Great Elm Group (GEG) investor relations material

Executive summary

• Fiscal Q3 2026 saw a net loss of $13.5 million, primarily due to unrealized losses on GECC investments amid market volatility.

• Revenue increased 7% year-over-year to $3.4 million, driven by growth in construction management fees.

• Assets under management totaled $744 million, with fee-paying AUM at $528 million as of March 31, 2026.

• The company realigned its segment reporting to Alternative Credit and Real Estate, expanding alternative asset management and real estate platforms.

• Over $45 million in cash and equivalents supports ongoing growth initiatives.

Financial highlights

• Net loss for Q3 2026 was $13.5 million, compared to $4.5 million in Q3 2025, mainly due to unrealized losses on GECC holdings.

• Adjusted EBITDA was $(1.6) million, down from $0.5 million in the prior-year period.

• Unrealized losses on investments totaled $9.8 million to $10.9 million, primarily from GECC share price volatility.

• Cash and cash equivalents totaled $45.5 million as of March 31, 2026.

• Book value per share was approximately $1.33, down due to net loss and share repurchases.

Outlook and guidance

• Focus remains on growing fee-paying AUM, scaling alternative credit and real estate businesses, and sourcing new investment opportunities.

• Management is actively exploring additional capital raising opportunities for real estate ventures.

• Continued upside potential from CoreWeave-related investment, with $6.8 million in distributions received on a $5 million investment.

• Plans to expand the platform and add differentiated investment solutions with attractive risk-adjusted returns.

• No unfunded binding commitments to make additional investments as of the report date.