Financial Data and Key Metrics Changes - Fiscal first quarter revenue was $10.8 million compared to $4 million for the prior year period, primarily driven by $7.4 million in revenue from the sale of a built-to-suit property [12] - The company reported a net loss of $7.9 million for the quarter versus net income of $3 million a year ago, mainly due to unrealized losses on investments [13] - Adjusted EBITDA for the quarter was a loss of $500,000 compared to a gain of $1.3 million in the prior year period [13] - Fee-paying assets under management (AUM) grew 9% year over year to approximately $594 million, or 10% on a pro forma basis to approximately $601 million [4][12] Business Line Data and Key Metrics Changes - Monomoy BTS sold its second built-to-suit development property for over $7 million, generating a gain of over $500,000 [6] - Investment management and property management fees at Monomoy CRE increased 12% over the prior year period, driven by growth in fee-paying AUM and rental income [8] - GECC raised approximately $28 million in equity proceeds, including a $15 million private placement and $13 million through its At the Market Equity Program [8] Market Data and Key Metrics Changes - The REIT deployed over $13 million to acquire seven new properties at attractive cap rates [8] - GECC doubled its borrowing capacity under its revolver to $50 million, reducing the interest rate by 50 basis points [9] Company Strategy and Development Direction - The company aims to expand its platform, grow assets under management, and enhance profitability [4] - A transformative partnership with Kennedy Lewis Investment Management was established, committing up to $150 million in leverageable capital to accelerate real estate platform expansion [5] - The company is focused on growing fee-paying AUM and scaling its credit and real estate platforms [11][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic direction of the business and the ability to leverage fixed costs for growth [17][18] - Despite setbacks from First Branch's bankruptcy, the company believes it is in a strong position with ample deployable cash and a solid balance sheet [10][11] Other Important Information - The company ended the quarter with approximately $53.5 million in cash, providing flexibility for growth initiatives [11] - The stock repurchase program was expanded by $5 million to a total of $25 million, with 5.6 million shares repurchased for $10.9 million [11] Q&A Session Summary Question: Current growth trajectory and expense structure - Management indicated that the bulk of fixed costs are in place, and the focus is now on growth, particularly in real estate and BDC [17][18] Question: Information on Monomoy REIT - Management acknowledged the limited public information on Monomoy REIT, which focuses on industrial outside storage and has over 150 buildings [20][21] - The REIT has built a built-to-suit business and aims for potential public listing in the future [21][22]

Financial Performance - Great Elm Group (GEG) grew pro forma Fee-Paying Assets Under Management (FPAUM) by 10% year-over-year as of September 30, 2025[6] - Great Elm Group (GEG) grew pro forma Assets Under Management (AUM) by 7% year-over-year as of September 30, 2025, reaching $792 million[6, 33] - GECC raised approximately $28 million in gross proceeds through equity issuances[7] - GECC issued $57.5 million principal amount of its 7.75% Notes due December 31, 2030[7] - Monomoy BTS sold its second property for approximately $7.4 million, resulting in a gain of $0.5 million[7] Strategic Partnerships and Investments - Great Elm announced a strategic partnership with Kennedy Lewis Investment Management (KLIM), delivering up to $150 million in leverageable capital[6] - Woodstead Value Fund, L.P purchased 4.0 million shares of GEG at $2.25 per share, totaling $9 million[6] - GECC sold 1.3 million shares to an affiliate of Booker Smith at $11.65 per share for gross proceeds of $15 million[6] Capital Allocation - GEG's Board authorized an additional $5 million of stock repurchases, bringing the total stock repurchase program to $25 million[6] - As of November 11, 2025, GEG repurchased 5.6 million shares for $10.9 million at an average price of $1.93 per share[6]

Financial Performance - Total revenue for the first quarter was $10.8 million, a significant increase from $4.0 million in the prior-year period, primarily due to a $7.4 million gain from the sale of a property[8] - Revenues for the three months ended September 30, 2025, increased to $10,788,000, compared to $3,992,000 for the same period in 2024, representing a growth of 170%[23] - The net loss for the first quarter was $(7.9) million, compared to net income of $3.0 million in the prior-year period, largely due to unrealized losses on investments[8] - Net loss attributable to Great Elm Group, Inc. stockholders was $7,030,000 for the three months ended September 30, 2025, compared to a net income of $2,639,000 in 2024[23] - Adjusted EBITDA for the first quarter was $(0.5) million, down from $1.3 million in the prior-year period[8] - Adjusted EBITDA for the three months ended September 30, 2025, was $(463,000), a significant decline from $1,330,000 in 2024[24] - Operating loss for the same period was $3,726,000, compared to an operating loss of $1,996,000 in 2024, indicating a deterioration in operational performance[23] Assets and Liabilities - Total assets as of September 30, 2025, were $155,010,000, an increase from $153,937,000 as of June 30, 2025[22] - Total liabilities decreased to $71,867,000 as of September 30, 2025, from $73,271,000 as of June 30, 2025[22] - Cash and cash equivalents increased to $53,470,000 as of September 30, 2025, compared to $30,603,000 as of June 30, 2025, reflecting improved liquidity[22] - Current liabilities decreased to $8,370,000 as of September 30, 2025, from $9,614,000 as of June 30, 2025, indicating better short-term financial health[22] Growth and Investments - Great Elm Group raised nearly $250 million in capital during the quarter, enhancing its growth potential[2] - As of September 30, 2025, fee-paying AUM and total AUM reached approximately $594 million and $785 million, reflecting year-over-year growth of 9% and 6% respectively[8] - Pro forma fee-paying AUM and total AUM totaled approximately $601 million and $792 million, with growth rates of 10% and 7% year-over-year[8] - Great Elm's private credit strategy achieved a strong net return of approximately 15.2% year-to-date through September 30, 2025[8] - Great Elm's strategic partnership with Kennedy Lewis Investment Management includes a $150 million capital commitment to support real estate platform growth[9] Stock and Shareholder Actions - The company authorized an additional $5 million for stock repurchases, increasing the total program to $25 million, with approximately $14.1 million remaining[8] - The weighted average shares outstanding for basic calculations were 28,972,000 for the three months ended September 30, 2025, compared to 29,079,000 in 2024[23] Property Transactions - The second Monomoy build-to-suit property was sold for $7.4 million, generating a gain of $0.5 million[8] - The company reported a net realized and unrealized loss of $2,861,000 for the three months ended September 30, 2025, compared to a gain of $3,778,000 in 2024[23]

Revenue Performance - GEG's total revenues for the three months ended September 30, 2025, increased by 170% to $10.788 million compared to $3.992 million in the same period of 2024[126]. - The Real Estate segment generated revenues of $9.208 million, a notable increase from $1.516 million in the previous year, primarily due to a $7.4 million property sale[137]. - The Alternative Credit segment reported revenues of $1.580 million, a decrease of 36% from $2.476 million in the prior year, attributed to reduced incentive fee revenue[133]. Cost and Expenses - The cost of revenues for the same period rose to $6.748 million, a significant increase from $635,000 in the prior year[126]. - Total operating costs and expenses for GEG increased to $7.766 million from $5.353 million year-over-year[126]. Net Income and Loss - Net loss for the three months ended September 30, 2025, was $7.904 million, compared to a net income of $2.974 million in the same period of 2024[126]. Cash Flow - Cash flows from operating activities improved to a net cash provided of $3.8 million, up from a net cash used of $5.8 million in the prior year[144]. - Net cash from investing activities increased to $9.3 million, up from $2.5 million in the same period of 2024, driven by the settlement of related party loan receivables[145]. - Net cash from financing activities rose to $9.7 million, compared to a net cash used of $2.2 million in the prior year, due to proceeds from the issuance of common stock[146]. Assets and Cash Balance - GEG's assets under management as of September 30, 2025, totaled approximately $792 million[121]. - As of September 30, 2025, the company had an unrestricted cash balance of $53.5 million, up from $30.6 million as of June 30, 2025[147]. Investments and Debt - The company held 1,358,276 shares of GECC common stock with an estimated fair value of $13.6 million as of September 30, 2025, compared to 1,438,079 shares valued at $15.3 million as of June 30, 2025[147]. - 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[148]. - The company had a principal balance of $35.1 million in outstanding Convertible Notes accruing interest at 5.0% per annum, due on February 26, 2030[149]. - All interest on the Convertible Notes has been paid in-kind to date[149]. Accounting and Market Risks - There were no material changes in critical accounting policies during the three months ended September 30, 2025[150]. - No material changes in market risks were reported compared to the previous fiscal year ended June 30, 2025[152].

Core Insights - Great Elm Group, Inc. raised nearly $250 million in recent capital, positioning the company for continued growth in its alternative asset management platform [2][5][10] - The company reported a 10% increase in Pro Forma Fee-Paying AUM and a 7% increase in AUM year-over-year as of September 30, 2025 [1][9] - Great Elm Real Estate Ventures continues to expand, supported by construction management revenue and the sale of a build-to-suit property for $7.4 million [3][9] Financial Performance - Total revenue for the first quarter was $10.8 million, up from $4.0 million in the prior-year period, primarily due to the sale of the second Monomoy BTS property [9][24] - The company reported a net loss of $(7.9) million for the quarter, compared to net income of $3.0 million in the prior-year period, driven by unrealized losses [9][24] - Adjusted EBITDA for the first quarter was $(0.5) million, down from $1.3 million in the prior-year period [9][25] Strategic Partnerships and Investments - In July 2025, Great Elm formed a strategic partnership with Kennedy Lewis Investment Management, which included a $150 million term loan to Monomoy REIT and the purchase of 1.4 million shares of GEG common stock [5][10] - In August 2025, Woodstead Value Fund invested $9.0 million in GEG, purchasing 4.0 million shares at $2.25 per share [11] - GECC raised approximately $85.4 million in debt and equity capital during the quarter, including a private placement of 1.3 million shares [9][12] Asset Management Growth - As of September 30, 2025, GEG's Fee-Paying AUM and AUM totaled approximately $594 million and $785 million, respectively, reflecting growth of 9% and 6% year-over-year [5][9] - The company has approximately $53.5 million in cash and marketable securities to support growth initiatives [9][21] - GEG's stock repurchase program has been increased to $25 million, with approximately $10.9 million spent to repurchase 5.6 million shares [9][21]

Core Viewpoint - Great Elm Group, Inc. is set to release its financial results for the fiscal quarter ended September 30, 2025, on November 12, 2025, after market close [1] Group 1: Financial Results Announcement - The financial results will be released after the close of market trading on November 12, 2025 [1] - A conference call and webcast will be held on November 13, 2025, at 8:30 a.m. Eastern Time to discuss the fiscal 2026 first quarter 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 callers [2] - Participants should enter the Conference ID 13750804 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] - More information about the company can be found on its website [4]

Core Points - Great Elm Capital Corp. (GECC) will release its financial results for Q3 2025 on November 4, 2025, after market close [1] - A conference call to discuss the results is scheduled for November 5, 2025, at 8:30 a.m. ET [1] Company Overview - GECC is an externally managed business development company focused on generating current income and capital appreciation through investments in debt and income-generating equity securities, including specialty finance businesses and CLOs [4]

Financial Data and Key Metrics Changes - Fiscal 2025 was a record year for the company, with net income from continuing operations reaching $15.7 million in the fourth quarter, a significant improvement from a net loss of $0.6 million in the prior year period [20][4] - Book value per share increased by approximately 24% year over year to $2.65 as of June 30, with a pro forma book value of $2.58 after recent capital raises [7][21] - Revenue for the fourth quarter was $5.6 million, compared to $8.9 million in the prior year, but excluding a one-time property sale, revenue grew over 140% year over year [19][7] Business Line Data and Key Metrics Changes - The credit business, GECC, generated record investment income and incentive fees, with net investment income exceeding quarterly distributions, supporting a 6% increase in dividends to $0.37 per share [10][4] - Monomoy Construction Services (MCS) launched in February and contributed nearly $1 million in revenue in its initial months, with expectations to more than double its revenue in fiscal 2026 [12][5] - The Great Elm Credit Income Fund posted net returns of 21% for the six months ended June 30, driven by unrealized appreciation in CoreWeave-related investments [11][20] Market Data and Key Metrics Changes - Assets under management in fee-paying AUM totaled approximately $759 million, up 4% from the prior year [19] - The company closed the year with $31 million in cash, which is expected to exceed $40 million on a pro forma basis after recent capital raises [8][21] Company Strategy and Development Direction - The company entered a strategic partnership with Kennedy Lewis Investment Management, which includes a $100 million term loan to Monomoy REIT and a commitment of up to $150 million to accelerate real estate platform growth [15][16] - The launch of MCS is part of a broader strategy to create a fully integrated real estate platform, enhancing development timelines and tenant relationships [12][5] - The company aims to scale its real estate revenues significantly, targeting $1 billion in assets and a potential future IPO for Monomoy REIT [16] Management's Comments on Operating Environment and Future Outlook - Management views fiscal 2025 as an inflection point, with record results and new capital and partnerships positioning the company for continued growth [5][18] - The company expressed confidence in its ability to deliver sustained long-term value to shareholders, supported by a strong balance sheet and strategic initiatives [18][24] Other Important Information - The board expanded the stock purchase program by $5 million, bringing the total program size to $25 million, with $15.7 million remaining in capacity [8] - The company repurchased 5.1 million shares for $9.3 million at an average of $1.85 per share, contributing to the increase in book value [8][21] Q&A Session Summary Question: Are there any questions from participants? - There were no questions from participants during the Q&A session [23]

Financial Data and Key Metrics Changes - Fiscal 2025 was a record year for the company, with net income from continuing operations reaching $15.7 million in the fourth quarter, a significant improvement from a net loss of $0.6 million in the prior year period [4][18] - Book value per share increased by approximately 24% year over year to $2.65 as of June 30, with a pro forma value of $2.58 after two capital raises in July and August [6][19] - Revenue in the fourth quarter was $5.6 million, compared to $8.9 million in the prior year, but excluding a one-time property sale, revenue grew over 140% year over year [17] Business Line Data and Key Metrics Changes - The credit business, GECC, generated record investment income and incentive fees, with net investment income exceeding quarterly distributions, supporting a 6% increase in dividends to $0.37 per share [9] - Monomoy Construction Services (MCS) launched in February and contributed nearly $1 million in revenue in its initial months, with expectations to more than double its revenue in fiscal 2026 [11] - The Great Elm Credit Income Fund posted net returns of 21% for the six months ended June 30, driven by unrealized appreciation in CoreWeave-related investments [10] Market Data and Key Metrics Changes - Assets under management in fee-paying AUM totaled approximately $759 million, up 4% from the prior year [17] - The company completed over $100 million in capital raises across its credit and real estate platforms in July and August, enhancing its financial flexibility [4][9] Company Strategy and Development Direction - The company aims to scale its credit and real estate platforms, with a target of $1 billion in assets for Monomoy REIT and a potential future IPO [14] - Strategic partnerships, such as with Kennedy Lewis Investment Management, are expected to accelerate growth and provide significant new capital for expansion [13][15] - The integration of MCS is designed to enhance development timelines and deepen tenant relationships, contributing to long-term revenue growth [11] Management's Comments on Operating Environment and Future Outlook - Management views fiscal 2025 as an inflection point, with strong momentum and a solid foundation for future growth [5][16] - The company is well-positioned to drive meaningful growth and create lasting value for shareholders, supported by a strong balance sheet and strategic partnerships [6][16] Other Important Information - The board expanded the stock purchase program by $5 million, bringing the total to $25 million, with $15.7 million remaining in capacity [7] - The company reported significant unrealized gains from its CoreWeave-related investment, contributing over $11 million to earnings [8] Q&A Session Summary - There were no questions during the Q&A session, indicating a strong confidence in the company's performance and outlook [20]

Financial Data and Key Metrics Changes - Fiscal 2025 was a record year for the company, with net income from continuing operations reaching $15.7 million in the fourth quarter, a significant improvement from a net loss of $0.6 million in the prior year period [4][18] - Book value per share increased by approximately 24% year over year to $2.65 as of June 30, with a pro forma book value of $2.58 after two capital raises in July and August [6][19] - Adjusted EBITDA for the quarter was $1.5 million, compared to $1.2 million in the prior year period [18] Business Line Data and Key Metrics Changes - In the credit segment, GECC generated record investment income and incentive fees, raising over $75 million in new capital and increasing its dividend by 6% to $0.37 per share [4][9] - The Great Elm Credit Income Fund posted net returns of 21% for the six months ended June 30, driven by unrealized appreciation in CoreWeave-related investments [10] - The real estate segment launched Monomoy Construction Services, contributing nearly $1 million in revenue and expanding its project pipeline by over 50% [11] Market Data and Key Metrics Changes - Assets under management in fee-paying AUM totaled approximately $759 million, up 4% from the prior year quarter end [17] - The company completed significant capital raises, including a $100 million term loan to Monomoy REIT and a $15 million equity capital raise from GECC [13][16] Company Strategy and Development Direction - The company aims to scale its credit and real estate platforms, with a target of $1 billion in assets for Monomoy REIT and a potential future IPO [14] - Strategic partnerships, such as with Kennedy Lewis Investment Management, are expected to accelerate growth and enhance the company's real estate platform [12][14] Management's Comments on Operating Environment and Future Outlook - Management views fiscal 2025 as an inflection point, with strong momentum and a solid foundation for future growth [5][16] - The company is well positioned to drive meaningful growth and create lasting value for shareholders, supported by a strong balance sheet and strategic capital raises [6][16] Other Important Information - The company repurchased 5.1 million shares for $9.3 million at an average of $1.85 per share, with $15.7 million remaining in the stock purchase program [7] - Unrealized gains from the CoreWeave-related investment contributed over $11 million to earnings, highlighting the company's ability to capture unique investment opportunities [8] Q&A Session Summary - There were no questions during the Q&A session, indicating a strong presentation and clarity in the company's communication [20]