Carronade Capital poses questions ahead of Cannae earnings call

Published 11/08/2025, 18:06
Carronade Capital poses questions ahead of Cannae earnings call

NEW YORK - Investment firm Carronade Capital Management, which owns approximately 3.2 million shares of Cannae Holdings, Inc. (NYSE:CNNE), has publicly released a set of questions it wants addressed during the company’s second quarter 2025 earnings call scheduled for Monday. According to InvestingPro data, Cannae currently has a market capitalization of $1.26 billion and appears undervalued based on its Fair Value analysis.

The firm, representing one of Cannae’s largest shareholders, is seeking answers regarding the timing of Cannae’s delayed annual meeting, details about Chairman Bill Foley’s new Director Services Agreement, plans for returning proceeds from the Dun & Bradstreet sale, and strategies for monetizing other investments.

Carronade expressed disappointment with what it described as "lack of transparency, responsiveness and engagement" from Cannae and its board. The investment firm noted that since its public engagement began on March 20, Cannae’s stock has risen 18%, which it attributes partly to the company’s initiation of share repurchases. This aligns with an InvestingPro tip highlighting management’s aggressive share buyback program, though the company faces profitability challenges with negative EBITDA of $60 million in the last twelve months.

According to the statement, Cannae previously committed to returning at least $300 million to shareholders from the Dun & Bradstreet sale proceeds, with approximately one-third of the planned buyback already completed.

Carronade Capital indicated it plans to seek board representation at Cannae’s 2025 annual meeting, which it claims has been delayed for nearly 14 months. The firm has nominated four candidates: Mona Aboelnaga, Benjamin Duster, Dennis Prieto and Cherie Schaible.

The investment firm reported that Cannae’s total shareholder return was -5% from inception until Carronade’s engagement, compared to its peer group performance. For deeper insights into Cannae’s financial health, valuation metrics, and comprehensive analysis, investors can access the detailed Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.

Carronade Capital Management, founded in 2019 by Dan Gropper and launched in July 2020, manages approximately $2.5 billion in assets according to the press release statement.

In other recent news, Cannae Holdings reported its first-quarter 2025 financial results, which fell short of market expectations. The company’s earnings per share (EPS) was -1.81, significantly missing the forecasted -0.32. Revenue also underperformed, coming in at $103.2 million, compared to the anticipated $108.35 million. Additionally, Cannae Holdings announced a change in its independent registered public accounting firm. The Audit Committee approved the dismissal of Deloitte & Touche LLP and appointed Grant Thornton LLP as the new auditor for the fiscal year ending December 31, 2025. This transition became effective after Grant Thornton completed its client acceptance procedures. The financial statements for the previous years, audited by Deloitte, were not qualified or modified in any way. These developments reflect the latest updates for investors following Cannae Holdings.

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