Great Elm Capital Corp. Announces Fourth Quarter and Full Year 2025 Financial Results and New Executive Chairman of Board
Rhea-AI Summary
Great Elm Capital Corp (NASDAQ: GECC) reported Q4 and full-year 2025 results and named Jason Reese as Executive Chairman effective March 2, 2026. GAAP NAV was $8.07 per share and pro forma NAV $8.23 per share as of December 31, 2025. The Investment Adviser waived accrued incentive fees (~$2.3M, $0.16/share) through March 31, 2026. Q4 net investment income was $0.31 per share, up >50% QoQ. The Board declared a $0.30 quarterly distribution (annualized yield 19.2% on 2/27/26 close), authorized a $10M share repurchase program, and called $20M of GECCO notes for redemption on March 31, 2026.
Positive
- Investment adviser waived accrued incentive fees of $2.3M (approx. $0.16/share)
- Q4 Net Investment Income $0.31 per share, >50% QoQ growth
- Strong liquidity: $5M cash, $50M revolver availability, plus liquid assets
- Board approved $0.30 quarterly distribution (19.2% annualized yield)
- Repurchased $18.7M of GECCO notes and called $20M for March 31, 2026
Negative
- GAAP NAV declined to $8.07 per share from $10.01 in Q3 2025 (NAV drop >19%)
- Net realized and unrealized losses of approx. $26.4M in Q4 2025
- Total debt outstanding remains $194.4M as of December 31, 2025
News Market Reaction – GECC
In the Mar 3 session, GECC declined 3.69%, reflecting a moderate negative market reaction. Argus tracked a trough of -6.7% from its starting point during tracking. Our momentum scanner triggered 4 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Nov 04 | Q3 2025 earnings | Negative | +3.4% | Reported NAV drop and large realized/unrealized losses in Q3 2025. |
| Oct 31 | Earnings call notice | Neutral | +2.9% | Announced timing and access details for Q3 2025 earnings call. |
| Oct 07 | Credit exposure update | Negative | +5.6% | Outlined bankruptcy impact and NAV hit from First Brands positions. |
| Sep 04 | Notes offering priced | Neutral | +0.4% | Priced $50M 7.75% notes due 2030 to refinance costlier debt. |
| Sep 04 | Notes offering launch | Neutral | +0.0% | Announced planned unsecured notes due 2030 for debt redemption. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent GECC news, including negative catalysts like First Brands exposure and NAV drops, has often coincided with flat-to-positive price reactions, suggesting a pattern of market resilience or prior expectations.
Over the last six months, GECC updates have focused on credit losses, balance sheet reshaping, and capital markets activity. The Q3 2025 earnings release showed a NAV drop to $10.01 and sizable losses, yet the stock rose modestly. A separate First Brands bankruptcy update detailed a material NAV hit but also preceded a gain. Debt offerings in September 2025 refinanced higher‑cost notes with limited price impact. Today’s Q4 and full‑year results, plus leadership changes and fee waivers, continue that theme of repairing credit quality while managing capital structure.
Key Terms
net investment income financial
net asset value financial
payment-in-kind financial
collateralized loan obligation financial
asset coverage ratio financial
revolving credit facility financial
nonaccrual financial
senior notes financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Company to Host Conference Call and Webcast at 8:30 AM ET on March 3, 2026
Jason Reese Appointed as Executive Chairman of the Board of Directors, Succeeding Matthew Drapkin and Fortifying the Board’s Management Oversight
Mr. Drapkin Continues to Serve as Vice Chairman of Great Elm Group, Inc. - Remaining Engaged with GECC and Great Elm Capital Management, LLC, its Investment Adviser
Platform Strengthened with Seasoned Credit Investor Chris Croteau Hired as Head of Research
GECC’s Investment Adviser Waives All Accrued Incentive Fees as of December 31, 2025, Equating to Approximately
GAAP NAV of
Pro Forma NAV of
Net Investment Income (“NII”) of
Strong Liquidity Position with Approximately
Repurchased
Call Notice Issued for
Board Declares
PALM BEACH GARDENS, Fla., March 02, 2026 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (“we,” “our,” the “Company” or “GECC”) (NASDAQ: GECC), a business development company, today announced both its financial results for the fourth quarter and full year ended December 31, 2025, and the appointment of Jason Reese as Executive Chairman of the Board of Directors.
Executive Chairman and Management Commentary
Jason Reese, Executive Chairman of the Board of Directors of the Company stated, “First, I would like to sincerely thank Matt Drapkin for his leadership and dedication to GECC during his tenure on the Board. It is important to note that Matt will continue in his role as Vice Chairman of GEG, working closely with me to create value for both GEG and GECC shareholders. His commitment to the Company has helped position GECC for its next chapter, and we appreciate his meaningful contribution and service.
I am honored to step into the role of Executive Chairman at GECC at this important time for the Company. GECC has a strong foundation, and I look forward to working closely with the Board and management team to build on that foundation with disciplined credit underwriting, active portfolio management, and a continued focus on long-term shareholder value.
The Manager's decision to waive all accrued and unpaid incentive fees through the first quarter of 2026 reflects a clear commitment to alignment with GECC shareholders. We believe this action underscores our focus on enhancing net asset value, improving earnings quality, and positioning GECC for sustainable performance going forward.
With decades of experience in credit investing and portfolio oversight, I am committed to bringing rigorous discipline, transparency, and accountability to GECC as we navigate today’s market environment and work to deliver attractive risk-adjusted returns for our investors.”
Matt Kaplan, GECC’s Chief Executive Officer, stated, “Our fourth quarter results reflected a challenging credit environment, including realized and unrealized losses in select positions. We proactively managed the portfolio during the quarter, exiting certain underperforming investments. We ended the period with ample liquidity, and less than
While capital deployment remained measured during the quarter, given historically tight spreads, we continued to expand our private credit pipeline, enhance portfolio credit quality, and further diversify the portfolio.
Finally, last week, we called
Recent Board Actions and Shareholder Returns
- GECC’s Board of Directors appointed Jason Reese as Executive Chairman effective today, succeeding Matthew Drapkin, 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 the “Investment Adviser”), GECC’s external investment adviser, waived all accrued incentive fees through March 31, 2026. As of December 31, 2025, there were approximately
$2.3 million , or$0.16 per share, of accrued incentive fees recorded on GECC’s balance sheet. - The Company’s Board of Directors approved a quarterly dividend of
$0.30 per share for the first quarter of 2026, equating to a19.2% annualized yield on GECC’s February 27, 2026, closing price of$6.26 . - In the fourth quarter of 2025, the GECC’s Board of Directors authorized a stock repurchase program, whereby the Company may opportunistically repurchase up to an aggregate of
$10 million of its outstanding common shares.
Fourth Quarter and Recent Operating Highlights
- Total investment income (“TII”) for the quarter ended December 31, 2025, was
$12.6 million , as compared to$10.6 million for the quarter ended September 30, 2025.- GECC received
$4.3 million of cash distributions from the CLO Formation JV, LLC (“CLO JV”) in the quarter ended December 31, 2025, as compared to$1.5 million in the quarter ended September 30, 2025. - Additionally, in the first quarter through March 2, 2026, GECC received
$2.5 million of cash distributions from the CLO JV.
- GECC received
- Net investment income (“NII”) for the quarter ended December 31, 2025, was
$4.4 million , or$0.31 per share, as compared to$2.4 million , or$0.20 per share, for the quarter ended September 30, 2025.- NII quarter-over-quarter growth in excess of
50% was primarily driven by increased cash income from investments.
- NII quarter-over-quarter growth in excess of
- Net assets were
$112.9 million , or$8.07 per share, as of December 31, 2025, as compared to$140.1 million , or$10.01 per share, as of September 30, 2025.- Unrealized losses comprised more than half of the change in net assets.
- Pro forma net assets, reflecting solely the impact of the incentive fee waiver as approved by the Company’s Investment Adviser, were
$115.2 million , or$8.23 per share, as of December 31, 2025. - GECC’s asset coverage ratio was
158.1% as of December 31, 2025, as compared to168.2% as of September 30, 2025.- Pro forma asset coverage ratio was approximately
166.0% as of December 31, 2025, reflecting the impact of the incentive fee waiver and called GECCO notes.
- Pro forma asset coverage ratio was approximately
Fourth Quarter and Other Recent Capital Activity
- In the fourth quarter of 2025, the Company repurchased approximately
$18.5 million of the outstanding principal amount of its5.875% senior notes due June 2026 (NASDAQ: GECCO) in open market transactions at prices at or below par, plus accrued interest. - Furthermore, in the first quarter through February 27, 2026, GECC repurchased approximately
$0.2 million of the outstanding principal amount of its GECCO notes at prices at or below par, plus accrued interest. - Last week we issued a notice to call
$20 million of GECCO notes on March 31, 2026, leaving less than$19 million outstanding as we exit 1Q 2026.
Full Year Commentary
- During 2025, the Company took steps to improve portfolio credit quality and earnings durability by exiting higher-risk investments, reducing payment-in-kind income as a percentage of total investment income, and ending the year with non-accruals below
1% of the portfolio. - We also strengthened our investment platform during the year with the addition of Chris Croteau as Head of Research. Mr. Croteau brings over 25 years of credit experience and has played a key role in portfolio development and underwriting.
Financial Highlights – Per Share Data
| Q4/2024 | Q1/2025 | Q2/2025 | Q3/2025 | Q4/2025 | |
| Earnings Per Share (“EPS”) | ( | ( | |||
| Net Investment Income (“NII”) Per Share | |||||
| Pre-Incentive Net Investment Income Per Share | |||||
| Net Realized and Unrealized Gains / (Losses) Per Share | ( | ( | ( | ( | |
| Net Asset Value Per Share at Period End | |||||
| Distributions Paid / Declared Per Share | |||||
Portfolio and Investment Activity
As of December 31, 2025, GECC held total investments of
- 67 debt investments in corporate credit, totaling approximately
$178.2 million , representing59.7% of the fair market value of the Company’s total investments. Secured debt investments comprised a substantial majority of the fair market value of the Company’s debt investments. - An investment in Great Elm Specialty Finance, totaling approximately
$38.4 million , comprised of one debt investment of$25.3 million and one equity investment of$13.1 million , representing8.5% and4.4% , respectively, of the fair market value of the Company’s total investments. - CLO investments, totaling approximately
$47.9 million , representing16.1% of the fair market value of the Company’s total investments. - Five dividend-paying equity investments, totaling approximately
$17.7 million , representing5.9% of the fair market value of the Company’s total investments. - Other equity investments, totaling approximately
$16.1 million , representing5.4% of the fair market value of the Company’s total investments.
As of December 31, 2025, the weighted average current yield on the Company’s debt portfolio was
During the quarter ended December 31, 2025, the Company deployed approximately
During the quarter ended December 31, 2025, the Company monetized, in part or in full, 46 investments for approximately
Financial Review
Total investment income for the quarter ended December 31, 2025, was
Net realized and unrealized losses for the quarter ended December 31, 2025, were approximately
Liquidity and Capital Resources
As of December 31, 2025, cash and money market fund investments totaled approximately
As of December 31, 2025, total debt outstanding (par value) was
Distributions
The Company’s Board of Directors has approved a quarterly cash distribution of
The distribution equates to a
Stock Repurchase Program
In the fourth quarter of 2025, the Company’s Board of Directors authorized a stock repurchase program, 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 March 3, 2026.
| Conference Call Details | |
| Date/Time: | Tuesday, March 3, 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.
Endnotes:
| (1) | Weighted average current yield is based upon the stated coupon rate and fair value of outstanding debt securities at the measurement date and excludes nine non-accrual investments with a fair value of |
| (2) | This includes new deals, additional fundings (including those on revolving credit facilities), refinancings and capitalized PIK income. Amounts included herein do not include investments in short-term securities, including United States Treasury Bills. |
| (3) | This includes scheduled principal payments, prepayments, sales and repayments (inclusive of those on revolving credit facilities). Amounts included herein do not include investments in short-term securities, including United States Treasury Bills. |
Media & Investor Contact:
Investor Relations
investorrelations@greatelmcap.com
GREAT ELM CAPITAL CORP.
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (unaudited)
Dollar amounts in thousands (except per share amounts)
| December 31, 2025 | December 31, 2024 | |||||||
| Assets | ||||||||
| Investments | ||||||||
| Non-affiliated, non-controlled investments, at fair value (amortized cost of | $ | 218,381 | $ | 240,958 | ||||
| Non-affiliated, non-controlled short-term investments, at fair value (amortized cost of | 32,803 | 8,448 | ||||||
| Affiliated investments, at fair value (amortized cost of | - | - | ||||||
| Controlled investments, at fair value (amortized cost of | 79,887 | 83,304 | ||||||
| Total investments | 331,071 | 332,710 | ||||||
| Cash and cash equivalents | 1,834 | - | ||||||
| Receivable for investments sold | 3,215 | 5,065 | ||||||
| Interest receivable | 2,182 | 3,306 | ||||||
| Dividends receivable | 1,046 | 364 | ||||||
| Due from portfolio company | - | 32 | ||||||
| Due from affiliates | 218 | 160 | ||||||
| Deferred financing costs | 256 | 237 | ||||||
| Prepaid expenses and other assets | 953 | 154 | ||||||
| Total assets | $ | 340,775 | $ | 342,028 | ||||
| Liabilities | ||||||||
| Notes payable (including unamortized discount of | $ | 189,319 | $ | 189,695 | ||||
| Payable for investments purchased | 33,652 | 11,194 | ||||||
| Interest payable | 64 | 32 | ||||||
| Accrued incentive fees payable | 2,267 | 1,712 | ||||||
| Distributions payable | - | 577 | ||||||
| Due to affiliates | 1,475 | 1,385 | ||||||
| Accrued expenses and other liabilities | 1,052 | 1,320 | ||||||
| Total liabilities | $ | 227,829 | $ | 205,915 | ||||
| Commitments and contingencies (Note 7) | ||||||||
| Net Assets | ||||||||
| Common stock, par value | $ | 140 | $ | 115 | ||||
| Additional paid-in capital | 358,778 | 332,111 | ||||||
| Accumulated losses | (245,972 | ) | (196,113 | ) | ||||
| Total net assets | $ | 112,946 | $ | 136,113 | ||||
| Total liabilities and net assets | $ | 340,775 | $ | 342,028 | ||||
| Net asset value per share | $ | 8.07 | $ | 11.79 | ||||
GREAT ELM CAPITAL CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Dollar amounts in thousands (except per share amounts)
| For the Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Investment Income: | ||||||||||||
| Interest income from: | ||||||||||||
| Non-affiliated, non-controlled investments | $ | 24,571 | $ | 24,619 | $ | 23,582 | ||||||
| Non-affiliated, non-controlled investments (PIK) | 3,080 | 3,026 | 2,281 | |||||||||
| Affiliated investments | - | 64 | 128 | |||||||||
| Controlled investments | 3,356 | 3,832 | 2,677 | |||||||||
| Controlled investments (PIK) | - | - | 233 | |||||||||
| Total interest income | 31,007 | 31,541 | 28,901 | |||||||||
| Dividend income from: | ||||||||||||
| Non-affiliated, non-controlled investments | 2,819 | 2,354 | 1,147 | |||||||||
| Controlled investments | 13,824 | 4,571 | 2,331 | |||||||||
| Total dividend income | 16,643 | 6,925 | 3,478 | |||||||||
| Other commitment fees from non-affiliated, non-controlled investments | - | 700 | 3,075 | |||||||||
| Other income from: | ||||||||||||
| Non-affiliated, non-controlled investments | 2,164 | 157 | 264 | |||||||||
| Non-affiliated, non-controlled investments (PIK) | 174 | - | 107 | |||||||||
| Total other income | 2,338 | 157 | 371 | |||||||||
| Total investment income | $ | 49,988 | $ | 39,323 | $ | 35,825 | ||||||
| Expenses: | ||||||||||||
| Management fees | $ | 4,987 | $ | 4,456 | $ | 3,539 | ||||||
| Incentive fees | 3,742 | 2,580 | 3,132 | |||||||||
| Administration fees | 1,619 | 1,376 | 1,522 | |||||||||
| Custody fees | 134 | 147 | 81 | |||||||||
| Directors’ fees | 213 | 211 | 205 | |||||||||
| Professional services | 2,023 | 1,816 | 1,772 | |||||||||
| Interest expense | 18,405 | 14,882 | 11,742 | |||||||||
| Other expenses | 967 | 1,054 | 1,003 | |||||||||
| Total expenses | $ | 32,090 | $ | 26,522 | $ | 22,996 | ||||||
| Net investment income before taxes | $ | 17,898 | $ | 12,801 | $ | 12,829 | ||||||
| Excise tax | $ | 579 | $ | 348 | $ | 287 | ||||||
| Net investment income | $ | 17,319 | $ | 12,453 | $ | 12,542 | ||||||
| Net realized and unrealized gains (losses): | ||||||||||||
| Net realized gain (loss) on investment transactions from: | ||||||||||||
| Non-affiliated, non-controlled investments | $ | (5,285 | ) | $ | 2,500 | $ | (1,246 | ) | ||||
| Affiliated investments | - | (626 | ) | - | ||||||||
| Controlled investments | - | - | (3,461 | ) | ||||||||
| Realized loss on repurchase of debt | (222 | ) | (3 | ) | - | |||||||
| Total net realized gain (loss) | (5,507 | ) | 1,871 | (4,707 | ) | |||||||
| Net change in unrealized appreciation (depreciation) on investment transactions from: | ||||||||||||
| Non-affiliated, non-controlled investments | (32,515 | ) | (7,129 | ) | 15,040 | |||||||
| Affiliated investments | - | (22 | ) | (226 | ) | |||||||
| Controlled investments | (11,086 | ) | (3,620 | ) | 2,684 | |||||||
| Total net change in unrealized appreciation (depreciation) | (43,601 | ) | (10,771 | ) | 17,498 | |||||||
| Net realized and unrealized gains (losses) | $ | (49,108 | ) | $ | (8,900 | ) | $ | 12,791 | ||||
| Net increase (decrease) in net assets resulting from operations | $ | (31,789 | ) | $ | 3,553 | $ | 25,333 | |||||
| Earnings per share (basic and diluted): | $ | (2.57 | ) | $ | 0.36 | $ | 3.33 | |||||
| Weighted average shares outstanding (basic and diluted): | 12,360,314 | 9,844,014 | 7,601,958 | |||||||||
