Great Elm Group (GEG) Q2 2026 earnings summary

Executive summary

• Fiscal Q2 2026 saw a net loss of $16.5 million, primarily due to $14.4 million in unrealized losses from market volatility, especially in BDCs and CoreWeave-related investments, despite $2.3 million in realized gains.

• Revenue for the quarter was $3.0 million, down from $3.5 million year-over-year, mainly due to lower property sales and incentive fees, partially offset by new construction management revenue.

• Fee-paying AUM grew 4% year-over-year to $561 million as of December 31, 2025, while total AUM reached $740 million.

• The company completed its third Monomoy build-to-suit property, expanded real estate and credit businesses, and integrated construction services.

• Liquidity remained strong with $51.2 million in cash and marketable securities at quarter-end, supporting growth initiatives.

Financial highlights

• Net loss for the quarter was $16.5 million, compared to net income of $1.4 million in the prior year period.

• Adjusted EBITDA was a loss of $1.6 million versus a gain of $1 million a year ago.

• Book value per share was $1.79 as of December 31, 2025.

• Cash and cash equivalents increased to $51.2 million from $30.6 million at June 30, 2025.

• Basic and diluted EPS for the quarter were $(0.50), compared to $0.04 in the prior-year period.

Outlook and guidance

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

• Management expects continued upside from CoreWeave-related investments and is actively marketing the third build-to-suit property for sale.

• Plans to leverage strong liquidity to pursue new investments and expand differentiated product offerings.