Cannae Holdings reports strong Q3, returning $500 million to shareholders while transitioning to a proprietary investment portfolio focused on sports and strategic assets.

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. Proprietary opportunities with positive cash flows that can deliver outsized returns 2 returning capital. To our shareholders through share buybacks and Dividends and improving the operational performance. Of Cannae Holdings' 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 and Bradstreet to Clearlake Capital which generated $630 million in proceeds to Kenai. Thus far, 424 million of the proceeds. Have been used to repurchase $275 million. Of Cannae Holdings 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 in which our shareholders will would not otherwise be able to access. But through Cannae Holdings, 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. Kenai while further simplifying our portfolio from. A capital redeployment perspective. And 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 Fund as was agreed in our initial transaction. We remain excited about our partnership with Jana and their ability to grow Assets Under Management (AUM) as well as management and performance fees which will result in cash distributions to shareholders in which Cannae Holdings will participate. We believe Giana will continue to generate attractive investment returns as they have done over their 24 year history as a leader in engaged investing. Kenai also invested $25 million in Black Knight Football after closing the D and. 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 Moriense 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 Holdings 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, Canai has continued its strong capital returns to our shareholders through repurchasing 163 million of stock at an average discount to. NAV of 31%. 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 Holdings 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 Dun & Bradstreet. 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 2023. 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 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 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 9th 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 as 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 two-phase expansion which will include increase capacity from 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 2627 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 9th place in the Premier League after 12 matches. matches. At FC Lorient, The team currently sits in 17th place in Ligue 1. 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 Laureent within the multi club with the most recent example being the success. Of Eli Junior Krupie at AFC Bournemouth. He was acquired from FC Laureent and has already seen significant opportunity in Bournemouth playing in nine matches with four 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, Moriente is in sixth position in the table Alight, Our largest remaining public investment reported total revenue of $533 million in the third quarter, 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 forecasts. Alite 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. We 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.

Thank you Ryan Kenai'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 Ninety-Nine Restaurant 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 Holdings' 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 Kenai 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. Kenai'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 Holdings. 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 Elite'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 and B sale. Concurrently, 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 Kenai'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 pay down earlier this year. That concludes our prepared remarks and we'll be happy to take questions.

We will now begin the question and answer session. To ask a question, you may press Star then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. 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. Please go ahead.

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? Thanks.

Yeah, of course, yeah. So the tax, 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, the tax refund. Does that make sense, Ken? 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 I think. 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, you know, to monetize assets that we think are less strategic today.

Gotcha. Helpful there. One follow up, if I may. Noticed within the latest, some of the parts within the other investments. You also list some additional new investments, I think in SpaceX and Brisada 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? Thanks.

Yeah, I think so. We 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 as a footnote that that changed at some point.

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? 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? Thanks.

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, you know, AI. 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 moats. 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. So we don't, you know, we don't see in any of any business our portfolio, we don't see that, you know, AI is going to make it obsolete. But I do think that like all businesses and like that we do at Cannae Holdings, we're trying to think of ways to more efficiently or for the business to more efficiently leverage AI and its workflow processes, you know, relationships with consumer. Could that improve revenue? Could it improve margins? So hopefully that helps.

That's very helpful. Thanks again.

And your next question today will come from Ian Zaffino with Oppenheimer, Please go ahead.

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 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? Thanks.

Yeah. You know, 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, of the 300 million that we initially we set out with the sale of Dun & Bradstreet. And you know, as we look to monetize assets in the future, I think each time we will evaluate kind of the merits of investing by buying back more stock or you know, does it make sense to look at, you know, 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 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 AFC Bournemouth and the stadium, maybe if you could provide just a quick update as far as the renovation, expansion and activity and I guess maybe a timeline for completion there. Thank you.

Yeah, so we're, you know, we've started. The first phase of the renovation that will take the stadium up 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 2000, which we really have, you know, very limited of today. So, 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, you know. Type, type return on, on, on invested capital. So we think it's, we think we tried to be very conservative and thoughtful around, around the renovation. The first phase of that is supposed, is we're is start. Is supposed to open at the beginning. Of next season and then the second. Phase will open the beginning of the Following season and that will take it up to 20,000. You know, we've started, you know, 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. You know, I think that 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, you know, we generally seem to be on track. There is some, you know, there's some approval and planning processes that we have that we can, are continuing to go through. But overall 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 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.