain in Q2 2026.

• Cash and cash equivalents at June 30, 2026 were $70.4M; subsequent $90M cash inflow from Watkins sale.

Outlook and guidance

• Committed to share buybacks in the second half of 2026, supported by increased liquidity from asset sales.

• Expectation of materially lower corporate expenses for the remainder of the year, with some seasonality.

• Management continues to explore strategic alternatives for the restaurant group amid ongoing portfolio transformation.

• Macroeconomic uncertainty, inflation, and consumer spending trends are expected to impact future results.

• Anticipate collecting a $45 million federal tax refund in 2026.