Kanae’s quarterly loss narrows to $20.2 million despite revenue shortfall
Key Facts
Kanae Holdings reported a net loss attributable to common shareholders of $20.2 million in the third quarter of 2026, compared with a loss of $68.4 million in the year-earlier period, according to its filing with the U.S. Securities and Exchange Commission. Diluted loss per share was $0.48, versus $1.25 a year earlier. The earnings-per-share figure that beat analysts’ estimates by $0.04 refers to continuing operations, for which the company reported a loss of $0.14 per share against an estimate of $0.18. Investing.com reported quarterly revenue of $68.1 million, below the average forecast of $96.85 million. The comparison shows the year-over-year loss narrowing as revenue missed market estimates.
Operating revenue was $68.1 million in the third quarter, down from $81.3 million a year earlier, according to the company’s shareholder update. Restaurant revenue accounted for $66.2 million of the total, while other operating revenue was $1.9 million. A year earlier, restaurant revenue was $69 million and other revenue was $12.3 million. Kanae recorded a $16.2 million goodwill impairment in the quarter, after reporting no such item in the corresponding period of 2025. The company also said the September closure of the remaining O’Charley’s restaurants ended that business’s cash drain and put the restaurants into liquidation.
As part of its portfolio reshaping, Kanae said it had generated $793 million in proceeds from selling non-core assets from the start of 2025 through the third quarter of 2026. It added that it invested a further $22 million in Black Knight Football during September, as part of a broader capital increase to support the platform’s growth and expansion. Black Knight Football revenue was $117.5 million in the three months ended June 30, 2026, compared with $87.9 million in the corresponding period of 2025. Kanae reports the results of this investment under the equity method with a three-month lag. On expenses, the holding company’s costs fell to $7 million from $9 million a year earlier, according to Investing.com’s coverage of the earnings call.
The company continued returning capital to shareholders through share buybacks and distributions. Its shareholder update said it repurchased 4.2 million shares for $67 million during the third quarter through the update date, bringing its purchases since the start of 2026 to 7.7 million shares at a cost of $111 million. Shareholder capital returns since the start of the year totaled $131 million, including distributions of $20 million. On November 4, the board approved a quarterly cash distribution of $0.15 per share, with December 17 set as the record date for eligible shareholders and December 31 as the payment date. The company also disclosed that it expects to pay an additional $16 million to Jana Partners during the fourth quarter of 2026, after the company exceeded the initial assets-under-management threshold specified in the agreement.
Kanae shares, listed under the ticker CNNE, closed at $17.63 on November 9, down 0.34%, before rising 0.06% in post-earnings trading, according to Investing.com’s coverage. EL7 data showed a November 6 close of $17.69, before the next session, and these figures do not include the daily trading range. The company had scheduled its third-quarter earnings call for November 9 at 5:00 p.m. U.S. Eastern Time. Its shareholder update said a replay of the call would remain available until November 23 at 11:59 p.m. the same time zone. The quarterly results combine a narrower net loss year over year, operating revenue below the corresponding period and a wide gap against revenue estimates.