Great Elm (US:GEG) Globenewswire·2025-09-02 20:25Core Insights - Great Elm Group, Inc. reported a record net income from continuing operations of $15.7 million for the fourth quarter of fiscal 2025, a significant improvement from a net loss of $0.6 million in the prior-year period [4] - The company's book value per share increased by 24% to $2.65 as of June 30, 2025, compared to the prior-year end [4] - Recent capital raises exceeding $100 million in credit and real estate products position the company for continued growth [4] Management Commentary - The CEO highlighted fiscal 2025 as the strongest operating year in the company's history, with substantial growth in fee revenue driven by management and incentive fees from Great Elm Capital Corp. (GECC) [2] - The launch of Monomoy Construction Services in February 2025 added a new revenue stream, enhancing the company's real estate platform [2] - A partnership with Kennedy Lewis Investment Management was announced, providing up to $150 million in leverageable capital to accelerate the expansion of the real estate platform [2][8] Financial Performance - For the fourth quarter, total revenue was $5.6 million, down from $8.9 million in the prior-year period, primarily due to a previous $6.6 million revenue from a property sale [4] - Excluding that transaction, revenue growth was over 140%, driven by record management and incentive fees from GECC, totaling $3.8 million, up approximately 253% from $1.1 million [4] - Adjusted EBITDA for the fourth quarter was $1.5 million, compared to $1.2 million in the prior-year period [4] Full Fiscal Year Highlights - Total revenue for fiscal 2025 was $16.3 million, compared to $17.8 million for fiscal 2024, with a 35% growth in revenue when excluding the previous year's property sale [6] - Management fee revenue grew 17% year-over-year to $8.4 million, while incentive fees increased by 52% to approximately $4.1 million [6] - As of June 30, 2025, fee-paying assets under management (FPAUM) totaled approximately $553 million, reflecting a 5% increase from the prior year [6] Strategic Partnerships and Investments - The partnership with Kennedy Lewis Investment Management included a purchase of 4.9% of Great Elm's common stock at $2.11 per share and the provision of term loans to Monomoy REIT [8] - In August 2025, Woodstead Value Fund invested $9 million in newly issued shares of GEG at $2.25 per share, aligning interests with shareholders [9] - Booker Smith joined the Board of Directors, bringing expertise in credit and real estate to support the company's growth [9][10] Operational Developments - The company completed the formation of Monomoy Construction Services, enhancing its end-to-end real estate platform [12] - GECC achieved record total investment income of $14.3 million for the quarter ended June 30, 2025, driven by cash flows from its growing CLO platform [12]