Cannae Holdings, Inc. Stock

Please stand by. Your meeting is about to Good afternoon, ladies and gentlemen, and welcome to the Canai Holdings Incorporated Second Quarter 2026 Financial Results Conference Call. During today's presentation, all parties will be in a listen-only mode. Following the company's prepared remarks, the conference will be open for questions, with instructions to follow at that time. reminder, this conference call is being recorded and a replay is available through 1159 p.m. Eastern Time on August 24th, 2026. With that, I would like to turn the call over to Jamie Lillis of Solbury Strategic Communications. Please go ahead.

Thank you, operator, and good afternoon. Thank you for joining Kaniyia Holdings' second quarter 2026 earnings call. On today's call are Ryan Caswell, Chief Executive Officer, and Brett Correa, 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 Kenai'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 Committee 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 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.

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, execution of our multi-club sports strategy of Black Knight football. how we are managing the holding company. Starting with capital allocation. In the second quarter, we allocated $7 million of capital as returns 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 PUSA. 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 Kani stock. This quarter, both the additional investment in BKFC and a new investment in Exeter Rugby presented what we believe in our 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 30th, 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 1.2 times in last year. less than two years and an IRR of nearly 10%. On July 15th, we closed the sale of our 87% ownership interest in Bursada 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, one, monetized the non-core asset, two, eliminated the put right and associated liability, freeing up approximately $47 million of capital, three, eliminated potential future CapEx at Brasada, and four, $70. bill support for Kaniyia 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 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 KANAI and eliminate negative cash flow to KANAI 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 Knights football, the headline this quarter is ASC 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. BoardMIS European qualification meaningfully increases BoardMIS 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 disadvantage. 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 Kaniyia 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 high. of our 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. Great, thank you for the warm welcome, Ryan, and good afternoon, everyone. briefly review the key aspects of can I and black night football financial results before closing with the discussion of our balance sheet and liquidity position in the quarter. For the second quarter of 2026, total operating revenues, including restaurants in Bursada, 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'Charlie's. Operating expenses, including restaurants and bursada, 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 feature 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 30th. We expect variability in earnings as we mark the investment to market going forward. Versada 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 Kaniyia'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. increase was driven by continued growth in TV rights and sponsorship revenue at Mormith in the inclusion of post-majority acquisition revenue from FC Lorient and Moravence. 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 Bursada transaction, which eliminated the put rate. Following these transactions, Kenai 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. Thank you. At this time, if you would like to ask a question, please press star 1 now on your telephone keypad. To withdraw yourself from the queue, you may press star 2. Again, to ask a question, that is star 1 now on your telephone keypad. And we'll pause for just a moment. to allow everyone a chance to join the queue. We'll take our first question from Kenneth Lee with RBC Capital Markets. Please go ahead, your line is open.

Hey, good afternoon and thanks for taking my question. 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. Thanks.

Hey, Ken, thank you for the question. We are, as I said in my comments, we remain committed to share buybacks as a way to return capital to shareholders. We review and we'll continue to opportunistically acquire shares. In terms of the specific amount, yes. 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.

Got you, very helpful there. And then a follow-up, if I may, just on the ongoing restaurant business strategy. review there. I wonder if you could talk about, you know, sort of like the activity or the discussions taking place and perhaps why it's taking a little bit longer than you expected. Thanks.

Yes. 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.

Got you. Very helpful there. And one more follow-up, if I could just squeeze it in. In terms of the Brassada Ranch transaction, I saw the $40 million enterprise value there. How does that compare with the fair value mark on Bursada prior to the transaction? Thanks.

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.

Okay, great. Very helpful. Thanks again. Thank you, Ken.

Thank you. We'll move on now to Oscar Nieves with Stevens Company.

Please go ahead. Thank you. You disclosed a stake of roughly 650,000 shares of SpaceX in your latest Sum of the Parts. So it's going to still 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?.

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.

Very helpful. My next one is a follow-up on earlier comments on the restroom 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, you know, can you give us any.

color on that? 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.

All right. Helpful. And one last one for now. You noted that whole co-expenses are, we're 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?.

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.

Thank you very much. Thank you. At this time, there are no further questions in queue.

and I'll turn the meeting back over to Ryan Caswell for closing comments. 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.

Thank you, gentlemen. Again, ladies and gentlemen, this will conclude the Kenai Holdings Incorporated Second Quarter 2026 Earnings Conference Call. Thank you all so much for joining us today. We wish you all a great afternoon. Goodbye.

This live transcript is auto-generated without human intervention or review.

[Call has ended.]

Good afternoon, ladies and gentlemen, and welcome to the Cannae Holdings, Inc. First 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 May 25, 2026.

With that, I would now like to turn the call over to Mr. Jamie Lillis of Solebury Strategic Communications. Please go ahead, sir.

Thank you, operator, and good afternoon. Thank you for joining Cannae Holdings, Inc. First Quarter 2026 earnings call. On today's call are Ryan Caswell, Chief Executive Officer; and Bryan Coy, Chief Financial Officer.

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 the 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 SEC filings, and we undertake no obligation to update forward-looking statements. With that, I will turn the call over to Ryan.

Thank you, Jamie. Good afternoon. On the call today, I want to cover 4 key topics: how we allocated our capital in the quarter, what is happening at our largest sports asset, Black Knight Football, where we stand on the restaurant business and exiting additional non-core assets, and how we are managing the holding company. Starting with capital allocation. In the first quarter, we returned approximately $51 million to shareholders through a combination of buybacks and our regular dividend, which currently provides a 4.2% dividend yield. Year-to-date, this $51 million represents about 86% of all the capital we have allocated. The remaining 14% of our capital went to existing investments. A year ago, the comparable shareholder figure return was about 70% to shareholders.

The shift toward buybacks was deliberate in the quarter as we viewed the highest return investment available to us was our own equity. We will analyze our capital allocation on an ongoing basis to determine what maximizes shareholder value between capital returns and new investments. On the buyback specifically, year-to-date, we have repurchased 3.4 million shares, representing about 7.3% of our shares outstanding for $43 million. Our board expanded the repurchase authorization to 14.9 million shares during the quarter so we can continue opportunistic buybacks. Now to Black Knight Football, which is the largest single position in our portfolio and in my view, the asset with the greatest upside. AFC Bournemouth currently sits in sixth place in the Premier League.

If the club holds that position, it will be the highest finish in the club's 127-year history, and it would qualify the club for European competition for the first time. European qualification is not just a sporting milestone. It materially changes the commercial, branding, and economics of the club. The sporting results are even more notable because over the last 18 months, we have sold top players to Manchester City, Real Madrid, Paris Saint-Germain, and Liverpool, totaling roughly $360 million in transfer fees. We have done this and gotten better results, not worse. That is the platform in our investment and operating strategy working. Let me give you one specific example because I think it captures the entire investment thesis of the multi-club.

A player named Eli Junior Kroupi, who is 19 years old and came up through the academy at FC Lorient, which is a club we own. In January of last year, AFC Bournemouth, another club we own, acquired him from Lorient and let him remain at the club for the remainder of the season to develop and help with their requalification to Ligue 1. This season, he moved to Bournemouth. He is the leading scorer for Bournemouth, and he has scored more goals in a single Premier League season than any teenager in the history of the Premier League. That is the multi-club platform in one transaction.

We developed an asset at a club and moved that asset onto another club at the appropriate time for the team and the player. In the end, both clubs benefit from an economic and a sporting perspective, and the player benefits and improves his career trajectory. This represents the value of the multi-club platform and will drive returns for our investment at Black Knight Football. The financial picture is consistent with the sporting one, with double-digit increases in revenue and EBITDA hitting $136 million, given significant player sales and improved revenues referenced above. Bryan will go into these numbers in more detail in his remarks. We posted a detailed overview of Black Knight Football on Cannae's website during last quarter. I would encourage everyone on the call to spend some time with it as it captures our work. Now to the restaurants.

The strategic process around the restaurant group that we announced previously is ongoing. What I can update you on today is that the board's position is unchanged. This is a non-core asset, and our focus is to monetize the asset, maximize proceeds, and redeploy that capital into either higher returning investments, which will grow our NAV or into our own 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. More broadly, the board continues to review our entire portfolio every quarter for the optimal time to sell non-core assets. Restaurants are not the only one we are evaluating. You should expect continued movement in our portfolio, which I will detail at the appropriate time. The last topic from me is the holding company itself.

We continue to focus on reducing our corporate holding company costs. I will let Bryan expand upon it in his comments, but for the first quarter, our corporate holding company costs are down approximately 45% from last year, which reflects the discipline of the board and the management have applied to reducing corporate holding company costs. On governance, the board continues to evaluate further governance enhancements. In the first quarter, we refreshed our committee composition to include the 4 new directors elected last year, which brings new perspective into committee deliberations. In summary, we are executing our plan. We are looking for ways to concentrate the portfolio further into sports and entertainment-related assets while monetizing our non-core assets. We are opportunistically returning meaningful capital to our shareholders at prices we believe are well below intrinsic value.

We are improving our portfolio companies and providing more transparency into each of them. We are reducing holding company costs. We will keep doing these things until the discount closes and NAV increases. With that, I will turn the call over to Bryan.

Thanks, Ryan. Good afternoon. I'll walk through the first quarter results and then close with a brief note on the balance sheet and liquidity. Total operating revenues for the first quarter were $96 million, down 7% year-over-year. The entirety of that decline came from the restaurant group, which reflects the closure of 8 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. At O'Charley's, pricing recovered roughly half of the traffic drop. Revenue at Brasada Ranch was approximately flat quarter-over-quarter. Total operating expenses were $118 million in the first quarter of 2026, compared with $125 million in the prior year first quarter. This reflects flat operating expenses for the restaurant group and decreased holding company expenses.

The cost of restaurant revenues decreased by just over $7 million on the lower top-line volume I discussed a moment ago. That decrease was offset by an approximately $8 million of non-cash impairments on the restaurant right of use and assets and fixed assets. Continuing our efforts to further transparency, we added more disclosure on corporate holding company expenses within the MD&A section of our 10-Q that is filed today. In the meantime, I will note that the holding company expenses were $8.9 million in the first quarter of 2026, compared against $16.1 million in the same quarter last year, a $7.2 million or 45% reduction year-over-year.

That reflects a $3.6 million decrease in corporate personnel costs on lower bonus and stock compensation after the management transition and no management or termination fees, compared to $3.6 million in the first quarter of last year. We expect this run rate to continue throughout the remainder of the year. Looking at our equity method investments, which include Black Knight Football. Earlier, Ryan noted that total revenue at Black Knight Football increased 19% to $274 million for the 12 months ended December 31, 2025. That revenue growth came from on-field performance from higher commercial revenue at Bournemouth and from the inclusion of Mauriense for the half year.

EBITDA grew from $12 million in calendar year 2024 to $136 million in 2025, driven by a nearly fourfold increase in player trading profits from $30 million in '24 to $113 million in 2025. Adjusted EBITDA, which excludes player trading profits, improved from negative $5 million in 2024 to positive $21 million in 2025 on improved operating leverage net of higher player wages. On the remaining EMIs, a large driver of the year-over-year variance is a valuation gain on our CSI holding that benefited the prior year period.

Turning to the balance sheet. At the corporate level, Cannae had $123 million of cash at quarter end. After continuing buyback since the quarter close, we have approximately $90 million today. We filed our corporate tax return and refund claim in March. We expect to receive about $45 million cash refund and approximately $10 million of additional tax assets later this year, after a portion of the refund was recharacterized as carryforwards. During the first quarter, we terminated Cannae's margin loan, which reduces commitment and custody fees by approximately $350,000 annually. After that termination, the only corporate level debt outstanding is $48 million of 5% fixed rate interest-only term debt that doesn't mature for over 4 years.

With that, operator, please open the line for questions.

[Operator Instructions] We'll go first this afternoon to Kenneth Lee of RBC Capital Markets.

Just one on the portfolio allocation. Just given the longer term shift towards sports and media investments, how should we think about some of the investments that were done in the past, for example, Jana Partners, Walk-Ins, I guess most of the other investments, except for outside of BKFC, is the plan to eventually monetize pretty much all of them? Thanks.

Yes. Thanks, Ken. We are pushing to sports and entertainment-related assets, but with that being said, we like all of the investments that we have, and we think there's attractive attributes. What I do on a quarterly basis is I review our entire portfolio with the board, and we determine whether it makes sense to divest any of the assets. When appropriate, we will obviously disclose any of the conclusions that the board comes to, similar to what we did with the restaurant group.

Got you. In terms of capital returns, has there been any updated evaluation, and I know that you've done some evaluation in the past in terms of returning capital either through buybacks or continue to return it through buybacks, or have you given dividends or special dividends a thought as well? Thanks.

Yes. Currently, in terms of buybacks, we remain committed to share buybacks and as evidence from purchases thus far this year. We have not looked at special dividends or things like that. We obviously have the ongoing dividend. I think more broadly, we look at capital allocation and liquidity on an ongoing basis and look to what will maximize shareholder value between capital returns and new investments, and that's a framework that we will continue going forward.

Got you. One more for me. Just once again, looking across the portfolio, are you also maintaining active dialogue or having a pipeline of potential opportunities or new investments? Maybe just want to get a little bit more color around that. Thanks.

We are. I think we are leveraging our the network that we have, given the success that we've had in some of our sports assets, and we try to disclose a bit more around this in our in or we will disclose in an updated investor deck that will be out later today. We are looking at different deals. Each new investment that we look at, we are trying to determine whether it makes it is higher value for our shareholders to invest in a new business or to continue the share buyback. Last quarter, we spent the money on share buyback, but we are seeing a lot of deals and we'll do that analysis going forward.

We'll go next now to Ian Zaffino at Oppenheimer.

kind of a follow-up on the buyback question is, how do you think about sizing buybacks, you know, stock's very, very cheap here. How are you thinking about just really kind of pulling the trigger on incremental buybacks? When you think about your alternative use of cash and investing, how high is the bar for new investments? You know, is there like a very kind of minimal chance you're going to be doing incremental investments, or is there still a very high chance you're doing incremental investments? If so, you know, maybe give us an example of what you look for, maybe what area of kind of your verticals you're in.

Thanks. Let me try and take those, one at a time. First, in terms of buybacks, and trying to size the buyback, we think about liquidity, and liquidity over the next, you know, 6 to 12 months in terms of how we think about the buybacks, and that liquidity analysis also includes the timing of some of these other non-core asset sales. I don't want to provide a specific size framework. You obviously can look back with what we did in the first quarter and historically. For each buyback and each, we are looking at liquidity and the capital allocation framework that I mentioned before. In terms of new investments, management and the board are focused on trying to maximize shareholder value through the growth of NAV over time.

We have talked about how we're transitioning the portfolio to sports and entertainment assets. In order to do that, we do need to make new investments. We're being thoughtful and mindful around those in terms of, again, thinking about size and liquidity, and valuation and future performance. We believe that transitioning the portfolio to the sports-related assets will create the most shareholder value over time.

Okay, thanks. Just a follow-up. Where are we as far as the strategic alternatives for the restaurants? You talked a lot about their performance, where are we as far as the strategic alternatives?

As I mentioned, in my prepared remarks, the strategic alternatives, the process is ongoing. We are looking to maximize the value and the proceeds from each asset. We think that by the next quarter, we'll have a more fulsome update. The board's firm view is these are non-core assets, and we are working to monetize them.

[Operator Instructions] We go next now to Oscar Nieves at Stephens.

My first one is on the buyback. Back in 2024, Cannae bought a sizable chunk of shares outstanding through a tender offer. My question is, given how many shares are still available under the current buyback program and potentially the proceeds from the restaurant business, would the company consider the possibility of executing a structured process like that in 2024?

Yes. Thanks, Oscar. Right now we're focused on open market buybacks. We did do a tender before, so it is something that we could consider if we couldn't get the volume or the pricing that we wanted. We bought the shares at a premium and the stock traded down. In the short term, we are most focused on open market purchases as the form of buybacks.

That's helpful. My next one is, what can you tell us about Alight and the current thinking on that investment?

We are optimistic about Alight and the new, the new CEO. I would turn you to his more detailed remarks in terms of the performance of the business. We've been a holder of the business for a while and are supportive of him and the business. As I said earlier, is we will, we will review quarterly each of our investments with our board to make a determination on what's the appropriate timing.

Okay. My last one is, on the $55 million tax refund, or I guess $45 million you mentioned earlier, how are you thinking about allocating that capital between buybacks and potential incremental investments in some of the core assets? Also, what will ultimately drive that decision?

We will look at allocating that capital similar to how we look at allocating any liquidity that we have on our balance sheet, which is what we determine to be the most attractive use of capital at that time for our shareholders. In this last quarter, we allocated about 86% of our excess capital or of our capital to buybacks and dividends. It will be a case-by-case basis when the timing comes in and where we are in terms of investments or where our stock price is trading.

Gentlemen, it appears we have no further questions this afternoon. Mr. Caswell, I'll turn things back to you, sir, for any closing comments.

I want to thank you all for the support as we continue to execute our strategic priorities. We look forward to update you on our progress next quarter. Thank you very much.

Thank you, gentlemen. Again, ladies and gentlemen, this will conclude the Cannae Holdings, Inc. First Quarter 2026 earnings conference call. Thank you all so much for joining us today. We wish you all a great afternoon. Goodbye.

Good afternoon, ladies and gentlemen, and welcome to the Cannae Holdings Inc. Fourth Quarter and Full Year 2025 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded, and a replay is available through 11:59 PM Eastern Time on March 9, 2026.

With that, I would like to turn the call over to Jamie Lillis of Solebury Strategic Communications. Please go ahead.

Thank you, operator, and all of you for joining us. On the call today, we have Cannae's CEO, Ryan Caswell; and Bryan Coy, our Chief Financial Officer.

Before we begin, I would like to remind listeners that this conference call and the Q&A following our remarks may contain forward-looking statements that involve a number of risks and uncertainties. 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.

I would now like to turn the call over to Ryan.

Thank you, Jamie. Over the last year, we have made substantial progress executing our strategic initiatives outlined in 2024 designed to generate long-term shareholder value. Notable accomplishments in 2025 include the further transformation of our portfolio with the sale of Dun & Bradstreet to [indiscernible] Capital for total proceeds of $630 million to Cannae. In the fourth quarter, we also sold shares of [ Paysafe ], System1 and Sightline to realize losses, which created a $55 million tax refund that will be paid to us in the summer of 2026.

We continued significant returns of capital to shareholders through the repurchase of $323 million of stock, representing 17.4 million shares, or 28% of our shares outstanding. We also increased our dividend by 25% to $0.15 per quarter, and paid $30 million in total dividends in 2025. We made new investments in proprietary opportunities where we can help drive value. In 2025, Cannae invested an additional $50 million in Black Knight Football Club and also invested an additional $67.5 million in JANA Partners to increase our ownership from 20% to 50%.

With these investments and the sale of public securities like D&B, our portfolio today is primarily investments in proprietary private opportunities that public investors otherwise wouldn't be able to add us. We believe it is important to provide our investors with these differentiated investment opportunities and invest in structures where Cannae can [ buy ] value.

We have also continued to create value in our portfolio companies. This is best evidenced by activity at our largest investment, Black Knight Football, which continues its strong performance across our group of clubs. Today, AFC Bournemouth [indiscernible] in 8th place in the Premier League with 38 points through 27 matches. This performance is a testament to the coaching and recruiting staff at AFCB. Over the last 2 transfer windows AFCB has generated over $400 million in transfer proceeds, which according to third-party reports, represents the second highest net profit in European football, and demonstrates the team's ability to maximize profits while continuing to refresh the squad and drive performance.

We also continue to make progress on our stadium expansion. We recently reviewed planning approval from the local council and Phase 1 of our stadium renovation is expected to be completed by the '26/'27 season. Phase 1 will now increase total capacity by approximately 1,500 seats, but will increase hospitality by [ 600 seats ], or approximately 100%. Phase 2 will be completed by the start of the '27, '28 season, and increase capacity to over 20,000 seats, an approximately 80% increase in capacity.

In January, we acquired the remaining 60% of FC Lorient for approximately EUR 60 million through a combination of Black Knight Football stock and cash. The value was based roughly on the put call that was structured in the 2023 purchase. BKFC now owns of FC Lorient, and we are excited about the strategic potential of the team within our multi-club. The team sits in 9th place in League 1, and is in the quarter finals of the [ French Cut ]. After 23 matches, [indiscernible] at Football Club sits in 7th place in the Premiere League with 33 points from 10 wins [indiscernible] 3 drops. The success of each team demonstrates the upside of our multi-club operations, and we remain excited about the value we are creating for an eventual monetization.

Despite our accomplishments in 2025, the Board and management team are not satisfied with our stock price and believe that it does not reflect the intrinsic value of our assets, or the long-term potential of the platform. As a result and based on feedback from our shareholders, the Board has established a new set of strategic priorities designed to provide greater clarity and drive sustained long-term value creation for our shareholders. The tenets of this strategy are as follows.

One. Portfolio transformation and strategic focus. We are accelerating the transformation of our portfolio to concentrate primarily on sports and entertainment related assets where Cannae has demonstrated a differentiated competitive advantage. We continue to benefit from access to proprietary investment opportunities in these sectors and intend to build a more focused, efficient portfolio of synergistic assets where Cannae can actively drive value creation. As part of this transformation, we will continue to monetize nonstrategic assets in a disciplined manner to redeploy capital towards higher returning opportunities. As a result, Cannae is exploring strategic alternatives with regards to its restaurant group.

Two, enhanced operating performance and transparency. We are intensifying our efforts on improving the operating performance of our portfolio companies, while increasing the level of disclosure provided to our shareholders. Beginning this quarter, we are broadening our reporting to provide greater visibility into asset level operating value -- asset level operating results and value creation initiatives at our portfolio companies. This can be seen from the information provided in our investor letter, and we will also be posting an overview deck of Black Knight Football, our largest investment. On our website that provides more details around the strategy, clubs and financials.

Three, disciplined capital return. Returning capital to our shareholders remains a priority. We are committed to maintaining a consistent quarterly dividend subject to capital -- and subject to capital availability, [indiscernible] selective and opportunistic share repurchases. In the short term, the Board is prioritizing capital flexibility given our current capital base and the focus on the strategic transformation described earlier.

Four, ongoing governance evolution. The Board remains committed to continuous evaluation and enhancement of our governance policies and procedures consistent with best practices. With four new independent directors joining the Board in 2025, the Board has purposely refreshed committees and continues to focus on areas to improve governance and shareholder alignment. We believe executing on these strategic priorities will lead to growth in Cannae NAV and stock price.

With that, I'll turn the call over to Bryan.

Thanks, Ryan. I will walk through our fourth quarter and full year results, followed by a brief note on liquidity. Starting with our fourth quarter results.

Total operating revenues of Cannae were $103 million in the fourth quarter of 2025, a 6% decrease from $110 million in 2024. This was primarily from lower restaurant revenue, a result of generally lower guest traffic and 9 fewer O'Charley's locations that were closed during the year, abated in part by higher average guest checks. This was also slightly offset by higher lot sales and hospitality revenue at [ Persada Ranch ], our resort in Oregon.

Cannae's total operating expenses of $127 million in the fourth quarter of '25, down from $132 million in the prior year. Cannae's current year operating expenses included $12 million of noncash impairment charges, mainly associated with right-of-use assets at certain O'Charley's locations. Absent that noncash charge, Cannae operating expenses decreased by approximately $17 million or 13%. That decrease reflects lower cost of restaurant revenue, lower personnel costs and no external management fees following termination of the agreement earlier this year, as well as other actions taken to reduce corporate operating expenses, which were offset in part by increased professional fees associated with our recent proxy contest.

Of note, below Cannae's operating loss line, recognized -- net recognized losses decreased $8 million in the fourth quarter of 2025, largely comprising mark-to-market losses on our exit from [ Paysafe ]. Equity and losses of unconsolidated holdings was $69 million in the fourth quarter of 2025, and the majority of this represents our share of [indiscernible] fourth quarter results with the large goodwill write-off.

Moving to full year numbers. For the full year 2025, total operating revenue was $424 million, compared to $453 million in 2024, reflecting lower restaurant rotations and associated revenue. Our operating loss was $119 million in 2025, compared to $104 million in 2024. The 2025 figure reflects lower cost of revenue, as well as $24 million of nonrecurring management charges, $14 million of noncash impairment charges at the restaurant group, and $5 million of increased professional fees associated with our recent proxy contest. Without these fees, operating expenses would have declined by approximately 27%. The results below the operating line in 2025 were largely influenced by noncash impairments associated with the [indiscernible] Offset in part by increases in the value of our holdings in the CSI partnership.

Turning to the year-end balance sheet. Cannae had over $1.3 billion in total assets offsetting $330 million of liabilities. At the corporate level, Cannae has over $147 million of cash today, and our only corporate debt outstanding is $48 million of fixed rate, interest-only term debt that doesn't mature for over 4 years. Additionally, as noted above, we expect to receive $55 million in tax refunds this summer.

Operator, we'll now pause and open the line for questions.

[Operator Instructions] The first question will come from Ian Zaffino with Oppenheimer. Pardon me, Kenneth Lee with RBC Capital Markets.

Just in terms of the strategic priorities, the new goals there, you talked about potentially accelerating more to the sports and entertainment side. With that, how do you view the potential monetizations across the portfolio? I think you talked about strategic actions for the restaurant group, but should we consider any other non sports and [indiscernible] as being open for potential monetizations over time?

Ken, thanks for the question. Yes. I mean I think we have started to really transform our portfolio last year with some of the sales of D&B, [ Dayforce ], Paysafe, System1. And then as you rightly pointed out, we announced strategic alternatives related to the restaurant group today. The Board, and we are going through each of the individual assets and trying to figure out where we are and does it make sense for monetization? Clearly, some will be more strategic than others. But with the focus of where it is around sports and entertainment related assets, we will be going through our portfolio and looking at each of our assets and determining the appropriate time. And we make a decision like we did with the restaurants, we will let you know.

Got you. Very helpful there. And one follow-up, if I may. In terms of the JANA partnership there, you've been in partnership for some time now. And obviously, just given the recent market volatility, wondering if there's any change or updated outlook around potential investments associated with that? Or once again, does the recent move towards sports and media kind of not put that on the -- [ front foot ] anymore?

No. We remain very optimistic about our partnership with JANA. They just entered 25 years in business and have had an incredible career, or an incredible track record over that. So we do remain optimistic. We think they are -- they will continue to source us different opportunities. Given the strategic direction around sports and entertainment related assets, the box is maybe a little bit smaller given the capital base that we have today. But we continue to be optimistic about them, the long-term track record and our ability to find stuff with them. But the Board is very focused at the current time on sports and related entertainment assets. So we would have to find something that fits within that box with them.

Got you. And just one more follow-up, if I may. When you look across the current portfolio -- Cannae's current portfolio, across the various fintech and software associated companies within the portfolio. How do you view the risk of AI across that portfolio? And how do you think about potential valuations around there?

Yes. No. We've obviously spent [ a lot ] of time thinking about kind of AI and AI impact across the portfolio. I think we're fortunate that our biggest investment around football. While there may be AI things [ that ] improve processes in the business, sports is quite a ways away from AI.

In terms of the financial services and other businesses that we have, we think they are all incredibly -- or we think most of them are very embedded with long-term contracts and in very important parts of their customers' processes. And so we think that those are more sheltered, and they are trying to basically implement AI into their businesses, and all of them are going through processes, looking at where they can be more efficient with AI. And so we feel good about that.

But clearly, they and we are aware of all of the AI risk that's out there and disintermediation and we're trying to be proactive in thinking with them about things that they can do to make their business more secure from that.

The next question will come from Ian Zaffino with Oppenheimer.

I wanted to ask on -- first, you spent a lot of time on -- [indiscernible] and kind of what you've been doing there. How do we think about the valuation of these businesses? Just kind of given -- one, I don't think you at the valuations in a while. So what would that look like if you did update those valuations?

And [indiscernible] you could give us a framework because I know there's been a bunch of at least U.S. assets that have changed hands at kind of astronomical prices. And so wondering how you guys are thinking about valuation of these assets? Whether it's just a revaluation, or then ultimately what they could be worth?

Yes. Thanks, Ian. So I think there's a couple of ways to think about it. The first is, as you look at the sum of the parts, I mentioned this earlier, but we issued some stock in conjunction with the acquisition of FCL, and we issued that at about roughly 12.5% premium to kind of the par value. And so that's what the mark is based on in our sum of the parts. And I think as we think about the value of the business -- again, we continue to think about over time that where other Premier League teams have traded around 3x. There are some public marks that are out there in that and applying that to our business.

I think what we've also tried to do is if you look in some of the disclosure in the shareholder letter, we've tried to provide more detailed financials on all of our investments. But in Black Knight Football, in particular, for this question, which will give investors more details on the financials of the business, the balance sheet, our ownership. There has been some movement in that, given the purchase of the FC Lorient, as well as [indiscernible]. So some of those will be coming in as the financials are updated. There's a 1-month lag on those -- or I'm sorry, 1 quarter lag. But we've tried to give people much more details into the financial implications, which will allow them and us to better think about what that value is.

Okay. And then the next question will be on SpaceX. What should we expect there? I know you have a small investment in there, but how do we think about that? And I guess if this does go public, would that be like a use of funds for you guys? Would it be a source of funds? How will we look at that investment?

Yes. So if you look in our sum of the parts, we actually broke out the space at investment. And so the value that we're using is based on the publicly announced merger that they had with [indiscernible] AI, excuse me. And so I think as we move forward, clearly, we've been -- the business has done very well since we've owned it, it's up significant value from where we bought it.

But if you think about the strategic -- the strategy that we outlined earlier in the call, it seems like it will be a source of cash for us over time.

This concludes our question-and-answer session. I would like to turn the conference back over to Ryan Caswell for any closing remarks.

Thank you, operator. To conclude, while we made progress in 2025, the Board and management are not satisfied with our stock price performance and are executing a new strategic plan to drive long-term value creation. We thank you for your continued support, and we'll update you on our progress as we move forward.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Good afternoon, ladies and gentlemen, and welcome to the Cannae Holdings, Inc. Third Quarter 2025 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 November 24, 2025. With that, I would like to turn the call over to Jamie Lillis of Solebury Strategic Communications. Please go ahead.

Thank you, operator, and all of you for joining us. On the call today, we have Cannae's CEO, Ryan Caswell; and Bryan Coy, our Chief Financial Officer. But before we begin, I would like to remind listeners that this conference call and the Q&A following our remarks may contain forward-looking statements that involve a number of risks and uncertainties. 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, further 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. I would now like to turn the call over to Ryan.

Thank you, Jamie. The Cannae Board and management team remain focused on continuing to execute our strategic plan outlined in February 2024 to generate long-term shareholder value. This plan is focused on optimizing our investment strategy, capital allocation and the management of our portfolio as the foundation for long-term value creation. We continue to make significant progress on each aspect of the plan, including: one, rebalancing our portfolio away from our historical public company investments and redeploying capital in proprietary opportunities with positive cash flows that can deliver outsized returns.

Two, returning capital to our shareholders through share buybacks and dividends; and three, improving the operational performance of Cannae's portfolio companies to increase their underlying values. This was particularly evident and successful in the third quarter. In the third quarter, we continued to rebalance our portfolio away from public company securities, highlighted by the closing of the previously announced acquisition of Dun & Bradstreet to Clearlake Capital, which generated $630 million in proceeds to Cannae. Thus far, $424 million of the proceeds have been used to repurchase $275 million of Cannae shares, repay the $141 million outstanding under our existing margin loan and distribute $8 million in dividends to our shareholders.

Since our announcement of our strategic plan, we have now sold $1.1 billion of public company securities and transitioned our portfolio from 70% public investments when we announced our plan to 20% public investments today. We believe this change is important for our shareholders as our portfolio now consists primarily of proprietary private investments that we believe will generate outsized returns and which our shareholders wouldn't otherwise be able to access but through Cannae. We will continue to transition our portfolio. And over the next few months, specifically, we will look to sell certain noncore assets, both public and private, to take advantage of expiring tax benefits that could generate up to $55 million in cash tax refunds for Cannae while further simplifying our portfolio.

From a capital redeployment perspective, in the third quarter, we closed on the previously announced acquisition of an additional 30% stake in JANA Partners for $67.5 million, which takes our ownership position to 50%. We also invested the remaining $30 million commitment in JANA funds as was agreed in our initial transaction. We remain excited about our partnership with JANA and their ability to grow AUM as well as management and performance fees, which will result in cash distributions to shareholders in which Cannae will participate. We believe JANA will continue to generate attractive investment returns as they have done over their 24-year history as a leader in engaged investing. Cannae also invested $25 million in Black Knight Football after closing the D&B sale, completing our earlier commitment to BKFC's capital raise.

The uses of this new capital include funding operating expenses across the group, the Bournemouth Stadium acquisition and renovation and the acquisition of Moreirense FC as well as other potential strategic team investments. In terms of future capital allocation, the Board has directed management to continue concentrating our efforts in sports and sports-related assets where we have demonstrated a proven and durable competitive advantage. We will leverage our networks to look for opportunities in teams and related assets in the sports ecosystem where we can exert influence, focus on improving cash flows and generate investor returns.

We believe sports is evolving into an institutional asset class as it has demonstrated an ability to generate long-term outsized returns. Cannae is well positioned in the sector with long-term capital and proven experience as evidenced by the value creation at both Black Knight Football and the Vegas Golden Knights, where our Vice Chairman is the majority owner. We will also continue to opportunistically take advantage of our long-standing strengths and networks in consumer and financial services and technology. Since the start of the third quarter, Cannae has continued its strong capital returns to our shareholders through repurchasing $163 million of stock at an average discount to NAV of 31%. Year-to-date, we have now purchased $275 million of our stock or 23% of our shares outstanding at the start of the year.

Furthermore, Cannae has returned $424 million of our $500 million commitment to repurchase shares, repay our margin loan debt and distribute dividends in conjunction with the sale of D&B. As a result, we have $25 million remaining of the $300 million of committed share repurchases and have $52 million earmarked for future quarterly dividends. Since announcing our strategic plan in 2024, we have now returned over $500 million to our shareholders, representing 35% of our shares outstanding at the plan's announcement. This implies that roughly half of the total $1.1 billion in company -- and public company monetizations have gone to share buybacks. During the same time, our share price discount to NAV has narrowed by approximately 20%, and we are confident that this is just the beginning. In the third quarter, we also continue to work with our management teams to create value at our portfolio companies.

As an example, at Black Knight Football, we continue to see strong results both on and off the field. At AFC Bournemouth, we closed the fiscal year with double-digit increases in revenue, driven by continued growth in commercial, coupled with additional revenue associated from our ninth place finish in the Premier League. Bournemouth also had one of the most successful summer transfer seasons in European football and was ranked by Tifosy Capital & Advisory, generating the second highest net transfer proceeds across all European football. We also continue to make progress on our stadium renovation. As discussed before, we acquired Vitality Stadium earlier this year and have started on a 2-phase expansion, which will increase capacity from 11,300 seats to over 20,000 seats, add additional hospitality experiences and further enhance the revenue growth potential of the club.

The first phase is expected to be completed by the start of the '26, '27 season and will increase the stadium seating capacity to 17,000 seats. This improvement in infrastructure follows the opening of AFCB's new performance center earlier this year. Lastly, despite the significant player sales, Bournemouth has continued its strong on-field performance as the team now sits in ninth place in the Premier League after 12 matches. At FC Lorient, the team currently sits in 17th place in League One. We have continued to work with management to better connect FC Lorient with Black Knight to enhance player development and player pathways. We are focused on working to keep the team in League One. We remain excited about the opportunity of FC Lorient within the multi-club with the most recent example being the success of Eli Junior Kroupi at AFC Bournemouth.

He was acquired from FC Lorient and has already seen significant opportunity in Bournemouth, playing in 9 matches with 4 goals. Lastly, our newest majority ownership interest in Moreirense FC of the Primeira Liga in Portugal has started off well. We quickly implemented a strategic plan of evaluating new leadership and hiring a new head coach. We worked closely with their recruiting team over the summer to improve the roster and also invest in players that could move up the Black Knight pyramid. After 11 matches, Moreirense is in sixth position in the table. Alight, our largest remaining public investment, reported total revenue of $533 million in the third quarter, down 4% year-over-year. Despite the modest top line decline, adjusted EBITDA and adjusted EBITDA margin and free cash flow all improved significantly in the third quarter of 2025 compared to the prior year third quarter.

However, management reduced their 2025 forecast ranges for revenue, adjusted EBITDA and free cash flow to the lower end of prior forecast. Alight continued to return cash to shareholders, repurchasing $25 million of its common stock during the quarter and also paid $22 million in dividends to shareholders. The Watkins Company continues to see strong demand for its products. The third quarter was slightly softer than anticipated, but the fourth quarter has started off strong and given the seasonality of the business will be critical for full year results. We hired a new Head of Sales and remain excited about the business and the initiatives to drive growth and margin. I'll now turn the call over to Bryan to touch on our financial position.

Thank you, Ryan. Cannae's operating revenue was $107 million for the third quarter of 2025, down $7 million from $114 million in the third quarter of the prior year. This was driven by reduced guest counts on a same-store basis and 10 fewer restaurant locations, partially offset by higher average checks per guest at both brands. Nearly all the location reductions were in the O'Charley's brand as the 99 continues to generate same-store revenues at flat or slightly down levels year-over-year, which is in line with the Baird real-time restaurant survey results for the casual dining segment. Cannae's total operating expenses decreased by $12 million in the third quarter of 2025 to $120 million.

Approximately $5 million of the decrease is directly related to the restaurant group location and operating cost reductions. $3 million is from the ISIP fees in the prior year's totals as Cannae monetized its remaining Dayforce shares and terminated the ISIP plan and $2 million of the reduction is from termination of the external management agreement earlier this year. Cannae's net recognized gains were $8 million in the current year third quarter, down $15 million from the prior year comparable period. This reflects lower mark-to-market gains on Paysafe, offset in part by a pickup on JANA funds and other items.

Cannae's equity and losses of unconsolidated affiliates was $57 million in the third quarter of 2025 compared to $25 million in the third quarter of prior year. The change was driven by our share of Alight's goodwill impairment and partially offset by record player trading profits at Black Knight Football. As Ryan discussed above, our margin loan was fully repaid in conjunction with the D&B sale. Concurrently, we amended the margin loan to reflect Alight as the sole collateral, lowered the interest rate spread by 35 basis points and extended the maturity to 2028. Now Cannae's only corporate debt outstanding is the fixed rate term loan that matures in 2030, which has $47.5 million outstanding after our $12 million paydown earlier this year. That concludes our prepared remarks, and we'll be happy to take questions.

And your first question today will come from Kenneth Lee with RBC Capital Markets.

First one, about the potential tax benefits. I assume they're priced from NOLs. And in terms of the potential investment monetizations that you could look at over the next few months, would you be driven mainly on unrealized gains? Or are there any other criteria that you could talk about there?

Yes, of course. Yes. So the tax assets that we're referring to are some historical gains that we have where we could utilize losses to get a refund from those taxes. So part of that will be looking to monetize assets where we have losses to realize the loss to generate the tax refund. Does that make sense, Ken?

Yes, that makes sense. That makes sense. And then any criteria you would look at when potentially -- it sounds like you would then look at mainly unrealized losses more than anything.

Yes, per asset. I think in the near term, we'd be most focused on realizing some unrealized losses to take advantage of it. And then I think we'll continue kind of to monitor our broader portfolio to monetize assets that we think are less strategic today.

Got you. Helpful there. One follow-up, if I may. I noticed within the latest sum of the parts within the other investments, you also list some additional new investments, I think, in SpaceX and [ Persada ] Resorts. Wondering if you could talk a little bit more about some of these investments, the relative size of the holdings. I assume it's probably somewhere around $30 million in total. Where were they sourced? And what are the expected returns and opportunities here?

Yes. I think -- so with the investments that you're referring to, all of those have been in there for a while. Maybe we've updated the footnote recently. But none of those are new investments. And I think going back to your other question, as we look at kind of what's more strategic and less strategic, I would think some of those smaller assets would be ones that we would look to monetize. But I don't think there's been change. It might have just been the footnote that changed at some point.

Got you. Very helpful there. One last question for me. More broadly, how do you view the risk of AI on the fintech and software space. Obviously, you have a lot of investments within that space and a lot of them were made a while back before AI started really growing. So how do you assess that risk? And how do you think about that, the potential impact on the portfolio companies there?

We look at AI more broadly like everyone is doing across their portfolio. You're right in saying that some of the businesses -- or we made the investments before. I think that AI was as popular as big of a thing as it is today. Look, we tried to make investments in businesses with good kind of market share and what we thought were defensible moats. I think for most of those businesses, they are trying to deploy AI in their processes and leverage AI as best they can. So we don't see -- any business in our portfolio, we don't see that AI is going to make it obsolete. But I do think that like all businesses and like that we do at Cannae, we're trying to think of ways to more efficiently -- or for the business to more efficiently leverage AI in its workflow processes and relationships with consumer, could that improve revenue, could it improve margins. So hopefully, that helps.

And your next question today will come from Ian Zaffino with Oppenheimer.

This is Isaac Sellhausen on for Ian. I guess just a follow-up to the previous one on divesting noncore assets. And as you continue to monetize those, I guess the question would be, how do you view returning that capital or proceeds via the buyback or dividend versus continuing to invest behind Black Knight Football and the sports assets?

Yes. Look, since we initiated our strategic plan in February 2024, we've returned about $500 million of capital to shareholders. So clearly, we have and will continue to be very focused on capital returns. I think we have about $25 million of the $300 million that we initially -- we set out with the sale of D&B. And as we look to monetize assets in the future, I think each time we will evaluate kind of the merits of investing, buying back more stock or does it make sense to look at new investments. And so that's kind of the process that we will do. But again, I think if you look historically, we've obviously been very focused on capital returns to shareholders, and that's clearly something we'll think about. And we obviously have the dividend in place today, which generates a consistent capital return to our shareholders.

Okay. Great. And then just as a quick follow-up on AMC Bournemouth and the stadium. Maybe if you could provide just a quick update as far as the renovation expansion activity and I guess, maybe a time line for completion there?

Yes. So we're -- we've started the first phase of the renovation. That will take the stadium up to about from a little over 11,000 to 17,000. More importantly, though, it will take hospitality above 1,300, and it will take with kind of premium GA above 2,000, which we really have very limited of today. So we're very excited about the first stage. And again, I think we've said it before, but that's kind of a -- we believe that's going to be kind of a mid-teens type return on invested capital. So we think we try to be very conservative and thoughtful around the renovation.

The first phase of that is supposed to open at the beginning of next season. And then the second phase will open at the beginning of the following season, and that will take it up to 20,000. We've started on improving a bunch of the hospitality areas, and we're doing a modular build. So we've started to deal with all of the contractors who will be doing that. So it's all moving along. I think the big push will be kind of at the start of next year through the summertime when the season ends and then you can start installing all of this. But thus far, we generally seem to be on track. There's some approval and planning processes that we have that we are continuing to go through. But overall, we're very excited and optimistic as it goes forward.

This concludes our question-and-answer session. I would like to turn the conference back over to Ryan Caswell for any closing remarks.

To conclude, we have maintained our focus on executing the strategic plan we initiated in February 2024, and we are pleased with the progress we've made and the results that have followed. We are excited about the direction our Board has set and the foundation we have built for long-term value creation. Thank you for your support.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.