Great Elm Capital (GECC) investor relations material

Executive summary

• Jason Reese was appointed CEO in May 2026, emphasizing strengthened oversight, accountability, and disciplined underwriting, with NAV protection and growth as top priorities.

• Incentive fee waivers through June 30, 2026, totaling $2.8 million ($0.20/share), directly benefited shareholders and were accretive to NAV.

• Less than 1% of investments were on non-accrual, outperforming peers.

• Strategic transformation at Great Elm Specialty Finance (GESF) is underway, with all core verticals profitable and generating cash distributions.

• Expanded private credit pipeline and diversified portfolio amid tight spread environment.

Financial highlights

• Net investment income (NII) for Q1 2026 was $5.0 million ($0.36/share), up 13% quarter-over-quarter, aided by incentive fee waivers.

• Net asset value (NAV) per share declined to $7.74 as of March 31, 2026, from $8.07 at year-end 2025, driven by unrealized losses in CLO JV and private investments.

• Total investment income for Q1 2026 was $9.5 million, down from $12.6 million in Q4 2025.

• Asset coverage ratio improved to 161.8% as of March 31, 2026, from 158.1% at year-end 2025; debt-to-equity ratio improved to 1.62x.

• Quarterly dividend of $0.25/share approved for Q2 2026, representing an 18% annualized yield on the May 1, 2026 closing price.

Outlook and guidance

• Focus remains on protecting and rebuilding NAV, with a deliberate shift to lower-risk, senior secured and private credit investments.

• No new CLO equity investments planned in the near term, reducing future portfolio volatility.

• Management confident in navigating current market conditions and delivering attractive risk-adjusted returns.

• Continued willingness to waive incentive fees if necessary to support dividend coverage and shareholder interests.

• Liquidity is sufficient to meet obligations for at least the next 12 months.