Great Elm Capital (US:GECC)2026-03-02 22:10Financial Performance - Great Elm Capital Corp. reported a net investment income (NII) of $0.31 per share for Q4 2025, representing over 50% growth quarter-over-quarter [15]. - The company's total investment income for Q4 2025 was $12.6 million, compared to $10.6 million in Q3 2025 [10]. - Total investment income for the year ended December 31, 2025, was $49.988 million, an increase from $39.323 million in 2024, representing a growth of 27.5% [34]. - Net investment income for 2025 was $17.319 million, compared to $12.453 million in 2024, reflecting a year-over-year increase of 38.5% [34]. - Interest income from non-affiliated, non-controlled investments was $24.571 million in 2025, slightly down from $24.619 million in 2024 [34]. Asset and Liabilities - GAAP net asset value (NAV) per share as of December 31, 2025, was $8.07, with a pro forma NAV of $8.23 after accounting for waived incentive fees [10]. - The net asset value per share decreased to $8.07 in 2025 from $11.79 in 2024, indicating a decline of 31.1% [33]. - Total liabilities rose to $227.829 million in 2025, up from $205.915 million in 2024, an increase of 10.6% [33]. - The company reported a net decrease in net assets resulting from operations of $31.789 million for 2025, contrasting with an increase of $3.553 million in 2024 [34]. Investment and Portfolio Management - As of December 31, 2025, GECC held total investments of $298.3 million at fair value, with a weighted average current yield on the debt portfolio of 11.7% [16]. - The asset coverage ratio was 158.1% as of December 31, 2025, down from 168.2% in the previous quarter [15]. - The company exited certain underperforming investments during Q4 2025, maintaining less than 1% of investments on nonaccrual [7]. - GECC's investment adviser waived approximately $2.3 million in accrued incentive fees as of December 31, 2025, equating to $0.16 per share [10]. Shareholder Returns and Capital Management - The board declared a quarterly distribution of $0.30 per share for Q1 2026, resulting in a 19.2% annualized dividend yield based on the closing price of $6.26 on February 27, 2026 [22]. - The company repurchased approximately $18.7 million of GECCO notes due June 2026, leaving $38.8 million outstanding as of February 27, 2026 [1]. - The board authorized a stock repurchase program of up to $10 million, representing approximately 11% of the company's market capitalization as of February 27, 2026 [24]. Expense Management - Total expenses increased to $32.090 million in 2025 from $26.522 million in 2024, marking a rise of 20.5% [34]. - The net realized and unrealized losses for 2025 amounted to $49.108 million, a significant decline from the gains of $12.791 million in 2023 [34]. Share Count - Weighted average shares outstanding increased to 12,360,314 in 2025 from 9,844,014 in 2024, reflecting a growth of 25.6% [34]. - The company’s cash and cash equivalents stood at $1.834 million as of December 31, 2025, compared to zero in 2024 [33].