Great Elm Group (GEG) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 saw transformative growth, with total revenue more than doubling to $17.8 million, driven by increased incentive fees and a major property sale, and a focus on asset management and shareholder value.

• Adjusted EBITDA rose to $4.8 million from $1.0 million in the prior year, reflecting improved profitability.

• Net loss from continuing operations was $(0.9) million for fiscal 2024, compared to net income of $14.5 million in fiscal 2023, due to unrealized investment losses.

• Assets under management (AUM) reached $749 million pro forma as of June 30, 2024, up 17% year-over-year; fee-paying AUM (FPAUM) up 22%.

• Launched new business lines, including a private credit fund and a construction management consulting business.

Financial highlights

• Q4 revenue tripled year-over-year to $8.9 million, mainly due to a property sale.

• Q4 Adjusted EBITDA was $1.2 million, up from $0.4 million in the prior-year quarter.

• Q4 net loss from continuing operations narrowed to $(0.6) million from $(5.3) million year-over-year.

• Fiscal year net loss from continuing operations was $(0.9) million, including $(3.8) million in unrealized losses on investments.

• Book value per share was approximately $2.06 as of June 30, 2024.

Outlook and guidance

• Focus for fiscal 2025 is on expanding core credit and real estate businesses, sourcing unique investments, and leveraging a strong balance sheet for platform growth.

• Debt and equity capital raises at GECC are expected to drive future recurring fee revenue with high contribution margins.

• Monomoy BTS is focused on the sale of a second property in 2025 and expanding its project pipeline.

• Anticipated further capital raises and growth in fee-paying AUM in the coming year.