Financial Data and Key Metrics Changes - Total revenue for the fiscal third quarter of 2025 was $3.2 million, reflecting a 15% year-over-year growth [6][16] - Fee-paying assets under management (AUM) increased by 15% year-over-year, reaching approximately $565 million [6][16] - The company reported a net loss of $4.5 million for the quarter, compared to a net loss of $2.9 million in the prior year period [16][17] - Adjusted EBITDA for the quarter was $500,000, down from $1.2 million in the prior year [17] Business Line Data and Key Metrics Changes - The company launched Monomoy Construction Services through the acquisition of Greenfield CRE, enhancing its real estate capabilities [5][11] - Great Elm Capital Corp (GECC) raised approximately $147 million through equity and debt issuances, contributing to a 40% increase in fee-paying AUM at GECC [6][7] - Base management fees from GECC grew over 40% year-over-year to $1.3 million [9] Market Data and Key Metrics Changes - The company ended the quarter with approximately $32 million in cash, positioning it well for future growth amid market volatility [13][17] - GECC generated record total investment income of $12.5 million, marking the highest cash income quarter in the company's history [7] Company Strategy and Development Direction - The company is focused on expanding its core credit and real estate platforms as part of its long-term growth strategy [5][15] - The acquisition of Greenfield CRE is expected to provide revenue and cost synergies, enhancing the overall real estate value proposition [11][14] - The company aims to evaluate strategic opportunities to expand its businesses and add differentiated product offerings with attractive risk-adjusted return profiles [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of unrealized losses related to investments as market conditions stabilize [13][17] - The company remains focused on enhancing financial performance and growing AUM, with a strong liquidity position to support future growth initiatives [14][15] Other Important Information - The company has repurchased approximately 4.8 million shares for $8.7 million under its $20 million buyback program, achieving an average cost of $1.84 per share [12][13] - The net loss for the quarter was primarily driven by unrealized losses related to investments marked lower amid broader market volatility [13][17] Q&A Session Summary Question: What are the expectations regarding the recovery of unrealized losses? - Management remains highly confident that the unrealized losses will reverse over time as market conditions stabilize [13][17] Question: How is the company positioned for future growth? - The company has a strong liquidity position with approximately $32 million in cash, enabling it to support future growth initiatives across its alternative asset management platform [13][14]

Financial Performance - Total revenue for the third quarter grew 15% to $3.2 million, compared to $2.8 million for the prior-year period[6] - GECC base management fees grew over 40% year-over-year due to FPAUM growth[6] - Fiscal 3Q25 revenue grew 15% to $3.2 million, compared to $2.8 million in the prior-year period[26] - Fiscal 3Q25 Adjusted EBITDA was $0.5 million, compared to $1.2 million in Fiscal 3Q24[24] - Net loss from continuing operations was ($4.5) million for Fiscal 3Q25, compared to net loss of ($2.9) million in the prior-year period[26] Assets Under Management - Assets Under Management ("AUM") reached $768 million as of March 31, 2025, a 12% increase from March 31, 2024[29] - Fee-Paying AUM ("FPAUM") was $565 million as of March 31, 2025, up 15% from March 31, 2024[31] - Great Elm ended the quarter with approximately $32 million of cash to deploy across its growing alternative asset management platform[6] Strategic Initiatives - Great Elm launched Monomoy Construction Services, LLC ("MCS") in February 2025 through the acquisition of Greenfield CRE, LLC ("Greenfield")[6] - Great Elm Capital Corp ("GECC") launched a $100 million At-the-Market equity program in May 2025[6] - Through May 6, 2025, Great Elm repurchased approximately 4.8 million shares for approximately $8.7 million, at an average cost of $1.84 per share[6]

[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) Great Elm Group's Q3 FY2025 saw 15% revenue growth to $3.2 million, but net loss widened to ($4.5) million, while FPAUM increased 15% to $565 million Key Financial Metrics | Financial Metric | Q3 FY2025 | Q3 FY2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $3.2 million | $2.8 million | +15% | | Net Loss from Continuing Operations | ($4.5) million | ($2.9) million | Increased Loss | | Adjusted EBITDA | $0.5 million | $1.2 million | -58.3% | Assets Under Management | Metric | As of March 31, 2025 | YoY Growth | | :--- | :--- | :--- | | Fee-Paying AUM (FPAUM) | ~$565 million | +15% | | Assets Under Management (AUM) | ~$768 million | +12% | - In February 2025, Great Elm acquired the assets of Greenfield CRE and formed Monomoy Construction Services, LLC (MCS), creating an integrated, full-service construction business for its real estate verticals[5](index=5&type=chunk) - As of May 6, 2025, the company has repurchased approximately **4.8 million shares** for **$8.7 million**, at an average price of **$1.84 per share**, through its share repurchase program[5](index=5&type=chunk) - The company maintained a strong liquidity position with approximately **$32 million** of cash on its balance sheet as of March 31, 2025, to support growth initiatives[5](index=5&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Jason Reese highlighted solid quarterly performance with expanding AUM, strong credit and real estate businesses, and strategic initiatives like Monomoy Construction Services - GECC achieved **record total investment income** in the first calendar quarter of 2025 and is expected to pay **significant incentive fees** to GEG in upcoming quarters[4](index=4&type=chunk) - The launch of Monomoy Construction Services (MCS) in February, through the acquisition of Greenfield CRE, adds specialized construction experience to the company's real estate platform[4](index=4&type=chunk) - The company continued its share repurchase program during the quarter, buying back shares at an **attractive discount** to its book value of **$2.14 per share** (as of March 31, 2025)[5](index=5&type=chunk)[6](index=6&type=chunk) [Business & Strategic Updates](index=2&type=section&id=Business%20%26%20Strategic%20Updates) Great Elm executed key strategic initiatives, including the acquisition of Greenfield CRE to form Monomoy Construction Services and an active stock repurchase program - In February 2025, Great Elm acquired Greenfield CRE's assets and combined them with Monomoy BTS Construction Management to launch MCS, a full-service construction business offering project management, procurement, and other services[10](index=10&type=chunk) - The Board of Directors approved an incremental **$20 million** stock repurchase program. As of May 6, 2025, the company has utilized **$8.7 million** of this authorization to repurchase **4.8 million shares**[11](index=11&type=chunk) [GEG Managed Vehicle Highlights](index=2&type=section&id=GEG%20Managed%20Vehicle%20Highlights) GEG's managed vehicles, including GECC and Monomoy real estate platforms, demonstrated strong operational performance and strategic advancements - GECC Highlights: - Generated **record Total Investment Income (TII) of $12.5 million** for the quarter - **Increased its quarterly distribution by 5.7% to $0.37 per share** - Launched a **$100 million At-the-Market (ATM) equity program** to provide capital flexibility[12](index=12&type=chunk) - Monomoy Real Estate Highlights: - Monomoy BTS closed on a land purchase for its third build-to-suit property - Monomoy REIT acquired a property for approximately **$3.0 million** and maintains a strong transaction pipeline[12](index=12&type=chunk) - The Great Elm Credit Income Fund delivered a return of approximately **13.9% (net of fees)** from its inception on November 1, 2023, through March 31, 2025[12](index=12&type=chunk)[18](index=18&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) The financial statements detail the company's financial position and performance, showing revenue growth but an increased net loss and decreased Adjusted EBITDA [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets decreased to $137.2 million, primarily due to lower cash, while total stockholders' equity declined to $65.3 million Condensed Consolidated Balance Sheet Data | Balance Sheet Item | March 31, 2025 (Thousands USD) | June 30, 2024 (Thousands USD) | | :--- | :--- | :--- | | Cash and cash equivalents | $31,528 | $48,147 | | Total assets | $137,190 | $140,446 | | Total liabilities | $71,875 | $70,251 | | Total stockholders' equity | $65,315 | $70,195 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q3 FY2025 revenues grew 15% to $3.2 million, but net loss from continuing operations widened to ($4.5) million, resulting in a ($0.17) loss per share Condensed Consolidated Statements of Operations Data | Income Statement Item | Q3 FY2025 (Thousands USD) | Q3 FY2024 (Thousands USD) | | :--- | :--- | :--- | | Revenues | $3,209 | $2,787 | | Operating loss | ($2,555) | ($1,869) | | Net (loss) from continuing operations | ($4,501) | ($2,883) | | Basic & Diluted EPS | ($0.17) | ($0.10) | [Reconciliation to Adjusted EBITDA](index=7&type=section&id=Reconciliation%20to%20Adjusted%20EBITDA) Adjusted EBITDA for Q3 FY2025 significantly decreased to $0.5 million from $1.2 million, primarily due to unrealized investment losses and other adjustments Adjusted EBITDA Reconciliation | Item | Three months ended March 31, 2025 (Thousands USD) | Three months ended March 31, 2024 (Thousands USD) | | :--- | :--- | :--- | | Net (loss) from continuing operations - GAAP | $(4,501) | $(2,883) | | **Adjusted EBITDA** | **$472** | **$1,228** |

Financial Performance - Total revenues for the three months ended March 31, 2025, increased to $3,209,000, up 15.1% from $2,787,000 in the same period of 2024[15] - Operating loss for the three months ended March 31, 2025, was $2,555,000, compared to a loss of $1,869,000 for the same period in 2024, reflecting a 36.7% increase in losses[15] - Net loss attributable to Great Elm Group, Inc. for the three months ended March 31, 2025, was $4,497,000, compared to a loss of $3,100,000 in the same period of 2024, representing a 45.0% increase in net losses[15] - For the nine months ended March 31, 2025, Great Elm Group reported a net loss of $173,000 compared to a net loss of $364,000 for the same period in 2024[19] - Total revenues for the nine months ended March 31, 2025, were $10.708 million, compared to $8.916 million for the same period in 2024, reflecting an increase of approximately 20%[57] - Pro forma combined revenue for the three months ended March 31, 2025, was $3.262 million, down from $5.074 million in the same period of 2024, indicating a decline of approximately 35.6%[56] Assets and Liabilities - Total current assets decreased to $121,058,000 as of March 31, 2025, down from $127,570,000 as of June 30, 2024, a decline of 5.5%[13] - Cash and cash equivalents decreased to $31,528,000 as of March 31, 2025, down 34.5% from $48,147,000 as of June 30, 2024[13] - Total liabilities increased to $71,875,000 as of March 31, 2025, compared to $70,251,000 as of June 30, 2024, an increase of 2.3%[13] - Total stockholders' equity decreased to $65,315,000 as of March 31, 2025, down from $70,195,000 as of June 30, 2024, a decline of 7.0%[13] - Great Elm Group's total stockholders' equity as of March 31, 2025, was $65,315,000, a decrease from $72,471,000 as of March 31, 2024[19] Cash Flow and Investments - The net cash used in operating activities for the nine months ended March 31, 2025, was $(11,176,000), compared to $(18,537,000) for the same period in 2024[19] - Cash and cash equivalents at the end of the period on March 31, 2025, were $31,528,000, down from $44,085,000 at the end of March 31, 2024[21] - The net cash provided by (used in) investing activities for the nine months ended March 31, 2025, was $(803,000), compared to $(3,739,000) for the same period in 2024[21] - The Company repurchased stock totaling $6,317,000 during the nine months ended March 31, 2025[21] - Cash used in investing activities for the nine months ended March 31, 2025, was $0.8 million, including acquisitions totaling $2.5 million[133] Stock and Equity - Weighted average shares outstanding for basic shares was 26,915,000 for the three months ended March 31, 2025, compared to 30,066,000 for the same period in 2024, a decrease of 10.5%[15] - The company repurchased a total of 579,489 shares of common stock at an average price of $1.87 per share during the three months ended March 31, 2025[148] - The company had unrecognized compensation costs related to unvested restricted stock awards and stock options totaling $2.2 million as of March 31, 2025[115] Expenses - Interest expense for the three months ended March 31, 2025, was $1,039,000, slightly down from $1,074,000 in the same period of 2024[15] - The company incurred approximately $0.1 million in acquisition-related costs during the three and nine months ended March 31, 2025[54] - Investment management expenses for the three months ended March 31, 2025, rose by $1.2 million (53%) to $3,555,000 compared to $2,330,000 in the same period of 2024[128] Acquisitions and Goodwill - The Company acquired certain assets of Greenfield CRE for approximately $2.5 million, forming MCS as a wholly owned subsidiary to enhance its construction business[49][50]. - Goodwill from the acquisition is estimated at $470,000, primarily due to the assembled workforce and expected synergies[51]. - Revenues from MCS for the period from February 4, 2025, to March 31, 2025, amounted to approximately $0.3 million, with an operating loss of $0.2 million[54]. Accounting and Reporting - The company is evaluating the potential impact of recently issued accounting standards on its consolidated financial statements, including ASU 2023-09 and ASU 2024-03[46][47] - Great Elm Group, Inc. filed its Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, including key financial statements[101] - The report includes condensed consolidated balance sheets and statements of operations, stockholders' equity, and cash flows[101] - Certifications from the Chief Executive Officer and Chief Financial Officer were filed pursuant to the Sarbanes-Oxley Act of 2002[31.1][31.2] Fair Value Measurements - The fair value of Level 3 assets as of March 31, 2025, was $12.834 million, with an unrealized gain of $4.1 million for the nine months ended March 31, 2025[88] - The total assets measured at fair value as of March 31, 2025, amounted to $47.955 million, with $20.423 million valued at net asset value[86] - Five investments with an aggregate fair value of $831,034 were transferred from Level 3 to Level 2 due to increased pricing transparency during the nine months ended March 31, 2025[91] Related Party Transactions - As of March 31, 2025, related party reimbursements due from Monomoy REIT amounted to $3.7 million, primarily for work-in-progress on a construction project[83] - The Company recognized $0.1 million of interest income related to the Monomoy Note for the three months ended March 31, 2025[82]

Company to Host Conference Call at 8:30 a.m. ET on May 8, 2025PALM BEACH GARDENS, Fla., May 07, 2025 (GLOBE NEWSWIRE) -- Great Elm Group, Inc. (“we,” “our,” “GEG,” “Great Elm,” or “the Company”), (NASDAQ: GEG), an alternative asset manager, today announced financial results for its fiscal third quarter ended March 31, 2025. Fiscal Third Quarter 2025 and Recent Highlights In February 2025, Great Elm acquired the assets of Greenfield CRE and formed Monomoy Construction Services, LLC (“MCS”), combining the ass ...

Core Points - Great Elm Group, Inc. plans to release its financial results for the fiscal quarter ended March 31, 2025, after market close on May 7, 2025 [1] - A conference call and webcast will be held on May 8, 2025, at 8:30 a.m. Eastern Time to discuss the financial results [2] - Great Elm Group is an alternative asset manager focused on a diversified portfolio across various sectors including credit, real estate, and specialty finance [4] Company Overview - Great Elm Group, Inc. is publicly traded on NASDAQ under the ticker GEG [4] - The company manages Great Elm Capital Corp., a business development company, and Monomoy Properties REIT, LLC, an industrial-focused real estate investment trust [4] - The company's website is www.greatelmgroup.com [4]

Great Elm Group, Inc. (NASDAQ:GEG) Q2 2025 Earnings Conference Call February 6, 2025 8:30 AM ET Company Participants Adam Yates - MD Jason Reese - CEO Keri Davis - CFO Conference Call Participants Operator Greetings, and welcome to the Great Elm Group Fiscal 2025 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. [Operator Instructions] As a reminder, this conference is being recorded. It is now m ...

Financial Data and Key Metrics Changes - Total revenue for the fiscal second quarter 2025 grew 24% year-over-year to $3.5 million, primarily driven by increased revenue from Monomoy BTS and management fees from GECC [24][25] - Net income from continuing operations was $1.4 million compared to a net loss of $0.2 million in the prior year period [25] - Adjusted EBITDA for the quarter was $1 million, up from $0.6 million in the prior year [25] - Cash on the balance sheet as of December 31 was approximately $44 million, with a book value per share of approximately $2.30 [25][26] Business Line Data and Key Metrics Changes - Fee-paying assets under management (AUM) reached approximately $538 million, representing a 17% increase year-over-year, primarily driven by the BDC [12][25] - Total AUM increased to approximately $751 million, up 14% from the prior year quarter end [25] - Base management fee from GECC grew 33% year-over-year to $1.2 million, with approximately $0.5 million earned in incentive fees this quarter [15] Market Data and Key Metrics Changes - Great Elm Capital Corp. raised an additional $13.2 million of equity at net asset value in December, marking its third equity capital raise in calendar 2024 [9][12] - GECC's net asset value has nearly doubled since the management refresh in March 2022, delivering significant value to shareholders [14] Company Strategy and Development Direction - The company is evolving as a streamlined alternative asset management business, focusing on expanding its core credit and real estate platforms [8] - The acquisition of Greenfield CRE is expected to enhance the company's real estate capabilities and create a fully integrated construction vertical [17][18] - The company remains committed to executing development projects to drive profitability and deliver value for tenants and shareholders [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the performance of credit and real estate businesses, highlighting the acquisition of Greenfield CRE as a strategic growth initiative [22] - The company plans to continue evaluating strategic opportunities to expand its businesses and product offerings with attractive risk-adjusted return profiles [23] Other Important Information - The company has repurchased approximately 4.1 million shares for $7.4 million under its expanded $20 million buyback program, representing a 20% discount to book value [20][21] - The company maintains a strong balance sheet and capital position, enabling support for future growth initiatives [21] Q&A Session Summary - There were no questions during the Q&A session [27]

February 6, 2025 Fiscal Second Quarter Ended December 31, 2024 NASDAQ: GEG GEG Highlights 1 Assumes invested at inception on November 1, 2023, and remained invested throughout the succeeding 14 months ended December 31, 2024, with distributions reinvested, net of founder's class fees and expenses. Performance results should not be regarded as final until audited financial statements are issued covering the period shown. Past performance is no guarantee of future results. 2 Amount excludes Consolidated Funds ...

GREAT ELM GROUP REPORTS FISCAL 2025 SECOND QUARTER FINANCIAL RESULTS Company to Host Conference Call at 8:30 a.m. ET on February 6, 2025 PALM BEACH GARDENS, Fla., February 5, 2025 – Great Elm Group, Inc. ("we," "our," "GEG," "Great Elm," or "the Company"), (NASDAQ: GEG), an alternative asset manager, today announced financial results for its fiscal second quarter ended December 31, 2024. Fiscal Second Quarter 2025 and Recent Highlights Management Commentary Jason Reese, Chief Executive Officer of the Compan ...