Great Elm Capital (GECC) investor relations material

Executive summary

• Jason Reese was appointed Executive Chairman to enhance oversight and accountability, succeeding Matthew Drapkin.

• Chris Croteau was hired as Head of Credit Research to strengthen underwriting and portfolio surveillance.

• Incentive fees totaling $2.3 million were waived through March 2026, directly benefiting shareholders and increasing NAV.

• Board declared a $0.30 per share distribution for Q1 2026, representing a 19.2% annualized yield on recent closing price.

• Portfolio repositioned for greater diversification, reduced risk, and enhanced liquidity.

Financial highlights

• Net investment income (NII) for Q4 2025 was $4.4 million or $0.31 per share, up over 50% quarter-over-quarter.

• Total investment income for Q4 2025 was $12.6 million, up from $10.6 million in Q3 2025.

• Net asset value (NAV) per share declined from $10.01 to $8.07 quarter-over-quarter; pro forma NAV with fee waiver was $8.23.

• Asset coverage ratio was 158.1% at year-end, improving to 166% pro forma for fee waiver and bond calls.

• Net realized and unrealized losses for Q4 2025 were $26.4 million ($1.88/share), with over half unrealized.

Outlook and guidance

• Portfolio positioned defensively with focus on senior secured, cash-generative investments.

• Management remains focused on disciplined credit underwriting, active portfolio management, and NAV protection.

• Ample liquidity and no near-term balance sheet constraints support selective capital deployment.

• Board authorized a $10 million stock repurchase program.

• Continued expansion of private credit pipeline and portfolio diversification.