Great Elm Group Reports Fiscal 2025 First Quarter Financial Results

Core Insights - Great Elm Group, Inc. reported strong financial results for its fiscal first quarter ended September 30, 2024, with significant growth in assets under management and revenue [2][3][6]. Financial Performance - Fee-paying assets under management (FPAUM) and total assets under management (AUM) reached approximately $559 million and $782 million, reflecting year-over-year growth of 24% and 22% respectively [2]. - Total revenue for the quarter increased by 21% to $4.0 million, up from $3.3 million in the prior-year period, driven by property sales and increased management fees [2][6]. - Net income from continuing operations was $3.0 million, compared to $2.8 million in the prior-year period, aided by the reversal of $3.5 million in unrealized losses [7]. - Adjusted EBITDA for the quarter was $1.3 million, down from $1.7 million in the prior-year period [7][20]. Stock Repurchase Program - The Board of Directors authorized an additional $10 million for stock repurchases, increasing the total buyback authorization to $20 million [8]. - As of November 8, 2024, approximately 2.5 million shares were repurchased for $4.6 million at an average price of $1.85 per share [8]. Management Commentary - The CEO highlighted the solid start to fiscal 2025, emphasizing the expansion of assets under management and growth in fee revenue [3]. - The company aims to leverage its strong balance sheet to maximize shareholder value while focusing on strategic priorities in credit and real estate [3]. Investment Highlights - Great Elm Credit Income Fund achieved a strong return on invested capital of over 11% net of fees since its inception in November 2023 [5]. - Monomoy BTS completed its first build-to-suit property and has a robust pipeline in its construction management business [5]. Managed Vehicle Performance - Great Elm Capital Corp. reported record total investment income of $11.7 million for the quarter, marking the highest cash income in its history [4]. - GECC actively managed its capital structure, issuing $22 million in notes and redeeming $45.3 million of maturing notes [4].