Great Elm Capital Corp. Announces First Quarter 2026 Financial Results
Rhea-AI Summary
Great Elm Capital Corp (NASDAQ: GECC) reported 1Q26 results on May 4, 2026. Key metrics: NII $0.36 per share (≈13% QoQ), NAV $7.74 per share, and net assets $107.5 million as of March 31, 2026. The investment adviser waived incentive fees through 2Q26.
Board appointed Jason Reese as CEO, declared a $0.25 quarterly dividend (18% annualized on May 1 close), repurchased shares and repaid $57.5 million of GECCO notes, leaving no funded debt maturing until 2029. Liquidity included ~$10 million cash and $50 million revolver availability.
Positive
- Incentive fees waived through June 30, 2026 ($2.8M previously waived)
- Net investment income of $0.36 per share in Q1 2026
- Called or repurchased all $57.5M GECCO notes due June 2026
- Strong liquidity: ~$10M cash and $50M revolver availability
Negative
- Net assets declined to $107.5M, NAV down to $7.74 per share
- Net realized and unrealized losses of $5.7M in Q1 2026
- Total investment income fell to $9.5M from $12.6M prior quarter
News Market Reaction – GECC
In the May 5 session, GECC gained 2.71%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Nov 04 | Quarterly earnings | Negative | +3.4% | Q3 2025 NAV drop to $10.01 and $24.4M in losses despite capital raises. |
| Aug 04 | Quarterly earnings | Positive | +0.6% | Record Q2 2025 TII of $14.3M, higher NII, NAV up to $12.10, strong yield. |
| May 05 | Quarterly earnings | Positive | +5.7% | Record Q1 2025 TII of $12.5M, higher NII, dividend raised to $0.37. |
| Mar 10 | Annual & Q4 results | Neutral | -0.1% | Q4 2024 NII down but asset coverage improved and dividends, including special, increased. |
| Dec 16 | Distribution announcement | Positive | +3.8% | Q1 2025 dividend raised to $0.37 and $0.05 special cash distribution declared. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings and distribution updates have often been followed by modest positive moves, with one notable divergence when shares rose despite negative NAV and loss commentary.
Over the past five earnings-related announcements, GECC has highlighted shifting NAV levels, changes in net investment income, and recurring focus on distributions. Q1 and Q2 2025 releases emphasized record total investment income, rising NII, and dividend increases, while Q3 2025 featured a sharp NAV decline and sizable realized and unrealized losses. Earlier, 2024 results showed lower NII but higher dividends and improved asset coverage. The Dec 2024 special and increased distribution also drew a positive reaction. Today’s Q1 2026 results and dividend decision fit into this pattern of income-focused updates amid NAV volatility.
Key Terms
net investment income financial
net asset value financial
nonaccrual financial
revolving credit facility financial
asset coverage ratio financial
mark-to-market financial
senior notes financial
private placement financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Company to Host Conference Call and Webcast at 8:30 AM ET on May 5, 2026
Jason Reese, Executive Chairman of the Board of Directors, Appointed as CEO of the Company
GECC’s Investment Adviser Waives 2Q26 Incentive Fees, Following the Waiver of
Net Investment Income (“NII”) of
NAV of
Called or Repurchased All
Strong Liquidity Position with Approximately
Repurchased Approximately
Board Declares
PALM BEACH GARDENS, Fla., May 04, 2026 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (“we,” “our,” the “Company” or “GECC”) (NASDAQ: GECC), a business development company, today announced its financial results for the first quarter ended March 31, 2026.
Management Commentary
Jason Reese, Chairman of the Board of Directors and Chief Executive Officer of the Company, stated, “I am honored to step into the role of CEO of GECC. In my first few months as Executive Chairman, I have focused on executing a clear mandate: Strengthening oversight, protecting shareholder value, and reinforcing accountability across the platform. The progress we have made this quarter reflects that commitment. We have brought greater rigor, transparency, and accountability to the platform, and I am encouraged by the direction of the portfolio and the quality of the team executing on our strategy. I would like to thank Matt Kaplan for his leadership during his tenure as CEO. Matt will continue in his role as Portfolio Manager.
The Manager's decision to waive all accrued and unpaid incentive fees through the second quarter of 2026 demonstrates alignment with GECC shareholders. We remain focused on increasing net asset value, improving earnings quality, and positioning GECC for sustainable performance. With a strong foundation in place and continued discipline across credit underwriting and portfolio oversight, I am confident we are well-positioned to navigate the current market environment and deliver attractive, risk-adjusted returns to our investors. Our first quarter results exhibit meaningful progress in building a portfolio positioned for durable, long-term performance. At quarter end, GECC had less than
While capital deployment remained measured during the quarter given the historically tight spread environment, we expanded our private credit pipeline and further diversified the portfolio. We ended the period with ample liquidity, including meaningful cash on hand, full availability under our revolving credit facility, and a healthy base of liquid assets.”
Recent Board Actions and Shareholder Returns
- GECC’s Board of Directors appointed Jason Reese as Chief Executive Officer on May 4, 2026, succeeding Matt Kaplan, following Mr. Reese’s appointment as Executive Chairman on March 2, 2026, to provide seasoned credit investment experience and active management oversight. Mr. Reese currently serves as Chairman and CEO of Great Elm Group, Inc. (NASDAQ: GEG), the parent of the Company’s investment adviser, Great Elm Capital Management, LLC (“GECM” or “Investment Adviser”).
- GECM waived all accrued incentive fees through June 30, 2026, in addition to previously waiving all
$2.8 million , or$0.20 per share, of accrued incentive fees through March 31, 2026. - The Company’s Board of Directors approved a quarterly dividend of
$0.25 per share for the second quarter of 2026, equating to an18% annualized yield on GECC’s May 1, 2026, closing price of$5.56 . - The Company’s Board of Directors authorized a stock repurchase program in October 2025, whereby the Company may opportunistically repurchase up to an aggregate of
$10 million of its outstanding common shares. Through May 1, 2026, the Company repurchased approximately 0.1 million shares for$0.5 million , at an average price of$4.98 per share or a36% discount to the Company’s NAV on March 31, 2026, leaving approximately$9.5 million of remaining capacity under the program for future repurchases.
First Quarter and Recent Operating Highlights
- Total investment income (“TII”) for the quarter ended March 31, 2026, was
$9.5 million , as compared to$12.6 million for the quarter ended December 31, 2025.- GECC received
$2.5 million of cash distributions from the CLO Formation JV, LLC (“CLO JV”) in the quarter ended March 31, 2026, as compared to$4.3 million in the quarter ended December 31, 2025, driven by the uneven cadence of CLO cash flows.
- GECC received
- Net investment income (“NII”) for the quarter ended March 31, 2026, was
$5.0 million , or$0.36 per share, as compared to$4.4 million , or$0.31 per share, for the quarter ended December 31, 2025.- NII increased, despite lower TII, primarily due to the benefit of the incentive fee waiver.
- Net assets were
$107.5 million , or$7.74 per share, as of March 31, 2026, as compared to$112.9 million , or$8.07 per share, as of December 31, 2025.- Unrealized losses, primarily resulting from mark-to-market volatility, drove the change in net assets, partially offset by realized gains and the positive impact of the incentive fee waiver.
- GECC recently called or repurchased all
$57.5 million of GECCO notes, including calling the$18.6 million outstanding balance of the notes for redemption on May 27, 2026. - GECC’s asset coverage ratio was
161.8% as of March 31, 2026, as compared to158.1% as of December 31, 2025. - Subsequent to quarter end, GECC received an additional
$1.2 million distribution from its CoreWeave-related investment, bringing total distributions to date to approximately$8.1 million , well in excess of its$6.0 million original capital investment.
Financial Highlights – Per Share Data
| Q1/2025 | Q2/2025 | Q3/2025 | Q4/2025 | Q1/2026 | ||||||
| Earnings Per Share (“EPS”) | ( | ( | ||||||||
| Net Investment Income (“NII”) Per Share | ||||||||||
| Net Realized and Unrealized Gains / (Losses) Per Share | ( | ( | ( | ( | ||||||
| Net Asset Value Per Share at Period End | ||||||||||
| Distributions Paid / Declared Per Share | ||||||||||
Financial Review
Total investment income for the quarter ended March 31, 2026, was
Net realized and unrealized losses for the quarter ended March 31, 2026, were approximately
Liquidity and Capital Resources
As of March 31, 2026, cash and money market fund investments totaled approximately
As of March 31, 2026, total debt outstanding (par value) was
Distributions
The Company’s Board of Directors has approved a quarterly cash distribution of
The distribution equates to an
Stock Repurchase Program
The Company’s Board of Directors authorized a stock repurchase program in October 2025, whereby the Company may opportunistically repurchase up to an aggregate of
Conference Call and Webcast
GECC will discuss these results in a conference call at 8:30 a.m. ET on May 5, 2026.
Conference Call Details
| Date/Time: | Tuesday, May 5, 2026 – 8:30 a.m. ET |
| Participant Dial-In Numbers: | |
| (United States): | 877-407-0789 |
| (International): | 201-689-8562 |
To access the call, please dial-in approximately five minutes before the start time and, when asked, provide the operator with passcode “GECC”. An accompanying slide presentation will be available in pdf format via the “Events and Presentations” section of Great Elm Capital Corp.’s website here after the issuance of the earnings release.
Webcast
The call and presentation will also be simultaneously webcast over the internet via the “Events and Presentations” section of GECC’s website or by clicking on the webcast link here.
About Great Elm Capital Corp.
GECC is an externally managed business development company that seeks to generate current income and capital appreciation by investing in debt and income generating equity securities, including investments in specialty finance businesses and CLOs. For additional information, please visit http://www.greatelmcc.com.
Cautionary Statement Regarding Forward-Looking Statements
Statements in this communication that are not historical facts are “forward-looking” statements within the meaning of the federal securities laws. These statements include statements regarding our future business plans and expectations. These statements are often, but not always, made through the use of words or phrases such as “expect,” “anticipate,” “should,” “will,” “estimate,” “designed,” “seek,” “continue,” “upside,” “potential” and similar expressions. All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the results expressed in the statements. The key factors that could cause actual results to differ materially from those projected in the forward-looking statements include, without limitation: conditions in the credit markets, our expected financings and investments, including interest rate volatility, inflationary pressure, the price of GECC common stock and the performance of GECC’s portfolio and investment manager. Information concerning these and other factors can be found in GECC’s Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission. GECC assumes no obligation to, and expressly disclaims any duty to, update any forward-looking statements contained in this communication or to conform prior statements to actual results or revised expectations except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.
Media & Investor Contact:
Investor Relations
investorrelations@greatelmcap.com
GREAT ELM CAPITAL CORP.
STATEMENTS OF ASSETS AND LIABILITIES (unaudited)
Dollar amounts in thousands (except per share amounts)
| March 31, 2026 | December 31, 2025 | |||||||
| Assets | ||||||||
| Investments | ||||||||
| Non-affiliated, non-controlled investments, at fair value (amortized cost of | $ | 191,783 | $ | 218,381 | ||||
| Non-affiliated, non-controlled short-term investments, at fair value (amortized cost of | 9,600 | 32,803 | ||||||
| Affiliated investments, at fair value (amortized cost of | - | - | ||||||
| Controlled investments, at fair value (amortized cost of | 75,380 | 79,887 | ||||||
| Total investments | 276,763 | 331,071 | ||||||
| Cash and cash equivalents | - | 1,834 | ||||||
| Receivable for investments sold | 1,442 | 3,215 | ||||||
| Interest receivable | 2,385 | 2,182 | ||||||
| Dividends receivable | 782 | 1,046 | ||||||
| Due from affiliates | 178 | 218 | ||||||
| Deferred financing costs | 211 | 256 | ||||||
| Prepaid expenses and other assets | 1,003 | 953 | ||||||
| Total assets | $ | 282,764 | $ | 340,775 | ||||
| Liabilities | ||||||||
| Notes payable (including unamortized discount of | $ | 169,143 | $ | 189,319 | ||||
| Payable for investments purchased | 3,859 | 33,652 | ||||||
| Interest payable | 73 | 64 | ||||||
| Accrued incentive fees payable | - | 2,267 | ||||||
| Due to affiliates | 1,492 | 1,475 | ||||||
| Accrued expenses and other liabilities | 720 | 1,052 | ||||||
| Total liabilities | $ | 175,287 | $ | 227,829 | ||||
| Commitments and contingencies (Note 7) | ||||||||
| Net Assets | ||||||||
| Common stock, par value | $ | 139 | $ | 140 | ||||
| Additional paid-in capital | 358,251 | 358,778 | ||||||
| Accumulated losses | (250,913 | ) | (245,972 | ) | ||||
| Total net assets | $ | 107,477 | $ | 112,946 | ||||
| Total liabilities and net assets | $ | 282,764 | $ | 340,775 | ||||
| Net asset value per share | $ | 7.74 | $ | 8.07 | ||||
GREAT ELM CAPITAL CORP.
STATEMENTS OF OPERATIONS (unaudited)
Dollar amounts in thousands (except per share amounts)
| For the Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Investment Income: | ||||||||
| Interest income from: | ||||||||
| Non-affiliated, non-controlled investments | $ | 5,089 | $ | 6,402 | ||||
| Non-affiliated, non-controlled investments (PIK) | 819 | 611 | ||||||
| Controlled investments | 812 | 953 | ||||||
| Total interest income | 6,720 | 7,966 | ||||||
| Dividend income from: | ||||||||
| Non-affiliated, non-controlled investments | 159 | 236 | ||||||
| Controlled investments | 2,546 | 3,376 | ||||||
| Total dividend income | 2,705 | 3,612 | ||||||
| Other income from: | ||||||||
| Non-affiliated, non-controlled investments | 119 | 743 | ||||||
| Non-affiliated, non-controlled investments (PIK) | - | 174 | ||||||
| Total other income | 119 | 917 | ||||||
| Total investment income | $ | 9,544 | $ | 12,495 | ||||
| Expenses: | ||||||||
| Management fees | $ | 1,072 | $ | 1,272 | ||||
| Incentive fees | 543 | 1,150 | ||||||
| Administration fees | 510 | 355 | ||||||
| Custody fees | 35 | 38 | ||||||
| Directors’ fees | 54 | 53 | ||||||
| Professional services | 514 | 424 | ||||||
| Interest expense | 4,256 | 4,251 | ||||||
| Other expenses | 296 | 308 | ||||||
| Total expenses | $ | 7,280 | $ | 7,851 | ||||
| Incentive fee waiver | (2,810 | ) | - | |||||
| Net expenses | $ | 4,470 | $ | 7,851 | ||||
| Net investment income before taxes | $ | 5,074 | $ | 4,644 | ||||
| Excise tax | $ | 91 | $ | 68 | ||||
| Net investment income | $ | 4,983 | $ | 4,576 | ||||
| Net realized and unrealized gains (losses): | ||||||||
| Net realized gain (loss) on investment transactions from: | ||||||||
| Non-affiliated, non-controlled investments | $ | 2,632 | $ | 264 | ||||
| Realized loss on repurchase of debt | (2 | ) | - | |||||
| Total net realized gain (loss) | 2,630 | 264 | ||||||
| Net change in unrealized appreciation (depreciation) on investment transactions from: | ||||||||
| Non-affiliated, non-controlled investments | (3,851 | ) | (2,066 | ) | ||||
| Controlled investments | (4,507 | ) | (2,321 | ) | ||||
| Total net change in unrealized appreciation (depreciation) | (8,358 | ) | (4,387 | ) | ||||
| Net realized and unrealized gains (losses) | $ | (5,728 | ) | $ | (4,123 | ) | ||
| Net increase (decrease) in net assets resulting from operations | $ | (745 | ) | $ | 453 | |||
| Earnings per share (basic and diluted): | $ | (0.05 | ) | $ | 0.04 | |||
| Weighted average shares outstanding (basic and diluted): | 13,984,828 | 11,544,415 | ||||||
