Great Elm Capital (GECC) Q1 2026 earnings summary

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) for Q1, aligned management with shareholders and were accretive to NAV.

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

• Portfolio diversification increased, with a focus on first lien and private credit investments amid a tight spread environment.

• NAV per share declined to $7.74 as of March 31, 2026, from $8.07 at December 31, 2025, reflecting unrealized losses and distributions.

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.

• Total investment income for Q1 2026 was $9.5 million, down from $12.6 million in Q4 2025 and $12.5 million in Q1 2025.

• Net assets at March 31, 2026, were $107.5 million, with portfolio fair value at $267.2 million.

• Asset coverage ratio improved to 161.8% from 158.1% sequentially; debt-to-equity ratio improved to 1.62x from 1.72x.

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

Outlook and guidance

• Focus remains on protecting and rebuilding NAV, improving earnings quality, and delivering attractive risk-adjusted returns.

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

• Ongoing evaluation of share repurchases, debt paydown, and new investments based on risk-adjusted returns.

• Management believes liquidity is sufficient to meet obligations for at least the next 12 months.