Core Insights - Great Elm Group, Inc. reported a year-over-year growth of 4% in fee-paying assets under management (FPAUM) as of December 31, 2025, totaling approximately $561 million, while total assets under management (AUM) decreased by 2% to approximately $740 million [6][11] - The company experienced a significant unrealized loss of $14.4 million and a realized gain of $2.3 million on its investments during the quarter [6][11] - The company repurchased approximately 1.1 million shares, representing over 3% of shares outstanding, demonstrating confidence in its business and commitment to shareholder value [4][11] Financial Performance - Total revenue for the second quarter was $3.0 million, down from $3.5 million in the prior-year period [6][11] - The net loss for the second quarter was $(16.5) million, compared to a net income of $1.4 million in the prior-year period, primarily due to unrealized losses [6][11] - Adjusted EBITDA for the second quarter was $(1.6) million, a decrease from $1.0 million in the prior-year period [11][24] Investment Highlights - The CoreWeave-related investment continues to show promise, with distributions received to date exceeding the original investment of $5 million, totaling $5.8 million [5][11] - Unrealized losses from investments in Great Elm Capital Corp. common stock and related special purpose vehicles amounted to $4.0 million and $3.0 million, respectively, for the quarter [11][6] - The company is focused on leveraging its balance sheet to identify new investment opportunities to grow assets under management and fee revenue [5][11] Strategic Developments - The company completed its third Monomoy build-to-suit project in Florida and began marketing the property [4][11] - Great Elm's private credit strategy, the Great Elm Credit Income Fund, initiated a wind-down in response to recent portfolio events and market conditions [11] - A new entity, Great Elm Real Estate Ventures, was formed to consolidate the company's real estate subsidiaries, enhancing operational efficiency [11]