Earnings call transcript: Bakkt misses Q3 2026 EPS forecast as stock slips after hours

Cannae Holdings reported a Q3 2026 revenue shortfall and wider operating loss from continuing operations, yet market response was muted as investors considered the results against stronger capital returns, lower holding-company costs and continued growth at its sports assets. The company disclosed $68 million in operating revenues for Q3 2026, less than the forecasted $96.85 million, while the stock closed at $17.63, down 0.34% before recovering 0.06% after hours.

Revenue fell 16% from a year earlier and significantly below the $96.85 million forecast. The decline was primarily due to the sale of Brasada Ranch and weaker portfolio results. Holding company expenses dropped to $7 million from $9 million the previous year, indicating improved cost control. Cannae returned $131 million to shareholders year-to-date through buybacks and dividends.

The stock appears undervalued, trading below fair value and listed among the platform's Most Undervalued stocks. Black Knight Football and AFC Bournemouth showed growth, supported by stadium investments and better on-field performance. Total operating revenues dropped to $68 million from $81 million a year ago, while total expenses rose to $95 million from $89 million, largely due to $18 million in non-cash impairment charges at the restaurant group.

Cannae's portfolio is shifting towards sports and entertainment assets, with Black Knight Football reporting $118 million in revenue for the quarter, up 34% from a year earlier, and AFC Bournemouth's fiscal 2026 revenue up 21% to $287 million. The company's top line remains under pressure, but the stock showed minimal immediate reaction to the report.