Core Viewpoint - Great Elm Group is conducting its Fiscal 2026 Second Quarter Earnings Conference Call, indicating ongoing communication with investors and stakeholders regarding financial performance and future outlook [2][4]. Group 1: Conference Call Details - The conference call is being recorded and was held on February 5, 2026, emphasizing the company's commitment to transparency and investor relations [2]. - A slide presentation accompanying the conference call is available on the company's website, providing additional context and visual data for participants [3]. Group 2: Financial Reporting and Forward-Looking Statements - The company will discuss forward-looking statements during the call, with a reminder for participants to refer to SEC filings for factors that could affect actual results [4]. - Management will reference non-GAAP financial measures, with reconciliations provided in the earnings release, highlighting the company's approach to financial reporting [4].

Financial Data and Key Metrics Changes - Fiscal second quarter revenue was $3 million, down from $3.5 million in the prior year, primarily due to $0.6 million in property sales and $0.5 million of incentive fees not recognized in the current quarter [14] - The company reported a net loss of $16.5 million for the quarter compared to a net income of $1.4 million a year ago, driven by unrealized losses of $14.4 million [15] - Adjusted EBITDA for the quarter was a loss of $1.6 million compared to a gain of $1 million in the prior year period [15] - Estimated assets under management (AUM) stood at approximately $740 million, with fee-paying AUM up 4% year-over-year to approximately $561 million [14][15] Business Line Data and Key Metrics Changes - Great Elm Real Estate Ventures had a strong quarter, with total investment management and property management fees increasing over 15% from the prior year, driven by growth in fee-paying AUM and higher gross rents [7] - Monomoy Construction Services contributed approximately $400,000 in revenue during its third full quarter of operations [7] - The alternative credit business faced challenges, particularly with CoreWeave stock declining nearly 50% in the quarter, impacting overall performance [8] Market Data and Key Metrics Changes - The fiscal second quarter unfolded against a challenging backdrop for Business Development Companies (BDCs), marked by heightened volatility and pressure on public valuations [4] - CoreWeave's Common Stock declined nearly 50%, resulting in significant unrealized losses, although distributions received totaled approximately 115% of the original investment [11] Company Strategy and Development Direction - The company is focused on growing fee-paying AUM, scaling alternative credit and real estate businesses, and sourcing new investment opportunities [13] - Great Elm aims to expand its platform and add differentiated product offerings with attractive risk-adjusted return profiles [13] - The company has fortified its team and is optimizing its portfolio to improve overall credit quality, focusing on senior secured opportunities [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging environment for BDCs and emphasized that unrealized losses were primarily non-cash and driven by market movements [4] - The company remains confident in its strategic direction and is focused on advancing its credit and real estate platforms while strengthening its balance sheet [18] Other Important Information - The share repurchase program has been effective, with approximately 1.1 million shares repurchased at an average price of $2.47 per share during the quarter [12] - As of December 31, 2025, the company held approximately $51.2 million in cash, providing flexibility for growth initiatives [15] Q&A Session Summary - There were no questions during the Q&A session, and management reiterated confidence in the strategic direction of the business and commitment to delivering sustained value for shareholders [17][18]

Great Elm Group (NasdaqGS:GEG) Q2 2026 Earnings call February 05, 2026 08:30 AM ET Company ParticipantsAdam Yates - Managing DirectorJason Reese - CEOKeri Davis - CFOOperatorGreetings and welcome to the Great Elm Group Fiscal 2026 second quarter conference call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star 0 on your telephone keypad. As a ...

Great Elm Group (NasdaqGS:GEG) Q2 2026 Earnings call February 05, 2026 08:30 AM ET Speaker3Greetings and welcome to the Great Elm Group Fiscal 2026 second quarter conference call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star 0 on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce yo ...

March 2023 February 5, 2026 ©2023 Great Elm Capital Corp. 2 2 2 Includes approximately $0.7 million of unrealized loss attributable to the Company's investment in Consolidated Funds for the quarter ended December 31, 2025. February 5, 2026 Fiscal Second Quarter Ended December 31, 2025 NASDAQ: GEG GEG FY2Q26 Highlights 1 FPAUM and AUM figures are management estimates as of the dates presented and are based on internal data, methodologies, and assumptions that GEG believes to be reasonable. These amounts are ...

Financial Performance - The company reported a net loss of $16.5 million for the second quarter, compared to a net income of $1.4 million in the prior-year period, primarily due to a significant unrealized loss of $14.4 million[10] - Total revenue for the second quarter was $3.0 million, down from $3.5 million in the prior-year period[7] - Revenues for Q2 2025 were $3,011,000, a decrease of 14.1% compared to $3,507,000 in Q2 2024[22] - Net loss attributable to Great Elm Group, Inc. stockholders was $15,754,000 for Q2 2025, compared to a net income of $1,176,000 in Q2 2024[22] - The company reported a net realized and unrealized loss of $11,361,000 in Q2 2025, contrasting with a gain of $2,428,000 in Q2 2024[22] - Basic net loss per share for Q2 2025 was $(0.50), compared to $0.04 in Q2 2024[22] - For the six months ended December 31, 2025, revenues increased to $13,799,000, up 84.5% from $7,499,000 in the same period of 2024[22] - Operating loss for the six months ended December 31, 2025 was $(7,959,000), compared to $(3,973,000) for the same period in 2024[22] - Adjusted EBITDA for Q2 2025 was $(1,628,000), a decline from $1,024,000 in Q2 2024[23] Asset Management - GEG's fee-paying assets under management (FPAUM) grew by 4% year-over-year to approximately $561 million, while total assets under management (AUM) decreased by 2% to $740 million[7] - GEG had approximately $51.2 million in cash and cash equivalents as of December 31, 2025, to support growth initiatives[10] Shareholder Actions - GEG repurchased approximately 1.1 million shares, or over 3% of shares outstanding, at an average price of $2.47 per share during the quarter[10] - GEG's stock repurchase program has a remaining capacity of approximately $12.3 million for future repurchases[12] Investments and Partnerships - The CoreWeave-related investment generated a realized gain of $2.2 million, with total distributions received to date amounting to $5.8 million, exceeding the original investment of $5 million[10] - Great Elm Real Estate Ventures, formed through a strategic partnership, consolidates three real estate subsidiaries, enhancing operational efficiency[10] Operational Changes - The Great Elm Credit Income Fund began an orderly wind-down in response to recent portfolio events and market conditions[10] - Total operating costs and expenses increased to $7,228,000 in Q2 2025, up 43.8% from $5,026,000 in Q2 2024[22] Interest and Shares - Interest expense remained relatively stable at $1,022,000 for Q2 2025, compared to $1,030,000 in Q2 2024[23] - The weighted average shares outstanding for basic shares increased to 31,624,000 in Q2 2025 from 27,983,000 in Q2 2024[22]

Financial Performance - Revenues for the three months ended December 31, 2025 decreased by 14% to $3,011,000 compared to $3,507,000 in the same period of 2024[129] - For the six months ended December 31, 2025, revenues increased by 84% to $13,799,000 compared to $7,499,000 in the same period of 2024[129] - Operating loss for the three months ended December 31, 2025 was $4,233,000, compared to a loss of $1,977,000 in the same period of 2024[129] - Net loss for the three months ended December 31, 2025 was $16,548,000, compared to a net income of $1,354,000 in the same period of 2024[129] - Alternative Credit segment revenues for the three months ended December 31, 2025 decreased by 25% to $1,494,000 compared to $1,989,000 in the same period of 2024[140] - Other income (expense), net for the three months ended December 31, 2025 showed a loss of $12,369,000 compared to income of $3,331,000 in the same period of 2024[129] - The company reported a notable unrealized loss on investments, contributing to a decrease in net realized and unrealized gains by $13.8 million for the three months ended December 31, 2025[134] - Net realized and unrealized losses for Corporate & Other decreased by $13.8 million for the three months ended December 31, 2025, primarily due to significant unrealized losses on investments[153] Compensation and Expenses - Compensation and benefits expenses for the three months ended December 31, 2025 increased by 44% to $4,919,000 compared to $3,425,000 in the same period of 2024[129] - Compensation and benefits expenses in the Real Estate segment increased by 136% to $2,707,000 for the three months ended December 31, 2025, primarily due to the Greenfield acquisition[148] - Total operating costs and expenses for the Real Estate segment were $3,509,000 for the three months ended December 31, 2025, compared to $1,620,000 in the prior year[149] Real Estate Performance - Real Estate revenues for the three months ended December 31, 2025 remained flat at $1,517,000 compared to $1,518,000 for the same period in 2024[146] - Real Estate revenues for the six months ended December 31, 2025 increased by $7.7 million to $10,725,000, driven by a property sale in September 2025[147] Cash and Debt Management - Net cash from operating activities increased by $11.8 million, from a net cash used of $9.8 million for the six months ended December 31, 2024 to net cash provided of $1.9 million for the six months ended December 31, 2025[155] - As of December 31, 2025, the company had an unrestricted cash balance of $51.2 million, up from $30.6 million as of June 30, 2025[158] - The company had $26.9 million in outstanding GEGGL Notes due on June 30, 2027, with covenants limiting additional indebtedness if the net consolidated debt to equity ratio exceeds 2 to 1[159] - The company had $35.9 million principal balance in outstanding Convertible Notes due on February 26, 2030, accruing interest at 5.0% per annum[160] Investment Management - GEG continues to explore investment management opportunities and has no unfunded binding commitments as of the report date[125] - Interest income decreased by $0.1 million for the three months ended December 31, 2025, due to a shift in the investment portfolio[153]

Core Insights - Great Elm Group, Inc. reported a year-over-year growth of 4% in fee-paying assets under management (FPAUM) as of December 31, 2025, totaling approximately $561 million, while total assets under management (AUM) decreased by 2% to approximately $740 million [6][11] - The company experienced a significant unrealized loss of $14.4 million and a realized gain of $2.3 million on its investments during the quarter [6][11] - The company repurchased approximately 1.1 million shares, representing over 3% of shares outstanding, demonstrating confidence in its business and commitment to shareholder value [4][11] Financial Performance - Total revenue for the second quarter was $3.0 million, down from $3.5 million in the prior-year period [6][11] - The net loss for the second quarter was $(16.5) million, compared to a net income of $1.4 million in the prior-year period, primarily due to unrealized losses [6][11] - Adjusted EBITDA for the second quarter was $(1.6) million, a decrease from $1.0 million in the prior-year period [11][24] Investment Highlights - The CoreWeave-related investment continues to show promise, with distributions received to date exceeding the original investment of $5 million, totaling $5.8 million [5][11] - Unrealized losses from investments in Great Elm Capital Corp. common stock and related special purpose vehicles amounted to $4.0 million and $3.0 million, respectively, for the quarter [11][6] - The company is focused on leveraging its balance sheet to identify new investment opportunities to grow assets under management and fee revenue [5][11] Strategic Developments - The company completed its third Monomoy build-to-suit project in Florida and began marketing the property [4][11] - Great Elm's private credit strategy, the Great Elm Credit Income Fund, initiated a wind-down in response to recent portfolio events and market conditions [11] - A new entity, Great Elm Real Estate Ventures, was formed to consolidate the company's real estate subsidiaries, enhancing operational efficiency [11]

Core Viewpoint - Great Elm Group, Inc. is set to release its financial results for the fiscal quarter ended December 31, 2025, on February 4, 2026, after market close [1] Group 1: Financial Results Announcement - The financial results will be announced after the market closes on February 4, 2026 [1] - A conference call and webcast will be held on February 5, 2026, at 8:30 a.m. Eastern Time to discuss the financial results [2] Group 2: Conference Call Details - Interested parties can participate in the conference call by dialing +1 (877) 407-0752 for domestic calls and +1 (201) 389-0912 for international calls [2] - Participants should enter Conference ID 13757471 if prompted [2] Group 3: Company Overview - Great Elm Group, Inc. is a publicly-traded alternative asset manager focused on a diversified portfolio across credit, real estate, specialty finance, and other alternative strategies [4] - The company manages Great Elm Capital Corp., a publicly-traded business development company, and Monomoy Properties REIT, LLC, an industrial-focused real estate investment trust [4]

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