Filing Flows › Companies › Cannae Holdings › Analysis traps
Cannae Holdings (CNNE): analysis traps
Where its figures could mislead a reader, and what to check before taking them at face value · Data: Q2 2026, to Jun 30, 2026, filed Aug 10, 2026; rules v1.1
Cannae Holdings (CNNE): 1 rule of 10 triggered on the filings to Jun 30, 2026: FCF growth = the business improved. 1 to review; 2 with insufficient data; 3 not applicable. Each is a question to verify, with the normal explanation that would produce the same figures.
Check these first
FCF growth = the business improved Triggered · severity medium · confidence medium
Free cash flow rose $69M, from −$97M to −$28M, but working capital released $36M more cash than the year before: 52% of the increase came from sources that need not repeat. Operating cash flow before working capital rose by $36M.
Innocent reading: An expansion programme finished, so capex fell back to maintenance levels for good.
Adjusted profit = economic profit To review · confidence low
Adjusted EPS was 10% or more above GAAP in 1 of the last 3 quarters: read the reconciliation before taking the adjusted figure.
Every rule
A01 FCF growth = the business improved Triggered severity medium · confidence medium
Free cash flow rose $69M, from −$97M to −$28M, but working capital released $36M more cash than the year before: 52% of the increase came from sources that need not repeat. Operating cash flow before working capital rose by $36M.
The figures and how they are read
| Fiscal year before | FY2024 |
| Fiscal year | FY2025 |
| Operating cash flow, year before | −$90M |
| Operating cash flow | −$18M |
| Capex, year before | $7M |
| Capex | $10M |
| Free cash flow, year before | −$97M |
| Free cash flow | −$28M |
| Change in FCF | $69M |
| Change in capex | $3M |
| Working capital: change in its cash contribution | $36M |
| Of which: capex cut | 0.00 |
| Of which: working capital released | $36M |
| Share of the increase that need not repeat | +52.2% |
| Operating cash flow before working capital: change | 36200000.00 |
FCF = operating cash flow − cash capex; ΔFCF = ΔOCF − ΔCapEx; the working-capital part is the change in the cash-bridge items (receivables, inventory, payables, accruals), with the sign of the cash flow statement
Source: FY2025 (cash flow statement, fiscal year) · FY2024 (cash flow statement, fiscal year before)
What would explain it innocently
- An expansion programme finished, so capex fell back to maintenance levels for good
- Suppliers agreed longer payment terms in a contract
- Inventory was brought down after a glut and will stay down
What to look for in the filing
- Maintenance capex (what it costs to keep the assets working)
- Supplier payment terms and any supply-chain financing
- Management's capex guidance for next year
What would show the trap does not apply
- Next year's FCF holds or rises with capex back at its earlier level and working capital no longer releasing cash
- The 10-K's capex guidance and the segment capex show the cut is a completed programme, not deferral
- The working-capital release matches a disclosed change in terms or a divestiture, not stretched payables or a collection push
Look again: next filing.
A07 Stock compensation added back = no economic cost Not triggered confidence high
Stock compensation is 4.4% of revenue, but buybacks of $320M covered it (17.1×) and the diluted share count fell 12.3%: the dilution has been paid for in cash.
The figures and how they are read
| Fiscal year | FY2025 |
| Stock compensation | $19M |
| Revenue | $424M |
| SBC / revenue | +4.4% |
| Buybacks | $320M |
| Buybacks / SBC | 17.1 |
| Diluted shares, year before | 64.4M shares |
| Diluted shares | 56.5M shares |
| Diluted shares: change | -12.3% |
SBC / revenue from the cash flow statement's add-back; the diluted weighted share count year over year; buybacks from the financing section
Source: FY2025 (stock compensation, buybacks and the diluted share count, fiscal year)
B02 Receivables growing = future cash is certain Not triggered confidence medium
Receivables grew 31% against revenue -7% in Q2 2026; DSO 6 against a median of 6: collections are keeping pace with sales.
The figures and how they are read
| Quarter | Q2 2026 |
| Revenue, year over year | -7.3% |
| Receivables, year over year | +31.5% |
| Quarter before | Q1 2026 |
| Revenue y/y, quarter before | -6.8% |
| Receivables y/y, quarter before | +18.9% |
| Days sales outstanding | 6.0 |
| DSO, median of eight quarters | 5.8 |
| Receivables | $7M |
| Revenue | $102M |
receivables and revenue against the same quarter a year earlier; DSO = receivables / quarterly revenue × days, against the median of the eight quarters before
Source: Q2 2026 (receivables and revenue) · Q2 2025 (the same quarter a year earlier)
B08 Adjusted profit = economic profit To review confidence low
Adjusted EPS was 10% or more above GAAP in 1 of the last 3 quarters: read the reconciliation before taking the adjusted figure.
The figures and how they are read
| Quarter / adjusted EPS / GAAP EPS / gap | 2025-09-30 / -1.06 / -1.25 / 0.179; 2026-03-31 / -0.7 / -0.7 / 0.0; 2026-06-30 / 0.86 / 0.86 / 0.0 |
| Quarters with adjusted ≥ 10% above GAAP | 1 |
| Quarters compared | 3 |
| Latest gap | +0.0% |
the analysts' 'actual' (usually the company's adjusted EPS) against GAAP net income ÷ diluted shares for the matching quarter; a gap of 10% or more counts (the stand-in until three releases' reconciliation tables are on file)
Source: 2025-09-30 (adjusted -1.06 vs GAAP -1.25) · 2026-03-31 (adjusted -0.70 vs GAAP -0.70) · 2026-06-30 (adjusted 0.86 vs GAAP 0.86)
What would show the trap does not apply
- The reconciliation shows the excluded items ending (a restructuring with its final charge, a settlement paid) and the gap to GAAP closes in the next quarters
- The excluded items are only amortisation of acquired intangibles and the cash paid for the deals is in the investing cash flow
Look again: next filing.
C02 Low net debt = no refinancing risk Not triggered confidence medium
$7M comes due within a year, 10.2× covered by cash and investments of $70M.
The figures and how they are read
| Cash and investments | $70M |
| Debt | $70M |
| Net debt | −$500K |
| Due within a year | $7M |
| Read from | the debt maturity table |
| Free cash flow, twelve months | −$43M |
| Cash plus free cash flow | $70M |
| Coverage of what is due | 10.2 |
| Due in the second year | $700K |
| Balance sheet date | 2026-06-30 |
due within a year from the maturity table (else the current portion of debt), against cash and investments plus free cash flow over the last twelve months (zero if negative); no credit lines assumed
Source: FY2025 (debt maturities, cash and investments)
D03 EPS growth = profit growth Not applicable
a loss in one of the quarters: EPS growth has no meaning
E02 Low P/E at a cyclical peak = undervalued Insufficient data
no market value or trailing net income in the valuation research
E07 A precise DCF value = the true value Insufficient data
no DCF in the valuation research for this company
J06 A bank's low P/E and high profit = safe Not applicable
not a bank
J08 A REIT's low net income = the dividend is unsafe Not applicable
not a REIT
What the statuses mean
Triggered: the filings show the pattern; read the normal explanations and the missing evidence before concluding anything. To review: one quarter or a weak signal; a reader's judgement, not a pattern. Not triggered: the pattern is absent on these figures. Insufficient data: the filings read so far do not hold what the rule needs; this is not a clean bill. Not applicable: the rule is not meant for this kind of company (a bank's working capital, a loss-making quarter's EPS growth). Out of date: the latest filing is more than fifteen months old.
Severity is what the pattern could mean for cash, value or solvency; confidence is how reliable the inputs and the reading are. The two are kept apart.
Record a view
A reader's judgement, grounds, what would change it and the next review; kept in the browser (needs JavaScript).
Every rule and the companies it triggers on → Cannae Holdings: cash flow →
Each rule reads the company's own filings by a fixed formula and says what would explain the same figures innocently. A triggered rule is a question to verify, not a finding of manipulation, and not a view on the stock. Missing data is shown as missing, never as clear. Not investment advice.