Investor Presentation Quarter Ended June 30, 2025 August 5, 2025 NASDAQ: GECC Forward Looking Statement Statements in this communication that are not historical facts are "forward-looking" statements within the meaning of the federal securities laws. These statements include statements regarding our future business plans and expectations. These statements are often, but not always, made through the use of words or phrases such as "expect," "anticipate," "should," "will," "estimate," "designed," "seek," "con ...

分组1 - Great Elm Capital (GECC) reported quarterly earnings of $0.51 per share, exceeding the Zacks Consensus Estimate of $0.44 per share, and showing an increase from $0.32 per share a year ago, resulting in an earnings surprise of +15.91% [1] - The company achieved revenues of $14.28 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 8.28%, and up from $9.55 million year-over-year [2] - Over the last four quarters, Great Elm Capital has exceeded consensus EPS estimates three times and topped consensus revenue estimates three times [2] 分组2 - The stock has underperformed the market with a loss of about 0.1% since the beginning of the year, compared to the S&P 500's gain of 6.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.39 on revenues of $12.43 million, and for the current fiscal year, it is $1.61 on revenues of $50.6 million [7] - The Financial - Investment Management industry, to which Great Elm Capital belongs, is currently ranked in the top 20% of over 250 Zacks industries, indicating a favorable outlook [8]

[Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) GECC achieved record TII and NII, with NII per share exceeding distribution and NAV rising to $12.10 Key Financial Metrics | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Total Investment Income (TII) | $14.3 million | - | | Net Investment Income (NII) | $5.9 million | $4.6 million | | NII per Share | $0.51 | $0.40 | | Net Asset Value (NAV) per Share | $12.10 | $11.46 | | Asset Coverage Ratio | 169.5% | 163.8% | - The quarter was the **highest cash-generative** in the company's history, with cash income making up over **90% of Total Investment Income (TII)**[4](index=4&type=chunk) - The increase in NII was primarily driven by a distribution on preference shares in an insurance-related investment and higher income from CLO investments, which contributed **$4.3 million** in cash distributions[4](index=4&type=chunk) - The Board of Directors approved a Q3 2025 dividend of **$0.37 per share**, which equates to a **13.5% annualized yield** on the August 1, 2025 closing price[4](index=4&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted record TII and NII from strong cash generation, NAV improving from CoreWeave gains, and expects full-year NII to cover distributions - Key drivers for the quarter's substantial NII were a **strong distribution** from preference shares in an insurance-related investment and **solid performance** from the CLO JV[3](index=3&type=chunk) - NAV improved **significantly**, benefiting from **unrealized gains** on the company's CoreWeave related investment[3](index=3&type=chunk) - Management anticipates that third-quarter NII will **decrease** due to the uneven cadence of cash flows from the CLO JV, but expects full-year NII to **exceed** the annual distribution[3](index=3&type=chunk) [Financial Performance](index=2&type=section&id=Financial%20Performance) GECC's Q2 2025 financial results show significant per-share metric improvements, including **$1.02** EPS and **$0.51** NII, alongside a healthy liquidity position [Financial Highlights – Per Share Data](index=2&type=section&id=Financial%20Highlights%20%E2%80%93%20Per%20Share%20Data) GECC's per-share metrics for Q2 2025 show strong performance, with EPS at **$1.02**, NII at **$0.51**, and NAV per share recovering to **$12.10** Per Share Data | Per Share Data | Q2/2025 | Q1/2025 | Q2/2024 | | :--- | :--- | :--- | :--- | | Earnings Per Share (EPS) | $1.02 | $0.04 | ($0.14) | | Net Investment Income (NII) | $0.51 | $0.40 | $0.32 | | Net Asset Value (NAV) at Period End | $12.10 | $11.46 | $12.06 | | Distributions Paid / Declared | $0.37 | $0.37 | $0.35 | [Financial Review](index=3&type=section&id=Financial%20Review) Q2 2025 financial review indicates **$14.3 million** in total investment income, **$8.4 million** in expenses, and **$5.8 million** in net realized and unrealized gains Financial Summary | Financial Item | Amount (Q2 2025) | Per Share (Q2 2025) | | :--- | :--- | :--- | | Total Investment Income | $14.3 million | $1.24 | | Total Expenses | $8.4 million | $0.72 | | Net Realized and Unrealized Gains | $5.8 million | $0.51 | [Liquidity and Capital Resources](index=3&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, GECC maintained **$4.4 million** in cash, **$19.0 million** available on its credit facility, and **$201.4 million** in total debt outstanding - As of June 30, 2025, cash and money market fund investments totaled approximately **$4.4 million**[10](index=10&type=chunk) - The company had **$19.0 million** of availability under its **$25.0 million** revolving line of credit[10](index=10&type=chunk) - Total debt outstanding (par value) was **$201.4 million**, comprised of various senior notes and **$6.0 million** outstanding on the revolver[11](index=11&type=chunk) [Portfolio and Investment Activity](index=2&type=section&id=Portfolio%20and%20Investment%20Activity) GECC's total investments reached **$335.1 million** as of June 30, 2025, with **$22.6 million** deployed into new investments and **$35.0 million** monetized from existing ones Investment Portfolio Composition | Investment Type | Fair Value ($) | % of Total Investments | | :--- | :--- | :--- | | Corporate Credit Debt | $197.3 million | 58.9% | | CLO Investments | $55.4 million | 16.5% | | Great Elm Specialty Finance | $36.4 million | 10.8% | | Other Equity Investments | $37.5 million | 11.2% | | Dividend Paying Equity | $8.4 million | 2.5% | | **Total Investments** | **$335.1 million** | **100.0%** | - The weighted average current yield on the company's debt portfolio was **12.5%**, with floating rate instruments making up approximately **73%** of the debt investments' fair market value[6](index=6&type=chunk) - During Q2 2025, GECC deployed approximately **$22.6 million** into 26 investments at a weighted average current yield of **14.1%**[7](index=7&type=chunk) - The company monetized 38 investments for approximately **$35.0 million**, including **$21.5 million** of mandatory debt paydowns and redemptions[7](index=7&type=chunk) [Shareholder Distributions](index=3&type=section&id=Distributions) The Board approved a **$0.37** per share cash distribution for Q3 2025, payable September 30, 2025, representing a **12.2%** annualized yield on Q2 2025 NAV - A quarterly cash distribution of **$0.37 per share** for Q3 2025 has been approved[12](index=12&type=chunk) - The distribution is payable on **September 30, 2025**, to stockholders of record as of **September 15, 2025**[12](index=12&type=chunk) - The dividend equates to a **13.5% annualized yield** on the **August 1, 2025** closing price and a **12.2% annualized yield** on the **June 30, 2025** NAV of $12.10 per share[12](index=12&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) Unaudited consolidated financial statements as of June 30, 2025, show total net assets of **$140.0 million** and a **$11.7 million** net increase in net assets from operations [Consolidated Statements of Assets and Liabilities](index=5&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20ASSETS%20AND%20LIABILITIES) As of June 30, 2025, GECC reported total assets of **$409.3 million**, total liabilities of **$269.3 million**, and total net assets of **$140.0 million** Consolidated Balance Sheet | Balance Sheet Item | June 30, 2025 ($) | December 31, 2024 ($) | | :--- | :--- | :--- | | Total Investments | $403.3 million | $332.7 million | | Total Assets | $409.3 million | $342.0 million | | Total Liabilities | $269.3 million | $205.9 million | | **Total Net Assets** | **$140.0 million** | **$136.1 million** | | Net Asset Value per Share | $12.10 | $11.79 | [Consolidated Statements of Operations](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For Q2 2025, GECC reported **$14.3 million** in total investment income, **$5.9 million** in net investment income, and a **$11.7 million** net increase in net assets from operations Consolidated Income Statement | Income Statement Item | Three Months Ended June 30, 2025 ($) | Three Months Ended June 30, 2024 ($) | | :--- | :--- | :--- | | Total Investment Income | $14.3 million | $9.5 million | | Total Expenses | $8.3 million | $6.5 million | | Net Investment Income | $5.9 million | $3.1 million | | Net Realized and Unrealized Gains (Losses) | $5.8 million | ($4.4 million) | | **Net Increase (Decrease) in Net Assets** | **$11.7 million** | **($1.3 million)** | | Earnings Per Share | $1.02 | ($0.14) | [Conference Call Information](index=3&type=section&id=Conference%20Call%20and%20Webcast) GECC will host a conference call and webcast on Tuesday, August 5, 2025, at 8:30 a.m. ET, to discuss its Q2 2025 financial results - The conference call is scheduled for **Tuesday, August 5, 2025**, at **8:30 a.m. ET**[13](index=13&type=chunk)[14](index=14&type=chunk) - Dial-in numbers are **877-407-0789** for U.S. participants and **201-689-8562** for international participants, using the passcode "GECC"[14](index=14&type=chunk) - A live webcast will be available in the "Events and Presentations" section of the **GECC website**[15](index=15&type=chunk)

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's financial performance, condition, and risk management practices for the reporting period [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section incorporates the company's unaudited financial statements by reference, with detailed statements provided at the end of the report - The financial statements listed in the index to financial statements are incorporated by reference into this item[13](index=13&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=5&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The company's investment income grew significantly year-over-year for the second quarter and first half of 2025, primarily driven by increased dividend income from new specialty finance investments, accompanied by a rise in expenses, notably interest expense from new debt issuances, with the investment portfolio expanding to **$403.3 million** and net assets increasing to **$140.0 million**, resulting in a NAV per share of **$12.10** as of June 30, 2025, while maintaining sufficient liquidity to meet its obligations [Overview](index=5&type=section&id=Overview) Great Elm Capital Corp. operates as a Business Development Company focused on generating income and capital appreciation through debt and income-generating equity investments - Great Elm Capital Corp. (GECC) is a Business Development Company (BDC) focused on generating current income and capital appreciation through debt and income-generating equity investments, including specialty finance and CLO securities[14](index=14&type=chunk) - In April 2024, the company formed a joint venture, CLO Formation JV, LLC, to invest in CLO equity and warehouses[15](index=15&type=chunk) - The company has elected to be treated as a Regulated Investment Company (RIC), which requires distributing at least **90%** of its investment company taxable income to stockholders annually to avoid corporate-level income taxes[18](index=18&type=chunk) [Portfolio and Investment Activity](index=8&type=section&id=Portfolio%20and%20Investment%20Activity) The company's investment portfolio grew to **$403.3 million** by June 30, 2025, with significant concentrations in short-term investments, structured finance, and technology Investment Activity Summary (in thousands) | Period | Acquisitions | Dispositions | | :--- | :--- | :--- | | **For the Year Ended Dec 31, 2024** | $345,684 | $(245,576) | | **For the Six Months Ended Jun 30, 2025** | $84,686 | $(77,089) | Portfolio Reconciliation (in thousands) | Description | For the Six Months Ended Jun 30, 2025 | For the Year Ended Dec 31, 2024 | | :--- | :--- | :--- | | Beginning Investment Portfolio, at fair value | $324,262 | $230,612 | | Portfolio Investments acquired | $84,686 | $345,684 | | Portfolio Investments repaid or sold | $(77,089) | $(245,576) | | Net change in unrealized appreciation (depreciation) | $1,003 | $(10,771) | | Net realized gain (loss) | $723 | $1,876 | | **Ending Investment Portfolio, at fair value** | **$335,053** | **$324,262** | - As of June 30, 2025, the total investment portfolio at fair value was **$403.3 million**, an increase from **$332.7 million** at December 31, 2024, with the largest industry concentrations being Short-Term Investments (**16.90%**), Structured Finance (**13.74%**), and Technology (**10.93%**)[38](index=38&type=chunk) [Results of Operations](index=11&type=section&id=Results%20of%20Operations) Total investment income significantly increased in Q2 and H1 2025, driven by higher dividend income, while total expenses also rose due to increased interest expense Investment Income Comparison (in thousands) | Income Type | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Interest income | $7,969 | $7,763 | $15,935 | $15,344 | | Dividend income | $6,236 | $1,570 | $9,848 | $2,341 | | **Total Investment Income** | **$14,277** | **$9,548** | **$26,772** | **$18,457** | - The significant increase in dividend income for Q2 and H1 2025 was primarily due to investments in Trouvaille Re Ltd. and the CLO JV, which was formed in 2024[41](index=41&type=chunk) Expense Comparison (in thousands) | Expense Type | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Management fees | $1,278 | $1,068 | $2,550 | $2,008 | | Incentive fees | $1,470 | $764 | $2,620 | $1,562 | | Interest expense | $4,318 | $3,473 | $8,569 | $6,280 | | **Total Expenses** | **$8,305** | **$6,490** | **$16,156** | **$12,201** | - Interest expense increased in 2025 due to the issuance of **$56.5 million** of **8.50%** Notes and **$36.0 million** of **8.125%** Notes in 2024, partially offset by the redemption of **$45.6 million** of **6.75%** Notes[46](index=46&type=chunk) - For Q2 2025, net unrealized appreciation was **$5.4 million**, primarily driven by a **$13.7 million** increase in the fair value of the investment in CW Opportunity 2, LP, contrasting with a net unrealized depreciation of **$3.9 million** in Q2 2024[50](index=50&type=chunk) [Liquidity and Capital Resources](index=14&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company maintained sufficient liquidity with **$1.0 million** in cash and **$3.4 million** in money market funds, supported by a **$25 million** revolving credit facility and a **169.5%** asset coverage ratio - As of June 30, 2025, the company had approximately **$1.0 million** in cash and cash equivalents and **$3.4 million** in money market funds, with the investment portfolio consisting of **$221.2 million** in debt instruments and **$113.8 million** in equity investments at fair value[54](index=54&type=chunk) Contractual Obligations as of June 30, 2025 (in thousands) | Obligation | Total | Less than 1 year | 1-3 years | 3-5 years | | :--- | :--- | :--- | :--- | :--- | | GECCO Notes | $57,500 | $57,500 | - | - | | GECCZ Notes | $40,000 | - | - | $40,000 | | GECCI Notes | $56,500 | - | - | $56,500 | | GECCH Notes | $41,400 | - | - | $41,400 | | Revolving Credit Facility | $6,000 | - | $6,000 | - | | **Total** | **$201,400** | **$57,500** | **$6,000** | **$137,900** | - As of June 30, 2025, the company had **$6 million** in borrowings outstanding under its **$25 million** senior secured revolving line of credit with City National Bank, which matures in May 2027[64](index=64&type=chunk) - The company's asset coverage ratio was approximately **169.5%** as of June 30, 2025, above the minimum requirement of **150%** under the Investment Company Act[73](index=73&type=chunk) [Share Price Data and Distributions](index=19&type=section&id=Share%20Price%20Data%20and%20Distributions) The company's common stock has generally traded at a discount to NAV, with the board setting the distribution for Q3 2025 at **$0.37** per share NAV and Distribution Per Share Trend | Quarter | NAV per Share | Distributions Declared | | :--- | :--- | :--- | | Q1 2024 | $12.57 | $0.35 | | Q2 2024 | $12.06 | $0.35 | | Q3 2024 | $12.04 | $0.35 | | Q4 2024 | $11.79 | $0.35 | | Q1 2025 | $11.46 | $0.37 | | Q2 2025 | $12.10 | $0.37 | - During the last two fiscal years, the company's common stock has generally traded at a discount to NAV, with the discount ranging from **1.0%** to **40.4%**[74](index=74&type=chunk)[75](index=75&type=chunk) - The company's board set the distribution for the quarter ending September 30, 2025, at a rate of **$0.37** per share[79](index=79&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=20&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is primarily exposed to interest rate risk, with a sensitivity analysis indicating a **$1.66 million** change in net investment income for every **1%** shift in reference rates - As of June 30, 2025, the company's debt portfolio consisted of **$166.4 million** in variable-rate instruments and **$60.7 million** in fixed-rate instruments[81](index=81&type=chunk) Interest Rate Sensitivity Analysis (in thousands) | Reference Rate Change | Increase (decrease) of Net Investment Income | | :--- | :--- | | +3.00% | $4,991 | | +2.00% | $3,327 | | +1.00% | $1,664 | | -1.00% | $(1,664) | | -2.00% | $(3,327) | | -3.00% | $(4,991) | [Controls and Procedures](index=21&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - Management concluded that as of June 30, 2025, the company's disclosure controls and procedures were effective[86](index=86&type=chunk) - No material changes to the internal control over financial reporting occurred during the quarter ended June 30, 2025[87](index=87&type=chunk) [PART II. OTHER INFORMATION](index=21&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section details legal proceedings, risk factors, other disclosures, and supporting exhibits [Legal Proceedings](index=21&type=section&id=Item%201.%20Legal%20Proceedings) The company may be involved in legal proceedings in the ordinary course of business, with details provided in Note 7 of the unaudited financial statements - The company is party to certain legal proceedings in the ordinary course of business, with a detailed description available in Note 7 of the financial statements[89](index=89&type=chunk) [Risk Factors](index=21&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes in risk factors were reported for the period covered by this report[90](index=90&type=chunk) [Other Information](index=21&type=section&id=Item%205.%20Other%20Information) During the quarter ended June 30, 2025, no director or officer of the company adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter[91](index=91&type=chunk) [Exhibits](index=23&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the quarterly report, including charter documents, bylaws, and certifications from the CEO and CFO - The report includes exhibits such as the Amended and Restated Charter, Bylaws, and CEO/CFO certifications[93](index=93&type=chunk) [Financial Statements (unaudited)](index=25&type=section&id=Financial%20Statements%20%28unaudited%29) This section provides the company's unaudited financial statements, including assets, operations, investments, and detailed notes [Statements of Assets and Liabilities](index=26&type=section&id=Statements%20of%20Assets%20and%20Liabilities) As of June 30, 2025, total assets grew to **$409.3 million** from **$342.0 million** at year-end 2024, primarily due to an increase in total investments, with total liabilities also increasing to **$269.3 million** from **$205.9 million**, consequently, total net assets rose to **$140.0 million**, with a Net Asset Value (NAV) per share of **$12.10**, up from **$11.79** at year-end Statements of Assets and Liabilities (in thousands, except per share data) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total investments | $403,259 | $332,710 | | Total assets | $409,326 | $342,028 | | Total liabilities | $269,294 | $205,915 | | **Total net assets** | **$140,032** | **$136,113** | | **Net asset value per share** | **$12.10** | **$11.79** | [Statements of Operations](index=27&type=section&id=Statements%20of%20Operations) For the six months ended June 30, 2025, the company generated total investment income of **$26.8 million** and net investment income of **$10.5 million**, resulting in a net increase in net assets from operations of **$12.2 million**, a significant improvement from the **$1.8 million** net decrease in the same period of 2024 Statements of Operations Summary (in thousands) | Line Item | For the Six Months Ended June 30, 2025 | For the Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total investment income | $26,772 | $18,457 | | Total expenses | $16,156 | $12,201 | | **Net investment income** | **$10,480** | **$6,251** | | Net realized and unrealized gains (losses) | $1,716 | $(8,035) | | **Net increase (decrease) in net assets** | **$12,196** | **$(1,784)** | [Schedule of Investments](index=30&type=section&id=Schedule%20of%20Investments) As of June 30, 2025, the company's investment portfolio had a fair value of **$403.3 million**, composed of **$221.2 million** in debt, **$113.8 million** in equity/other, and **$68.2 million** in short-term investments, with top concentrations in Structured Finance, Technology, and Specialty Finance Portfolio Composition by Investment Type (June 30, 2025) | Investment Type | Fair Value (in thousands) | Percentage of Net Assets | | :--- | :--- | :--- | | Debt | $221,242 | 158.00% | | Equity/Other | $113,811 | 81.27% | | Short-Term Investments | $68,206 | 48.71% | | **Total** | **$403,259** | **287.98%** | Top 5 Industry Concentrations by Fair Value (June 30, 2025) | Industry | Fair Value (in thousands) | Percentage of Net Assets | | :--- | :--- | :--- | | Structured Finance | $55,427 | 39.58% | | Technology | $44,092 | 31.49% | | Specialty Finance | $36,351 | 25.96% | | Consumer Products | $27,321 | 19.51% | | Chemicals | $26,940 | 19.24% | [Notes to the Unaudited Financial Statements](index=42&type=section&id=Notes%20to%20the%20Unaudited%20Financial%20Statements) The notes provide detailed explanations of the company's accounting policies, related-party agreements, debt structure, fair value measurements, and capital activities, including fee structures, debt terms, Level 3 asset valuation, unfunded commitments, and financial highlights [Note 3. Significant Agreements and Related Parties](index=48&type=section&id=Note%203.%20Significant%20Agreements%20and%20Related%20Parties) The company pays its external manager, GECM, a base management fee of **1.50%** of average adjusted gross assets and a two-part incentive fee based on income and capital gains - The company pays its external manager, GECM, a base management fee of **1.50%** of average adjusted gross assets and a two-part incentive fee based on income and capital gains[156](index=156&type=chunk)[158](index=158&type=chunk)[160](index=160&type=chunk) Advisory Fees Incurred (in thousands) | Fee Type | For the Six Months Ended June 30, 2025 | For the Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Management Fees | $2,550 | $2,008 | | Income Incentive Fees | $2,620 | $1,562 | [Note 4. Fair Value Measurement](index=50&type=section&id=Note%204.%20Fair%20Value%20Measurement) This note details the fair value hierarchy of the company's investments, categorizing them into Level 1, Level 2, Level 3, and those measured at NAV Fair Value Hierarchy of Investments (June 30, 2025) | Level | Fair Value (in thousands) | | :--- | :--- | | Level 1 | $71,192 | | Level 2 | $97,365 | | Level 3 | $162,257 | | Measured at NAV | $72,445 | | **Total Investments** | **$403,259** | [Note 5. Debt](index=55&type=section&id=Note%205.%20Debt) As of June 30, 2025, the company had **$6 million** outstanding on its **$25 million** revolving credit facility and **$195.4 million** in aggregate principal of unsecured notes, maintaining an asset coverage ratio of approximately **169.5%** - As of June 30, 2025, the company had **$6 million** outstanding on its **$25 million** revolving credit facility and **$195.4 million** in aggregate principal of unsecured notes[184](index=184&type=chunk)[199](index=199&type=chunk) Unsecured Notes Outstanding (June 30, 2025) | Series | Principal Amount (in millions) | Interest Rate | Maturity Date | | :--- | :--- | :--- | :--- | | GECCO | $57.5 | 5.875% | June 2026 | | GECCZ | $40.0 | 8.75% | September 2028 | | GECCI | $56.5 | 8.50% | April 2029 | | GECCH | $41.4 | 8.125% | December 2029 | - The company's asset coverage ratio was approximately **169.5%** as of June 30, 2025, compliant with the **150%** regulatory requirement[195](index=195&type=chunk) [Note 7. Commitments and Contingencies](index=61&type=section&id=Note%207.%20Commitments%20and%20Contingencies) As of June 30, 2025, the company had approximately **$1.8 million** in unfunded commitments and is a defendant in a lawsuit related to its investment in Speedwell Holdings - As of June 30, 2025, the company had approximately **$1.8 million** in unfunded commitments to provide financing to certain portfolio companies[205](index=205&type=chunk) - The company is a defendant in a lawsuit, Intrepid Investments, LLC v. London Bay Capital, related to its portfolio investment in Speedwell Holdings, with parties currently in pre-trial discovery[207](index=207&type=chunk)[208](index=208&type=chunk) [Note 9. Financial Highlights](index=63&type=section&id=Note%209.%20Financial%20Highlights) This note provides key per share data and total return metrics for the company's financial performance Per Share Data and Returns | Metric | For the Six Months Ended June 30, 2025 | For the Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net asset value, beginning of period | $11.79 | $12.99 | | Net increase (decrease) from operations | $1.06 | $(0.20) | | Distributions declared | $(0.74) | $(0.70) | | **Net asset value, end of period** | **$12.10** | **$12.06** | | **Total return based on net asset value** | **9.18%** | **(1.79)%** | [Note 11. Subsequent Events](index=66&type=section&id=Note%2011.%20Subsequent%20Events) Subsequent to the quarter end, the Board of Directors set the distribution for the quarter ending September 30, 2025, at a rate of **$0.37** per share - Subsequent to the quarter end, the Board of Directors set the distribution for the quarter ending September 30, 2025, at a rate of **$0.37** per share[220](index=220&type=chunk)

Core Viewpoint - Great Elm Capital Corp. reported a strong second quarter for 2025, achieving record total investment income and net investment income (NII) that surpassed its increased quarterly distribution, driven by robust cash generation and solid performance from its investments [3][6]. Financial Highlights - Total investment income for Q2 2025 was a record $14.3 million, with cash income making up over 90% of this total [6]. - NII for Q2 2025 was $5.9 million, or $0.51 per share, compared to $4.6 million, or $0.40 per share, in Q1 2025, marking a significant increase [6][9]. - The net asset value (NAV) per share increased to $12.10 as of June 30, 2025, up from $11.46 at the end of Q1 2025, primarily due to unrealized gains on investments [6][9]. - The company declared a quarterly dividend of $0.37 per share for Q3 2025, reflecting a 13.5% annualized yield based on the closing price of $10.98 on August 1, 2025 [12]. Portfolio and Investment Activity - As of June 30, 2025, GECC held total investments valued at $335.1 million, with 55 debt investments in corporate credit totaling approximately $197.3 million, representing 58.9% of the fair market value of total investments [5][6]. - The weighted average current yield on the debt portfolio was 12.5%, with floating rate instruments comprising about 73% of the fair market value of debt investments [7]. - During Q2 2025, GECC deployed approximately $22.6 million into 26 investments at a weighted average current yield of 14.1% [7]. Management Commentary - The CEO highlighted the company's strong momentum in 2025, emphasizing the record NII and the expectation that NII will continue to exceed distributions for the full year despite anticipated fluctuations in cash flows from the CLO joint venture [3]. - The company plans to monitor the macro environment closely and seek capital deployment opportunities that offer compelling risk-adjusted returns [3]. Liquidity and Capital Resources - As of June 30, 2025, GECC had cash and money market fund investments totaling approximately $4.4 million, along with $19.0 million available under its $25.0 million revolving line of credit [10]. - Total debt outstanding was $201.4 million, which includes various senior notes and amounts drawn from the revolving credit facility [11]. Earnings Per Share Data - The earnings per share (EPS) for Q2 2025 was $1.02, a significant increase from a loss of $0.14 in Q2 2024 [4][23]. - The NII per share for Q2 2025 was $0.51, compared to $0.32 in Q2 2024 [4][23]. Conference Call and Webcast - The company will host a conference call and webcast on August 5, 2025, to discuss these results in detail [13][15].

Core Insights - Great Elm Capital (NASDAQ: GECC) is a Business Development Company that stands out from its peers due to its unique portfolio strategy, which has shown both strengths and weaknesses [1]. Company Strategy - The company's portfolio strategy is designed to differentiate it from other Business Development Companies, but it has also been a source of vulnerability [1]. Investment Approach - The investment approach combines classic dividend growth stocks with Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds like the S&P [1].

Core Viewpoint - Great Elm Capital (GECC) is experiencing solid improvements in earnings estimates, which is likely to positively impact its stock price momentum [1][2]. Earnings Estimates - Analysts are increasingly optimistic about Great Elm Capital's earnings prospects, leading to higher estimates that should reflect in the stock price [2]. - The current-quarter earnings estimate is $0.44 per share, representing a 37.5% increase from the previous year [6]. - The Zacks Consensus Estimate for the current quarter has risen by 7.41% over the last 30 days, with two estimates increasing and no negative revisions [6]. - For the full year, the earnings estimate stands at $1.54 per share, marking a 21.26% increase from the year-ago figure [7]. - The consensus estimate for the current year has increased by 5.25%, supported by two upward revisions and one negative revision [8]. Zacks Rank - Great Elm Capital has achieved a Zacks Rank 2 (Buy), indicating favorable estimate revisions that suggest strong potential for stock performance [9]. - The Zacks Rank system has a proven track record, with Zacks 1 (Strong Buy) stocks averaging a 25% annual return since 2008 [3]. Stock Performance - Over the past four weeks, Great Elm Capital shares have increased by 7.5%, reflecting investor confidence in its earnings growth prospects [10].

Financial Data and Key Metrics Changes - The company achieved record total investment income of $12,500,000 in Q1 2025, a 37% increase from the previous quarter and over 40% year-over-year growth [7] - Net investment income (NII) per share doubled to $0.40 from $0.20 in the prior quarter, primarily due to increased total investment income [7] - The first quarter distribution increased to $0.37 per share, a 5.7% rise from the previous quarter's $0.35 per share [7][14] Business Line Data and Key Metrics Changes - The CLO joint venture (JV) contributed significantly to the income, with cash distributions of $3,800,000 in Q1 2025, compared to $5,000,000 in Q4 2024 [10][36] - The corporate portfolio grew to nearly $250,000,000, with first lien loans comprising 71% of this portfolio as of March 31 [16] Market Data and Key Metrics Changes - The company's net assets as of March 31, 2025, were $132,000,000, down from $136,000,000 as of December 31, 2024 [13] - The NAV per share decreased to $11.46 from $11.79 over the same period [14] Company Strategy and Development Direction - The company is focused on enhancing portfolio strength by increasing secured debt positions and targeting high teens to 20% returns from the CLO JV [16] - A $100,000,000 at-the-market equity program was filed to provide additional capital flexibility [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to generate sustainable returns and deliver increasing value to shareholders despite market volatility [12][20] - The company anticipates that NII in Q2 2025 will exceed Q1 levels, supported by ongoing capital raising and deployment initiatives [8][36] Other Important Information - The company has zero positions on non-accrual as of March 31, 2025, indicating strong portfolio performance [19] - The company maintains a cautious approach to capital deployment, prioritizing credit quality and seeking investments with minimal risk of permanent capital loss [20] Q&A Session Summary Question: How does the portfolio and funds NAV perform with the widening loan market and private credit spreads? - Management noted modest markdowns in the portfolio but expressed confidence in the overall health of the portfolio, expecting unrealized losses to reverse as market conditions stabilize [26][28] Question: What is the expected ROE on the CLO investment? - The company targets high teens to 20% returns on the CLO investments [59] Question: What is the impact of tariffs on the portfolio? - Initial analysis suggests limited direct exposure to tariffs, with a predominantly domestic focus and minimal exposure to China [20][51] Question: How is the consumer segment of the portfolio characterized? - The largest exposure in the consumer space is to companies with private label products, which are expected to benefit from trade-down effects during economic downturns [54]

Great Elm Capital (GECC) Q1 2025 Earnings Call May 06, 2025 08:30 AM ET Speaker0 Greetings and welcome to the Great Elm Capital Corp First Quarter twenty twenty five Financial Results Call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Peter Skusa, a representative of the company. Thank you. You may begin. Speaker1 Hello and than ...

分组1 - Great Elm Capital (GECC) reported quarterly earnings of $0.40 per share, exceeding the Zacks Consensus Estimate of $0.39 per share, and up from $0.37 per share a year ago, representing an earnings surprise of 2.56% [1] - The company posted revenues of $12.5 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 4.75%, compared to revenues of $8.91 million a year ago [2] - Over the last four quarters, Great Elm Capital has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] 分组2 - The stock has underperformed, losing about 8.2% since the beginning of the year, while the S&P 500 declined by 3.3% [3] - The earnings outlook for Great Elm Capital is favorable, with a current consensus EPS estimate of $0.41 on $12.12 million in revenues for the coming quarter and $1.46 on $44.99 million in revenues for the current fiscal year [7] - The Zacks Industry Rank for Financial - Investment Management is currently in the bottom 13% of over 250 Zacks industries, indicating potential challenges for stock performance [8]