Great Elm (US:GEG)2026-02-04 21:15Financial 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]