Great Elm Group reported a challenging fiscal second quarter marked by significant unrealized losses in its investment portfolio, which heavily impacted net income. Despite market headwinds and a substantial net loss, the company highlighted growth in fee-paying assets under management and continued share repurchases, signaling a focus on long-term value and shareholder returns.
Fee-paying AUM grew 4% year-over-year to approximately $561 million as of December 31, 2025.
positiveRepurchased approximately 1.1 million shares, or over 3% of shares outstanding, during the quarter.
positiveSubstantially completed its third build-to-suit development property in Florida.
positiveReceived distributions on CoreWeave-related investment well in excess of original capital investment.
positiveNet loss was $(16.5) million for the second quarter, compared to net income of $1.4 million in the prior-year period.
negativeSignificant unrealized loss of $14.4 million on GEG's investments in the quarter, primarily related to GECC common stock and a CoreWeave-related investment.
negativeAdjusted EBITDA was $(1.6) million for the second quarter, compared to $1.0 million in the prior-year period.
negativeTotal revenue for the second quarter was $3.0 million, compared to $3.5 million for the prior-year period.
negativeThe Great Elm Credit Income Fund, launched in November 2023, began an orderly wind-down.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Alternative Credit | N/A | — | — | — |
Real Estate Ventures | N/A | — | — | — |
Investments | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Continued to build momentum across our alternative asset management platform despite market headwinds.
While heightened volatility drove significant unrealized losses in our core portfolio investments and weighed on reported results, we remain focused on disciplined execution.
With significant liquidity, a healthy balance sheet, and a lower cost of capital, we believe GECC remains well-positioned to rebuild in calendar 2026.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.