Cannae Holdings, Inc. (NYSE: CNNE) is a financial holding company that primarily acquires interests in operating companies while actively managing a core group of these businesses. The company aims to enhance the value of its portfolio through long-term ownership and involvement in their operations.

Cannae is currently stable, with signs of significant activity and capital reallocation. For the first quarter of 2025, Cannae reported total operating revenue of $103 million, a decline of 7% from $110.7 million in the prior year. This revenue drop was attributed mainly to lower restaurant revenue, including the closure of five stores, which represents a 3% decrease in total store count year-over-year.

The company posted an operating loss of $21.4 million in Q1 2025, improved from the $40.6 million loss in Q1 2024. Total operating expenses decreased to $124.6 million, down from $151.3 million during the same period the previous year.

Cannae’s net loss attributable to common shareholders was reported at $113 million, primarily driven by net losses from discontinued operations amounting to $76.3 million. Net loss per share was $1.81 compared to $1.27 in the prior year.

Adjusted EBITDA for Cannae’s portfolio companies grew significantly. Dun & Bradstreet (D&B) reported first-quarter revenue of $580 million, reflecting a 3.6% year-over-year organic growth, with adjusted EBITDA reaching $211 million, up 4.8% from the prior year. Alight’s total revenue for Q1 was $548 million, a decrease of 2% from the previous year’s comparable period, with adjusted EBITDA improving slightly to $118 million, a $2 million increase compared to the first quarter of 2024.

Cannae’s investment in D&B is notable, as it is expected to provide proceeds of $632 million from its upcoming acquisition by Clearlake Capital, with plans to allocate at least $460 million of these proceeds for share repurchases, dividends, and debt repayment. Specifically, it intends to utilize at least $300 million for share repurchases and $101 million for margin loan repayment.

Looking ahead, Cannae affirmed its commitment to return capital to shareholders, continuing its strategic focus on rebalancing its investment portfolio. The company expects that the anticipated completion of D&B’s acquisition will significantly enhance its financial flexibility.

The update on its investment in JANA Partners reveals a new agreement to acquire an additional 30% stake for $67.5 million, increasing its ownership to 50%. Additionally, Cannae’s strategic partnership with JANA is meant to provide further capital allocation opportunities for proprietary acquisitions within its portfolio.

In summary, Cannae Holdings is navigating its operational environment with a focus on strategic capital deployment while managing a portfolio that is showing resilience in certain areas, significantly in its public investments.