Cannae Holdings (CNNE) Q2 FY26 earnings call: guidance and Q&A

Can you quantify potential share repurchases in the second half or available excess capital?

Management reiterated its commitment to opportunistic share buybacks and stated that the company has $124 million in corporate cash today, providing plenty of flexibility for repurchases or new investments in the second half of the year.

“As Brett mentioned, we have about 124 million of cash today which gives us plenty of excess capital to acquire shares or look at investment opportunities in the back half of the year.”

asked by Kenneth Lee · answered by Ryan Caswell

Can you discuss the activity and reasons for the delay in the ongoing restaurant business strategic review?

The delay is primarily due to challenges in securing financing for one of the transactions. Management believes there is a path forward and hopes for completion within the next quarter.

“I think the biggest reason, so we are continuing to talk on the different brands. There's been a delay around the ability to secure financing around one of the transactions. It's taken longer than we thought. All that being said, I think we have a path. We have a path forward and we're hopeful that over the next quarter we can get to completion.”

asked by Kenneth Lee · answered by Ryan Caswell

How does the $40 million enterprise value of Brasada Ranch compare with its fair value mark prior to the transaction?

The $40 million enterprise value included $17 million of debt, resulting in $23 million of equity. Cannae's 87% stake was worth approximately $20 million, which was roughly equivalent to the $47 million liability on the balance sheet related to Bill Foley's put right.

“Yes, so the $40 million, the enterprise value, there was about $17 million of debt on the business, which made about $23 million of equity. We owned about 87% of it, which meant that our equity was worth around $20 million. dollars, which was the same value, roughly the same value as the liability on the 331 balance sheet related to the put.”

asked by Kenneth Lee · answered by Ryan Caswell

Is the SpaceX stake still under lockup post-IPO, when does it expire, and what is the current thinking on those shares longer term?

The lockup is tiered over 180 days, with the first set released recently. The board quarterly reviews each asset on the balance sheet, including SpaceX, to determine the optimal path and timing for liquidity to optimize shareholder returns.

“So the lockup is a tiered lockup that's over 180 days. The first set of it was... released, I believe it was last Thursday. But if you look in the SpaceX prospectus, you can see the details. In terms of our plans with regards to the SpaceX shares going forward, Like I mentioned on our last call, our board is going through each asset on our balance sheet quarterly and determining what is the optimal path and timing for liquidity to optimize return to our shareholders.”

asked by Oscar Nieves · answered by Ryan Caswell

Does the $32 million goodwill impairment this quarter change the timeline for the restaurant group's strategic review?

The goodwill impairment does not change the timeline for the strategic review and was related to different parts and aspects of the actual ongoing process.

“It does not change the timeline on the strategic review, and some of that was related to different parts and aspects of the actual ongoing process.”

asked by Oscar Nieves · answered by Ryan Caswell

Do you expect the lower run rate for corporate holding company expenses to continue for the rest of the year?

Generally, yes, the lower run rate is expected to continue, although there might be some seasonality and one-time expenses. Corporate holding company expenses will be materially down for the remainder of the year.

“Generally, yes. There's a little bit of seasonality within terms of how payments are made and there was some one-time expenses. So, it won't be perfect, but directionally, yes, that's correct. And corporate hold co-expenses will be down materially for the remainder of the year as well.”

asked by Oscar Nieves · answered by Ryan Caswell