Great Elm Capital Corp. Announces Third Quarter 2026 Financial Results
Lower investment income and renewed incentive fee accruals weighed on quarterly earnings, while investment losses reduced net asset value.
Sentiment and the balance of points
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Rhea-AI Summary
Great Elm Capital (NASDAQ: GECC) reported third-quarter 2026 net investment income of $0.17 per share, down from the preceding quarter. Net investment income fell to $2.4 million from $4.5 million, while investment income declined to $8.7 million from $10.9 million. Earnings were a $0.30 per-share loss, versus a $0.46 profit in the second quarter.
Net asset value fell to $7.40 per share from $7.95 at June 30, including a $3.3 million fair-value decline in the CLO Formation joint venture. September 30 liquidity included approximately $6 million in cash and money market investments and $44 million of revolving credit availability. GECC redeemed $6.5 million of GECCI notes and repurchased approximately 350,000 shares through October 30 at a 33% discount to September 30 net asset value. The board approved a $0.25 fourth-quarter distribution, unchanged from the third quarter.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointGECCI note redemption retired $6.5 million of debt due April 2029. 9.5% of market cap
- Moderate pointSeptember 30 liquidity included approximately $6 million in cash and money market investments and $44 million of credit availability.
- Moderate pointCoreWeave-related equity distributions reached approximately $10.3 million, including $0.8 million this quarter, against $6.0 million originally invested.
- Moderate pointThird-quarter net expenses fell to $6.528 million from $7.971 million a year earlier.
- Minor pointThird-quarter excise tax was a $208,000 benefit, versus a $238,000 expense a year earlier.
2 minor points
- Minor pointNine-month earnings improved to $0.10 per share from a $0.83 loss a year earlier.
- Minor pointGreat Elm Specialty Finance distributions increased during the quarter.
Negative
- Moderate pointThird-quarter investment income fell to $8.7 million from $10.9 million in the second quarter.
- Moderate pointThird-quarter net investment income declined to $0.17 per share from $0.32 in the second quarter.
- Moderate pointThird-quarter earnings were a $0.30 per-share loss, versus a $0.46 profit sequentially and $1.79 loss a year earlier.
- Moderate pointNet assets fell 6.9% quarter over quarter to $102.7 million; per-share value declined from $7.95 to $7.40.
- Moderate pointThird-quarter investment losses totaled $6.6 million, including a $3.3 million CLO Formation joint-venture fair-value decline. 9.6% of market cap
- Moderate pointSeptember 30 debt totaled $154.9 million at par, including $6.0 million drawn on the revolver.
4 minor points
- Minor pointIncentive fee accruals resumed after the prior-quarter waiver; third-quarter fees totaled $593,000.
- Minor pointAsset coverage slipped to 166.3% at September 30 from 166.4% at June 30.
- Minor pointNine-month investment income fell to $29.134 million from $37.414 million a year earlier.
- Minor pointNine-month net investment income declined to $11.860 million from $12.913 million a year earlier.
News Explained
GECC says
Details
Market Reaction – GECC
On Nov 2, the day this news came out, the latest delayed price for GECC is 0.60% below the previous close. The latest delayed price is $4.97. Relative volume is very high at 3.0x what this stock usually trades by this time of day.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.
Key Figures
- Net investment income
- $2.4 million, or $0.17 per share
- Q3 2026; compared with $4.5 million, or $0.32 per share, in Q2 2026
- Total investment income
- $8.7 million
- Q3 2026; compared with $10.9 million in Q2 2026
- Net asset value
- $7.40 per share
- As of September 30, 2026; compared with $7.95 per share as of June 30, 2026
- Net realized and unrealized losses
- $6.6 million, or ($0.48) per share
- Quarter ended September 30, 2026
- Quarterly distribution
- $0.25 per share
- Fourth quarter of 2026
- Revolving credit availability
- $44 million
- As of September 30, 2026
- Share repurchases
- 241,235 shares for $1.2 million
- July 1 through October 30, 2026; at an average price of $4.95 per share
- GECCI notes redeemed
- $6.5 million
- Redeemed during the quarter; notes due April 2029
Previous Earnings Reports
-
NII was $0.32 per share and NAV rose to $7.95 per share, providing prior-quarter comparables.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
nii financial
clo financial
pik financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Company to Host Conference Call and Webcast at 8:30 AM ET on November 3, 2026
Disciplined Portfolio Management and Selective Capital Deployment, Supported by a Growing Pipeline of Differentiated Investment Opportunities
Net Investment Income (“NII”) of
NAV of
Strong Liquidity Position with Approximately
Redeemed
Year-to-Date through October 30, 2026, Repurchased Approximately 350,000 Shares at a
Board Declares
PALM BEACH GARDENS, Fla., Nov. 02, 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 third quarter ended September 30, 2026.
Management Commentary
Jason Reese, Chairman of the Board of Directors and Chief Executive Officer of the Company, stated: “Our third quarter results reflect a challenging credit environment and continued pressure on certain portfolio investments, particularly our CLO joint venture. While net investment income and NAV declined during the quarter, we remain focused on strengthening portfolio performance, maintaining disciplined underwriting standards and positioning GECC for more consistent earnings and long-term value creation.
“We made meaningful progress advancing our investment strategy during the quarter, expanding our pipeline of private investment opportunities and further diversifying the portfolio. We continue to emphasize credit quality, attractive risk-adjusted returns and durable cash income, while leveraging our institutional relationships to access differentiated opportunities across private credit and select equity investments. Importantly, our underlying credit portfolio remains healthy. We also saw positive momentum across our specialty finance platform, with distributions from Great Elm Specialty Finance increasing meaningfully during the quarter.
“We remain actively engaged with our CLO partners to address performance and identify opportunities to enhance the value of those investments. At the same time, we continue to manage our balance sheet proactively, reducing our highest-cost debt while maintaining substantial liquidity and financial flexibility. We also repurchased shares at a significant discount to NAV, reflecting our confidence in the long-term value of our portfolio and our commitment to disciplined capital allocation.
“Looking ahead, we believe our growing pipeline of differentiated investments, strong liquidity position and continued focus on portfolio optimization provide a solid foundation for improving earnings performance and creating long-term shareholder value.”
Recent Board Actions and Shareholder Returns
- The Company’s Board of Directors approved a quarterly dividend of
$0.25 per share for the fourth quarter of 2026, equating to a20.2% annualized yield on GECC’s October 30, 2026, closing price of$4.95 . - From July 1, 2026, through October 30, 2026, the Company repurchased 241,235 shares for approximately
$1.2 million , at an average price of$4.95 per share or a33% discount to the Company’s net asset value (“NAV”) on September 30, 2026.
Third Quarter and Recent Operating Highlights
- Total investment income (“TII”) for the quarter ended September 30, 2026, was
$8.7 million , as compared to$10.9 million for the quarter ended June 30, 2026.- The quarter-over-quarter decrease was primarily driven by a
$2.0 million dividend received from the Company's investment in insurance-related preference shares in the prior quarter.
- The quarter-over-quarter decrease was primarily driven by a
- Net investment income (“NII”) for the quarter ended September 30, 2026, was
$2.4 million , or$0.17 per share, as compared to$4.5 million , or$0.32 per share, for the quarter ended June 30, 2026.- The decrease in NII was primarily driven by lower TII and the reinstatement of incentive fee accruals following the waiver of such fees in the prior quarter.
- Net assets were
$102.7 million , or$7.40 per share, as of September 30, 2026, as compared to$110.4 million , or$7.95 per share, as of June 30, 2026.- The
6.9% quarter-over-quarter decrease in net assets was primarily driven by realized and unrealized investment losses, including a$3.3 million decrease in the fair value of the CLO Formation JV investment.
- The
- During the quarter ended September 30, 2026, GECC received
$0.8 million of distributions from its CoreWeave-related equity investment, bringing total distributions to date to approximately$10.3 million , well in excess of its$6.0 million original capital investment. - GECC’s asset coverage ratio was
166.3% as of September 30, 2026, as compared to166.4% as of June 30, 2026.
Financial Highlights – Per Share Data
| Q3/2025 | Q4/2025 | Q1/2026 | Q2/2026 | Q3/2026 | |||||||||||||||
| Earnings Per Share (“EPS”) | $ | (1.79 | ) | $ | (1.57 | ) | $ | (0.05 | ) | $ | 0.46 | $ | (0.30 | ) | |||||
| Net Investment Income (“NII”) Per Share | $ | 0.20 | $ | 0.31 | $ | 0.36 | $ | 0.32 | $ | 0.17 | |||||||||
| Net Realized and Unrealized Gains / (Losses) Per Share | $ | (1.98 | ) | $ | (1.88 | ) | $ | (0.41 | ) | $ | 0.14 | $ | (0.48 | ) | |||||
| Net Asset Value (“NAV”) Per Share | $ | 10.01 | $ | 8.07 | $ | 7.74 | $ | 7.95 | $ | 7.40 | |||||||||
| Distributions Paid / Declared Per Share | $ | 0.37 | $ | 0.37 | $ | 0.30 | $ | 0.25 | $ | 0.25 | |||||||||
Financial Review
Total investment income for the quarter ended September 30, 2026, was
Net realized and unrealized losses for the quarter ended September 30, 2026, were approximately
Liquidity and Capital Resources
As of September 30, 2026, cash and money market fund investments totaled approximately
As of September 30, 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 a
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 November 3, 2026.
Conference Call Details
| Date/Time: | Tuesday, November 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 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)
| September 30, 2026 | December 31, 2025 | |||||||
| Assets | ||||||||
| Investments | ||||||||
| Non-affiliated, non-controlled investments, at fair value (amortized cost of and | $ | 155,840 | $ | 218,381 | ||||
| Non-affiliated, non-controlled short-term investments, at fair value (amortized cost of | 5,586 | 32,803 | ||||||
| Affiliated investments, at fair value (amortized cost of respectively) | 8,244 | - | ||||||
| Controlled investments, at fair value (amortized cost of respectively) | 81,358 | 79,887 | ||||||
| Total investments | 251,028 | 331,071 | ||||||
| Cash and cash equivalents | - | 1,834 | ||||||
| Receivable for investments sold | 637 | 3,215 | ||||||
| Interest receivable | 2,045 | 2,182 | ||||||
| Dividends receivable | 1,025 | 1,046 | ||||||
| Due from affiliates | 73 | 218 | ||||||
| Deferred financing costs | 480 | 256 | ||||||
| Prepaid expenses and other assets | 1,418 | 953 | ||||||
| Total assets | $ | 256,706 | $ | 340,775 | ||||
| Liabilities | ||||||||
| Notes payable (including unamortized discount of | $ | 144,808 | $ | 189,319 | ||||
| Revolving credit facility | 6,000 | - | ||||||
| Payable for investments purchased | 464 | 33,652 | ||||||
| Interest payable | 97 | 64 | ||||||
| Accrued incentive fees payable | 593 | 2,267 | ||||||
| Due to affiliates | 1,225 | 1,475 | ||||||
| Accrued expenses and other liabilities | 800 | 1,052 | ||||||
| Total liabilities | $ | 153,987 | $ | 227,829 | ||||
| Commitments and contingencies (Note 7) | ||||||||
| Net Assets | ||||||||
| Common stock, par value shares issued and outstanding and 13,998,168 shares issued and outstanding, respectively) | $ | 139 | $ | 140 | ||||
| Additional paid-in capital | 358,239 | 358,778 | ||||||
| Accumulated losses | (255,659 | ) | (245,972 | ) | ||||
| Total net assets | $ | 102,719 | $ | 112,946 | ||||
| Total liabilities and net assets | $ | 256,706 | $ | 340,775 | ||||
| Net asset value per share | $ | 7.40 | $ | 8.07 | ||||
GREAT ELM CAPITAL CORP.
STATEMENTS OF OPERATIONS (unaudited)
Dollar amounts in thousands (except per share amounts)
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Investment Income: | ||||||||||||||||
| Interest income from: | ||||||||||||||||
| Non-affiliated, non-controlled investments | $ | 3,933 | $ | 5,907 | $ | 13,271 | $ | 18,869 | ||||||||
| Non-affiliated, non-controlled investments (PIK) | 571 | 866 | 2,093 | 2,121 | ||||||||||||
| Affiliated investments | 62 | - | 232 | - | ||||||||||||
| Affiliated investments (PIK) | 13 | - | 149 | - | ||||||||||||
| Controlled investments | 970 | 810 | 2,681 | 2,528 | ||||||||||||
| Total interest income | 5,549 | 7,583 | 18,426 | 23,518 | ||||||||||||
| Dividend income from: | ||||||||||||||||
| Non-affiliated, non-controlled investments | - | 95 | 2,207 | 2,663 | ||||||||||||
| Controlled investments | 2,647 | 1,965 | 7,762 | 9,245 | ||||||||||||
| Total dividend income | 2,647 | 2,060 | 9,969 | 11,908 | ||||||||||||
| Other income from: | ||||||||||||||||
| Non-affiliated, non-controlled investments | 315 | 999 | 556 | 1,814 | ||||||||||||
| Non-affiliated, non-controlled investments (PIK) | 183 | - | 183 | 174 | ||||||||||||
| Total other income | 498 | 999 | 739 | 1,988 | ||||||||||||
| Total investment income | $ | 8,694 | $ | 10,642 | $ | 29,134 | $ | 37,414 | ||||||||
| Expenses: | ||||||||||||||||
| Management fees | $ | 974 | $ | 1,253 | $ | 3,061 | $ | 3,803 | ||||||||
| Incentive fees | 593 | - | 2,037 | 2,620 | ||||||||||||
| Administration fees | 280 | 505 | 1,262 | 1,243 | ||||||||||||
| Custody fees | 32 | 38 | 100 | 113 | ||||||||||||
| Directors’ fees | 55 | 53 | 162 | 159 | ||||||||||||
| Professional services | 642 | 587 | 1,743 | 1,470 | ||||||||||||
| Interest expense | 3,692 | 5,485 | 11,816 | 14,054 | ||||||||||||
| Other expenses | 260 | 50 | 838 | 665 | ||||||||||||
| Total expenses | $ | 6,528 | $ | 7,971 | $ | 21,019 | $ | 24,127 | ||||||||
| Incentive fee waiver | - | - | (3,711 | ) | - | |||||||||||
| Net expenses | $ | 6,528 | $ | 7,971 | $ | 17,308 | $ | 24,127 | ||||||||
| Net investment income before taxes | $ | 2,166 | $ | 2,671 | $ | 11,826 | $ | 13,287 | ||||||||
| Excise tax | $ | (208 | ) | $ | 238 | $ | (34 | ) | $ | 374 | ||||||
| Net investment income | $ | 2,374 | $ | 2,433 | $ | 11,860 | $ | 12,913 | ||||||||
| Net realized and unrealized gains (losses): | ||||||||||||||||
| Net realized gain (loss) on investment transactions from: | ||||||||||||||||
| Non-affiliated, non-controlled investments | $ | (2,214 | ) | $ | 6,156 | $ | 3,360 | $ | 6,879 | |||||||
| Affiliated investments | - | - | 1 | - | ||||||||||||
| Realized loss on repurchase of debt | - | - | (2 | ) | - | |||||||||||
| Total net realized gain (loss) | (2,214 | ) | 6,156 | 3,359 | 6,879 | |||||||||||
| Net change in unrealized appreciation (depreciation) on investment transactions from: | ||||||||||||||||
| Non-affiliated, non-controlled investments | 996 | (28,339 | ) | (842 | ) | (22,726 | ) | |||||||||
| Affiliated investments | (744 | ) | - | (2,944 | ) | - | ||||||||||
| Controlled investments | (4,638 | ) | (2,262 | ) | (9,979 | ) | (6,882 | ) | ||||||||
| Total net change in unrealized appreciation (depreciation) | (4,386 | ) | (30,601 | ) | (13,765 | ) | (29,608 | ) | ||||||||
| Net realized and unrealized gains (losses) | $ | (6,600 | ) | $ | (24,445 | ) | $ | (10,406 | ) | $ | (22,729 | ) | ||||
| Net increase (decrease) in net assets resulting from operations | $ | (4,226 | ) | $ | (22,012 | ) | $ | 1,454 | $ | (9,816 | ) | |||||
| Earnings per share (basic and diluted): | $ | (0.30 | ) | $ | (1.79 | ) | $ | 0.10 | $ | (0.83 | ) | |||||
| Weighted average shares outstanding (basic and diluted): | 13,889,750 | 12,315,210 | 13,921,112 | 11,808,363 | ||||||||||||
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Great Elm Capital's third-quarter 2026 earnings and net investment income?
GECC reported a $0.30 per-share loss and $0.17 per share of net investment income for the quarter ended September 30, 2026. The preceding quarter produced earnings of $0.46 per share and net investment income of $0.32 per share.
When will GECC pay its fourth-quarter 2026 dividend?
GECC's $0.25 per-share fourth-quarter cash distribution is payable December 31, 2026, to shareholders of record December 15, 2026. It equates to a 20.2% annualized yield on the October 30 closing price of $4.95 and a 13.5% annualized yield on September 30 net asset value.
Why did Great Elm Capital's investment income fall in the third quarter of 2026?
The company attributed the sequential investment-income decline primarily to a $2.0 million dividend from insurance-related preference shares received in the prior quarter. Total investment income was $8.7 million in the third quarter, compared with $10.9 million in the second quarter.