Great Elm Capital Corp. Announces Fourth Quarter and Full Year 2025 Financial Results and New Executive Chairman of Board

Core Insights - Great Elm Capital Corp. (GECC) announced the appointment of Jason Reese as Executive Chairman, succeeding Matthew Drapkin, who will remain as Vice Chairman [1][4][12] - The company waived approximately $2.3 million in accrued incentive fees as of December 31, 2025, which translates to $0.16 per share, and also waived incentive fees for the first quarter of 2026 [1][6][12] - GECC reported a GAAP net asset value (NAV) of $8.07 per share as of December 31, 2025, with a pro forma NAV of $8.23 per share after accounting for the waived incentive fees [2][12] Financial Performance - Net investment income (NII) for the fourth quarter of 2025 was $4.4 million, or $0.31 per share, reflecting over 50% growth quarter-over-quarter [2][12] - Total investment income for the fourth quarter was $12.6 million, compared to $10.6 million in the previous quarter [12][18] - The company ended 2025 with net assets of $112.9 million, down from $140.1 million at the end of the previous quarter, primarily due to unrealized losses [12][20] Liquidity and Capital Management - GECC maintained a strong liquidity position with approximately $5 million in cash and equivalents and $50 million available under a revolving credit facility as of December 31, 2025 [2][21] - The company repurchased $18.7 million of GECCO notes due June 2026, leaving $38.8 million outstanding as of February 27, 2026 [2][12] - A call notice was issued for the redemption of $20 million of GECCO notes on March 31, 2026 [2][13] Shareholder Returns - The Board declared a quarterly distribution of $0.30 per share for the first quarter of 2026, resulting in an annualized dividend yield of 19.2% based on the closing price of $6.26 on February 27, 2026 [3][24] - The distribution also equates to a 14.9% annualized yield based on the NAV of $8.07 per share as of December 31, 2025 [24] Investment Strategy and Portfolio - GECC's investment portfolio as of December 31, 2025, totaled $298.3 million, with a weighted average current yield of 11.7% [16][19] - The company deployed approximately $48.2 million into 32 investments during the fourth quarter, achieving a weighted average current yield of 8.1% [17][19] - The portfolio had less than 1% of investments on nonaccrual, indicating effective management of credit quality [8][12]