The company's restaurant portfolio continues to struggle with structural margin compression, evidenced by a 2026Q1 operating margin of -23.0% and a consistent top-line revenue decline of 6.8% year-over-year.
| Sales/Revenue | 416.6M | 423.6M | 452.5M | 570M | 662.1M | 742.2M | 585.7M | 1.07B | 1.21B | 1.17B | 1.18B | 1.41B |
| Revenue Growth % | -6.38% | -6.39% | -20.61% | -13.91% | -10.79% | 26.72% | -45.26% | -11.23% | 3.07% | -0.76% | -16.7% | - |
| Cost of Goods Sold | 404.7M | 369.9M | 449.6M | 527M | 630.9M | 697.5M | 619.1M | 1B | 1.16B | 1.09B | 1.05B | 1.28B |
| COGS % of Revenue | - | 87.32% | 99.36% | 92.46% | 95.29% | 93.98% | 105.7% | 93.75% | 96.37% | 93.56% | 89.31% | 90.52% |
| Gross Profit | 11.9M | 53.7M | 2.9M | 43M | 31.2M | 44.7M | -33.4M | 66.9M | 43.8M | 75.3M | 126M | 134.1M |
| Gross Margin % | 2.86% | 12.68% | 0.64% | 7.54% | 4.71% | 6.02% | -5.7% | 6.25% | 3.63% | 6.44% | 10.69% | 9.48% |
| Gross Profit Growth % | - | 1751.72% | -93.26% | 37.82% | -30.2% | 233.83% | -149.93% | 52.74% | -41.83% | -40.24% | -6.04% | - |
| Operating Expenses | 132.2M | 173.3M | 106.6M | 161.9M | 175.8M | 178.2M | 155.1M | 174.1M | 166.9M | 153.7M | 128.2M | 146.2M |
| OpEx % of Revenue | - | 40.91% | 23.56% | 28.4% | 26.55% | 24.01% | 26.48% | 16.27% | 13.85% | 13.14% | 10.88% | 10.33% |
| Selling, General & Admin | 31.8M | 0 | 0 | 17.5M | 212.5M | 231.1M | 0 | 109.7M | 215.1M | 103.2M | 151.8M | 85.4M |
| SG&A % of Revenue | - | - | - | 3.07% | 32.09% | 31.14% | - | 10.25% | 17.84% | 8.82% | 12.88% | 6.04% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 31.1M |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | 2.2% |
| Other Operating Expenses | 3M | 173.3M | 106.6M | 144.4M | -36.7M | -52.9M | 155.1M | 64.4M | 166.8M | 4.9M | 9.3M | 11.8M |
| Operating Income | -120.3M | -119.6M | -103.7M | -118.9M | -144.6M | -133.5M | -188.5M | -107.2M | -149.8M | -78.4M | -2.2M | -12.1M |
| Operating Margin % | -28.88% | -28.23% | -22.92% | -20.86% | -21.84% | -17.99% | -32.18% | -10.02% | -12.43% | -6.7% | -0.19% | -0.86% |
| Operating Income Growth % | - | -15.33% | 12.78% | 17.77% | -8.31% | 29.18% | -75.84% | 28.44% | -91.07% | -3463.64% | 81.82% | - |
| EBITDA | 1.3M | -100.3M | -75.9M | -80.6M | -100M | -84.3M | -132.7M | -27.7M | -103.5M | -29.1M | 42.5M | 53.4M |
| EBITDA Margin % | 0.31% | -23.68% | -16.77% | -14.14% | -15.1% | -11.36% | -22.66% | -2.59% | -8.59% | -2.49% | 3.61% | 3.77% |
| EBITDA Growth % | 102.28% | -32.15% | 5.83% | 19.4% | -18.62% | 36.47% | -379.06% | 73.24% | -255.67% | -168.47% | -20.41% | - |
| D&A (Non-Cash Add-back) | 121.6M | 19.3M | 27.8M | 38.3M | 44.6M | 49.2M | 55.8M | 79.5M | 46.3M | 49.3M | 44.7M | 65.5M |
| EBIT | -313.8M | -403.6M | -252.3M | -189.2M | -323.3M | -423.2M | 2.19B | 255.7M | 27.3M | -67.3M | 10.4M | 1.7M |
| Net Interest Income | 400K | -2.3M | -7M | -4.3M | -9.8M | 11.3M | 8.2M | -2.2M | 1.6M | -1.7M | -1.9M | -3.5M |
| Interest Income | 10.8M | 8.1M | 4.6M | 13.6M | 2.5M | 21.1M | 17.2M | 15.6M | 6.3M | 5.3M | 3.3M | 2M |
| Interest Expense | 10.4M | 10.4M | 11.6M | 17.9M | 12.3M | 9.8M | 9M | 17.8M | 4.7M | 7M | 5.2M | 5.5M |
| Other Income/Expense | -310.5M | -294.4M | -206.8M | -282.2M | -374.9M | -226.9M | 2.43B | 139.3M | 152.3M | 3.2M | 7.4M | 8.3M |
| Pretax Income | -430.8M | -414M | -310.5M | -401.1M | -519.5M | -360.4M | 2.24B | 237.9M | 18.6M | -75.2M | 5.2M | -3.8M |
| Pretax Margin % | -103.41% | -97.73% | -68.62% | -70.37% | -78.46% | -48.56% | 382.62% | 22.23% | 1.54% | -6.43% | 0.44% | -0.27% |
| Income Tax | -6.7M | 13M | -400K | -77M | -89.9M | -74M | 481.2M | 24.2M | 13.1M | -16.6M | -10.4M | -19.7M |
| Effective Tax Rate % | 1.56% | -3.14% | 0.13% | 19.2% | 17.31% | 20.53% | 21.47% | 10.17% | 70.43% | 22.07% | -200% | 518.42% |
| Net Income | -432.3M | -513.2M | -304.6M | -313.4M | -428.1M | -287M | 1.79B | 46.8M | 27.6M | 108.8M | -12.4M | -22.9M |
| Net Margin % | -103.77% | -121.15% | -67.31% | -54.98% | -64.66% | -38.67% | 304.97% | 4.37% | 2.29% | 9.3% | -1.05% | -1.62% |
| Net Income Growth % | -31.92% | -68.48% | 2.81% | 26.79% | -49.16% | -116.07% | 3716.67% | 69.57% | -74.63% | 977.42% | 45.85% | - |
| Net Income (Continuing) | -424.1M | -427M | -310.1M | -324.1M | -429.6M | -286.4M | 1.76B | 98.6M | -8.5M | -58.6M | -13.9M | 18.7M |
| Discontinued Operations | -2M | -97.9M | 0 | 0 | 0 | 0 | 0 | -51.8M | -2.1M | 149.2M | 0 | 0 |
| Minority Interest | -36.5M | -32.9M | -21.2M | -15.3M | -3.9M | 5.8M | 5.6M | 41.3M | 75.1M | 93.7M | 116.3M | 113.6M |
| EPS (Diluted) | -9.42 | -9.08 | -4.73 | -4.27 | -5.25 | -3.19 | 20.79 | 2.95 | 0.39 | 1.54 | -0.17 | -0.32 |
| EPS Growth % | -48.48% | -91.97% | -10.77% | 18.67% | -64.58% | -115.34% | 604.75% | 656.41% | -74.68% | 1005.88% | 46.88% | - |
| EPS (Basic) | - | -9.08 | -4.73 | -4.27 | -5.25 | -3.19 | 20.84 | 2.96 | 0.39 | 1.54 | -0.18 | -0.32 |
| Diluted Shares Outstanding | 45.9M | 56.5M | 64.4M | 73.4M | 81.6M | 90.1M | 85.9M | 72.4M | 71.3M | 70.6M | 70.86M | 70.86M |
| Basic Shares Outstanding | 45.9M | 56.5M | 64.4M | 73.4M | 81.6M | 90.1M | 85.7M | 72.2M | 71.2M | 70.6M | 70.6M | 70.57M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - |
Persistent Operational Cash Burn
As reported in recent financial filings, CNNE has experienced a consistent decline in quarterly revenue, with the most recent period showing a 6.8% year-over-year contraction to $96.2 million, signaling significant challenges in stabilizing the footprint of its consolidated restaurant portfolio amidst a difficult consumer environment.
The persistent negative revenue growth suggests that the company's core restaurant assets are struggling to maintain market share or are undergoing intentional downsizing. Investors should monitor whether this trend reflects a strategic pivot away from legacy dining or an inability to compete in a high-inflation, low-traffic environment.
Based on the provided income statement data, CNNE's gross margin has fluctuated significantly, reaching a low of -15.2% in 2025Q2 and currently hovering at 10.1%, which indicates a lack of pricing power and high sensitivity to input cost volatility within its restaurant operations.
The inability to maintain consistent positive gross margins suggests that the company's cost structure is ill-equipped to absorb inflationary pressures. This volatility appears to be a structural impediment to achieving profitability, as the thin margins leave virtually no buffer for operational inefficiencies or unexpected supply chain disruptions.
According to historical income statements, CNNE's net income is characterized by extreme volatility, including a net margin of -121.15% in recent periods, which suggests that reported earnings are heavily influenced by non-cash mark-to-market adjustments on public equity holdings rather than core operational performance.
The disconnect between operating losses and net income volatility warrants further investigation into the accounting treatment of minority stakes. Investors should be cautious in using net income as a proxy for cash-generating capability, as the figures appear to be distorted by the valuation swings of the underlying investment portfolio.
Data from the company's income statements indicates that operating margins have remained consistently negative, reaching -23.0% in 2026Q1, which implies that the company's fixed-cost base is currently unsustainable relative to the revenue generated by its consolidated restaurant subsidiaries.
The persistent operating losses suggest that management has yet to successfully implement the cost-rationalization measures typically associated with their operational playbook. Without a significant reduction in overhead or a turnaround in same-store sales, the consolidated business appears to be a persistent drain on the parent company's capital.
While the consolidated income statement paints a picture of financial distress, as evidenced by the -121.15% net margin, this view may be incomplete as it fails to account for the potential intrinsic value of minority equity stakes held outside the consolidated restaurant segment.
Short-sellers may focus on the cash burn and operational losses, but this narrative may overlook the potential for capital recycling through the monetization of non-core assets. Investors should monitor whether the current market discount to NAV is an overreaction to operational noise or a rational assessment of the company's complex and opaque structure.
Quick answers to the most common questions about buying CNNE stock.
For fiscal year 2025, Cannae Holdings, Inc. (CNNE) reported total revenue of $423.6M. This represents a 70.1% decline compared to $1.41B in 2015.
Cannae Holdings, Inc. (CNNE) reported a net loss of $513.2M for the fiscal year ending 2025.
Cannae Holdings, Inc. (CNNE) reported an operating income of $-119.6M, resulting in an operating profit margin of -28.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Cannae Holdings, Inc. (CNNE) generated $53.7M in gross profit for the year, representing a gross profit margin of 12.7%. This demonstrates the company's core pricing power and production efficiency.