Q3 2025 Cannae Holdings Inc Earnings Call
Listen only mode.
Following the Companys prepared remarks, the conference will be opened for questions with instructions to follow at that time.
Speaker #1: Good afternoon, ladies and gentlemen, and welcome to the Cannae Holdings Inc. Q3 2025 financial results conference call. During today's presentation, all parties will be in a listen-only mode.
As a reminder, this conference call is being recorded and a replay is available through 11 59 PM Eastern time on November 24th 2025.
Speaker #1: Following the company's prepared remarks, the conference will be open for questions, with instructions to follow at that time. As a reminder, this conference call is being recorded, and a replay is available through 11:59 PM Eastern Time on November 24, 2025.
With that I would like to turn the call over to Jamie Lillis of sold very strategic Communications. Please go ahead.
Thank you operator, and all of you for joining us on the call today, we have <unk> CEO, Ryan <unk>, and Brian <unk>, our Chief Financial Officer.
Speaker #1: With that, I would like to turn the call over to Jamie Lillis of Solberry Strategic Communications. Please go ahead.
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.
Speaker #2: 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.
That are not historical facts, including statements about <unk> expectations hopes.
Speaker #2: 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 involves a number of risks and uncertainties.
<unk> our 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.
Speaker #2: 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.
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.
Speaker #2: 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 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.
Speaker #2: 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.
All 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.
Speaker #2: 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.
Thank you Jamie.
The <unk> Board and management team remain focused on continuing to execute our strategic plan outlined in February 2024 to generate long term shareholder value.
Speaker #2: I would now like to turn the call over to Ryan.
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.
Speaker #3: Thank you, Team remain focused on continuing to execute our strategic plan outlined 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 to returning capital to our shareholders through share.
Speaker #3: 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.
Backs and dividend and three improving the operational performance of <unk> 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 <unk> Bradstreet to Clearlake capital, which generated $630 million in proceeds to can I.
Speaker #3: 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 Clear Lake Capital, which generated $630 million in proceeds to Cannae.
Thus far <unk> $424 million of the proceeds have been used to repurchase $275 million of Chennai ishares repay the $141 million outstanding under our existing margin loan and distribute $8 million in dividends to our shareholders.
Speaker #3: 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 companies Securities and transitioned our portfolio from 70% public investments when we announced our plan to 20% public investments today.
Speaker #3: 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 in which our shareholders wouldn't otherwise be able to access but through P&I.
Speaker #3: 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 non core assets, both public and private to take advantage of expiring tax benefits that could generate up to $55 million in cash tax refunds for kanai, while further simplifying our portfolio.
Speaker #3: We will continue to transition our portfolio, and over the next few months, specifically, we will look to sell certain non-core 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%.
Speaker #3: From a capital redeployment perspective, in the third quarter, we closed on the previously announced acquisition of an additional 30% stake in Gianna Partners for $67.5 million.
We also invested the remaining $30 million commitment in <unk> as it was agreed in our initial transaction.
We remain excited about our partnership with China, and their ability to grow AUM as well as management and performance fees, which will result in cash distributions to shareholders and which can I will participate.
Speaker #3: Which takes our ownership position to 50%. We also invested the remaining $30 million commitment in Gianna Funds, as was agreed in our initial transaction.
We believe Jana will continue to generate attractive investment returns as they have done over their 24 year history as a leading as a leader in engaged investing.
Speaker #3: We remain excited about our partnership with Gianna 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.
Can I also invested $25 million in Black Knight football after closing the <unk> sale.
Speaker #3: We believe Gianna will continue to generate attractive investment returns as they have done over their 24-year history as a leading and engaged investing. Cannae also invested $25 million in Black Knight Football after closing the D&B sale.
Completing our earlier commitment to <unk> capital raise the uses of this new capital include funding operating expenses across the group.
The Board MS Stadium acquisition and renovation.
And the <unk> acquisition of Morientes, IFC as well as other potential strategic team investments.
Speaker #3: Completing our earlier commitment to BKFC's capital raise, the uses of this new capital include funding operating expenses across the group, the board-mandated stadium acquisition and renovation, and the acquisition of Moriente 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.
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 add expert influence focus on improving cash flows and generate investor returns. We believe sports is evolving into an institutional asset class.
Speaker #3: 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.
Speaker #3: 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.
As it has demonstrated an ability to generate long term outsized returns can I 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.
Speaker #3: 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 longstanding strengths and networks and consumer and financial services and technology.
Since the start start of the third quarter <unk> has continued its strong capital returns to our shareholders through repurchasing of $163 million of stock at an average discount to NAV of 31%.
Speaker #3: We will also continue to opportunistically take advantage of our long-standing strengths and network 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, <unk> has returned $424 million of our $500 million commitment to repurchase shares repay our margin loan debt and distribute dividends in conjunction with.
Speaker #3: 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.
The sale of Dnb as a result, we have 25 million remaining of the $300 million.
<unk> $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 plans announcements. This implies that roughly half of the total $1 1 billion in company and public company monetization have gone to share buybacks during the same.
Speaker #3: 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.
Speaker #3: 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.
In time, our share price discount to NAV has narrowed by approximately 20% and we are confident that this is just the beginning.
Speaker #3: This implies that roughly half of the total $1.1 billion in company and public company monetizations have gone to share buybacks. During this 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 continued to work with our management teams to create value with our portfolio companies. As an example at Black Knight profile, we continue to see strong results both on and off the field.
At AFC Bornemann, 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 Board must also had one of the most successful summer transferred seasons in European football.
Speaker #3: 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.
Speaker #3: 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.
And was ranked by <unk> capital and advisory is generating the second highest net transfer proceeds across all European football. We also to continue to make progress on our stadium renovation as discussed before we acquired vitality Stadium earlier this year and have started on a two phase expansion, which will increase capacity from 11.
Speaker #3: Bournemouth also had one of the most successful summer transfer seasons in European football and was ranked by Tifosi Capital and Advisory as generating the second highest net transfer proceeds across all European football.
<unk> thousand 300 seats to over 20000 seats add additional hospitality experience experiences and further enhance the revenue growth potential of the club. The first phase is expected to be completed by the start of the 'twenty six 'twenty seven season.
Speaker #3: 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 two-phase expansion, which will increase capacity from 11,300 seats to over 20,000 seats at additional hospitality experience and further enhance the revenue growth potential of the club.
We'll increase the stadium seating capacity to 17000 seats.
This improvement in infrastructure follows the opening of <unk> New performance Center earlier. This year lastly, despite the significant player sales Bornemann has continued its strong on field performance as the team now sits in ninth place in the Premier League after 12 matches.
Speaker #3: The first phase is expected to be completed by the start of the 2026-2027 season and will increase the stadium seating capacity to 17,000 seats.
Speaker #3: 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 SCE Lori and the team currently sits in 17 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.
We are focused on on working to keep the team and league. One we remain excited about the opportunity of Este Lauder and within the multi club with the most recent example, being the success of <unk>.
Speaker #3: 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.
Eli Junior Crupi at AFC Bornemann. He was acquired from FCA Lorean and has already seen significant opportunity in Bournemouth playing in nine matches with four goals.
Speaker #3: 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 Jr.
Lastly, our newest majority ownership interest in Morientes AFC of <unk>.
Speaker #3: Krupy at AFC Bournemouth. He was acquired from FC Lorient and has already seen significant opportunity in Bournemouth playing in nine matches with four goals.
Primarily <unk> in Portugal has started off well, we clipped 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.
Speaker #3: Lastly, our newest majority ownership interest in Moriente FC of the Premier League in Portugal has started off well. We quickly implemented a strategic plan of evaluating new leadership and hiring a new head coach.
After 11 matches.
Marianne say than six position in the table.
Speaker #3: 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.
Alight, our largest remaining public investment reported total revenue of $533 million in the third quarter.
Speaker #3: After 11 matches, Moriente is in sixth position in the table. Alike, our largest remaining public investment reported total revenue of $533 million in the third quarter, down 4% year over year.
One 4% year over year, despite the modest topline 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.
However.
Speaker #3: 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.
Management reduced their 2025 forecast ranges for revenue adjusted EBITDA and free cash flow to the lower end of prior forecast.
Our lives continue to return cash to shareholders repurchasing $25 million of its common stock during the quarter and also paid $22 million in dividends to shareholders.
Speaker #3: However, management reduced their 2025 forecast ranges for revenue, adjusted EBITDA, and free cash flow to the lower end of prior forecasts. Alike, continued to return cash to shareholders, repurchasing 25 million of its common stock during the quarter.
The Watkins company continues to see strong demands 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.
Speaker #3: And also paid $22 million in dividends to shareholders. The Watkins Company, continues to see strong demands 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.
Now I'll turn the call over to Brian to touch on our financial position.
Thank you Ryan.
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 guests at both brands.
Speaker #3: 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 Brian to touch on our financial position.
Speaker #2: 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.
Really all the location reductions were in the <unk> 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 bird realtime restaurants survey results for the casual dining segment.
Speaker #2: This was driven by reduced guest counts on the same store basis and 10 fewer restaurant locations. Partially offset by higher average checks per guest at both brands.
Speaker #2: Nearly all the location reductions were in the O'Charlie'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 bared real-time restaurant survey results for the casual dining segment.
Can I as total operating expenses decreased by $12 million in the third quarter of 2000 $25 million to $120 million.
<unk> 5 million of the decrease is directly related to the restaurant group location and operating cost reductions.
Speaker #2: 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 from the ice of fees in the prior year's totals is can I monetized its remaining day for shares and terminated the ice at plan and $2 million of the reduction is from termination of the external management agreement earlier this year.
Speaker #2: $3 million is from the ISIP fees in the prior year's totals, as Cannae monetized its remaining day-four shares and terminated the ISIP plan.
<unk> 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 pay safe offset in part by a pick up on Jain of funds and other items.
Speaker #2: 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.
<unk> 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 lights goodwill impairment and partially offset by record player trading profits at Black Knight football.
Speaker #2: This reflects lower market-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.
As Ryan discussed above our margin loan was fully repaid in conjunction with the Dnb sale.
Speaker #2: 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.
Currently we amended the margin loan to reflect the light as the sole collateral lowered the interest rate spread by 35 basis points and extended the maturity to 2028.
Now can I is the only corporate out debt outstanding is the fixed rate term loan that matures in 2030, which is 47 5 million outstanding after our $12 million Paydown earlier this year.
Speaker #2: 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.
That concludes our prepared remarks, and we'll be happy to take questions.
Speaker #2: 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.
We will now begin the question and answer session.
Ask a question you May press Star then one on your Touchtone phone.
You are using a speakerphone please pick up your handset before pressing the keys.
Speaker #2: That concludes our prepared remarks and we'll be happy to take questions.
If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.
Speaker #3: We will now begin the question and answer session. To ask a question, you may press star, then one on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys.
And your first question today will come from Kenneth Lee with RBC capital markets. Please go ahead.
Speaker #3: If at any time your question has been addressed and you would like to withdraw your question, please press star, then two. And your first question today will come from Kenneth Lee with RBC Capital Markets.
Hey, good afternoon, and thanks for taking my question.
First one about the potential tax benefits.
I assume they're probably from Nols.
Speaker #3: Please go ahead.
And in terms of the potential investment monetization that you could look at it over the next few months.
Speaker #4: Hey, good afternoon and thanks for taking my question. First one, about the potential tax benefits I assume they're probably 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?
Would you be driven mainly on unrealized gains or are there any other criteria that you could talk about there. Thanks.
Yes of course.
Yes, so the.
The tax.
The tax assets that were referring to are some historical gains that we have where we could utilize losses to get a refund from those taxes.
Speaker #4: Thanks.
Speaker #5: Yeah, of course. 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 we'll be looking to monetize assets, where we have losses to realize the loss to generate the.
The tax the tax refund does that makes sense Ken.
Speaker #5: 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 potentially it sounds like you would then look at mainly.
Unrealized losses.
Speaker #4: Yep, 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, correct I think in the near term we'd be we'd be most focused on realizing some unrealized losses to take advantage of it and then I think we will continue to monitor our broader portfolio.
Two.
Speaker #5: Yeah, correct. 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.
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 lists some additional new investments I think in Spacex and Prasad resorts.
Speaker #4: Gotcha. Helpful there. One follow-up, if I may. I noticed within the latest some of the parts within the other investments, you also list some additional new investments, I think, in SpaceX and in Prasada Resorts.
I'm 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.
Or would they source and what are the expected returns and opportunities here. Thanks.
Speaker #4: 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.
Yes, I think so.
So with the investments that you are referring to all of those have been in there for a while maybe we've updated the footnote recently, but none of those are 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.
Speaker #4: Where were they sourced, and what are the expected returns and opportunities here? Thanks.
Speaker #5: Yeah, 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.
Ones that we would look to monetize but I don't think theres been changed it might've just been as a footnote that.
Speaker #5: 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.
That changed at some point.
Got you very helpful. There one last question for me.
More broadly.
How do you view.
Speaker #5: But I don't think there's been change that might have just been as the footnote that changed at some point.
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.
Speaker #4: Gotcha. Very helpful there. One last question for me. More broadly, how do you view the risk of AI on the fintech and software space?
A while back before.
I started really growing so how do you assess that risk and how do you think about that.
Speaker #4: 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.
Your impact on the portfolio companies there. Thanks.
We look at we look at AI more broadly like everyone is doing across their portfolio.
Speaker #4: So, how do you assess that risk, and how do you think about the potential impact on the portfolio companies there? Thanks.
You are right in saying that some of the businesses are we made the investments before.
I think that.
Speaker #5: 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 or as big of a thing as it is today.
I was 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 moat I think for most of those businesses.
They are trying to deploy AI in their in their processes and leverage AI as best they can.
Speaker #5: 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 we don't see in any of 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 can I.
We're trying to think of ways to more efficiently for the business to more efficiently leverage AI and its workflow processes and relationships with consumer could that improve revenue could improve margins.
Speaker #5: So we don't see in any business of 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, relationships with consumer, could that improve revenue, could it improve margins?
So hopefully that helps.
That's very helpful. Thanks.
Thanks again.
And your next question today will come from Ian Zaffino with Oppenheimer. Please go ahead.
Speaker #5: So hopefully that helps.
Hey, good afternoon. This is <unk> on for Ian Thanks for taking the questions.
Speaker #4: That's very helpful. Thanks again.
I guess, just a follow up to the previous one on on divesting non core assets.
Speaker #3: And your next question today will come from Ian Zaffino with Oppenheimer. Please go ahead.
As you continue to monitor monetize those I guess the question would be how do you view of returning that capital or proceeds via buyback or dividends.
Speaker #6: Hey, good afternoon. This is Isaac Salazan on for Ian. Thanks for taking the questions. I guess just a follow-up to the previous one on divesting non-core assets and as you continue to monitorize 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 sports assets. Thanks.
Yes.
Look since we since we initiated our strategic plan in February 2024, we've returned about $500 million of capital to shareholders. So clearly we have and we will continue to be very focused on capital returns I think we have about <unk>.
Speaker #6: Versus continuing to invest behind Black Knight Football and the sports assets. Thanks.
Speaker #5: Yeah. 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.
$25 million of the of the $300 million that we initially we.
We set out with the sale of Dnb.
And as we as we look to monetize assets in the future I think each time, we will we will evaluate kind of the merits of investing buying back more stock or does it make sense to look at new investments.
Speaker #5: I think we have about $25 million of the $300 million that we initially set out with the sale of D&B. As we look to monetize assets in the future, I think each time we will evaluate the merits of investing in buying back more stock or whether it makes sense to look at new investments.
And so that's kind of the process that we will that we will do but again I think if you look historically, we've we've obviously.
<unk> been very focused on capital returns to shareholders.
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.
Speaker #5: 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.
Okay, Great and then just as a quick follow up on on AFC born mess in the stadia, maybe if you could provide just a quick update as far as the renovation expansion and activity.
Speaker #5: And we obviously have the dividend in place today, which generates a consistent capital return to our shareholders.
And I guess, maybe a timeline for completion there. Thank you.
Speaker #6: Okay, great. And then just as a quick follow-up on AFC Bournemouth and the stadium, maybe if you could provide just a quick update. As far as the renovation and expansion activity, and I guess maybe a timeline for completion there.
Yes, so we're on.
We have started the first phase of the renovation.
That will take the stadium up to about from a little over 11000 to 17000 more importantly, though.
Speaker #6: Thank you.
Speaker #5: Yep. Yeah. So 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'll take hospitality above 1,300 and it'll take kind of premium GA above 2,000, which we really have very limited of today.
It will take hospitality above 1300 initial take.
What kind of premium <unk> above 2000, 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 we believe that's going to be kind of a mid teens.
Type type return on invested capital.
So we think it's we think we tried to be very <unk>.
Conservative and thoughtful around around the renovation the first phase of that is supposed to work.
Start is supposed to open at the beginning of next season and then the second phase will open in the beginning of the following season and that will take it up to 20000.
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 it's all moving along.
I think the big push will be kind.
Kind of at the start of next year through the summer time when the season ends and then you can start installing all of this but thus far.
Generally seem to be on track. There is some there is some approval and planning processes that we have that we are continuing to go through but overall we.
We're very excited and optimistic.
As it goes forward.
Great. Thank you very much.
This concludes our question and answer session I would like to turn the conference back over to Brian <unk> 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 of 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.