CNNE

Image source: The Motley Fool. Monday, Aug. 10, 2026, at 5 p.m. ET Chief Executive Officer-Ryan Caswell Interim Chief Financial Officer-Brett Correia Operator: Good afternoon, ladies and gentlemen, and welcome to the Cannae Holdings, Inc. Second Quarter 2026 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded and a replay is available through 11:59 p.m. Eastern Time on August 24, 2026. With that, I would like to turn the call over to Jamie Lillis of Solebury Strategic Communications. Jamie Lillis: Thank you, operator, and good afternoon. Thank you for joining Cannae Holdings' second quarter 2026 earnings call. On today's call are Ryan Caswell, Chief Executive Officer, and Brett Correia, Interim Chief Financial Officer. But before we begin, I'd like to remind listeners that this call may contain forward-looking statements and references to non-GAAP financial measures. Statements that are not historical facts, including statements about Cannae's expectations, hopes, intentions, or strategies regarding the future, are forward-looking statements. Forward-looking statements are based on management's beliefs, as well as assumptions made by and information currently available to management. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to the risks and other factors detailed in our quarterly shareholder letter which was released this afternoon and in our other filings with the SEC. Today's remarks will also include references to non-GAAP financial measures. Additional information including a reconciliation between non-GAAP financial information to the GAAP financial information is provided in our shareholder letter. These statements are subject to risks and uncertainties described in our shareholder letter and our SEC filings. We undertake no obligation to update forward-looking statements. With that, I'll turn the call over to Ryan. Ryan Caswell: Thank you, Jamie, and good afternoon. On the call today, I plan to cover four topics: how we allocated capital during the quarter and our expectations going forward, the sale of non-core assets, the execution of our multi-club sports strategy at Black Knight Football, and how we are managing the holding company. Starting with capital allocation. In the second quarter, we allocated $7 million of capital as returns to our -- to shareholders through our quarterly dividend, and year-to-date through July, we have allocated $58 million to shareholders, of which $44 million is from buybacks and $14 million is dividends. In the second quarter, due to the recently announced transactions, the company did not buy back any stock. Going forward, we remain committed to share buybacks and expect to pursue buybacks in the second half of the year, especially as a result of the capital we received from the sale of Watkins and the capital freed up from the elimination of the put right. In the second quarter, we allocated approximately $45 million to investments, including both existing investments and new investments. And year-to-date through July, we have allocated $54 million to investments. When allocating capital to investments, the board and management team analyzed the long-term return potential of each investment compared to buying back Cannae stock. This quarter, both the additional investment in BKFC and a new investment in Exeter Rugby presented what we believe an attractive use of capital to deliver long-term shareholder returns and further our ambition of becoming a leading platform focused on sports and entertainment. Given Exeter Rugby is a new sports-related investment, I wanted to provide more detail on why we are excited about the opportunity. I also ask that you review our website where we posted a presentation on Exeter with additional information. With Exeter, we acquired a team in one of the world's leading sports with a strong brand, proven fan base, and history of success. Exeter was acquired at an attractive valuation and deal structure. Exeter is also located 80 miles from Bournemouth, and we believe there are a number of opportunities to create commercial and operational synergies across the businesses. We have established a plan to increase commercial revenues at Exeter through a playbook, which is consistent with what we developed for AFC Bournemouth. While our plan will take time, we are excited about the opportunity ahead of us and the returns we can deliver to our shareholders. Turning to non-core asset monetization, we made significant progress this quarter. On July 30, we sold our 49% ownership stake in The Watkins Company for $90 million. Including sale proceeds, preferred dividends, and fees received during our ownership, this transaction represents a multiple on invested capital of approximately 1.2x in less than two years and an IRR of nearly 10%. On July 15, we closed the sale of our 87% ownership interest in Brasada Ranch to a company owned by Bill Foley, our Vice Chairman, in exchange for the termination of Bill's put rights. The sale in exchange for the elimination of put right was attractive as it: 1, monetized the non-core asset; 2, eliminated the put right and associated liability, freeing up approximately $47 million of capital; 3, eliminated potential future CapEx at Brasada; and 4, demonstrated Bill's support for Cannae shares. This transaction was reviewed and unanimously approved by both our Related Person Transaction Committee and Board, with Bill not participating in the deliberations or voting. Both of these transactions demonstrate the importance our board and management team have put on monetizing non-core assets to generate capital for share buybacks and new investments. The strategic process around the restaurant group is continuing, although it is taking longer than anticipated. We are looking at strategies that will likely result in both sale proceeds to Cannae and eliminate negative cash flow to Cannae associated with funding operations. We will update you as soon as possible. Now, let me turn to our sports and entertainment portfolio, which continues to be the centerpiece of our strategy. At Black Knight Football, the headline this quarter is AFC Bournemouth finished sixth in the Premier League with 57 points, the highest finish in the club's 127-year history, and qualified for the UEFA Europa League also for the first time in the club's history. This is a remarkable accomplishment for a club that was fighting relegation in 19th place in 2022 before Black Knight acquired the business. It also comes on the heels of two transfer windows in which we sold key players for more than $350 million. Bournemouth's European qualification meaningfully increases Bournemouth's broadcast revenue, commercial opportunities, and brand relevance. We will also open Phase 1 of AFC Bournemouth's stadium redevelopment later this month, which will increase capacity by 1,000 seats and double hospitality. And importantly, the work completed thus far sets us up for the increase to 17,600 capacity starting next season. Lastly, we continue to build out the multi-club model to create synergies across each club. The last topic to discuss is the holding company itself. A significant area of focus at the holding company remains on reducing our corporate company costs. I'll let Brett expand on the specifics, but our corporate holding company costs are down approximately 76% from last year, which reflects the discipline the board and management have applied. Additionally, the board remains focused on improving our governance policies and procedures consistent with best practices. As an example, last week our board adopted and posted to the Cannae website a new Related Person Transaction Committee policy that further strengthened the review and approval of related person transactions. We would also like to welcome Brett as our interim CFO who will be presenting momentarily. In summary, this was a very active quarter. We continue executing our plan, concentrating our portfolio further into sports and entertainment-related assets that can drive outsized investment returns, monetizing non-core assets, and opportunistically returning capital to shareholders at prices we believe are below intrinsic value. We will continue executing on all aspects of this strategy, which we believe will grow our stock price and close the discount to NAV. With that, I'll turn the call over to Brett. Brett Correia: Great, thank you for the warm welcome, Ryan, and good afternoon, everyone. I will briefly review the key aspects of Cannae and Black Knight Football financial results before closing with a discussion of our balance sheet and liquidity position in the quarter. For the second quarter of 2026, total operating revenues, including restaurants and Brasada, were $102 million compared to $110 million in the prior year period. The decline was primarily driven by lower revenues at our restaurant group as a result of reduced traffic and store closures at O'Charley's. Total operating expenses, including restaurants and Brasada, were $159 million in the second quarter of 2026, compared to $171 million in the prior year period. Total operating expenses include $45 million of non-cash impairment charges at our restaurant group in 2026 compared to $1 million in 2025. Operating expenses of the corporate holding company were just under $9 million in the second quarter of 2026, an 85% decrease from $59 million in 2025, and $18 million year-to-date in 2026, a 76% decrease from $75 million in 2025. The decrease was driven by our board's continued focus on cost management and elimination of the management transition costs and management fees in 2025. Next, a couple of notes on the impact of transactions on our numbers and future reporting. With the SpaceX IPO in June, we began marking our investment to market, resulting in a gain of $83.4 million in the second quarter of 2026. The gain is based on SpaceX's trading price on June 30. We expect variability in earnings as we mark the investment to market going forward. Brasada will no longer be a consolidated business following the sale in July, and Exeter will come on as a consolidated business on a lag in future periods. Given the timing of the Exeter acquisition at the end of the second quarter, we don't expect a full quarter of P&L activity for Exeter to be reported until the fourth quarter of 2026, when we'll report Exeter results for the third quarter of 2026. Turning to the results of Black Knight Football, which are reported on a quarter lag and do not consolidate into Cannae's financial reports, total revenues were $89 million in the quarter ended March 31, 2026, a 45% increase over revenue of $61 million in 2025. The increase was driven by continued growth in TV rights and sponsorship revenue at Bournemouth and the inclusion of post-majority acquisition revenue from FC Lorient and Moreirense. EBITDA was $80 million in the first quarter of 2026 compared to $8 million in 2025. The increase was driven by the continued growth in revenues and profit on player trading. Adjusted EBITDA excluding profit on player trading was $34 million in the first quarter of 2026, compared to $8 million in 2025. Turning to the balance sheet, the holding company ended the quarter with $46 million of cash and $47.5 million of debt maturing in 2030. In July, our liquidity profile was strengthened meaningfully by the sale of Watkins for $90 million and the Brasada transaction, which eliminated the put right. Following these transactions, Cannae has $124 million of corporate cash today, and we continue to expect to collect our $45 million federal tax refund in 2026, providing plenty of flexibility to support the capital allocation priorities outlined by Ryan. With that, operator, please open the line for questions. Operator: [Operator Instructions] We'll take our first question from Kenneth Lee with RBC Capital Markets. Kenneth Lee: First one on just capital allocation priorities. Wondering if you could just frame out or quantify how much repurchases you could do in the second half, or perhaps maybe talk about some of the excess capital you have available for repurchases? Ryan Caswell: Hey, Ken, thank you for the question. We are, as I said in my comments, we remain committed to share buybacks as a use of -- as a way to return capital to shareholders. We review and we'll continue to opportunistically acquire shares. In terms of the specific amount of excess capital we have, 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. Kenneth Lee: Got you, very helpful there. And then a follow-up, if I may, just on the ongoing restaurant business strategic review there. I wonder if you could talk about the sort of like the activity or the discussions taking place and perhaps why it's taking a little bit longer than you expected? Ryan Caswell: Yes. I think the biggest reason -- so we have -- we are continuing to talk on the different brands. I think one, there's been a delay around the ability to secure financing around one of the transaction, 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. Kenneth Lee: Got you. Very helpful there. And one more follow-up, if I could just squeeze it in. In terms of the Brasada Ranch transaction, I saw the $40 million enterprise value there. How does that compare with the fair value mark on Brasada prior to the transaction? Ryan Caswell: 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, which was the same value -- roughly the same value as the liability on the 3/31 balance sheet related to the put. Operator: We'll move on now to Oscar Nieves with Stephens Company. Oscar Nieves Santana: You disclosed a stake of roughly 650,000 shares of SpaceX in your latest sum-of-the-parts. So is it going to still be under a lockup post-SpaceX's IPO, and if so, when does that expire? And on that same topic, what's the current thinking on those shares longer term? Ryan Caswell: Yes, thanks, Oscar. 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. And we will do that with both SpaceX as well as our other investments. Oscar Nieves Santana: Very helpful. My next one is a follow-up on your earlier comments on the Restaurant Group. I saw in the 10-Q that there was a $32 million goodwill impairment this quarter. Does that change the timeline on that strategic review at all? Or can you give us any color on that? Ryan Caswell: 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. Oscar Nieves Santana: Helpful. And one last one for now. You noted that hold-co expenses were down 76% year-over-year this quarter. Do you expect that lower run rate to continue for the rest of the year, or how should we be thinking about that? Ryan Caswell: Generally, yes. There's a little bit of seasonality with in 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. Operator: At this time, there are no further questions in queue, and I'll turn the meeting back over to Ryan Caswell for closing comments. Ryan Caswell: I want to thank you for all the support as we continue to execute our strategic priorities. We look forward to updating you on our progress next quarter. Thank you very much. Operator: Thank you, gentlemen. Again, ladies and gentlemen, this will conclude the Cannae Holdings, Inc. Second Quarter 2026 Earnings Conference Call. Thank you all so much for joining us today. We wish you all a great afternoon. Goodbye. Before you buy stock in Cannae, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cannae wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $419,408!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,348,694!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 19, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Cannae Holdings (CNNE) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Cannae Holdings, Inc.? Here are five stocks we like better. Cannae strengthened liquidity by selling its 49% stake in The Watkins Company for $90 million and monetizing its Brasada Ranch interest, freeing about $47 million in capital. The company expects to resume share repurchases in the second half of 2026. Second-quarter operating revenue declined to $102 million, while the restaurant group recorded $45 million in non-cash impairment charges. Cannae’s strategic review of the restaurant business is ongoing, with a potential transaction targeted for next quarter. Sports investments remained a strategic focus, including the acquisition of Exeter Rugby and additional funding for BKFC. Bournemouth’s record Premier League finish and European qualification boosted its growth prospects, while Cannae also recognized an $83.4 million mark-to-market gain on its SpaceX investment. Cannae (NYSE:CNNE) outlined plans to continue repurchasing shares, monetize non-core assets and expand its sports and entertainment portfolio during its second-quarter 2026 earnings call, as the company reported lower operating revenue and significant impairment charges related to its restaurant group. Chief Executive Officer Ryan Caswell said the company returned $7 million to shareholders through its quarterly dividend during the second quarter. Through July, Cannae had allocated $58 million to shareholders, including $44 million in share repurchases and $14 million in dividends. The company did not repurchase stock during the second quarter because of recently announced transactions. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat Caswell said Cannae expects to pursue buybacks in the second half of the year, supported by proceeds from the sale of The Watkins Company and capital freed by the elimination of a put right associated with Brasada Ranch. On July 30, Cannae sold its 49% stake in The Watkins Company for $90 million. Caswell said the transaction, including sale proceeds, preferred dividends and fees received during Cannae’s ownership, generated an approximately 1.2-times multiple on invested capital in less than two years and an internal rate of return of nearly 10%. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War Earlier in July, Cannae closed the sale of its 87% ownership interest in Brasada Ranch to a company owned by Vice Chairman Bill Foley. In exchange, Foley’s put right was terminated. Caswell said the transaction monetized a non-core asset, eliminated the put-right liability, freed approximately $47 million of capital and removed potential future capital-expenditure requirements at Brasada. In response to an analyst question, Caswell said Brasada’s $40 million enterprise value included approximately $17 million of debt, resulting in roughly $23 million of equity value. Cannae’s 87% interest was worth about $20 million, approximately equal to the put-right liability recorded on the company’s March 31 balance sheet. → 3 Dividend Champion Utilities for a Market That Can't Sit Still Caswell said the transaction was unanimously approved by Cannae’s related-person transaction committee and board, with Foley not participating in the deliberations or vote. The company also recently adopted a new related-person transaction committee policy, according to Caswell. The company’s strategic review of its restaurant group is continuing, though Caswell said it is taking longer than anticipated. He cited delays in securing financing for one potential transaction but said Cannae sees a path forward and is hopeful of reaching completion during the next quarter. The company is pursuing alternatives that could provide sale proceeds while eliminating negative cash flow associated with funding the restaurant operations. Interim Chief Financial Officer Brett Correia said total operating revenue, including restaurants and Brasada, was $102 million in the second quarter, down from $110 million a year earlier. The decline primarily reflected reduced traffic and store closures at O’Charley’s within the restaurant group. Total operating expenses were $159 million, compared with $171 million in the prior-year quarter. Expenses included $45 million of non-cash impairment charges at the restaurant group, compared with $1 million in impairment charges in 2025. Caswell told analysts that a $32 million goodwill impairment disclosed in the company’s quarterly filing did not change the timetable for the restaurant strategic review. Corporate holding-company operating expenses were just under $9 million during the quarter, down 85% from $59 million a year earlier, Correia said. Year-to-date holding-company expenses were $18 million, a 76% decrease from $75 million in 2025. The reduction reflected cost-management efforts and the elimination of management transition costs and management fees incurred in the prior year. Caswell said corporate costs should remain materially lower for the rest of 2026, though he noted seasonality in payment timing and certain one-time expenses could affect quarterly comparisons. Cannae ended the quarter with $46 million in cash and $47.5 million of debt maturing in 2030. After the Watkins sale and Brasada transaction, Correia said the company had $124 million of corporate cash and still expects to receive a $45 million federal tax refund in 2026. Caswell said Cannae allocated approximately $45 million to investments during the second quarter and $54 million through July. The investments included additional funding for BKFC and a new investment in Exeter Rugby. Cannae evaluates each investment’s long-term return potential against the potential return from repurchasing its own shares, he said. The company acquired Exeter Rugby, which Caswell described as a club with a strong brand, established fan base and history of success. Exeter is located about 80 miles from AFC Bournemouth, which Cannae believes could create commercial and operational synergies. The company plans to apply commercial-revenue initiatives developed at Bournemouth to Exeter over time. At Black Knight Football, AFC Bournemouth finished sixth in the Premier League with 57 points, its highest finish in the club’s 127-year history, according to Caswell. The result qualified Bournemouth for the UEFA Europa League for the first time. Caswell said European qualification should increase broadcast revenue, commercial opportunities and brand relevance. Bournemouth also plans to open the first phase of its stadium redevelopment later in the month. The work is expected to add 1,000 seats and double hospitality capacity, while setting the stage for a 17,600-seat capacity beginning next season. Black Knight Football’s financial results, which are reported on a quarter lag and are not consolidated into Cannae’s financial statements, showed revenue of $89 million for the quarter ended March 31, up 45% from $61 million a year earlier. Correia attributed the increase to growth in Bournemouth television-rights and sponsorship revenue, as well as revenue from FC Lorient and Moreirense following their majority acquisitions. Black Knight Football reported EBITDA of $80 million, compared with $8 million a year earlier. Adjusted EBITDA excluding profit on player trading was $34 million, up from $8 million. Separately, Correia said Cannae began marking its SpaceX investment to market following SpaceX’s June IPO, recording an $83.4 million gain in the second quarter based on the June 30 trading price. He said future earnings could be variable as the investment is marked to market. Caswell said the board reviews each balance-sheet asset quarterly to determine the optimal timing and approach for liquidity. Cannae Holdings, Inc (NYSE: CNNE) is a publicly traded diversified holding company that focuses on partnering with and investing in businesses across a range of industry sectors. The company seeks to identify attractive opportunities in both private and public markets, leveraging its capital resources and management expertise to support operational growth and value creation. Cannae's investment strategy emphasizes companies in data and analytics, marketing services, healthcare technology, and payment processing. Through its portfolio, Cannae holds controlling or significant minority stakes in companies that provide critical software, data and services to corporate clients. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Cannae Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is actively concentrating the portfolio into sports and entertainment-related assets, exemplified by the new investment in Exeter Rugby and increased stake in BKFC. The acquisition of Exeter Rugby is designed to leverage commercial and operational synergies with AFC Bournemouth, utilizing a proven revenue-growth playbook. Non-core asset monetization reached a milestone with the $90 million sale of Watkins, delivering a 1.2x multiple on invested capital in less than two years. The Brasada Ranch transaction strategically eliminated a $47 million put right liability and future capital expenditure requirements while simplifying the balance sheet. Corporate holding company costs were reduced by 76% year-to-date, reflecting a disciplined effort to eliminate legacy management fees and transition costs. AFC Bournemouth's qualification for the UEFA Europa League is expected to significantly enhance broadcast revenue, sponsorship opportunities, and global brand relevance. Management expects to resume share buybacks in the second half of 2026, supported by $124 million in current corporate cash and an anticipated $45 million tax refund. The strategic review of the restaurant group is ongoing, with the goal of generating sale proceeds and eliminating negative cash flow associated with funding operations. Stadium redevelopment at AFC Bournemouth is sequenced to increase capacity to 17,600 seats starting next season, following the opening of Phase 1 hospitality upgrades. Future earnings will experience variability due to the mark-to-market accounting of the SpaceX investment following its June IPO. The board is evaluating the optimal timing for liquidity across all balance sheet assets, including the tiered lockup expiration for SpaceX shares over 180 days. A $45 million non-cash impairment charge was recorded at the restaurant group, primarily driven by lower traffic and store closures at O'Charley's. The sale of Brasada Ranch to a company owned by the Vice Chairman was reviewed by a new Related Person Transaction Committee to ensure governance best practices. The restaurant group strategic process is taking longer than anticipated due to delays in securing financing for specific transaction components. Exeter Rugby will be reported as a consolidated business on a lag, with full P&L activity not expected until the fourth quarter of 2026. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed they have $124 million in cash today, providing 'plenty of excess capital' for both buybacks and new investments. The company remains committed to opportunistic share repurchases as a primary method of returning capital to shareholders. The delay is primarily attributed to the time required to secure financing for one of the potential transactions. Management expressed confidence in a 'path forward' and hopes to reach completion within the next quarter. The SpaceX lockup is tiered over 180 days, with the first portion having been released recently. The board reviews every asset quarterly to determine the optimal timing for liquidity to maximize shareholder returns. Management expects the lower run rate to continue generally, though some seasonality in payments may occur. Corporate hold-co expenses are projected to remain materially lower for the remainder of the year.

Capital Southwest (CSWC) came out with quarterly earnings of $0.58 per share, beating the Zacks Consensus Estimate of $0.54 per share. This compares to earnings of $0.59 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +7.41%. A quarter ago, it was expected that this business development company would post earnings of $0.56 per share when it actually produced earnings of $0.57, delivering a surprise of +1.79%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Capital Southwest, which belongs to the Zacks Financial - Investment Management industry, posted revenues of $61.05 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.08%. This compares to year-ago revenues of $55.95 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Capital Southwest shares have added about 6.5% since the beginning of the year versus the S&P 500's gain of 9.4%. While Capital Southwest has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Capital Southwest was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.56 on $62.74 million in revenues for the coming quarter and $2.23 on $253.82 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Investment Management is currently in the top 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Cannae Holdings, Inc. (CNNE), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 10. This company is expected to post quarterly loss of $0.50 per share in its upcoming report, which represents a year-over-year change of +86.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Cannae Holdings, Inc.'s revenues are expected to be $103.7 million, down 5.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Capital Southwest Corporation (CSWC) : Free Stock Analysis Report Cannae Holdings, Inc. (CNNE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

SEI Investments (SEIC) came out with quarterly earnings of $1.66 per share, beating the Zacks Consensus Estimate of $1.45 per share. This compares to earnings of $1.78 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +14.48%. A quarter ago, it was expected that this investment management firm would post earnings of $1.29 per share when it actually produced earnings of $1.44, delivering a surprise of +11.63%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. SEI, which belongs to the Zacks Financial - Investment Management industry, posted revenues of $641.62 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.58%. This compares to year-ago revenues of $559.6 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. SEI shares have added about 19.1% since the beginning of the year versus the S&P 500's gain of 9.7%. While SEI has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for SEI was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.55 on $666.96 million in revenues for the coming quarter and $5.98 on $2.59 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Investment Management is currently in the top 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Cannae Holdings, Inc. (CNNE), is yet to report results for the quarter ended June 2026. This company is expected to post quarterly loss of $0.50 per share in its upcoming report, which represents a year-over-year change of +86.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Cannae Holdings, Inc.'s revenues are expected to be $103.7 million, down 5.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SEI Investments Company (SEIC) : Free Stock Analysis Report Cannae Holdings, Inc. (CNNE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Cannae Holdings, Inc.? Here are five stocks we like better. Cannae prioritized shareholder returns in Q1, returning about $51 million year-to-date through buybacks and its regular dividend. The company repurchased 3.4 million shares, or about 7.3% of shares outstanding, and expanded its repurchase authorization to 14.9 million shares. Black Knight Football was highlighted as the top growth asset, with AFC Bournemouth sitting in sixth place in the Premier League at the time of the call and potentially heading for its first-ever European competition berth. Management said the multi-club sports platform is generating meaningful player-trading profits and improved EBITDA. Cannae continues to work on monetizing non-core restaurant assets while reducing holding company costs. The company said restaurant operations remain under strategic review, operating revenue fell due to closures and weaker traffic, and corporate holding costs were down roughly 45% year over year. Cannae (NYSE:CNNE) said it returned the bulk of its first-quarter capital allocation to shareholders while continuing to evaluate sales of non-core holdings and emphasizing growth in its sports-related investments. On the company’s first-quarter 2026 earnings call, Chief Executive Officer Ryan Caswell said Cannae returned approximately $51 million to shareholders year-to-date through buybacks and its regular dividend, which he said currently provides a 4.2% yield. That represented about 86% of capital allocated during the period, compared with roughly 70% a year earlier. → Beyond NVIDIA: Picks-and-Shovels AI Plays with Strong Momentum “The shift toward buybacks was deliberate in the quarter as we viewed the highest return investment available to us was our own equity,” Caswell said. Caswell said Cannae repurchased 3.4 million shares year-to-date, representing about 7.3% of shares outstanding, for $43 million. The board expanded the company’s repurchase authorization to 14.9 million shares during the quarter, giving Cannae room to continue opportunistic repurchases. → MercadoLibre Boldly Invests in Growth: Discount Deepens Asked by Kenneth Lee of RBC Capital Markets about capital returns, Caswell said Cannae remains committed to buybacks and has not evaluated special dividends. He said the company continues to assess capital allocation based on what it believes will maximize shareholder value between capital returns and new investments. In response to a question from Oscar Nieves of Stephens about whether Cannae could use a structured buyback process similar to a prior tender offer, Caswell said the company is currently focused on open-market repurchases. He said a tender could be considered if the company could not obtain desired volume or pricing, but noted that after the prior tender, Cannae bought shares at a premium and the stock traded down. → 3 Ways to Target the Resources Powering AI and Data Centers Caswell described Black Knight Football as Cannae’s largest single portfolio position and “the asset with the greatest upside.” He said AFC Bournemouth was in sixth place in the Premier League at the time of the call. If maintained, that position would mark the highest finish in the club’s 127-year history and qualify the club for European competition for the first time. Caswell said European qualification would materially change the club’s commercial, branding and economic profile. He also said the performance was notable because Black Knight Football had sold top players to Manchester City, Real Madrid, Paris Saint-Germain and Liverpool over the past 18 months, generating roughly $360 million in transfer fees. Caswell pointed to 19-year-old Eli Junior Kroupi as an example of Black Knight Football’s multi-club model. He said Kroupi came through the academy at FC Lorient, which Black Knight Football owns, and was acquired by AFC Bournemouth while remaining at Lorient for the rest of the season to continue developing. Caswell said Kroupi later moved to Bournemouth, became the club’s leading scorer and scored more goals in a single Premier League season than any teenager in Premier League history. “That is the multi-club platform in one transaction,” Caswell said, adding that the model can benefit both clubs economically and competitively while improving a player’s career trajectory. Chief Financial Officer Bryan Coy said Black Knight Football’s total revenue rose 19% to $274 million for the 12 months ended Dec. 31, 2025. EBITDA increased to $136 million in 2025 from $12 million in 2024, driven by player trading profits that rose to $113 million from $30 million. Adjusted EBITDA, excluding player trading profits, improved to $21 million from a loss of $5 million, reflecting better operating leverage net of higher player wages. Caswell said the strategic review of Cannae’s restaurant group remains ongoing and that the board’s position is unchanged: the restaurants are non-core assets. He said the company’s focus is to monetize the business, maximize proceeds and redeploy the capital into higher-return investments or Cannae stock. “We are working hard to achieve this outcome and expect to be able to give you a more substantive update on the next call,” Caswell said. Coy said first-quarter operating revenue totaled $96 million, down 7% from the prior year, with the decline entirely attributable to the restaurant group. He said the decrease reflected the closure of eight O’Charley’s locations since March of last year and lower traffic at both brands. At Ninety Nine, higher average guest checks nearly offset the traffic decline, while at O’Charley’s pricing recovered roughly half of the traffic decline. Total operating expenses were $118 million, down from $125 million in the prior-year quarter. Coy said the cost of restaurant revenues fell by just over $7 million on lower sales volume, but that decrease was offset by approximately $8 million in non-cash impairments tied to restaurant right-of-use assets and fixed assets. Cannae also emphasized reduced holding company costs. Caswell said first-quarter corporate holding company costs were down approximately 45% from last year. Coy said holding company expenses were $8.9 million in the first quarter of 2026, compared with $16.1 million a year earlier, a reduction of $7.2 million. Coy attributed the decline to a $3.6 million decrease in corporate personnel costs due to lower bonus and stock compensation following the management transition, as well as the absence of management or termination fees compared with $3.6 million in such fees in the prior-year period. He said Cannae expects the current run rate to continue through the remainder of the year. Caswell also said the board refreshed committee composition during the quarter to include four new directors elected last year and continues to evaluate additional governance enhancements. At quarter-end, Cannae had $123 million of cash at the corporate level, Coy said. After continued buybacks following the quarter close, cash stood at approximately $90 million. Coy said the company filed its corporate tax return and refund claim in March and expects to receive about $45 million in cash refund proceeds and approximately $10 million of additional tax assets later this year, after part of the refund was recharacterized as carryforwards. Coy said Cannae terminated its margin loan during the first quarter, reducing commitment and custody fees by approximately $350,000 annually. Following the termination, the company’s only corporate-level debt is $48 million of 5% fixed-rate, interest-only term debt that matures in more than four years. During the question-and-answer session, Caswell said Cannae continues to review its entire portfolio with the board each quarter and will disclose divestiture decisions when appropriate. While the company is focused on shifting toward sports and entertainment-related assets, he said Cannae still sees attractive attributes in its current investments. Caswell also said Cannae is reviewing potential new investment opportunities but is weighing them against the value of additional share repurchases. “We believe that transitioning the portfolio to the sports-related assets will create the most shareholder value over time,” Caswell said. Cannae Holdings, Inc (NYSE: CNNE) is a publicly traded diversified holding company that focuses on partnering with and investing in businesses across a range of industry sectors. The company seeks to identify attractive opportunities in both private and public markets, leveraging its capital resources and management expertise to support operational growth and value creation. Cannae's investment strategy emphasizes companies in data and analytics, marketing services, healthcare technology, and payment processing. Through its portfolio, Cannae holds controlling or significant minority stakes in companies that provide critical software, data and services to corporate clients. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Cannae Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

This article first appeared on GuruFocus. Release Date: May 11, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Cannae Holdings Inc (NYSE:CNNE) returned approximately $51 million to shareholders through buybacks and dividends, representing 86% of their capital allocation. The company repurchased 3.4 million shares, about 7.3% of shares outstanding, indicating a strong commitment to share buybacks. AFC Bournemouth, a major asset, is performing well, potentially qualifying for European competition, which could enhance its commercial and economic prospects. Corporate holding company costs were reduced by approximately 45% year-over-year, reflecting effective cost management. Black Knight Football reported significant financial growth, with revenue increasing by 19% and EBITDA reaching $136 million. Total operating revenues for the first quarter were down 7% year-over-year, primarily due to the restaurant group's performance. The restaurant group faced challenges with the closure of eight O'Charley's locations and lower traffic, impacting revenues. There were approximately $8 million in non-cash impairments on restaurant assets, affecting financial results. The company is still in the process of monetizing non-core assets like the restaurant group, indicating ongoing strategic challenges. Cannae Holdings Inc (NYSE:CNNE) experienced a decline in cash reserves from $123 million to approximately $90 million due to continued buybacks. Warning! GuruFocus has detected 7 Warning Signs with CNNE. Is CNNE fairly valued? Test your thesis with our free DCF calculator. Q: Given the longer-term shift towards sports and media investments, how should we think about some of the past investments like Janet Partners and Watkins? Is the plan to eventually monetize them? A: We are focusing on sports and entertainment-related assets but still value our existing investments. We review our portfolio quarterly with the Board to decide on potential divestitures, similar to our approach with the restaurant group. - Ryan Castle, CEO Q: Regarding capital returns, has there been any updated evaluation on returning capital through buybacks or dividends? A: We remain committed to share buybacks, as evidenced by our purchases this year. We haven't considered special dividends but continuously evaluate capital allocation to maximize shareholder value. - Ryan Castle, CEO Q: Are you maintaining an active dialogue or pipeline for potential new investments? A: Yes, we are leveraging our network and evaluating new deals. Each investment is assessed for its value to shareholders compared to share buybacks. We will continue this analysis going forward. - Ryan Castle, CEO Q: How do you think about sizing buybacks, and what is the likelihood of making new investments? A: We consider liquidity over the next 6-12 months and the timing of non-core asset sales for buybacks. We aim to maximize shareholder value through NAV growth and are transitioning to sports and entertainment assets, which requires new investments. - Ryan Castle, CEO Q: What is the status of the strategic alternatives for the restaurant business? A: The process is ongoing, and we aim to maximize value and proceeds from these assets. We expect to provide a more comprehensive update next quarter. The Board views these as non-core assets and is working to monetize them. - Ryan Castle, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript.